Table of Contents

Introduction.................................................................................................................

Why Our Group Selected This Topic .............................................................................

Ryan James.................................................................................................................

Adam Broidy ..............................................................................................................

Process ......................................................................................................................

What is Investment Banking?.........................................................................................

History of Investment Banking in the United States ..........................................................

Financial Regulatory Acts .............................................................................................

Securities Act of 1933..................................................................................................

Glass-Steagall Act of 1933 ..........................................................................................

Securities Exchange Act of 1934...................................................................................

Gramm-Leach-Bliley Act of 1999....................................................................................

Investment Banking Organizational Structure ...................................................................

Front office .................................................................................................................

Middle Office ..............................................................................................................

Back office ..................................................................................................................

Investment Banking Services..........................................................................................

Bringing New Securities to Market .................................................................................

Underwriting ..............................................................................................................

Derivatives trading........................................................................................................

Equity Research...........................................................................................................

Current State of Investment Banking ...............................................................................

Industry Assessment Through Insider Perspective...............................................................

Pitch Books and Other Collateral ...................................................................................

An Example of a Project Financing Deal .........................................................................

Chinese Walls and Risk Management ............................................................................

The Changing Environment of Investment Banks And Their Future........................................

Personal Perspective on Working in Investment Banking ....................................................

Other Useful Insights Gleaned From The Interviews............................................................

Conclusion ...................................................................................................................

Recommendations ........................................................................................................

References ...................................................................................................................

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Introduction

 

Investment Banking has been around for over 170 years. From the early days of providing financing to companies to building railroad tracks, to the recent collapse of Lehman Brothers and Bear Sterns, investment banks have played a prominent and important role in our modern global society. But there are numerous questions that need to be asked:

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• What is investment banking exactly?

• What is their history in the United States?

• How are they structured?

• What services do they provide?

• What is the current state and future of the industry?
   

This report attempts to give some clarity on some of the above questions.

 

Why Our Group Selected This Topic

 

Ryan James

As a licensed real estate agent, Ryan has a strong understanding of what in means to represent an individual or a business as a broker in a real estate venture. This motivated his interest to understand the process and strategy associated with representing a company through the IPO process and understand how else investment banks might offer financial services to their customers. Also, watching the economic collapse of the housing market during the 2007 financial crisis developed his curiosity to understand how the investment banking industry has been impacted over the past few years.

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Adam Broidy

Adam had worked in the financial services industry for several years on the technology and consulting side, but never had a clear understanding on how investment banking worked. Additionally he had several friends that worked in investment banking and had no inkling of what they did for a living. At that to his interest in having a holistic view of capital and markets, including how hedge funds, VCs, and private equity firms work, investment banking was the missing piece of the puzzle for Adam.

 

Process

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Adam and Ryan had outlined a number of topics that interested them. After some discussion, gauging what other teams potentially were going to sign-up for, and weighing their interests, investment banking was the clear subject for their semester project.

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Why do they exist, and are they needed?

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Is there proper regulation in place to prevent fraud?

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What is Investment Banking?

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Investment banks act as the broker/agent for individuals, corporations, and governments, assisting them with raising capital through the issuance of securities. Investment banks also provide support with mergers and acquisitions, trading of derivatives, fixed income instruments, foreign exchange, commodities, and equity securities.

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One thing that distinguishes investment banks from commercial banks is the fact that investment banks do not take deposits. The Glass-Steagall Act that was developed in 1933 forced investment and commercial banks to stay separated until 1999 when the Gramm-Leach-Bliley Act repealed the Glass-Steagall Act.

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History of Investment Banking in the United States

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The first United States (US) investment banks popped up during the Civil War era. After the Civil War, the need for financial services grew as construction projects were needed and new banks sprouted to meet these demands.

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At the end of the 19th century and leading into the beginning of the 20th century, Jewish banks where crucial to capital development in the US. They were also a primary driving force in the development of investment banks on Wall Street. Goldman Sachs, Kuhn Loeb, Lehman Brothers, Beche & Co., and Salomon Brothers were all major banks founded by Jews during the 19th century.

