AT THIS time of year, as they await their Christmas bonuses, people on Wall Street ponder their worth. Two questions can sharpen the mind of even the most senior employee. Imagine first accepting a position in Donald Trump’s new administration. How great a financial loss would your employer suffer? Before Trump picked Scott Bessent as his treasury secretary, two of America’s biggest financial institutions weighed that question. Analysts quizzed Jamie Dimon, the boss of JPMorgan Chase, about whether he would leave the bank for public office. Shareholders of Apollo worried about a future without Marc Rowan, who has transformed the investment firm in recent years.
The second question is dicier still: how much damage could you inflict on your employer? Whether by fat fingers or fraud, the quantum of losses an individual is trusted to avoid is a good proxy for their importance. Anyone can steal a paper clip. Few are able to tank a hedge fund (and, indirectly, a big bank) with huge, concentrated trades like Bill Hwang, an investor who received an 18-year prison sentence on Nov 20. Wall Street rewards those who are very good at doing risky jobs.
Hero worship
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