Bloomberg Wall Street Reporter Sonali Basak discusses how financial firms are hiring ex-spies, diplomats, and soldiers to navigate geopolitical conflicts and election years. They explore the transition from military to finance, the risks and benefits of former spies working for companies, and the advantage of leveraging deep knowledge of conflicts and government relationships in the banking industry.
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Quick takeaways
Financial firms are hiring former spies and intelligence officials to navigate geopolitical risks and conflicts.
Former spies in banking provide expertise in managing government balance sheets and navigating potential crises.
Deep dives
Financial firms hiring former spies and military personnel
Financial firms are increasingly hiring former spies, diplomats, and soldiers to help navigate geopolitical risks and prepare for potential conflicts. Banks like Lazard have hired individuals with significant experience, such as Bill McRaven, who led counter-terrorism operations for the US and oversaw the raid that killed Osama bin Laden. The current state of geopolitical affairs and the increasing number of elections worldwide have led banks to seek out the expertise and deep knowledge that these individuals bring. Former intelligence officials, soldiers, and diplomats are being hired in greater numbers, and these positions offer significantly higher pay compared to government service.
Banking roles for ex-intelligence personnel: benefits, concerns, and the brain drain
Former spies and intelligence officials taking on roles in banking can apply their skills and insights to help banks and asset managers identify and manage risks that may have broader implications. Banks hire these individuals to understand geopolitical risks and potential conflicts that may impact their clients' investments. While these roles offer compensation surpassing that of government service, there are concerns about brain drain from the government, as individuals with valuable expertise leave for more lucrative positions in the private sector. However, for those in government positions who have experienced dangerous situations and bunker life, transitioning to banking allows them to apply their skills, help others, and have a more stable lifestyle.
Former spies-turned-bankers: the day-to-day and their role in managing geopolitical risks
Former spies working in banking have travel-intensive roles, meeting clients worldwide and working closely with governments, central banks, and prime ministers. Banks like Lazard rely on the insights of individuals who have a deep understanding of conflicts, energy crises, and geopolitical dynamics. Their knowledge and experience enable banks to better manage government balance sheets and provide advice on how to navigate potential crises. While their work is not as glamorous as portrayed in shows like 'Homeland,' these former spies-turned-bankers bring a level of expertise and pattern recognition to the table, allowing for more informed decision-making and risk management.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg News Wall Street Reporter Sonali Basak discusses her Businessweek story about financial firms deploying security pros to help navigate wars and a year packed with elections. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.