...Parker J Investment Banking Even though Bear was involved with investment trades around the world, the Fed did not grant Bear a government bailout. The Fed did step in to help maintain stability for the market, but LTCM for Bear was out of luck. Bear differed from its downward pressure on global securities prices, market stability, the possibility and probability to crash fast and hard, and the market environment was simply too hectic. Well first and foremost, the biggest change that could have been made, would be to hold the bridge tournament a couple months earlier. I believe that would have changed the outcome of Bear Stearns and allowed Cayne to save the day. All joking aside, from reading the article or case study, CDO’s and ARM’s were not the only destruction of Bear, just the final blow. Similar to what is happening in China right now with failing/decreasing hedge funds, Bear called in $500 million of short term debt to cover its losses from an unprofitable hedge fund. There was also a $38 million dollar fine paid to the SEC for fraudulent behavior. They were caught up in the CDO craze like everyone else and accepted way too many mortgages without knowing the details. Cayne must not have grasped the situation in its entirety. I can’t believe he announced they had $11.4 billion in cash and was now taking the situation seriously. The hole was much deeper than that. March 10, 2008, I believe, is where they were caught in the biggest fraud. Even though they didn’t...
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...Investment Banking: Past, Present, and Future by Alan D. Morrison, Saïd Business School, University of Oxford and William J. Wilhelm, Jr., McIntire School of Commerce, University of Virginia investment banks are changing fast. Forty years ago the industry was dominated by a few small partnerships that made the bulk of their income from the commissions they earned floating securities on behalf of their clients. Today’s investment banks are huge full-service firms that make a substantial proportion of their revenues in technical trading businesses that started to attain their current prominence only in the 1980s. The CPI-adjusted capitalization of the top ten investment banks soared from $1 billion in 1960 to $194 billion in 2000. Between 1979 and 2000, the number of professionals1 employed by the top five investment banks (ranked by capitalization) rose from 56,000 to 205,000.2 The enormous upheavals documented in the previous paragraph raise a number of difficult questions. What have the investment banks of today got in common with their predecessors? Is it possible to draw any meaningful parallels between businesses that today call themselves investment banks and the investment banks of 20, 40, or even 100 years ago? What is the source of the recent changes to the investment banking landscape, and can we say anything about the likely future direction of the industry? These questions point to a more fundamental one: namely, if investment banks did not exist, would we need to invent...
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...GET A JOB IN BANKING: The single most important thing you can do is to talk to as many people as you can. Talk to bankers and second years at SOM, learn about their experiences and views, and above all think for yourself. Getting a job in investment banking should involve two efforts on your part: (1) Learning your own needs - what is it you want in a job? (2) Learning what an investment bank is and does - does this type of job meets your needs? As a final warning, there is an allure to investment banking, namely that it is a high powered, fast-paced, exciting, dynamic career that can make you rich. This can be true, but it is also just a job - particularly as a first-year associate when it may not be as glamorous as you thought it would be. QUALITIES THAT INVESTMENT BANKS LOOK FOR It is important to see yourself as a portfolio of skills and qualities conducting an internet job search as well as any other. There are a number of skills and qualities that banks look for, and a successful candidate needs to put together several, but certainly not all of them. Additionally, it is probably a good idea to have some balance in your portfolio. Some qualities that banks look for on a resume or in the interview and some suggested ways to demonstrate them (these are just a few, and some banks will emphasize some more than others): Show a strong interest in Finance: Be able to convey to an interviewer/contact that you understand what investment banking is, what an...
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...Investment banking companies in Bangladesh are of two types: open-ended and closed-ended. The open-ended ones, generally referred to as mutual funds, repurchase shares in any quantity as and when holders offer them for sales. Thus, the amount of shares of the open-ended investment companies in market changes continually in response to public demand. Closed-ended investment companies sell only a specific number of ownership shares. An investor wanting to acquire shares of a closed-ended investment company must find another investor who wishes to sell. Investment companies do not take part in the transaction. In addition to selling equity shares, closed-ended companies issue a variety of debt and equity securities including preferred stock, regular and convertible bonds, and stock warrants for raising funds. Investment banks act as intermediaries between issuers and investors. The issuer sells securities to investment bankers who in turn sell the securities to investors. The investment banks own the securities until they are resold. For firms seeking to raise long-term funds, investment banks provide assistance through a number of functions including underwriting, marketing of securities, corporate finance, sale and brokerage, asset management and research. In underwriting, investment banks can protect themselves by forming a syndicate, which allows them to diversify the risk. One investment bank acts as the managing underwriter that oversees the underwriting activities of all members...
