Investment bank - Revision history

128.210.17.187: /* Bulge brackets */ Name Edits

2011-01-19T03:46:09Z

‎Bulge brackets: Name Edits

Nateoxford: Reverted edits by Icawagino (Talk) to last revision by 115.192.212.31

2010-11-23T23:45:27Z

Reverted edits by Icawagino (Talk) to last revision by 115.192.212.31

Icawagino at 23:35, 23 November 2010

2010-11-23T23:35:49Z

115.192.212.31: /* Bulge brackets */

2009-07-21T23:21:37Z

‎Bulge brackets

71.191.18.86: /* Bulge brackets */

2009-07-21T21:13:29Z

‎Bulge brackets

78.145.123.93 at 18:03, 20 July 2009

2009-07-20T18:03:41Z

Reaganaut: /* List of investment banks */

2008-04-21T03:54:59Z

‎List of investment banks

Reaganaut: /* List of investment banks */

2008-04-21T03:53:24Z

‎List of investment banks

Reaganaut at 07:11, 15 March 2008

2008-03-15T07:11:45Z

Reaganaut at 16:42, 11 March 2008

2008-03-11T16:42:33Z

@@ Line 8: / Line 8: @@
 The very largest investment banks are called "bulge bracket" firms. This group indisputably includes:
-* Goldman Sachs
+* Goldman Sachs & Co.
-* J.P. Morgan Chase and Company (which now incorporates the remains of Bear Stearns)
+* J.P. Morgan (which now incorporates the remains of Bear Stearns)
-* Bank of America
+* Bank of America Merrill Lynch
 * Morgan Stanley
-Depending on who you ask, the group also includes:
+Depending on whom you ask, the group also includes:
 * Barclays Capital (which now incorporates the North American assets of [[w:Lehman Brothers|Lehman Brothers]])

