A recent article on BetaBeat discussed how many tenants at the Varick Street Incubator in NY are former Wall Street workers who are now working on startups that their old employers will have to compete with, or end up using. The NYU-Poly incubator is currently filled with ex-Wall Street employees who either left by choice or were forced out of their previous jobs.
Michael Chuang used sell bonds and mortgaged-back securities for Lehman and UBS, but in 2008 he founded iTB Holdings. The company is an online brokerage dealing exclusively with bonds. He currently has five employees at the Varick Street incubator.
Raj Udeshi runs the company HiddenLevers, a market analysis start-up for small investment advisers. Udeshi was a Latin American derivatives broker who was laid off in 2008.