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Through the late 1800’s and early 1900’sJP Morgan & Co., Kuhn, Loeb & Co., Brown Brothers, and Kidder, Peabody & Co. as an oligopoly, controlled the majority of the investment banking industry. Due to the aftermath of the Great Depression, by 1933 all banking systems had ceased to operate. When Roosevelt entered the presidency, he worked with congress to quickly restore banking in the US, which resulted in the creation of the Glass-Steagall Act. Decades later during the 1980’s, investment banking pivoted from a focus on deal making to trading as a result of advancements in technology that simplified the development of mathematical models and helped execute on new strategies.

After the financial crisis of 2007-2008, the standard investment banking business model was no longer working and in drastic need of a pivot. Banks such as Bear Stearns and Lehman Brothers went under, while others large banks such as Goldman Sachs and Morgan Stanley required bailout money from the government. In order for them to be eligible for the bailout funds, these banks had to offer traditional depository, savings, and loan services to become eligible which technically put them under tighter regulation and scrutiny.

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Financial Regulatory Acts

 

As mentioned in the above history of investment banking, there were a few key government acts that greatly affected how these banks were able to do business. Below are some of the most important ones.

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Securities Act of 1933

As a reaction to the stock market crash of 1929, the Securities Act was created to be the first act that federally regulated the offer and sale of securities.

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Glass-Steagall Act of 1933

The Glass-Steagall Act was in response to the commercial banking failure during the Great Depression of 1933. This act restricted commercial banks and investment banks from operating under the same business entity.

Securities Exchange Act of 1934

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The Securities Exchange Act of 1934

The Securities Exchange Act Is a law regulating securities trade in the secondary market. This act also created Securities Exchange Commission (SEC).

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Gramm-Leach-Bliley Act of 1999

The Gramm-leach-Bliley Act was the repeal of the 1933 Glass-Steagall Act, allowing investment banks and commercial depositories to operate as under the same business entity.

 

Investment Banking Organizational Structure

 

Investment banks are typically divided into three internal divisions including front office, middle office, and back office. While these offices are designed to work independent of one another that are all crucial components to the overall strategy and flow and success of a firm.

 

Front office

Most of the investment activities happen in the front office, which is broken down into three sub categories investment banking, sales and trading, and equity research. Investment banking includes helping customers raise funds in capital markets and also give strategic advice on mergers and acquisitions. Sales and trading is responsible the movement of securities, derivatives, and commodities. The equity research team is focused on researching prospective companies writing a report and sometimes assigning a buy or sell rating.

 

Middle Office

The middle office tends to be the management arm of the business and includes risk management, treasury management, internal (financial) controls, and corporate strategy. One of the most important functions that the middle office performs is to understand and document the economic risks. The treasury is responsible for the managing the funds and capital structure of the business. Financial control is focused

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on tracking and analyzing firm cash flows and strategically advising senior management on global risk, profitability, and business structure.

Back office The back office is what holds everything together by supporting the activities of the rest of the bank. They validate that deals were followed out properly, which includes trade conformation, data tracking, and overall firm accuracy. Another key element of back office operations is technology management including the creation and use of in-house proprietary software. If an investment bank is going to out-source any aspect of its business it’s usually the back office operations.

 

Investment Banking Services

The services that an investment bank offers can drastically vary depending on the firm’s size, business model, history, culture, and focus. However, below are a few of the common services that many investment banks offer.

 

Bringing New Securities to Market

One of the most common services that investment banks offer is taking new debt and equity securities to market to raise capital. These new stocks and bonds are called primary offerings. If it is the companies first time offering securities, it is called an IPO or unseasoned offer. If the company has experience issuing similar securities, it is referred to as a seasoned offering. New securities can be offered through private placement or a public offering.