@@ Line 1: / Line 1: @@
 {{wp-also}}
-An '''investment bank''' is a complex financial institution whose main purpose is to raise money by issuing and selling securities in the [[w:primary market|primary market]]. This article provides an overview of such institutions. For the investment banking career path followed by many Columbia students and alumni, see the article about &quot;[[investment banking]]&quot;.
+An '''investment bank''' is a complex financial institution whose main purpose is to raise money by issuing and selling securities in the [[w:primary market|primary market]]. This article provides an overview of such institutions. For the investment banking career path followed by many Columbia students and alumni, see the article about "[[investment banking]]".
 == List of investment banks ==
 === Bulge brackets ===
-The very largest investment banks are called &quot;bulge bracket&quot; firms. This group indisputably includes:
+The very largest investment banks are called "bulge bracket" firms. This group indisputably includes:
 * Goldman Sachs
@@ Line 32: / Line 24: @@
 === Other investment banks ===
-Beyond the &quot;bulge bracket&quot; firms are a wide range of other investment banks. Several compete directly with the bulge brackets, but are not classified as one because they only compete in particular areas. This group broadly includes:
+Beyond the "bulge bracket" firms are a wide range of other investment banks. Several compete directly with the bulge brackets, but are not classified as one because they only compete in particular areas. This group broadly includes:
 {{col-begin}}
@@ Line 54: / Line 46: @@
 {{col-end}}
-Some of these banks are called &quot;mid-market&quot; firms and others are called &quot;boutiques&quot;. However, such labels are often misleading. For example, some people call Lazard and Rothschild &quot;boutiques&quot;, even though last year Lazard and Rothschild each completed more worldwide M&amp;A than, for example, Bank of America, which is sometimes considered a bulge bracket bank.
+Some of these banks are called "mid-market" firms and others are called "boutiques". However, such labels are often misleading. For example, some people call Lazard and Rothschild "boutiques", even though last year Lazard and Rothschild each completed more worldwide M&A than, for example, Bank of America, which is sometimes considered a bulge bracket bank.
 === Financial conglomerates ===
@@ Line 83: / Line 75: @@
 === Other competitors ===
-In some areas, investment banks compete with management consultants like McKinsey, Bain, and Boston Consulting Group. And they may also compete at times with accountancy firms like Deloitte, Ernst &amp; Young, KPMG, and PricewaterhouseCoopers.
+In some areas, investment banks compete with management consultants like McKinsey, Bain, and Boston Consulting Group. And they may also compete at times with accountancy firms like Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers.
 == Structure ==
-Investment banks are typically split into several divisions, which are either &quot;front office&quot; or &quot;middle/back office&quot;. The bulge bracket firms and financial conglomerates each have all of the divisions listed below, even if they sometimes use different names. The other investment banks may only have particular front office divisions, such as only an investment banking division (as well as certain middle and back office divisions). Front office divisions are essentially the most exciting in which to work, and come with the best compensation and prospects. Middle/back office divisions are sometimes seen as low-risk and boring, but some people try to start off there hoping to eventually switch into a front office division. For example, [[wp:Jérôme Kerviel|Jérôme Kerviel]] started off in risk management at Société Générale before becoming a trader!
+Investment banks are typically split into several divisions, which are either "front office" or "middle/back office". The bulge bracket firms and financial conglomerates each have all of the divisions listed below, even if they sometimes use different names. The other investment banks may only have particular front office divisions, such as only an investment banking division (as well as certain middle and back office divisions). Front office divisions are essentially the most exciting in which to work, and come with the best compensation and prospects. Middle/back office divisions are sometimes seen as low-risk and boring, but some people try to start off there hoping to eventually switch into a front office division. For example, [[wp:Jérôme Kerviel|Jérôme Kerviel]] started off in risk management at Société Générale before becoming a trader!
 == Front office divisions ==
 === Investment banking ===
-Investment banking is the traditional business of investment banks. Many salespeople, traders, asset managers, private bankers, and other employees of investment banks call themselves investment bankers. However, investment banking is strictly a particular type of business, undertaken by a particular division, Investment Banking. This division is variously known as the Investment Banking Division (IBD), Corporate Finance (&quot;corpfin&quot;), or Mergers &amp; Acquisitions (M&amp;A). Investment bankers advise companies, governments, and other institutions, on any deal they want to perform. Deals are mostly mergers or acquisitions, but can also be privatizations, nationalizations, etc. In a deal, each party will use the services of one or more investment banks. For example, in an acquisition, the acquiring company will use one or more investment banks, and the target company will recruit one or more investment banks. The bankers to the acquiring party will pitch acquisition ideas, calculate how much to pay for the target, prepare documents for the deal, raise the necessary funds, and conduct due diligence. The bankers to the target company will calculate how much money the target should hold out for, coordinate bids, and prepare documents on its side of the deal. Roles differ slightly in mergers, privatizations, nationalizations, etc.
+Investment banking is the traditional business of investment banks. Many salespeople, traders, asset managers, private bankers, and other employees of investment banks call themselves investment bankers. However, investment banking is strictly a particular type of business, undertaken by a particular division, Investment Banking. This division is variously known as the Investment Banking Division (IBD), Corporate Finance ("corpfin"), or Mergers & Acquisitions (M&A). Investment bankers advise companies, governments, and other institutions, on any deal they want to perform. Deals are mostly mergers or acquisitions, but can also be privatizations, nationalizations, etc. In a deal, each party will use the services of one or more investment banks. For example, in an acquisition, the acquiring company will use one or more investment banks, and the target company will recruit one or more investment banks. The bankers to the acquiring party will pitch acquisition ideas, calculate how much to pay for the target, prepare documents for the deal, raise the necessary funds, and conduct due diligence. The bankers to the target company will calculate how much money the target should hold out for, coordinate bids, and prepare documents on its side of the deal. Roles differ slightly in mergers, privatizations, nationalizations, etc.
 === Capital markets ===
-The capital markets division makes money by trading on the financial markets, which also conveniently creates the markets themselves (&quot;[[w:market making|market making]]&quot;). It is also sometimes called sales &amp; trading or financial markets. Capital markets includes groups known as Equity Capital Markets (ECM), which raises equity, and Debt Capital Markets (DCM), which raises debt. Four types of people work in capital markets:
+The capital markets division makes money by trading on the financial markets, which also conveniently creates the markets themselves ("[[w:market making|market making]]"). It is also sometimes called sales & trading or financial markets. Capital markets includes groups known as Equity Capital Markets (ECM), which raises equity, and Debt Capital Markets (DCM), which raises debt. Four types of people work in capital markets:
 # Salespeople call institutional and private investors to suggest trading ideas, take orders, and communicate these orders to the traders.
 # Traders structure, price, and execute these orders; they are the people who actually buy and sell the financial products.
 # Structuring specialists will help if the trades are particularly complex, often because they involve derivatives.
-# Researchers review companies, write &quot;broker reports&quot; about them, and usually attach an essentially meaningless &quot;buy&quot;, &quot;hold&quot; or &quot;sell&quot; rating to their report.
+# Researchers review companies, write "broker reports" about them, and usually attach an essentially meaningless "buy", "hold" or "sell" rating to their report.
 === Asset management ===
@@ Line 114: / Line 106: @@
 === Risk management ===
-Risk management involves limiting the investment bank's risk, mainly from the activities of the Sales &amp; Trading division. For example, people in the risk management division:
+Risk management involves limiting the investment bank's risk, mainly from the activities of the Sales & Trading division. For example, people in the risk management division:
 * Analyze the risk taken on by traders, and limit the amount of capital they can play with, in order to limit the potential damage from bad trades.
-* Attempt to limit &quot;economic risks&quot;.
+* Attempt to limit "economic risks".
-* Attempt to limit &quot;operational risk&quot;, the risk of errors.
+* Attempt to limit "operational risk", the risk of errors.
 === Human resources ===

