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# FRONTLINE Presents 'Money Power and Wall Street'

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<!-- video src="https://cdn.jwplayer.com/manifests/RrnRLrZf.m3u8" -->
## Video: FRONTLINE Presents 'Money Power and Wall Street'

[Watch (HLS stream): FRONTLINE Presents 'Money Power and Wall Street'](https://cdn.jwplayer.com/manifests/RrnRLrZf.m3u8) (4:47)

![FRONTLINE Presents 'Money Power and Wall Street'](https://cdn.jwplayer.com/v2/media/RrnRLrZf/poster.jpg?width=720)

_Published 2012-04-30. Watch an exclusive clip from FRONTLINE's 'Money, Power and Wall Street' (Part Two), airing tonight on PBS_


---

Jul 27, 2023 3:24 PM UTC

---

## More From This Series

[All Videos](https://time.com/video/)

[Video: Inside the Wall Street Protests](/video/ZK8kpNnY/)

### Video: Inside the Wall Street Protests

[Trailer: Wall Street: Money Never Sleeps](/video/CMXkMOvR/)

### Trailer: Wall Street: Money Never Sleeps

[Marine One on Wall Street](/video/IbUuZ8YD/)

### Marine One on Wall Street

---


## Transcript

Behind the scenes it was another nail biter, the ground continues I never really cared about money per se, I never really wanted to become a rich person, I knew that the people I was working with wanted to be rich so, I wasn't offended by that idea, what seemed like a typical American goal fact. Catia O'Neil a mathematician. Came to Wall Street in 2007, after beginning her career in academia. I went to UC Berkeley as an undergrade, I went to Harvard for grad school and then I was a post- doc for five years at MIT. And I applied to work at a hedge fund, D. E. Shaw, and I got the job. And I thought this was great.

I was a quant. A quant uses statistical methods to try to project patterns in the market. Her work was used to predict when big pension funds would buy or sell, so the firm could jump in ahead of their trades. I just felt like I was doing something immoral. I just, I was taking advantage of People I don't even know whose retirements were in these funds. We all put money into our 401Ks and Wall Street takes this money and just skims off, like, a certain percentage every quarter. At the very end of somebody's career, they retire, and they get some of that back. [ MUSIC ] This is, this persons money and it's just basically, going to, to Wall Street, this doesnt seem right.

Everybody kind of knows in their heart, that somethings not right, but once you are making money for awhile, you don't ever want to stop making money. Kaitlin Klein came to Wall Street in 2004. She says it was all very seductive. Your whole first summer is taken up with things like golf lessons and negotiation classes, wine tasting, things to make sure you know how to handle yourself in a business environment. [ SOUND ] Kline was a math major at New York University and considered becoming a teacher. [ SOUND ] But she remained on Wall Street for six years. You have this sinking suspicion that you're not contributing to society.

But it was always really easy to say, I know the risk, they know the risks, none of this is our money. So, you know, we can kind of do these things and it's all fair game. [ CROSSTALK ] I don't think I had at any point thought I was doing anything harmful. I just didn't think I was doing something necessarily positive. Alexis Goldstein graduated from Columbia with a degree in Computer Science. She then designed trading software for Dolcheback and Merrill Lynch. There's an incentive, to make as much money as you can for the firm. And in some senses I think for the traders, they think hey I earned a billion dollars this year, I deserve some small percentage of that.

What I think is, is incorrect about that is the behavior that that incentivizes is, I'm gonna go for broke, I'm gonna try and make as much money as I can, and if it blows up three years from now that's not gonna affect the bonus I make today. Here at Yahoo 250 to buy and I'm selling Hewlett Packard about 200. The incentives are powerful. A young trader at a big Wall Street bank can make around $ 150, 000 a year. Alright let's put all hands on deck. I'm typing up these MUs. I'll have them done in like one second. But based on performance that number can rise quickly. [ SOUND ] Star traders make huge sums.

So how much are you making if you're a star trader? For a star trader you could after ten years reach pay about five or ten million dollars, for the star performers, you see, that wasn't the average. Ten million dollars a year. How much did you make as a trader? I, I was, I, I think I was stop it from her so I probably forgot the, the baker of the star performers, yeah. So between five to ten million dollars a year. Like I said. Is that, is it a secret. [ LAUGH ] Well, it, it was a secret, in fact, I mean compensations were, were not public. For all the obvious reasons. I, I'd really rather not say.

If that's okay. Cuz I just don't know if that's, publiclly available information. But it's certainly, like, more than you would get at most, at first time jobs. [ NOISE ] I shouldn't talk about that. That's in, that's in the contract I can't talk about any salaries or bonuses or anything like that, but it was a lot of money I mean especially for young people you know.

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