 

Underwriting

Underwriting is when an investment bank commits to pay a set price for the new securities and takes on the risk of reselling them. Often a bank will lead the underwriting of the securities while sharing the responsibility working with a syndicate of other firms. However if a bank underwrites the offering themselves and are unable to find investors, they are liable to hold the securities. Revenue is earned between the spread of the price they pay the issuer of the security, and what they collect from the investors.

 

Derivatives trading

Investment banks might be trading their own derivatives or trading for other high net worth individuals, institutional investors, or businesses.

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Mergers and Acquisitions

Investment banks act as the agent and strategic adviser for companies involved in mergers and acquisitions (M&A) deals. As part of this, they provide research, analysis, valuations, and strategic recommendations to the side of the transaction they represent. Investment banks have extensive experience identifying and executing on M&A deals due to their deep resources, connections, and resources.

Forwards, futures, swap, and options are the most recognized types of derivatives of

securities.

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Equity Research

Research analysts analyze companies to determine profit forecast and define expectations for their earnings. They are often focused on a sector or industry to cover,and spend time analyzing financial records, news stories, interviews, and meetings with company insiders.

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Current State of Investment Banking

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According to recent news, the investment banking industry has been globally on the decline with the exception of Japan. Worldwide revenue for the industry has gone down 26 percent in the first half of 2012 compared to the same period in 2011.1Below shows the deals by region for 2011 and the first three quarters of 2012.

Figure 1: 2011 & First Three Quarter of 2012 Global Investment Banking Deals2

Deutsche Bank believes that revenue from investment banking around the world will total some $240 billion this year, down by almost a third from 2009.3 UBS AG (UBSN), Switzerland’s biggest bank, plans to cut about 80 to 90 jobs in its European investment banking division. This is a consistent trend across Europe. Financial-services firms in

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1 Behind Goldman Sachs's Success Is a Focus on Survival - NYTimes.com. (n.d.). Mergers, Acquisitions, Venture Capital, Hedge Funds - DealBook - NYTimes.com. Retrieved fromhttp://dealbook.nytimes.com/2012/09/18/behind-goldman-sachss-success-is-a-focus-on-survival/

FT.com - Investment Banking Review - Deal Map. (n.d.). Markets Data - Stock market, equities, currencies

and commodities performance - FT.com. Retrieved from

http://markets.ft.com/investmentBanking/dealMap.asp

Investment banking: Dream turns to nightmare | The Economist. (n.d.). The Economist - World News,

Politics, Economics, Business & Finance. Retrieved from http://www.economist.com/node/21562925

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Western Europe announced 32,426 jobs cuts this year.4 Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank, and Morgan Stanley have all been quietly reducing costs in their investment banking divisions. As seen below, nine out of ten largest investment banks have had major declines in their revenue in 2012.

Figure 2: 2012 Decline in Investment Banks

Some of the articles allude to the causes of the decline. Income from trading bonds, currencies, and commodities has fallen as slowing economies and turmoil in Europe has discouraged institutional investors from trading and companies from buying one another or issuing shares. 6 Additionally, regulations on capital and liquidity are reducing returns earned by banks as well as forcing them to shrink their balance sheets and cut back on trading. How individuals and corporations raise capital is changing which is

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4 UBS Plans About 90 Investment-Bank Job Cuts in Europe. (n.d.). Businessweek. Retrieved fromhttp://www.businessweek.com/news/2012-09-18/ubs-planning-about-90-investment-banking-job-cuts- in-europe

FT.com - Investment Banking Review - Tables & Trends. (n.d.). Markets Data - Stock market, equities,

currencies and commodities performance - FT.com. Retrieved from

http://markets.ft.com/investmentBanking/tablesAndTrends.asp

6 The slow, sad death of the equities business. (n.d.). Financial News – Investment Banking, Securities and Asset Management – Financial News. Retrieved from http://www.efinancialnews.com/story/2012-09- 24/the-slow-sad-death-of-the-equities-business

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forcing a pivot in the industry and making firms develop new strategies and look into the services that they offer.

