In finance, the primary capital base of a firm is its reputation and network of dealmakers. When you're just starting out, you have nothing here, which is why n

In finance, the primary capital base of a firm is its reputation and network of dealmakers. When you're just starting out, you have nothing here, which is why newbie I-bankers work 16 hour days and only get paid in the high 5-figures. But once you've been at it for a couple years, you've built up a network, and those clients are yours, which is why experienced I-bankers rake in the dough and have nice working conditions. I'm sorry, but I've worked on Wall Street, and you couldn't be more wrong. I-banking analyst positions are for mediocrities full of empty ambition. Workhorses who'll suck up the shittiest tasks and say, "Give me more." Anyone smart who is interested in finance tries to find a hedge fund that'll take him as a quant or trader... or to get an MBA first, Analysts do not usually have these sorts of options; they endure the miserable lifestyle because they, by and large, are not especially talented or qualified people, and they simply wouldn't otherwise be eligible for the exit opportunities (top MBA, private equity) made available by this path. Third- and fourth-year bankers do not have their a personal client base... not even close. Additionally, it's logistically difficult to "steal" clients; investment banking is an oligarchy and I think it's extremely difficult to start an independent investment bank. It would also be extremely unlikely that a client would switch loyalties based on the movement of a peon VP. Finally, investment bankers don't have decent working conditions until they attain Managing Director level, and that takes about 10-15 years. Your odds of success as a serial entrepreneur over 15 years would be much higher than the odds of making MD before washing out. The primary capital base of a banking firm is partly its reputation, but largely the money itself, since even the vanilla operations of banking are costly and risky.