Stories of Capitalism: Inside the Role of Financial Analysts

205 Pages·2018·1.02 MB·English

by  Stefan Leins

Stories of Capitalism

Stories of Capitalism
InsIde the Role of fInancIal analysts
Stefan Leins
The University of Chicago Press Chicago and London
publIcatIon of thIs book has been aIded by gRants
fRom the bevIngton fund and the swIss
natIonal scIence foundatIon.
The University of Chicago Press, Chicago 60637
The University of Chicago Press, Ltd., London
© 2018 by The University of Chicago
All rights reserved. No part of this book may be used or reproduced in any
manner whatsoever without written permission, except in the case of brief
quotations in critical articles and reviews. For more information, contact the
University of Chicago Press, 1427 East 60th Street, Chicago, IL 60637.
Published 2018
Printed in the United States of America
27 26 25 24 23 22 21 20 19 18 1 2 3 4 5
Isbn-13: 978-0-226-52339-2 (cloth)
Isbn-13: 978-0-226-52342-2 (paper)
Isbn-13: 978-0-226-52356-9 (e- book)
doI: 10.7208/chicago/9780226523569.001.0001
Library of Congress Cataloging-in-Publication Data
Names: Leins, Stefan, author.
Title: Stories of capitalism : inside the role of financial analysts / Stefan Leins.
Description: Chicago ; London : The University of Chicago Press, 2018. |
Includes bibliographical references and index.
Identifiers: lccn 2017031750 | Isbn 9780226523392 (cloth : alk. paper) |
Isbn 9780226523422 (pbk. : alk. paper) | Isbn 9780226523569 (e-book)
Subjects: lcsh: Financial analysts | Financial services industry—Employees. |
Finance—Social aspects. | Investment banking—Social aspects—Switzerland. |
Banks and banking—Switzerland. | Business anthropology.
Classification: lcc hg4621 .l45 2018 | ddc 332.1—dc23
lc record available at https://lccn.loc.gov/2017031750
♾ This paper meets the requirements of ansI/nIso Z39.48-1992
(Permanence of Paper)
Contents
Acknowledgments vii
1 · Meeting the Predictors 1
2 · The Problem with Forecasting in
Economic Theory 15
3 · Inside Swiss Banking 29
4 · Among Financial Analysts 49
5 · Intrinsic Value, Market Value, and
the Search for Information 69
6 · The Construction of an Investment Narrative 95
7 · The Politics of Circulating Narratives 119
8 · Analysts as Animators 136
9 · Why the Economy Needs Narratives 154
Methodological Appendix 161
Notes 165
References 173
Index 189