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...Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL FOREWORD BY JOSEPH R. PERELLA Investment Banking Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, please visit our Web site at www.WileyFinance.com. Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL John Wiley & Sons, Inc. Copyright C 2009 by Joshua Rosenbaum and Joshua Pearl. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976...
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...like Bangladesh the Investment banking play a vital role in the progress of economic development. In this paper we have tried to analyze the role of investment banking and how it influences economic development of a country. Investment bank is a financial intermediary that performs a variety of services. Investment banks specialize in large and complex financial transactions such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations, and acting as a broker and/or financial adviser for institutional clients. Major investment banks include Barclays, BofA Merrill Lynch, Warburgs, Goldman Sachs, Deutsche Bank, JP Morgan, Morgan Stanley, Salomon Brothers, UBS, Credit Suisse, Citibank and Lazard. Some investment banks specialize in particular industry sectors. Many investment banks also have retail operations that serve small, individual customers. It indicates the prospect of investment bank is very high because long term relationships between business firms and investment banks are pervasive in developed security markets. A vast literature argues that better monitoring and information result from relationships. Thus, security markets should allocate resources better when an investment banking industry exists. We study necessary conditions for sustainable relationships and then explore whether policy can do something to foster them. 1. Introduction An investment bank is a financial...
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...One of Forbes’ 33 “Favorite Sites.” – Forbes “To get the unvarnished scoop, check out Vault.” – SmartMoney Magazine “Vault has a wealth of information about major employers and job searching strategies as well as comments from workers about their experiences at specific companies.” – The Washington Post “A key reference for those who want to know what it takes to get hired by a law firm and what to expect once they get there.” – New York Law Journal “Vault [provides] the skinny on working conditions at all kinds of companies from current and former employees.” – USA Today Customized for: Mian Badr (mian.iftikhar@studbocconi.it) Customized for: Mian Badr (mian.iftikhar@studbocconi.it) VAULT CAREER GUIDE TO MIDDLE MARKET INVESTMENT BANKING JOE BEL BRUNO AND THE STAFF OF VAULT Customized for: Mian Badr (mian.iftikhar@studbocconi.it) Customized for: Mian Badr (mian.iftikhar@studbocconi.it) Copyright © 2009 by Vault.com, Inc. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Vault.com, Inc. Vault, the Vault logo,...
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...Part B (i) Background and Historical development of the Institution The Malaysian Investment Banking Association we also call it MIBA. It was establish during the 9 September of 1975. Malaysian Investment Banking Association (MIBA) acts as association of merchant bank in Malaysia to guide and protect the interests of investment bank. MIBA also provide a forum for them to exchange views and idea, close collaboration, dialogue and consultation with supervision department and other market intermediaries. Since the association have been incorporation, the investment bank has played an important role to develop the Malaysia’s capital market. During the year 2005, the Association decided to have a new image that would patency represent their role, objectives and commitment to support the country’s desire of developing a efficient, innovation and competitive capital market. The Association’s new name and logo was launched on 3 December 2005 and effective 1 January 2006. The name and logo was launched by the Governor of Bank Negara Malaysia which is YBhg Tan Sri Dato’ Seri Dr Zeti Akhtar Aziz. The Association was officially known as “MALAYSIAN INVESTMENT BANKING ASSOCIATION”. The logo of Malaysian Investment Banking Association logo was form by few alphabets which is the short form of the association – MIBA. The central letters that strand for “Investment Banking”. The “investment banking is the heart of the organization while the “Malaysian & Association” are two supporting identity...
