Why Investment Banking Is Like Doing Drugs

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“Doing investment banking is like doing drugs: on your good trips you dance in clouds of marshmallows, surrounded by beautiful women (or men) serving you fruit under canopies. On your bad trips you scratch your eyes out and jump off buildings.” These are the words of Brian DeChesare, The founder of Mergers & Inquisitions and Breaking Into Wall Street. As an investment banker you will work with companies, CEOs, CFOs to help grow their business. This can be helping them with buying another company or issuing capital. It is your job to advise them and help pick the best option. We will go through the history, education, and what kind of traits you need to become an investment banker. Investment banking dates all the way back to early…show more content…
According to History of Investment Banking in the United States Investment banking in the United States emerged to serve the expansion of railroads, mining companies, and heavy industry.” With this help Investment banking and america grew exponentially hand in hand up until the year 1929. Before the great depression, investment banking was in its golden era. At the time the market was then led by JPMorgan and The National City Bank, They often had to step in and influence the market to sustain the financial system. According to “The History of Investment Banking” “During the Great Depression, the nation’s banking system was in shambles, with 40% of banks either failing or forced to merge. The Glass-Steagall Act (or more specifically, the Bank Act of 1933) was enacted by the government with the intent of rehabilitating the banking industry by erecting a wall between commercial banking and investment banking.” The government thought by separating the two they could lessen the amount of money that was recklessly spent by commercial banks. According to “What Was The Glass Steagall Act” “Commercial banks were accused of being too speculative in the pre-Depression era, not only because they were investing in to their own assets but also because they were buying new issues for resale to the public.” The banks became greedy, taking on huge risks in the hope of even bigger rewards. Banking itself became sloppy and objectives became blurred. Unsound
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