Finance

Study: Psychopaths Less Impulsive and Manipulative Than Stockbrokers

Remember that rogue trader Kweku Adoboli who lost UBS $2 billion from an unauthorized trade earlier this month? Since his arrest, some have characterized his actions as inexplicably irrational and impulsive.

The 31-year-old, who had been based in London for the Swiss bank, is currently in jail. Since his disastrous trade, UBS bank chief executive Oswald Grübel has had to resign over the scandal–the third major embarrassment to strike UBS in just a few years.

The situation mirrors a similar scandal at French bank Société Générale, where, according to Der Spiegel, another young “rogue trader,” Jérôme Kerviel , gambled away billions in 2007 and 2008.

Various commentators have gone so far as to say that the behavior of both Kerviel and Adoboli was completely irrational; almost psychotic. But now, according to a recent study, that characterization my be insulting to actual psychopaths.

Study: Psychopaths Less Impulsive and Manipulative Than StockbrokersAccording to a new study from the University of St. Gallen in Switzerland, tests that pitted a group of stockbrokers against a group of actual psychopaths in various computer simulations and intelligence tests found that the Wall Street traders were more reckless, competitive, and manipulative.

Researchers at the Swiss research university measured the readiness to cooperate and the egotism of 28 professional traders who took part in computer simulations and intelligence tests, reports Der Spiegel.The results of the brokers, compared with the behavior of psychopaths, surprised the study’s co-authors, forensic expert Pascal Scherrer, and Thomas Noll, a lead administrator at the Pöschwies prison north of Zürich.

“Naturally one can’t characterize the traders as deranged,” a prison administrator who co-authored the study told the German newspaper.

 

Deranged or not, the tests show that the stockbrokers “behaved more egotistically and were more willing to take risks.” But not the good kind of risks. The brokers took risks calculated to ensure the loss of their competition rather than secure their own personal gain. According to the report, “the traders were not even attempting to maximize their scores so much as to gain a competitive edge.”Study: Psychopaths Less Impulsive and Manipulative Than Stockbrokers“They spent a lot of energy trying to damage their opponents,” the administrator said. Using a metaphor to describe the behavior, Noll said the stockbrokers behaved as though their neighbor had the same car, “and they took after it with a baseball bat so they could look better themselves.”

Instead of taking a sober and businesslike approach to reaching the highest profit, “it was most important to the traders to get more than their opponents,” Noll explained.

The researchers are currently unable to explain this penchant for destruction. Perhaps money really is the root of all evil.

Comments (23)

  • Formula382
    Posted on October 1, 2011 at 7:29pm

    I am a retail advisor (broker changed to advisor as it has a friendlier connotation I suppose) for a large firm. I’m like every other small business owner in the country though as I have and work for my own book of clients. I work hard, I feed my family, I pay my bills/taxes and try to do right by my fellow man every day. This piece isn’t worthy of reading let alone commenting on it. I will say this however, after spending the first 5 years in healthcare out of school, I went back to school to study economics so I could get into a broker career. 1.3 people out of 10 make it in the business. It is the hardest, most emotional, soul sucking business on the plannet! The hardest to make 50K per year, and the easiest to make 200K if that makes sense.

    But, at the end of the day, I‘m like every other small business owner in the country and wouldn’t trade that for anything.

    Report Post »  
  • jaylew
    Posted on September 30, 2011 at 3:19pm

    I understand that the stock market is certainly one of the heart muscles that keep the capitalist engine running…but I have often thought while watching the activity on the floor that it is a form of organized insanity. I do not mean to personally attack the hard work of traders because frankly it is was way too hectic for me. But perhaps like a disturbed ant bed with ants scurrying every where each with a specific duty to protect the nest and begin immediate repairs…the floor of busy open trading stock markets is just as frenzied as a disturbed ant bed. I would never make the statement that stock traders are among the persons currently defined by psychiatric manuals as psychopaths. But I can see something on the floor of an active stock trading floor that is clearly way too mental for me.

    Report Post » jaylew  
  • hnuh
    Posted on September 30, 2011 at 12:41pm

    Insidious leftist propaganda. Collectivist thought. Grouping dissimilar individuals by characteristic to produce desired conclusion. Anti capitalist drivel. Everyone knows the more competitive the environment the more competitive the players… they run the steers off… academia, politics, film and music industries, pretty much any environment where a person doesn’t have to produce results to extract compensation are more competitive than even the awful evil wall street traders school.

    Report Post »  
  • Buck Shane
    Posted on September 30, 2011 at 10:32am

    4% of men and 2% of women are psychopathic. Those sats. are open to question because psychopathy is only now diagnosed subjectively. Psychopaths, if they are stupid, end up in jail. If they are smart, become corp. CEOs and politicians. A psychopath has not conscience, no fear, no reason to be fair or honest. They make such good politicians that some of them become Pres.

    Report Post » Buck Shane  
  • chicago76
    Posted on September 29, 2011 at 11:42pm

    Is that supposed to make me feel good?

    Report Post »  
  • nostromo
    Posted on September 29, 2011 at 8:19pm

    I retired after 37 years as a retail broker and I can tell you there is no more competitive business as the brokerage industry. Yes, even people who worked next to you in the same company were your enemy and you had to beat their numbers. That was the nature of the business and the nature of the people who thrived in it. Frankly, I would easily believe many of us were psychopaths in the heyday of the good times.

