SAC Trader Who Forced Male Underling To Take Female Hormones And Dress Like A Woman Kind Of Justified

In theory!
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Not when it came to making the guy do those things against his will, blow his boss for trade approval, and all the other stuff that would fall under serious, insane harassment, but in the THEORY that women make better traders? Kinda justified, yeah. So sayeth science:

Want to calm financial markets? Add more women and older people to the young men on trading desks. That’s one recommendation from research into the role of hormones in provoking risky behavior in financial decisions. Cortisol and testosterone, more prevalent in young men, lead traders to take risks and keep taking them once they’ve had success, leading to winning streaks and crashes, said Ed Roberts, a researcher at Imperial College London. Roberts and his colleagues gave the hormones or placebos to test subjects and had them make simulated investment decisions. Those dosed with hormones made riskier bets, according to a paper published today in the journal Scientific Reports.

For those not entirely up to speed on the SAC situation, who never heard about it at the time or who blocked it out of their memory, a quick recap:

Back in 2007, a senior portfolio manager at the hedge fund formerly known as SAC Capital named Ping Jiang came up with a theory that female traders make better traders than males because they have less testosterone in their bodies and are less aggressive. If he'd stopped there-- maybe put it in a medical journal of some sort or threw it out there in the comments section of the internet, that probably would've been okay. Instead, where he went arguably too far, was when he tested the theory on an underling named Andrew Tong.

In addition to making Tong take female hormones, Jiang instructed him to wear dresses, bras, high-heels, and makeup, and grow his hair long; he called Tong "miss," "whore," "piece of shit," and "little girl" in front of co-workers; he pissed in Tong's mouth; he shoved whiteboard markers up Tong's ass; he came up with a sort of blow-job-for-trade-approval rule ("...during this period of time, Mr. Jiang continued to pressure Mr. Tong to perform oral sex on him as condition of Mr. Jiang authorizing Mr. Tong's trades. In this regard, Mr. Jiang remarked to Mr. Tong: "you'll have to give me a blow-job if you want to make that trade."); and he remained an absolute stickler for said BJ rules (on one occasion, when Tong stopped after getting ill, "Mr. Jiang did not allow the trade as the requested fellatio was not completed." A few weeks later, Tong "agreed to perform fellatio to Mr. Jiang's satisfaction. Mr. Jiang then allowed Mr. Tong's trade to go through.").

So anyway, women (and older males) may make better traders than young guys but also: DON'T TEST THIS HYPOTHESIS ON YOUR EMPLOYEES.

Raging Bull Markets: How Young Men’s Hormones Unsettle Finance [Bloomberg]

Related: Blow Jobs For Trade Approval, Sodomy And Golden Showers At SAC Capital; Ping Jiang: Stickler For The BJ Rules

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