Investment Banking

Investment Banking

An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions, and provide ancillary services such as market making, trading of derivatives, fixed income instruments, foreign exchange, commodities, and equity securities.

Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933 (Glass–Steagall Act) until 1999 (Gramm–Leach–Bliley Act), the United States maintained a separation between investment banking and commercial banks. Other industrialized countries, including G8 countries, have historically not maintained such a separation.

There are two main lines of business in investment banking. Trading securities for cash or for other securities (i.e., facilitating transactions, market-making), or the promotion of securities (i.e., underwriting, research, etc.) is the "sell side", while dealing with pension funds, mutual funds, hedge funds, and the investing public (who consume the products and services of the sell-side in order to maximize their return on investment) constitutes the "buy side". Many firms have buy and sell side components.

An investment bank can also be split into private and public functions with an information barrier which separates the two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the public areas such as stock analysis deal with public information.

An advisor who provides investment banking services in the United States must be a licensed broker-dealer and subject to Securities & Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulation.

Read more about Investment BankingOrganizational Structure, Size of Industry, Financial Crisis of 2007/2008, Criticisms, Top 10 Banks

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Investment Banking - Top 10 Banks
... Further information List of investment banks The ten largest global investment banks as of December 31, 2011, are as follows (by total fees) Rank Company Fees ($m) 1 ... League tables are also available Investment Banking Review, Financial Times ... Investment Banking Scorecard, Wall Street Journal ...
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... The following is a list of notable private equity firms and merchant banking and other private equity groups that currently reside within investment banking firms or have previously completed a spinout from an ... Suisse / Donaldson, Lufkin Jenrette DLJ Merchant Banking Asset Management Finance (AMF) Avista Capital Partners Diamond Castle Holdings Castle Harlan New York New York New York New York 1985 ... CCMP Capital One Equity Partners New York Chicago 2006 ... na Lazard Lazard Alternative Investments New York - - Lehman Brothers ^ Blackstone Group ...
Alex Wilmot-Sitwell
... Previously he was appointed co-Chairman CEO, UBS Investment Bank on 26 April 2009, making him one of the most senior British investment bankers ... He was previously Joint Global Head of Investment Banking, and Chairman CEO, EMEA of UBS Group ... and moved to London in 1998 as Head of UK Investment Banking ...
Scott J. Freidheim
... He began his career in investment banking in Chicago at John Nuveen Co ... In 1991, he joined Lehman Brothers’ Investment Banking Division ... Since then, he held a number officer positions in each of the Investment Management, Investment Banking and Corporate divisions ...
Stephen J. Luczo - Early Career
1989, while at Salomon Brothers, Luczo led the investment banking team for Seagate when it acquired the Imprimis Disk Drive Unit from Control Data ... an investment banking firm, from February 1992 to October 1993 ... he was an investment banker at Salomon Brothers, Inc ...

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