@@ Line 1: / Line 1: @@
 {{wp-also}}
-An '''investment bank''' is a complex financial institution whose main purpose is to raise money by issuing and selling securities in the [[w:primary market|primary market]]. This article provides an overview of such institutions. For the investment banking career path followed by many Columbia students and alumni, see the article about "[[investment banking]]".
+An '''investment bank''' is a complex financial institution whose main purpose is to raise money by issuing and selling securities in the [[w:primary market|primary market]]. This article provides an overview of such institutions. For the investment banking career path followed by many Columbia students and alumni, see the article about &quot;[[investment banking]]&quot;.
 == List of investment banks ==
 === Bulge brackets ===
-The very largest investment banks are called "bulge bracket" firms. This group indisputably includes:
+The very largest investment banks are called &quot;bulge bracket&quot; firms. This group indisputably includes:
 * Goldman Sachs
@@ Line 24: / Line 32: @@
 === Other investment banks ===
-Beyond the "bulge bracket" firms are a wide range of other investment banks. Several compete directly with the bulge brackets, but are not classified as one because they only compete in particular areas. This group broadly includes:
+Beyond the &quot;bulge bracket&quot; firms are a wide range of other investment banks. Several compete directly with the bulge brackets, but are not classified as one because they only compete in particular areas. This group broadly includes:
 {{col-begin}}
@@ Line 46: / Line 54: @@
 {{col-end}}
-Some of these banks are called "mid-market" firms and others are called "boutiques". However, such labels are often misleading. For example, some people call Lazard and Rothschild "boutiques", even though last year Lazard and Rothschild each completed more worldwide M&A than, for example, Bank of America, which is sometimes considered a bulge bracket bank.
+Some of these banks are called &quot;mid-market&quot; firms and others are called &quot;boutiques&quot;. However, such labels are often misleading. For example, some people call Lazard and Rothschild &quot;boutiques&quot;, even though last year Lazard and Rothschild each completed more worldwide M&amp;A than, for example, Bank of America, which is sometimes considered a bulge bracket bank.
 === Financial conglomerates ===
@@ Line 75: / Line 83: @@
 === Other competitors ===
-In some areas, investment banks compete with management consultants like McKinsey, Bain, and Boston Consulting Group. And they may also compete at times with accountancy firms like Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers.
+In some areas, investment banks compete with management consultants like McKinsey, Bain, and Boston Consulting Group. And they may also compete at times with accountancy firms like Deloitte, Ernst &amp; Young, KPMG, and PricewaterhouseCoopers.
 == Structure ==
-Investment banks are typically split into several divisions, which are either "front office" or "middle/back office". The bulge bracket firms and financial conglomerates each have all of the divisions listed below, even if they sometimes use different names. The other investment banks may only have particular front office divisions, such as only an investment banking division (as well as certain middle and back office divisions). Front office divisions are essentially the most exciting in which to work, and come with the best compensation and prospects. Middle/back office divisions are sometimes seen as low-risk and boring, but some people try to start off there hoping to eventually switch into a front office division. For example, [[wp:Jérôme Kerviel|Jérôme Kerviel]] started off in risk management at Société Générale before becoming a trader!
+Investment banks are typically split into several divisions, which are either &quot;front office&quot; or &quot;middle/back office&quot;. The bulge bracket firms and financial conglomerates each have all of the divisions listed below, even if they sometimes use different names. The other investment banks may only have particular front office divisions, such as only an investment banking division (as well as certain middle and back office divisions). Front office divisions are essentially the most exciting in which to work, and come with the best compensation and prospects. Middle/back office divisions are sometimes seen as low-risk and boring, but some people try to start off there hoping to eventually switch into a front office division. For example, [[wp:Jérôme Kerviel|Jérôme Kerviel]] started off in risk management at Société Générale before becoming a trader!
 == Front office divisions ==
 === Investment banking ===
