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Investment banks assist public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions. They also act as intermediaries in trading for clients. Investment banks differ from commercial banks, which take deposits and make commercial and retail loans. In recent years, however, the lines between the two types of structures have blurred, especially as commercial banks have offered more investment banking services. In the US, the Glass-Steagall Act, initially created in the wake of the Stock Market Crash of 1929, prohibited banks from both accepting deposits and underwriting securities; Glass-Steagall was repealed by the Gramm-Leach-Bliley Act in 1998. Investment banks may also differ from brokerages, which in general assist in the purchase and sale of stocks, bonds, and mutual funds. However some firms operate as both brokerages and investment banks; this includes some of the best known financial services firms in the world.

Definitions


There appears to be considerable confusion today about what does and does not constitute an "investment bank" and "investment banker". In the strictest definition, investment banking is the raising of funds, both in debt and equity, and the name of the division handling this in an investment bank is often called the "Investment Banking Division" (IBD). However, only a few small boutique firms solely provide this - such as Greenhill, with almost all investment banks heavily involved in providing additional financial services for clients such as the trading of fixed income, foreign exchange, commodity and equity securities. It is therefore acceptable to refer to both the "Investment Banking Division" and other 'front office' divisions such as "Fixed Income" as part of "investment banking", and any employee involved in either side an "investment banker".

More commonly used today to characterize what was traditionally termed "investment banking" is "sell side". This is trading securities for cash or securities (i.e., facilitating transactions, market making), or the promotion of securities (i.e. underwriting, research, etc.).

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The Economist: Banking

London as a financial centre: The real windfall
Thu, 17 Dec 2009 11:02:55 -0000
If Gordon Brown drives away international capital, British taxpayers will be the losersBRITISH AIRWAYS lost GBP292m ($465m) in the six months to the end of September and its pension fund has a GBP3.7 billion deficit. Its cabin crew responded by voting to strike over the Christmas period, alienating the millions of customers that pay their wages and fund those pensions. Similarly, London now risks losing its reputation as a hub of international finance, driving away mobile capital and taxpayers at a time when the government’s deficit is above 10% of GDP. There will be no immediate exodus. But the impression that tax policy is now designed to maximise the number of Labour votes rather than the state’s revenue should worry Britons as well as financiers. No single tax change has been decisive, though the levy on bank bonuses, announced on December 9th, has brought the issue into focus. This newspaper has argued that it is fair for the taxpayer to claw back the huge subsidy that all banks have enjoyed: the cheap money and guarantees were provided to help banks continue lending and build up their capital, rather than distributing the money to staff. A globally co-ordinated approach to this could have worked. But Gordon Brown’s rushed attempt to punish the rich seems ever more cackhanded. ...
Switzerland as a financial centre: Alpine ambitions
Thu, 17 Dec 2009 11:02:55 -0000
Many funds are looking at Geneva. Fewer have moved“MY GOD, Gordon Brown must admire Switzerland,” exclaims Francois Micheloud, of Micheloud & Cie. “He is sending us so many of his best countrymen, and they are not all Scots.” His firm, which helps rich people move to Switzerland, has seen a steady increase in business over the past two years or so since Britain changed the rules on how it taxes foreign residents. In downtown Geneva, Daniel Loeffler of the city’s Economic Development Office has also seen a spike in interest, this time from companies. In April, just after Britain increased its top rate of tax for high earners, large numbers of hedge funds and their agents started knocking on his door. “We did not have a strategy to attract hedge funds to Geneva, but this for us was really an opportunity that came up when we had a lot of questions,” he says. ...
Financial centres: Foul-weather friends
Thu, 17 Dec 2009 11:02:55 -0000
London risks losing its global appealAT THE start of the 1960s London’s status as a financial centre was in gentle decline, reflecting Britain’s waning importance in the global economy. Then the American government helpfully imposed Regulation Q and the Interest Equalisation Tax, two measures that encouraged investors to hold a lot of their dollars offshore. London became the centre of the so-called Euromarket, attracting more international banks than New York.Despite its terrible weather and creaking transport infrastructure, London has continued to punch above Britain’s economic weight as a financial centre. The city built up critical mass in legal, accounting and fund-management expertise, and big American investment banks such as Goldman Sachs steadily increased their presence. London is not just Europe’s dominant financial hub (see chart). Before the credit crunch, talk that London would replace New York as the world’s financial centre was commonplace. ...
Europe's corporate credit crunch: Muck in the fuel pipe
Thu, 10 Dec 2009 10:59:12 -0000
Europe’s banks will struggle to lend their clients a hand when demand revivesMECHANICS checking for a blockage in a car’s fuel pipes know to floor the accelerator, for a splutter then indicates a problem that may not show up when the engine is idling. The mechanics of the financial system are wondering whether the same rule applies to the world economy and whether its recovery will be choked by a lack of credit to companies just as demand starts picking up.In late summer, as Europe’s economies barely ticked over, bankers across Europe seemed ready to ease their grip on the purse strings. A survey of banks’ loan officers in euro-area countries in late September led the European Central Bank (ECB) to conclude that a “turning-point” had been reached and that banks would probably soon start to relax credit standards. In Britain, a survey for the Bank of England (BoE) at about the same time showed an increased willingn
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500 Associates - Merchant bank engaged in research, investments, consulting, and merchant banking.