Industry Assessment Through Insider Perspective

To further gain meaningful depth on the investment banking industry, two subject matter experts (full names withheld due to security purposes) were interviewed. The first interviewee, Jason has been working in the investment banking industry for over ten years. After receiving a bachelors degree in finance with a minor in computer science, he worked for one of the “big five” firms, Ernst & Young Consulting, in the late 1990s. After a few years, and a subsequent layoff, Jason fell into working in the investment banking industry, when a former colleague who was a managing director at a small full services investment bank, hired him. Over the ten years at this small investment bank consisting of 350 staff members, Jason spent time in equity research, and trading, before finally settling into capital markets and fixed income. These days as a managing director, his main job responsibilities include being a senior credit analyst, providing sales support for deals, conducting regulatory analysis, and monitoring legacy collateralized debt obligation (CDO) products sold by his firm from 2006 to 2008.

Our second subject matter expert Sara, has been working in the investment banking industry for over fourteen years. After receiving a bachelor’s degree in finance and international business, she immediately was accepted into the two-year analyst trainee program for the investment banking division of Chase Manhattan Bank (which became JP Morgan Chase in 2000.) Sara spent the first three years of her career covering the oil and gas industry for North America. Her seven day, 100 plus hour work week consisted of following and researching companies, creating financial models for valuation of companies, and putting together pitch books to be used by more senior member of her team in mergers and acquisitions and other major deals. After three years, Sara then moved into a Director role at a German investment bank that had roughly 5,000 people globally. While she continued to cover the oil and gas industry, it was for the emerging markets in Latin America. Slightly thereafter she moved into the capital and market side raising capital mainly through syndicated loans. After almost a decade there, Sara recently has moved to one of the largest Japanese banks where she is the Senior Vice- President of Syndicated Finance.

The following sections are the main topic areas that came out in greater detail between both interviews.

Pitch Books and Other Collateral

Sara gave a detailed explanation of how pitch books and other collateral are used in investment banking. Investment banking analysts straight out of college work 100+ hour weeks focusing on creating pitch books. Analysts rarely attend the deal meetings, and if they do usually “do not talk unless ask to.” These pitch books will be used by the rest of the team, made up of an:

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• ●  Associate - usually has three plus years of banking industry work experience or a newly minted MBA

• ●  Vice President - usually has five to six years of banking industry work experience

• ●  Managing Director – usually ten plus years of banking industry work experience

  and the senior person on the team who is making the deal with the client and presenting the pitch book

  Pitch books are exactly what their name says, a pitch from the bank to the client on very high-level ideas

  An information, or offer memorandum is the more detailed business plan that can be hundreds and hundreds of pages long. These are created specifically for investors to discuss mostly “live” ideas. There purpose of the information memo is to tell the story of the company for the investor. Usually this consists of the following structure:

• ●  Bank overview

• ●  Overview on the company

• ●  Historical on the company

• ●  Competitive analysis and position overview

• ●  Detailed financial projections and models

• ●  Valuation summary

• ●  List of potential buyers

• ●  Summary and recommendations

• ●  Any other detail to make a credit analyst make a recommendation or investment

  Lastly, there is also the slide book also known as market overview. This is more for bank marketing purposes, and does not include detailed analysis. Instead it’s a short presentation or skeleton that shows the banks organizations, recent or past deals they have done, and current market overview.

  An Example of a Project Financing Deal

  Below is a high-level example of a project financing deal:

1. Client company will come to you and say they want to build a power plant which will require $100 million

2. The bank will then start project financing, which is the off-balance sheet financing of infrastructure and industrial projections based on projected cash flows of the project

3. The capital will be raised through different types of instruments, such as bonds, loans, sometimes equity financing, or other derivatives

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1. Raising the capital can be done in the open market, or by the bank itself underwriting the entire deal, which usually has a higher rate of return, but far riskier, or “best effort financing” which is a combination of both

2. The bank will continue to facilitating the deal and providing “hand-holding”

3. The deal is completed, the client gets their capital, and the bank gets their fees, part of the investment, or perhaps equity if it was part of the deal which is more rare

Chinese Walls and Risk Management

According to Jason, Chinese walls certainly do exist. At his company, there are very strict guidelines where departments are located on different floors depending on their business function. There are even detailed regulations where certain staff cannot enter into each other’s offices, or even be on the phone together. As Jason said, “The lawyers are all over that like bees to honey.” He also believes that there are other strict regulations and due diligence implemented. As part of his role, he recently became Series 24 certified. This certification allows him to supervise and manage branch activities.