-Investment banking is the traditional business of investment banks. Many salespeople, traders, asset managers, private bankers, and other employees of investment banks call themselves investment bankers. However, investment banking is strictly a particular type of business, undertaken by a particular division, Investment Banking. This division is variously known as the Investment Banking Division (IBD), Corporate Finance ("corpfin"), or Mergers & Acquisitions (M&A). Investment bankers advise companies, governments, and other institutions, on any deal they want to perform. Deals are mostly mergers or acquisitions, but can also be privatizations, nationalizations, etc. In a deal, each party will use the services of one or more investment banks. For example, in an acquisition, the acquiring company will use one or more investment banks, and the target company will recruit one or more investment banks. The bankers to the acquiring party will pitch acquisition ideas, calculate how much to pay for the target, prepare documents for the deal, raise the necessary funds, and conduct due diligence. The bankers to the target company will calculate how much money the target should hold out for, coordinate bids, and prepare documents on its side of the deal. Roles differ slightly in mergers, privatizations, nationalizations, etc.
+Investment banking is the traditional business of investment banks. Many salespeople, traders, asset managers, private bankers, and other employees of investment banks call themselves investment bankers. However, investment banking is strictly a particular type of business, undertaken by a particular division, Investment Banking. This division is variously known as the Investment Banking Division (IBD), Corporate Finance (&quot;corpfin&quot;), or Mergers &amp; Acquisitions (M&amp;A). Investment bankers advise companies, governments, and other institutions, on any deal they want to perform. Deals are mostly mergers or acquisitions, but can also be privatizations, nationalizations, etc. In a deal, each party will use the services of one or more investment banks. For example, in an acquisition, the acquiring company will use one or more investment banks, and the target company will recruit one or more investment banks. The bankers to the acquiring party will pitch acquisition ideas, calculate how much to pay for the target, prepare documents for the deal, raise the necessary funds, and conduct due diligence. The bankers to the target company will calculate how much money the target should hold out for, coordinate bids, and prepare documents on its side of the deal. Roles differ slightly in mergers, privatizations, nationalizations, etc.
 === Capital markets ===
-The capital markets division makes money by trading on the financial markets, which also conveniently creates the markets themselves ("[[w:market making|market making]]"). It is also sometimes called sales & trading or financial markets. Capital markets includes groups known as Equity Capital Markets (ECM), which raises equity, and Debt Capital Markets (DCM), which raises debt. Four types of people work in capital markets:
+The capital markets division makes money by trading on the financial markets, which also conveniently creates the markets themselves (&quot;[[w:market making|market making]]&quot;). It is also sometimes called sales &amp; trading or financial markets. Capital markets includes groups known as Equity Capital Markets (ECM), which raises equity, and Debt Capital Markets (DCM), which raises debt. Four types of people work in capital markets:
 # Salespeople call institutional and private investors to suggest trading ideas, take orders, and communicate these orders to the traders.
 # Traders structure, price, and execute these orders; they are the people who actually buy and sell the financial products.
 # Structuring specialists will help if the trades are particularly complex, often because they involve derivatives.
-# Researchers review companies, write "broker reports" about them, and usually attach an essentially meaningless "buy", "hold" or "sell" rating to their report.
+# Researchers review companies, write &quot;broker reports&quot; about them, and usually attach an essentially meaningless &quot;buy&quot;, &quot;hold&quot; or &quot;sell&quot; rating to their report.
 === Asset management ===
@@ Line 106: / Line 114: @@
 === Risk management ===
-Risk management involves limiting the investment bank's risk, mainly from the activities of the Sales & Trading division. For example, people in the risk management division:
+Risk management involves limiting the investment bank's risk, mainly from the activities of the Sales &amp; Trading division. For example, people in the risk management division:
 * Analyze the risk taken on by traders, and limit the amount of capital they can play with, in order to limit the potential damage from bad trades.
-* Attempt to limit "economic risks".
+* Attempt to limit &quot;economic risks&quot;.
-* Attempt to limit "operational risk", the risk of errors.
+* Attempt to limit &quot;operational risk&quot;, the risk of errors.
 === Human resources ===