Associates Inc. - A investment bank and private equity fund serving and investing in the communications, media, publishing, broadcasting, interactive digital media, and information industries.
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Co - European investment bank specialising in European growth companies.

Co. - A leading global financial firm that meets critical financial needs for business enterprises, governments, and individuals.

Co. - Investment banking advisory services for the Insurance Industry.

Co. - Provides financial and advisory services to the direct marketing and e-commerce industries.
Meta Description: [ Gruppo, Levey & Co. is a boutique investment bank providing M&A,financial and strategic advisory services to the direct marketing and e-commerce industries.. ]

Co. - A merchant and investment banking firm Based in Italy.
Meta Description: [ Cenciarini & Co. is an investment banking boutique, specialist in private equity transactions, corporate restructuring consulting and corporate finance services. ]

Co. Inc. - A worldwide investment banking and securities trading and brokerage firm.
Meta Description: [ The Bear Stearns Companies Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., a leading global investment banking, securities trading and brokerage firm. ]

Company - Investment banking and institutional brokerage firm serving plan sponsors and investment management firms.
Meta Description: [ A leading investment banking and institutional brokerage firm serving plan sponsors and investment management firms. ]

Company - Investment bankers provide financial advice to aerospace and defense industry. Includes practice, services, clients, recent transactions, newsletter. Based in South Norwalk, CT.

Company International - Specialist in investment banking, mergers and acquisitions, public debt and equity offerings to the Energy Industry.

Phelps - Investment banking and financial advisory firm specializing in fairness opinions, business valuations, private placements, mergers and acquisitions.
Meta Description: [ A leading investment banking and financial advisory firm in fairness opinions, business valuations, private placements, mergers & acquisitions. ]

Woods, Inc. - Institutionally oriented securities broker/dealer and full service investment bank .

Zukin - A national investment banking firm offering mergers and acquisitions, corporate financing, business valuation, financial opinions, financial restructuring and merchant banking services.
Meta Description: [ Houlihan Lokey, an international investment bank, provides a wide range of services, including mergers and acquisitions, financing, financial opinions and advisory services, and financial restructuring. ]

Agawam Partners - Merchant banking firm focused on the media, technology and telecommunications industries.
Meta Description: [ Agawam Partners is a merchant bank focused on the media and technology industries, providing investment banking advice and private equity funding. ]

Allison-Williams Company - Serves financial institutions, investors and companies seeking to raise capital.

