Wall Street and its collective psyche have taken some very public lumps lately, with an executive director resigning from Goldman-Sachs via The New York Times because of the "decline in the firm's moral fiber," and the headline-generating article in CFA Magazine by Sherree DeCovney claiming that 10 percent (at least) of the people in the financial services industry are psychopaths (subscription required). That 10 percent figure could go a long way toward explaining the resignation, couldn't it? Perhaps. But, before deciding the answer to that question, it will be helpful to understand what psychopathy is.
While the common perception of a psychopath is an axe-wielding serial killer, that is not usually the case. Psychopaths are not all violent criminals (though some are). Psychopathy is a psychological condition based on well-established diagnostic criteria, including superficial charm, conning, and manipulative behavior, lack of empathy and remorse, and a willingness to take risks.
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