It’d easy to understand why Ruth Porat, the chief financial officer of the venerable investment bank Morgan Stanley and one of the most powerful women on Wall Street, would want to head west to become C.F.O. of Google… there is some solid evidence that Ms. Porat isn’t the only person deciding that technology offers a more compelling opportunity than banking… In 2008, 45 percent of M.B.A. recipients there went into financial services, versus 7 percent into technology…in 2014, it was 33 percent finance versus 17 percent technology…the economists Stephen G. Cecchetti of Brandeis University and Enisse Kharroubi of the Bank for International Settlements have found clear evidence that an unusually large financial sector actually reduces the growth rate of an economy, rather than enhances it… Read more:http://www.nytimes.com/2015/03/25/upshot/why-wall-streeters-defecting-to-silicon-valley-is-good-news-for-the-economy.html?smid=tw-nytimes&abt=0002&abg=0

Morgan Stanley CFO Ruth Porat is off to manage Google’s finances, and her new job has become a useful data point in the debate over the changes in Silicon Valley—but is it good news or bad?… if a too-large financial sector is bad news for the economy, the financialization of its most dynamic and innovative industry isn’t a necessarily a step forward either… Americans are studying technical fields or starting new firms would be positive signs when it comes to the tech sector. News that bankers are moving in for the profit-taking doesn’t seem like a leading indicator of innovation. Read more: http://qz.com/369233/wall-streets-infiltration-of-silicon-valley-is-a-bad-sign-for-the-us-economy/