However Jason also is frank that rules and regulations alone will not prevent corruption or fraud. Banks are in the business of making money and sales, and there is pressure to perform. There is going to be more buy ratings than sell ratings, and you cannot overtly be antagonistic to clients on one side of the business while expecting to continue to get their services in another.

Additionally he believes that while the banks should share blame in the financial crisis of 2007-2008, it should not be placed solely on them. “You can’t legislate the obvious,” he reiterated when discussing the fundamental problems of stupidity and greed, which are also ingredients to the financial crisis. His recommendations for making people “play the game fairly” would be to: have clear disclaimers and prohibitions against overly illegal activities, Chinese walls should continued to be strongly enforced to avoid conflicts of interest, and more oversight in some manner.

Sara had a slightly different perspective. While she believes in the intent of companies to implement and follow Chinese Walls, she also stated “anything that is human creation has human error. It’s a tightrope to walk and balance on by being diligent, while also trying to pursue business.” She believes the regulations work to some degree, but if you consider all the scandals over the last decade, it probably does not work half the time. She also believes culture plays a part, as the Japanese bank she works for now is hyper sensitive about information flow and leakage by having an “insane amount” of security policies in place.

Along the lines of Jason, Sara does not necessarily believe that regulations and rules can solve all the fraud and corruption problems. The more disclosure and information you

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inundate people with, the more you will lose their attention, which is counter productive. Risk management practices and associated committees are still made of humans, and integrity, confidentiality, and ethics are specific to each individual. And especially in large companies, it is hard to know everything going on. As Sara explained “When things are so big, how do you hold the top person, such as the CEO responsible, when the issues that happened occurred 17 levels down and he didn’t know about it?” Ultimately Sara believes that the current punishment system does not work – fining a company $10 million is “cigarette money” compared to the billion dollars they made by their fraudulent activities. Her recommendation is to start sending people to jail for real amounts of time in order to see some proper change in the industry.

The Changing Environment of Investment Banks And Their Future

Jason believes that the industry has definitely changed. While the day-to-day life hasn’t really been altered beyond more regulation, “a lot of the hype is gone and the psychology has changed.” He also conceded that it is far harder to make a living doing equity research due to the additional restrictions. Jason though does not believe investment banks are going to disappear. His sentiments are that there are always good and bad times. As long as there is need to raise capital, as long as there is need to build things for society, then there is need for investment banks and their services. While certain financial functions can be automated or replaced by technology such as certain stock markets, traditional banking and capital raises required the “high-touch service” that only a human with a certain amount of knowledge, experience, and connections can complete.

Sara also has seen the industry change drastically for the last decade and half since she has been in it. It used to be that investment banking was the most prestigious job that you could attain in financial services. But these days the banker jobs are just a fraction of what they used to be. These days average analyst classes have 50 – 60 trainees, while in the 1990s they used to be three times the size of that at the major banks. Firms such as Lehman Brothers and Bear Stearns have become dismantled or gone out of business. European banks are suffering due to their own economic crisis. The “business and deals are not there” to generate revenue to keep the investment banks and their staff operating in the fashion they once did. For her, the glory days are long gone - more than half the people she started with in banking have left or been laid off, leaving them to reinvent themselves in other ways.

Are venture capital (VC) firms, hedge funds, and private equity (PE) firms the reason? According to Jason and Sara the answer is no, as they rarely compete in the same lines of business on the same scale. However Sara has some further insight in how these types of institutions are affecting investment banking. VCs, hedge funds, and PE firms are where the younger generations want to work, and that “raising a fund is the thing to do these days.” Additionally she believes that the entrepreneurial mindset is changing the landscape with all the new startups being created. As for where investment banking is going, she rarely thinks beyond 12 months these days. But Sara’s view is that banking

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will struggle for the next five years or so, which will still be financially rewarding enough for bankers to make more than the average citizen.