Acknowledgments
The fieldwork for this study began long before I planned my actual
research project. To finance my studies in anthropology, I spent sev-
eral years working part- time in banks. The first bank I worked for, a
French institution, has now become well known as the field site of
Vincent Lépinay’s Codes of Finance (2011). The second bank was a US
bank in Zurich. I did not choose to work in banks because of a par-
ticular interest in financial markets. Rather, my decision was based
on the fact that banks paid better salaries to working students than
bars or archives did. From the very first day on the job, however, the
cultural features of finance intrigued me. I remember the first time I
dressed as a banker, participated in one of the drinking rituals, and
experienced the feeling of finger- counting one million US dollars that
a US client wanted to pick up in cash. These experiences were made
possible by a number of banking practitioners who trusted me and al-
lowed me to become familiar with their working environment.
Later, at Swiss Bank, the main observation site of my research,
another group of bankers made it possible for me to do fieldwork in-
side the bank. I had the good fortune of being supervised by excellent
mentors with a sincere interest in anthropology and in a critical as-
sessment of current financial market activities. Furthermore, many
of the financial analysts helped me by providing information, explain-
ing their working routines, and allowing me to become part of their
professional lives. Without these individuals, this research would
not have been possible, and I gratefully acknowledge their support.
It is common in ethnographies to omit the real names of these door
openers and interlocutors. I trust that they will nevertheless be able
to identify themselves.
[ viii ] acknowledgments
My academic mentors, Peter Finke and Ellen Hertz, accompanied
my research project from the beginning and substantially contrib-
uted to the completion of this book. I want to thank Peter for opening
the doors to academia for me, for believing in my project, and for his
ongoing support, academically as well as personally. Similarly, Ellen
showed incredible support and shared her great expertise throughout
the entire research and writing phase. It was Ellen’s idea to send the
manuscript to the University of Chicago Press—something I would
probably not have dared to do. Thank you, Ellen! Heinz Käufeler also
deserves my gratitude. As director of the Swiss Graduate School in
Anthropology, he gave a whole generation of young researchers like
me the chance to meet and discuss our research projects. In addition
to that, Heinz was always there for an inspiring talk on anthropology
and actually everything else, from daily politics to hipster culture.
Swiss Bank’s research program funded the fieldwork phase of my
project. The Forschungskredit of the University of Zurich provided fi-
nancial support during the writing phase. Both these institutions al-
lowed me to fully focus on my academic interests, while at the same
time providing me with the financial means to do so. I thank everyone
involved in the decision to fund this project.
While I worked on this project, many people helped to improve
my study by sharing their comments and ideas. At the Department
of Social Anthropology and Cultural Studies in Zurich, my colleagues
contributed to my work through countless inspiring discussions and
informal talks. As part of the Swiss Graduate School in Anthropology,
Jean and John Comaroff, Aldo Haesler, George Marcus, Richard
Rottenburg, and Heinzpeter Znoj commented on my project. At Gold-
smiths, Rebecca Cassidy, Claire Loussouarn, Andrea Pisac, and Alex
Preda provided useful input. In Jena, sociologists working with Oliver
Kessler, Jens Maesse, and Hanno Pahl helped me to strengthen my
line of argumentation. So did Karin Knorr Cetina, who commented
on my research at a workshop held in Zurich in 2015. Carlo Caduff
and Bill Maurer provided valuable comments on the original research
outline. Sandra Bärnreuther read parts of my revised manuscript. And
Emilio Marti was kind enough to read my introduction and theoreti-
cal discussion to check whether my line of argumentation made sense
to a scholar from organization and management studies.
Laura Bear of the London School of Economics anthropology de-
acknowledgments [ ix ]
partment, where I spent two terms as a visiting researcher in 2015, was
an invaluable mentor and provided a wealth of insightful comments
on my study. She also coordinated the Programme on the Anthro-
pology of Economy that gave me the opportunity to discuss my work
with some of the world’s leading economic anthropologists. I thank
Ritu Birla, Maxim Bolt, Kimberly Chong, Elisabeth Ferry, Karen
Ho, Caroline Humphrey, Deborah James, Stine Puri, Gisa Weszkal-
nys, and Caitlin Zaloom for their comments during the workshop on
speculation that took place at LSE in May 2015. I also thank Juan Pablo
Pardo- Guerra and Leon Wansleben, who offered their comments at
various times.
Furthermore, I am indebted to the Zurich- based Economy and
Culture reading group that met regularly to discuss the history of eco-
nomic thought from Mandeville to Mankiw. As part of our curriculum,
Nina Bandi, David Eugster, Dominik Gross, Michael Koller, and Julia
Reichert read and commented on an early version of the book.
At the University of Chicago Press, Priya Nelson shared my en-
thusiasm for the book’s topic and helped me turn my first manuscript
into a readable and hopefully enjoyable book. I am indebted to Priya,
the editorial board of the University of Chicago Press, and the manu-
script’s reviewers for believing in my book and helping me to improve
it. Daromir Rudnyckyj, who agreed to reveal his identity, was one of
the reviewers. His detailed and inspiring comments are now reflected
in many parts of the book.
Last but not least, my family and friends provided me with un-
wavering support during my research and motivated me at times
when it seemed hard to continue. I thank my mother Dominique
and my father Thomas for their unconditional support and the
great amount of love they have given me and my siblings, Miriam
and Robin. Your beautiful ways of promoting creativity, curiosity,
and open- mindedness have been the very foundation for this book.
Finally, and above all, I owe my gratitude to Nadja Mosimann. With-
out your intellect, your passion, and your unparalleled personal sup-
port, none of this would have been possible. Thank you, Nadja—for no
less than everything. This book is dedicated to you.