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...Is it necessary to combine Investment Banking and Commercial Banking? Separation of Retail Banking and Investment Banking was a hot topic with President Obama’s proposal in January 2010 regarding a ban on US Banks on retail banks from using their own funds in investments and limiting to invest their customer’s funds. This news made many to wonder whether the world is going back to replace Glass Steagall Act which was abolished in 1999.(BBC,21January2010) Glass-Steagall Act(GSA)commonly known as Banking Act 1933 made the investment banks and Commercial Banks to function separately in order to refrain Commercial Banks from greater in securities business activities. This Act prohibited Commercial Banks to underwrite securities to public while it prohibited Investment Banks to accept deposits from customers. (Investopedia,2003). Many argue that commercial banks should not involve in securities(stock/bond)market investments as commercial banks divert funds in investment banking. In other words internal transparency of movements of funds not very clear when operating as a ‘Universal Bank’. Prior to 2007-2009 financial crisis Commercial Banks were greedily involved merely because of profits in securitization business where subprime mortgages were involved. During the rise in property market in 2006,banks created and traded in securitized assets, backed by subprime mortgages. Banks became greedy of making more money through SPV(Special Purpose Vehicle)taking high risks. When...
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...UNIVERSITETI I SHKODRËS “LUIGJ GURAKUQI’’ FAKULTETI EKONOMIK DEGA: FINANCË - KONTABILITET TEMË DIPLOME INVESTIMET E HUAJA NË SISTEMIN BANKAR Foreign investment in the banking system [pic] Pedagogu udhëheqës: Msc. Rozafa (Alibali) RISTANI Punoi: Kristjana KRONAJ Qeshor 2013 FALENDERIME Ky punim është zhvilluar në kuadrin e mbylljes së studimeve të mia pranë Departamentit të Financë-Kontabilitetit në Fakultetin Ekonomik të qytetit të Shkodrës dhe është rezultat i një pune të gjerë kërkimore gjatë këtij viti të fundit. Prandaj gjej rastin të falenderoj së pari familjen time që më kanë shoqëruar në çdo hap të jetës sime. Ishin ata që me ngrohtësine e tyre më kanë ngritur sa herë që rrëzohesha. Më kanë ndihmuar në formimin e karakterit tim, duke më këshilluar në çdo zgjedhje që unë bëja, më kanë motivuar për të ndjekur studimet e larta dhe falë tyre unë jam këtu ku jam sot. Një falenderim të veçantë ia dedikoj profesoresh Rozafa Alibalit për gatishmërinë dhe ndihmesën e saj në zhvillim e kësaj teme. E natyrisht nuk mund të lë pa përmendur edhe shoqërin time që m’i ka bërë më të bukura vitet shkollore. Faleminderit të gjithëve. TABELA E PËRMBAJTJES • Hyrja................................................................................................................................fq3 • Përmbledhja ekzekutive .................................................................…...
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...Investment Banking Ethical Behavior Would you entrust your money to someone you thought was unethical? Would you risk heavy fines and possible jail time for skimming funds from a client? People who work in finance are placed in a fiduciary position of trust; first, by their employers, but more importantly, by members of the general public, over whose assets they are given control. Their daily business is directly working with other people's money, or doing other things that affect the public's investment decisions, and if they are unethical people, their clients, and the public, are at high risk for being cheated. Finance workers are entitled to reasonable fees for their services, but they are not entitled to engage in investment activity solely to generate more commissions for self, or engage in any other self-dealing while they are doing their jobs on behalf of their clients. Given the many scandals of recent years, many companies have done their best to publicize their codes of ethics, and to acknowledge their responsibility to the public. These firms know that public confidence in their finance people matters a great deal, and unethical behavior on the part of a firm means that people will stay away from that firm, and they may stay away from all the others as well. That is why ethics are not merely relevant. On the contrary, they're vital to the existence of the industry. Good ethical behavior is not an optional. While researching the ethical behavior of the top...