Personal Perspective on Working in Investment Banking

Jason likes what he does, and it fits his personality of not being in a lot of meetings, and for the most part being autonomous. He has no desire to work at a larger investment bank, as he has a relatively “easy” work schedule of 50 - 55 hours a week. Instead he rather focuses on his other passions such as sailing, or recently starting up an apparel company. If he were to leave his firm, he is not sure where he would go. While consulting did a great job of preparing him for banking, he does not think he could go back into it.

Sara had numerous polarizing feelings about working in investment banking. It is a harsh business with very little tolerance for anything beyond getting the work done. Additionally you “need thick skin or you will not survive. “ On the other hand she loves the excitement of working on deals, especially in project financing where you are creating something, such as emerging market infrastructure projects, which then become companies on their own. For her it’s about the economic development that is needed, a function that world banks use to provide for emerging infrastructure projects before the private sector did. Because of her people oriented personality, she thrives on creating relationships and networks. If Sara left her current firm, she would not go work in a US based bank, as she prefers the European and Asian cultures where the priority is not just making money, but also having a lifestyle. If she left investment banking she would not go into corporate finance, or management consulting. As she explained, “Once you’ve done IB, there is nowhere else where the deals are as exciting. I’m also not skilled for anything anymore.” More than likely she would work in an entrepreneurial capacity in either the micro-finance or energy sectors, something that was sparked when she received her MBA a few years ago.

Other Useful Insights Gleaned From The Interviews

• Different deals fit different investors

• Due to the history of European Banks in relation to their colonialism, they are

  more active in the project and syndicated financing which a great deal of it is based on construction and infrastructure creation

  o Most US banks exited of project financing because it is far less revenue lucrative then M&A and IPO deals

• Syndicated finance is a “complete network type of business”

• There are a few main revenue streams for investment banks

o Similar to consulting, there are fees for handling and taking care of the deal

o Taking a piece of the deal itself to add to the bank’s portfolio for an annualized return

o Using derivatives, swaps, and other financial instruments that all have fees attached to them

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• It is very rare to see debt and equity sides paired together on a deal due to conflict of interest

• Universal Bank is not a standard term used in the industry, as for the last decade its been assumed that banks offer both investment and commercial services

  Conclusion

  One of the biggest takeaways from this project is that you cannot necessarily learn investment banking by reading the news or reading a textbook. It is not till you actually work in investment banking that you truly understand what it is all about. The context of your working environment, what is happening in the world, and your firm’s culture all greatly affects how an investment banker works. It is highly possible that even some of the information in this report might be biased based on our sources and interviews.

  With that said, another key learning is that investment banks are not evil, and do serve a purpose. Capital is needed to make the world go round, whether for infrastructure projects in developing nations, helping companies to make products to meet customer demands, or creating jobs. But of course with great money and power, greed and corruption can and do arise. The recent financial crisis, and current volatile state of the world economy speaks to that. As long as humans are left up to their own devices, there is a possibility of fraud and corruption even with stricter regulation. However that does not mean that more efficient diligence and greater punishment for fraud cannot be implemented.

  And are investment banks really on the decline? Well at least for 2012 they are, and according to news data, and even the personal interviews, they will continue to be due to the reduced number of deals. However it is hard to say for sure that this will continue on. As we have seen in the past, fallen industries reappear stronger and better, such as the current tech startup world, which had busted back during the initial dotcom bubble of the early 2000s. It will be interesting to see if the continued growth of venture capital and private equity firms can affect banks business drastically. In the end if anything, the core services of investment banking such as raising capital, IPOs, and mergers and acquisitions will continue to be needed in the near future as it has been for the last two hundred years.