Alpha Finance US Corporation - Investment bank specializing in Greek investments and brokers.
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Arab Investment Bank s.a.l. - Offers medium and long term financing and investments in local and foreign currencies. Includes information on the Lebanon stock and bond markets, as well as foreign exchange rates.
Meta Description: [ The Arab Investment Bank s.a.l. (Beirut) website includes information on Lebanon’s stock and bond markets, as well as foreign exchange rates. ]

Asia Capital Group, Ltd. - Provides professional investment banking services to multinational corporations.
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Avondale Partners, LLC - Provides equity research and sales and trading capabilities to the institutional marketplace. Also offers investment banking services including mergers and acquisitions, financial and strategic advisory and capital raising.

BACE Capital Partners, LLC - Specializes in investment banking with mergers and leveraged buyouts.
Meta Description: [ Apply for credit from the top credit card companies. ]

Baldwin and Associates Inc. - Assists individuals and corporations in the sale or purchase of privately held companies.
Meta Description: [ Seattle's oldest and most successful private investment banking firm, specializing in the sale and purchase of privately held companies, raising equity capital, providing financial partners for management buy-outs and providing crisis mangagement for troubled companies. ]

Banc of America Securities LLC - A full service investment bank and brokerage firm.

Bank of Scotland - Britain's oldest surviving clearing bank, created by an Act of Parliament in 1685.
Meta Description: [ Find out more about Bank of Scotland. We have a range of banking products and services. ]

Barclays Capital - International investment bank with presence in all the major markets around the world.
Meta Description: [ Barclays Capital is the investment banking division of Barclays Group. ]

BMO Nesbitt Burns - Full-service investment bank serving the financial needs of individual, institutional, corporate and government clients.

404 Broadview - Global investment bank focused on the IT, communications and media industries.

Buchanan Street - Real estate investment bank that invests on behalf of private and institutional clients.

Cameron Thomson Group - Investment banking group specializing in converging media/entertainment and IT industries.
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Capital Investment Partners - An established investment banking and capital formation firm.
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Chanen and Company - Full range of investment banking services to private and publicly-held companies.

Chanin Capital Partners - Provides financial restructurings, mergers and acquisitions, corporate finance and private placements.
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CIBC World Markets - Offers credit and capital markets products, securities, brokerage and asset management services.

CLSA Emerging Markets - Provider of investment banking in the emerging markets of Asia, Latin America and Europe.

Convergent Technology Capital, LLC - A hybrid strategic consulting, investment banking, and MA firm dedicated to serving venture capital investors and individual equity-backed companies.
Meta Description: [ Convergent Technology Holdings, LLC is a hybrid strategic consulting, investment banking, and mergers and acquisitions firm dedicated to serving venture capital investors and individual equity-backed companies ]

Corsum finance - Investment Banking, Mergers Acquisitions, Financial Engineering, Financial Restructuring and Strategy Analysis in Czech Republic.

Credit Suisse First Boston - Global investment banking firm offers financial advisory, capital raising, sales and trading, and financial products.

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Deutsche Bank AG - European bank serving the financial needs of corporations, firms, institutions, and private and business clients worldwide.
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Deutsche Bank Alex.Brown - Investment banking and brokerage services for private wealth and asset management

Deutsche Bank New Zealand - A full service investment bank with four banking divisions operating from two branches.

Douglas Group - Investment banking firm represents business owners in the sale and purchase of businesses.
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Emerging Growth Partners - Provides investment banking and financing for emerging companies.

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Energy Spectrum - Energy Spectrum offers private equity investments and premium investment banking services for the energy industry.

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EurOrient Investment Group - A privately held investment and merchant banking firm located in Los Angeles, California.

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Global Link - One 'window' through which the buy-side can access unique fact-based research and trade any asset class, anywhere, with anyone.
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Goldman Sachs - A full-service global investment banking and securities firm.

Gordian Group, L.P. - Provides investment banking and financial advisory services in complex situations.

Greystone - Specializes in financing multi-family housing and health care properties.

