Investment Banks and Globalization

The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions

The major problem that many companies in this field according to Deloitte, is that they have under delivered in customer satisfaction. This happens for a variety of reasons; such as lack of trust with the Financial Advisors. People are trusting Financial Services companies, such as Edward Jones, with their money and don’t want to lose it (https://www2.deloitte.com/content/dam/Deloitte/au/Documents/financial-services/deloitte-au-fs-fsi-outlook-focus-2015-090215.pdf). Another consulting firm, Accenture, has a list of 10 problems that investment banks face for 2016 and the number one challenge that these companies are dealing with is the changing business due to the difference in millennial customers compared to generations of previous customers. The second problem that many investment banks are facing is dealing with the new technologies in the market (https://www.accenture.com/us-en/insight-top-ten-challenges-investment-banks-2016). Edward Jones is an extremely well known company in the Financial Services industry and it will, be interesting to see how or if they have combatted these challenges in any way or if they plan to in the

Investment banking is a field that is still growing and there is still room for improvement and the job prospects are one of the best. However, in the last few years, there have been also some jobs cuts in the industry. For example, as Bloomberg reported, Goldman Sachs

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Globalisation highlights the dramatic alterations in the landscape of international relations due to the emergence of free market economies based on the right to start a business and trade without restrictions. In other words, it’s the processual approach of assisting financial and investment markets to function together worldwide. This has been largely made possible from the deregulation and improved communications, particularly the evolution of the internet. It can be said that globalisation is a transition of shifting to an integrated world; comprising of the long-term modifications in the aim to achieve a ‘greater international cooperation in economics, politics, ideas, cultural values, and the exchange of knowledge’ (Gibson

According to Mohammad Shehmir, JPMorgan Chase was expected to outperform the market after the Federal Reserve raised the interest rate, but its exposure in the Chinese economy has caused it quite a bit of trouble (Shehmir, 2016). JPMorgan Chase reported in its third-quarter a total of $16.3 billion in direct exposure to China (Maxfield, 2016). The economic situation in China is taking longer to settle down due to fears of institutional investors who are responsible for bulk trading. Retail investors have a strong influence over Chinese markets, therefore, the impact of a downward trend is intensified (Shehmir, 2016).

Investment Banking is now at a crucial junction, where Investment and Commercial Banking are splitting up due to the ring fence which is being built around these two banking areas. As well, the new upcoming regulation, Basel III, will have a huge impact in the investment banks, with higher liquidity and capital requirements, in order to increase solvency and stability in financial industries.

1. What role did Bear’s culture play in its positioning vis-à-vis its competitors, and what role might that

Financial services differ greatly depending upon where you are at. Different countries have different currencies, markets, laws, and accounting practices to list a few. Because of this most financial institutions use a similar organizational structure. Goldman Sachs breaks their operations into four segments: Institutional client services, investment management, investment banking, and investment and lending (GS).

This strategic report of ANZ’s offshoring strategy examines the effectiveness and drivers of ANZ’s decision to move towards outsourcing internationally, analyses the impact of ANZ’s offshore programs on stakeholders, explores key risks and opportunities and evaluates the success of ANZ’s offshore system.

The purpose of the review is to inform the reader about the possible dangers geopolitical risks might have on the financial industry when the industry does not look after them. I was intrigued by this dark side of modern communication and the effect it has on the safety of the banking sector.

The main concept of the article is to explain why the New International Financial Architecture (NIFA) was created and who is being benefited from this approach. The discussion begins with an examination of the power structures of the global political economy by focusing on the continued dominance of the USA. The article presents the contradictory relations between USA and global finance will be explored so as to shed more critical light on the NIFA. This article critically examines the NIFA by linking its institutional components to the larger contradictions of the capitalist inter-state system. A contradiction is the constant promotion of financial liberalization in emerging

According to group´s performance from 2002-2006 identifies that Barclays´ performance underpinnings are represented by its strategy of acquiring other banking (such as ABN Amro and Banco Zaragozano) concerns to expand its retail as well as other banking services through representation in international markets as represented by the bank’s presence in 60 countries. This provides Barclays with the means to sell its highly profitable investment banking services as well as be positioned to service the cadre of multinational companies that utilize its diverse banking financial service packages.

Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in

A final reason for the company to offshore part of their operations is access new markets. Since the company is not restricted to just the domestic market, offshoring gives the company global presence and the ability to access developing markets in Third World countries. By streamlining the company’s production processes and supply chains globally, companies can lower their prices increase demand for their products, thereby attracting new customers and entering new markets.