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...Investment Banking Under Islamic Shariah PRINCIPLES: A Case Study on Export Import Bank of Bangladesh Ltd By Md. Mostak Ali ID: 3-03-03-025 A Project Report Submitted To Professor Md. Ali Akkas Department of Management Studies In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSSINESS ADMINISTRATION UNIVERSITY OF DHAKA Dhaka 1000 September, 2011 September 29, 2011 Md. Ali Akkas Professor Department of Management Studies EMBA Program University of Dhaka. Subject : ‘Submission of project paper under evening MBA program’. Dear Sir, I, Shah Salahuddin Ahamed, am one of your students in the Evening MBA Program. It is my pleasure to inform you that, I have prepared my project paper which was assigned to me in the topic of 'Investment Banking Under Islamic Shariah Principles - A Case Study on Export Import Bank of Bangladesh Ltd.’ It was quite helpful for me to complete the paper under your prudent supervision. The theoretical knowledge that I have achieved during the MBA sessions helped me a lot to understand the practical business operations in different sectors and to prepare the report smoothly as well. My special gratitude to you & the Department of Management Studies and thanks to Exim Bank Ltd. authority. I have given my best effort to analyze the Investment Banking System in Exim Bank Ltd under Islamic Shariah principals, though I have lot to know & learn about Islamic Banking...
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...Principles and Practices of Investment Modes of Islamic Banking | | Abstract: The objective of the study is to gather practical knowledge regarding general banking system, investment and foreign exchange system and its operation. By pictorial description it is tried to find out the variation from various departments, particularly investment. Other objectives of the report are to identify the various types of existing services rendered by the SIBL. understand the prevailing mechanism of modes of finance of SIBL. Study the performance of modes of finance of SIBL. Highlight the major characteristics of modes of finance of SIBL. Understand the basic difference in relation to conventional bank. 1.1 Introduction: Today’s world is changing very rapidly as new business are emerging by placing the old ones. Towards the end of century, let alone a millennium, people feel a growing uneasiness about the future. Many countries suffer from chronic high employment, a persistent deficit and deteriorating purchasing power. Like the other business, banking practices are also changing at an incredible pace. Every decade calls upon company management to think freshly about its objectives, strategies and tactics. In the banking industry, community branch banks have long been the marketing channels through which customers deposit money and make payments. Banking plays an important role in the economy of any country. In Bangladesh Muslim consist more than 80% of its population. These people...
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...Investment Banking Under Islamic Shariah PRINCIPLES: A Case Study on Export Import Bank of Bangladesh Ltd By Md. Mostak Ali ID: 3-03-03-025 A Project Report Submitted To Professor Md. Ali Akkas Department of Management Studies In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSSINESS ADMINISTRATION UNIVERSITY OF DHAKA Dhaka 1000 September, 2011 September 29, 2011 Md. Ali Akkas Professor Department of Management Studies EMBA Program University of Dhaka. Subject : ‘Submission of project paper under evening MBA program’. Dear Sir, I, Shah Salahuddin Ahamed, am one of your students in the Evening MBA Program. It is my pleasure to inform you that, I have prepared my project paper which was assigned to me in the topic of 'Investment Banking Under Islamic Shariah Principles - A Case Study on Export Import Bank of Bangladesh Ltd.’ It was quite helpful for me to complete the paper under your prudent supervision. The theoretical knowledge that I have achieved during the MBA sessions helped me a lot to understand the practical business operations in different sectors and to prepare the report smoothly as well. My special gratitude to you & the Department of Management Studies and thanks to Exim Bank Ltd. authority. I have given my best effort to analyze the Investment Banking System in Exim Bank Ltd under Islamic Shariah principals, though I have lot to know & learn about Islamic Banking...
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... Introduction Over the last years, there has been a debate on whether commercial and investment banks should be separated or not. Especially after the crisis in 2007 when taxpayers had to pay billion in the US to bail out the banks, the need for a “ring fence” around retail banking operations became urgent. Universal banks use the retail deposit for their investment operations which engage great risks. When their investments fail, the states have to rescue them. These mega banks emerged after the Great Depression when such a mergence became possible mainly because of the deregulation of western financial services. However, if global capital markets agree in a ring fence or total separation, it is a procedure that will take place over a period of years. In this project a brief review of the debate that takes place around this matter will be presented, mainly by stating some of the ideas that are commonly discussed. The Glass-Steagall Act and how we got here Recently President Obama proposed the separation of investment and retail banks, as it is believed that they were the main reason of the last financial crisis that started in 2007. Avgouleas (2010) points out that the mega banks were created after 1990’s due to the deregulation of the financial industry and they engaged great risk in their investment activities as the deposits (that were used for these purposes) were guaranteed by the government. Benston, G.J. (1994) points out that these mega banks became so large,...
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