Griffin Securities, Inc. - Global investment banking, financial advisory and brokerage firm.
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HSBC Group Holdings - Headquartered in London, The HSBC Group's international network comprises more than 5,000 offices in 79 countries. The Group provides a comprehensive range of financial services.
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500 Investors Financial Services Corp. - Holding company with subsidiaries which asset administration services for the financial services industry. (Nasdaq: IFIN).

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Jefferies Group, Inc. - An investment bank serving mid-cap investors and issuers worldwide. Based in New York City. (NYSE: JEF)

Kontiki Capital Ltd. - Provides investment banking products and services to the South Pacific. Licensed as an Investment Adviser by the Capital Markets Development Authority of Fiji.
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Kotak Mahindra Capital Company - Investment Bank provides financial services to clients based either in India or overseas.

Kuhn Information Capital - Provides merger and acquisition services to software, data and Internet vendors.
Meta Description: [ M&A services for buyers and sellers of mid-market firms, especially technology and service companies offering software, data, network, publishing, Internet, consulting and heavily-branded products. ]

Latitude Partners - Investment banking firm for technology, internet, and communications sectors.

Legacy Securities Corp. - Southeastern investment and merchant bank operating from Atlanta and Memphis.
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Lehman Brothers - A global investment bank serving the financial needs of corporations, institutions,governments and high-net-worth investors worldwide. Founded in 1850, Lehman has over 39 offices worldwide.

Leonard Green and Partners - A merchant and investment banking firm.
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Macadam Capital Partners - Private investment bank advising companies in planning for their capital needs.
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Menke and Associates, Inc. - Investment banking firm specializing in ESOP and management buyouts.

Merrill Lynch - A leading global financial management and advisory company.
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Metos Investments - Provides investment banking, merger, acquisition, and financial services.
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N M Rothschild and Sons - Provides investment banking and financial services worldwide.
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New York Capital - Specializes in the corporate finance of emerging and middle market enterprises.
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Nomura International - The European subsidary of the Nomura Securities Co., Ltd., focused on meeting the needs of investors and issuers across Europe and beyond.

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Quarterdeck Investment Partners, Inc. - An investment banking firm in Los Angeles and Washington DC.

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RCW Mirus - Boston-based investment banking firm specializing in mergers and acquisitions, RCW Mirus provides merger advisory services to venture capital firms, entrepreneurs, and corporate clients.
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Robert W. Baird - Investment banking and wealth management firm servicing clients in the U.S. and Europe
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Robinson-Humphrey - Investment banking and equity research for growth companies.
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SARS Ltd. - Offers corporate finance advice to multinationals, governments, and corporations in central and eastern Europe.
Meta Description: [ SARS Ltd. is a private independent investment banking firm providing corporate finance services to local and international firms wishing to enter or exit the Russian or Ukrainian markets ]

SG Cowen Securities - The U.S. broker-dealer subsidiary of SG providing securities and investment banking services.
Meta Description: [ Cowen success and growth during the past decade of tumultuous consolidation and change in investment banking is a result of the power of our focus. ]

Sindicatum Limited - London-based corporate finance/MA firm focused on global emerging markets

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Texada Capital Corp - Investment banking firm offers corporate finance services to direct marketing companies.
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The International Investor - Global Islamic investment bank with offices in Kuwait, London, Qatar, Bahrain and UAE.

The Jordan, Edmiston Group, Inc. - Middle-market investment banking services for companies in the media and information industries.
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The Nassau Group Inc. - Advisors on corporate development and investment banking based in Connecticut.

Thomas Weisel Partners - A SF-Based merchant bank providing investment banking, institutional brokerage, private client services and private equity investing focused on the new frontiers of the growth economy.

TM Capital Corp. - A NY Based Investment Banking Firm providing clients with the experience and expertise necessary to complete strategic corporate transactions including mergers, acquisitions and financings.

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Wm Sword and Co. - Investment bank specializing in merger/acquisition advisory services.

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Ziegler and Companies, Inc. - Provides integrated financial services through two main segments: investment banking and capital markets, and investment services. features an overview of services,and investor information. (NASDAQ:ZCO
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