@@ Line 15: / Line 15: @@
 Depending on who you ask, the group also includes:
-* Barclays Capital
+* Barclays Capital (which now incorporates the North American assets of [[w:Lehman Brothers|Lehman Brothers]])
 * Citicorp
 * Credit Suisse

@@ Line 9: / Line 9: @@
 * Goldman Sachs
-* JPMorgan (which now incorporates the remains of Bear Stearns)
+* J.P. Morgan Chase and Company (which now incorporates the remains of Bear Stearns)
 * Bank of America
 * Morgan Stanley
@@ Line 16: / Line 16: @@
 * Barclays Capital
-* Citi
+* Citicorp
 * Credit Suisse
 * Deutsche Bank

@@ Line 28: / Line 28: @@
 {{col-begin}}
-{{col-2}}
+{{col-3}}
 * Bain Capital
 * Blackstone
@@ Line 34: / Line 34: @@
 * Dresdner Kleinwort
 * Evercore Partners
 * Gleacher Partners
 * Greenhill
 * Houlihan Lokey Howard Zukin
 * ING, Jefferies
 * Lazard
 * RBC Capital Markets
 * Rothschild
@@ Line 52: / Line 53: @@
 {{col-begin}}
-{{col-2}}
+{{col-3}}
 * Bank of America
 * BNP Paribas
@@ Line 58: / Line 59: @@
 * Citi
 * Credit Suisse
 * Deutsche Bank
 * HSBC
 * JPMorgan Chase
 * Nomura Securities
 * Royal Bank of Scotland
 * Grupo Santander
 * Société Générale

@@ Line 6: / Line 6: @@
 === Bulge brackets ===
-The very largest investment banks are called "bulge bracket" firms. This group indisputably includes Goldman Sachs, JPMorgan, Merrill Lynch, and Morgan Stanley. Depending on who you ask, the group also includes Bank of America, Bear Stearns, Citi, Credit Suisse, Deutsche Bank, Lehman Brothers, and UBS. The bulge bracket firms are often so large that they are also financial conglomerates.
+The very largest investment banks are called "bulge bracket" firms. This group indisputably includes:
 === Other investment banks ===
-Beyond the "bulge bracket" firms are a wide range of other investment banks. Several compete directly with the bulge brackets, but are not classified as one because they only compete in particular areas. This group broadly includes Bain Capital, Blackstone, Calyon, Dresdner Kleinwort, Evercore Partners, Gleacher Partners, Greenhill, Houlihan Lokey Howard Zukin, ING, Jefferies, Lazard, RBC Capital Markets, Rothschild, TD Securities, and Wachovia. Some of these banks are called "mid-market" firms and others are called "boutiques". However, such labels are often misleading. For example, some people call Lazard and Rothschild "boutiques", even though last year Lazard and Rothschild each completed more worldwide M&A than either Bank of America or Bear Stearns, which are sometimes thought of as bulge brackets.
+Beyond the "bulge bracket" firms are a wide range of other investment banks. Several compete directly with the bulge brackets, but are not classified as one because they only compete in particular areas. This group broadly includes:
 === Financial conglomerates ===
-Firms that combine large commercial/retail banking and investment banking operations are known as financial conglomerates. These banks include Bank of America, BNP Paribas, Barclays, Citi, Credit Suisse, Deutsche Bank, HSBC, JPMorgan Chase, Nomura Securities, Royal Bank of Scotland, Grupo Santander, Société Générale, UBS, and Wachovia.
+Firms that combine large commercial/retail banking and investment banking operations are known as financial conglomerates. These banks include:
 === Former investment banks ===

← Older revision		Revision as of 16:42, 11 March 2008
Line 1:		Line 1:
		+	{{wp-also}}
		+
	An '''investment bank''' is a complex financial institution whose main purpose is to raise money by issuing and selling securities in the [[w:primary market\|primary market]]. This article provides an overview of such institutions. For the investment banking career path followed by many Columbia students and alumni, see the article about "[[investment banking]]".		An '''investment bank''' is a complex financial institution whose main purpose is to raise money by issuing and selling securities in the [[w:primary market\|primary market]]. This article provides an overview of such institutions. For the investment banking career path followed by many Columbia students and alumni, see the article about "[[investment banking]]".