    Report Post »  
  • raderby
    Posted on September 29, 2011 at 12:37pm

    But are Wall St. dudes MORE psychopathic than politicians? Or is it more sociopathic? My money is on the pols.

    Report Post » raderby  
    • jaylew
      Posted on September 30, 2011 at 3:22pm

      Outstanding point raderby…stock traders only have seconds to decide their next plan of action…politicians do it over dinner an a glass of wine…and some do it after a 3 hour session with a paid escort. Politicians are way more able to plan any deliberate wickedness…they have the gift of time on their side.

      Report Post » jaylew  
  • alexegz30
    Posted on September 29, 2011 at 12:31pm

    Clearly a piece directed at attacking capitalism. You want shocking results? Compare decisions made by psychopaths to those done by politicians intent on keeping their position and power. The results would be far more shocking than depicting those whose lives revolve around manipulating and exchanging money acting reckless when trying to make more in an unstable environment.

    Report Post »  
  • malcolmpats
    Posted on September 29, 2011 at 11:05am

    I think that is a form of psychopathic behavior- to win at all costs. I have read books on various psychopaths, and like people they are all very differnt, except they really do not care about anyone else, or have any real sympathy. They cannot feel empathy or love towards anyone else. They might like some people better than others, but how does one really measure?
    Psychopaths are not all serial killers, sexual sadists and the like, they just feel no remorse for waht they do, and how they do it. Many in the business, politics, etc I would classify as psychopathic, because they do not care whom they hurt on their way to more power, $, etc. There are some really good books about psychopaths and their behaviors. One book is called The Psychopath Next Door. A very interesting read. There are others, especially read anything by Robert Hare.

    Report Post »  
  • krahmk
    Posted on September 29, 2011 at 9:44am

    “Perhaps money really is the root of all evil.”

    Please get your quotes correct. It is the LOVE of money that is the root of all evil. Remember the 10 Commandments Thou Shalt Not Covet….

    Report Post »  
    • kpchaos
      Posted on September 29, 2011 at 10:55pm

      Thank you! i was going to respond with that (1 Tim 6:10 for those of you who are wondering) but you did it for me.
      Not to mention, “The brokers took risks calculated to ensure the loss of their competition rather than secure their own personal gain” doesn’t sound like a love of money to me, more like a love of power. If anyone is interested in a great book about justice and political power, I suggest “Whatever happened to Justice” by Richard Maybury

      Report Post »  
  • Chet Hempstead
    Posted on September 29, 2011 at 3:34am

    So next time you hear someone say he made a killing in the market, look around the room and memorize the location of the exits.

    Report Post »  
    • cozmo
      Posted on September 29, 2011 at 4:17am

      “The researchers are currently unable to explain this penchant for destruction. Perhaps money really is the root of all evil.”

      Perhaps money is not the root of all evil. they just wanted to hurt their competitors instead of just making money. If i were a trader i would be worried about making money period. I don’t give a damn about the competition. if they are making money good if they aren’t good as long as i am

      Report Post »  
    • grandmaof5
      Posted on September 29, 2011 at 6:19am

      Obviously my half brother was not included in that study or the results would have been alot different.

      Report Post »  
    • Snowleopard {gallery of cat folks}
      Posted on September 29, 2011 at 7:43am

      Also here is a new study results as well: “Psychopaths found to be less impulsive and manipulative than politicians…and more honest…”

      Grandmaof5 — morning, hope all is fine in Fla today; so is your brother a stock broker then or such?

      Report Post » Snowleopard {gallery of cat folks}  
  • Tronix
    Posted on September 29, 2011 at 1:43am

    That’s nothing, the worst is a psychopath girlfriend

    Report Post » Tronix  
  • blue_sky
    Posted on September 29, 2011 at 12:56am

    So called “scientists” are even more manipulative than stock brokers.
    We need Ron Paul and free-market to cancel all those tenures.

    Report Post »  
  • GhostOfJefferson
    Posted on September 28, 2011 at 11:53pm

    Ah, yes, those who dabble in capital are psychopaths. We get it MSM, we get it. You hate wealth creators. No, really, we get it, thanks. Now go play at the kid table, k?

    Report Post » GhostOfJefferson  
  • scout n ambush
    Posted on September 28, 2011 at 11:47pm

    So according to this study our gov’t is less impulsive and manipulative than stockbrokers ?

    Report Post » scout n ambush  
  • broker0101
    Posted on September 28, 2011 at 11:44pm

    Are Psychopaths more or less impulsive and manipulative than gold brokers, too?

    Report Post » broker0101  
    • GodblessGlennBeck
      Posted on September 29, 2011 at 9:30am

      The irony here (first off) is that I’d like to know the agenda of the study researchers. If that turns out to be innocuous, then let’s talk about the INDIVIDUALS who made those poor decisions, rather than lumping all of the people who choose brokering as their profession into ONE category. While stock traders and financial professionals are seemingly rewarded for being risk-takers (speaking as one with a degree in finance), it does logically take persons of strong stomach lining to take those risks. (Hence, I did not go into my chosen college major as a profession in my adult life!) To abuse that power and take ridiculous risks is the choice of THOSE INDIVIDUALS, and an unfortunate choice for them and their employers. Once again, you can’t lump every person in a particular profession into one group and LABEL them. Of all websites, this is the one I count on to dispel those “mob mentality” ideas. We are Americans who believe in the the individual and their character first, foremost, and always.

      Report Post »  

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