INVESTMENT BANKING

Formal Analytical Report on Investment Banking



Letter of Transmittal

[Name of the City]

In accordance with the rules and policies of the Central Bank of America, I hereby present my report for 'Analysis of Investment Banking' as of October 11, 2011, duly assigned by me. In continuation thereof, I submit herewith the Report of Investment Banking as of October, 2011.

With best personal regards,

Cordially,

Executive Summary

This paper tends to discuss the ebbs and flows of investment banking in a holistic context. In this study, our main point of concern was on “Investment Banking” and its relationship with development of “the financial sector and developing and designing the financial industry for the future.” The research also analyzes the whereabouts of “Investment Banking” and at the same time tends to inculcate the whereabouts of what is the “criteria for entering the realm and area of investment banking.” Finally the core components of “Investment Banking” have been identified and analyzed for understanding and comprehending the “impact of variables upon the sustainability and future growth of investment banking.”

Formal Analytical Report on Investment Banking

To initiate our discussion, we shall be deliberating upon investment banking in a holistic context. The paper shall initiate with the importance and discussion of investment banking; this shall cover the utility, usability and the overall significance shall have upon the banking sector and ultimately its endless contribution towards the growth and development of the economy.

Introduction

Banking is defined as an 'institution' that serves and functions as a financial liaison, an intermediary between individual customers, a pool of clients and even as big as a multinational corporation. The system was initially bought by Goldsmiths back in 1652, which setup their system of money exchange in Italy. Then the Jewish merchants adopted the system towards the eighteenth century (18th century), who initiated the business of lending money to the general public, and finally came along professional money lenders, who preceded the whereabouts of money lending and at the same introduced the system of lending money upon 'interest rate' or, more formally, referred to as taking money upon credit terms (Andersen, 2008).

In today's modern world of rapid development and expansion, we see that banking and financial institutions have grown vastly Himalayan, in terms of their size, profitability and even their investment portfolios. Although investment banks take a comparatively different approach towards gaining and obtaining business, their sole objective, target and reason of existence initiates with three core postulates:

(a) Investment banking business, which targets and is responsible for capital growth and transactions and occurrences of mergers and acquisitions;

(b) Sales and trading business, which extends services of investment, risk management and intermediation for its current and potential customer clientele; and

(c) Asset Management, which pertains to aid and contribute individual and institutional client money management services.

Investment banking has substantially and extensively changed with the smash of 2007-2008 meltdowns, when one of the most important and founding stone of investment banking, Lehman brothers, brought down the entire system of the world with ...