  Recommendations

  While we ourselves are not bankers, or even currently work in the financial services industry, we do have some recommendations on what can be done in the investment banking industry.

  One recommendation is that greater punishments need to be levied against the banks that knowingly commit fraud and crime. Right now the relatively tiny, financially punitive fines that are issued against these banks are not working. Real prison time is

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needed for employees who overtly commit these crimes as a true deterrent from others committing similar crimes.

Because the global economy and financial markets are so connected, there needs to be greater emphasis on a systems thinking approach to monitoring and regulating the activities of the banks in relation to what the world needs. It would be interesting to see if there is an opportunity to bring design strategy to the investment banking world, by bringing a more human-centric design approach. Empathy certainly seems a bit lacking right now in that industry, and perhaps some experience design and strategy is needed.

And maybe the best way to make a difference and change the future of the financial markets is to join the ranks of the investment banking, or financial services industry and change it from within. As Sara proclaimed, “Whoever has the money, gets to make the decisions.”

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1. Broidy, A. 2.
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References

(2012, November 16). Personal interview with Sara Broidy, A. and James, R.

(2012, October 30). Personal interview with Jason

Investment banking: Dream turns to nightmare | The Economist. (n.d.). The Economist - World News, Politics, Economics, Business & Finance. Retrieved from http://www.economist.com/node/21562925

4. Behind Goldman Sachs's Success Is a Focus on Survival - NYTimes.com.
(n.d.). Mergers, Acquisitions, Venture Capital, Hedge Funds - DealBook - NYTimes.com. Retrieved from http://dealbook.nytimes.com/2012/09/18/behind-goldman-sachss-success-is-a- focus-on-survival/

Introduction to Investment Bank Services: Banking and Investment Services | MoreBusiness.com. (n.d.). Start a business with our business plans, sample contracts and expert advice | MoreBusiness.com. Retrieved from http://www.morebusiness.com/running_your_business/financing/inv-bank.brc

1. Investment banking: Dream turns to nightmare | The Economist. (n.d.). The Economist - World News, Politics, Economics, Business & Finance. Retrieved fromhttp://www.economist.com/node/21562925

2. Investment banking. (n.d.). In Wikipedia, the free encyclopedia. Retrieved December 1, 2012, fromhttp://en.wikipedia.org/wiki/Investment_banks

Investment Banking Pitch Books | Mergers & Inquisitions. (n.d.). Understanding

Investment Banking | Mergers & Inquisitions. Retrieved from

http://www.mergersandinquisitions.com/investment-banking-pitch-books/

9. Investment banks set for third-quarter boost - MarketWatch.
(n.d.). MarketWatch - Stock Market Quotes, Business News, Financial News. Retrieved from http://www.marketwatch.com/story/investment-banks-set-for- third-quarter-boost-2012-09-18?link=MW_latest_news”

Kidwell, D. S. (2008). In Financial Institutions, Markets and Money (10th ed.).

Hoboken, N.J: Wiley.

1. Nomura May Buy Asian Investment Bank or Broker, Nagai Says - Bloomberg. (n.d.).Bloomberg - Business, Financial & Economic News, Stock Quotes. Retrieved from http://www.bloomberg.com/news/2012-09-07/nomura-may-acquire- asian-investment-bank-or-broker-nagai-says.html

2. Royal Bank of Scotland Cuts 300 More Jobs at Investment Bank.
   (n.d.). Businessweek. Retrieved fromhttp://www.businessweek.com/news/2012-09-24/royal-bank-of-scotland-cuts- 300-more-jobs-at-investment-bank

13. The slow, sad death of the equities business. (n.d.). Financial News – Investment Banking, Securities and Asset Management – Financial News. Retrieved from

http://www.efinancialnews.com/story/2012-09-24/the-slow-sad-death-of-the-

equities-business

14. UBS Plans About 90 Investment-Bank Job Cuts in Europe. (n.d.). Businessweek. Retrieved from http://www.businessweek.com/news/2012-09-18/ubs-planning- about-90-investment-banking-job-cuts-in-europe