The easiest way to explain the never-ending string of Wall Street scandals and implosions is to observe that a surprising percentage of people in the financial industry are psychos.
The latest edition of CFA Magazine, a trade publication for chartered financial analysts, features an article claiming one out of 10 people working on Wall Street are psychopaths.
Sherree DeCovny, the former investment broker who wrote the piece, says the estimate came from researchers, including a psychologist who treats Wall Street professionals.
In the 2005 book, “The Sociopath Next Door,” Harvard University psychologist Martha Stout claims one out of every 25 people in America is a sociopath. She defines sociopath as a person with no conscience.
“Sociopath” and “psychopath” describe a similar range of anti-social traits, including a lack of empathy, no regard for consequences and unbridled risk-taking. Ms. DeCovny defines them this way: “Back when we were little children…and we were learning right from wrong, they didn’t get it.”
Sometimes these people turn out to be Jeffrey Dahmer and drill a hole through your skull. But if you send them to Harvard and dress them in a fine suit, they could become your boss, your CEO or your senator. They excel in any arena where aggressive behavior is rewarded and where grandiose levels of confidence can result in rousing applause.
I have come to know many psychopaths, from Ponzi-schemers to book-cooking corporate executives. They are always charming and narcissistic. They display wonderfully glib senses of humor and spin the truth like a roulette wheel.
It is often difficult to argue that these people are indeed sick until the day they have to exchange their Armani suit for an orange jumpsuit.
I only know one man who openly admits he’s a psychopath. I called him to see what he thought of the numbers Ms. DeCovny reported.
“First of all, it’s not one out of 10,” says Sam Antar. “It’s probably eight out of 10.”
Read the rest here.
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