by the finance major | Feb 20, 2023 | Career, Education
The largest investment banks with operations in the United States, based on their total assets and global presence, are:
- JPMorgan Chase: With over $3 trillion in assets, JPMorgan Chase is the largest investment bank in the U.S. and offers a range of services including investment banking, asset management, commercial banking, and more.
- Goldman Sachs: Goldman Sachs is a leading global investment bank with over $1 trillion in assets and a reputation for advising on some of the largest and most complex deals in the industry.
- Morgan Stanley: Morgan Stanley is a global investment bank with over $900 billion in assets and a focus on providing financial advice and investment banking services to corporations, governments, institutions, and individuals.
- Bank of America Merrill Lynch: Bank of America Merrill Lynch is a leading investment bank with over $2.5 trillion in assets and a strong presence in the U.S. and international markets.
- Citigroup: Citigroup is a global investment bank with over $1.9 trillion in assets and a presence in more than 160 countries. The bank offers a range of services including investment banking, commercial banking, and wealth management.
- Deutsche Bank: Deutsche Bank is a global investment bank with over $1.7 trillion in assets and a significant presence in the U.S. The bank provides a range of services including investment banking, wealth management, and retail banking.
- Credit Suisse: Credit Suisse is a global investment bank with over $1.1 trillion in assets and a strong focus on providing financial advice and investment banking services to corporations, institutions, and high net worth individuals.
- Barclays: Barclays is a global investment bank with over $1.4 trillion in assets and a presence in over 40 countries. The bank provides a range of services including investment banking, wealth management, and retail banking.
- UBS: UBS is a global investment bank with over $1.1 trillion in assets and a strong presence in the U.S. The bank provides a range of services including investment banking, wealth management, and retail banking.
The rankings and assets of these investment banks obviously fluctuate over time, and there are other important investment banks operating in the U.S. as well.
by the finance major | Feb 20, 2023 | Education
The Great Recession was a period of time between 2007 and 2009 when there was a severe economic downturn in many countries, including the United States. It was triggered by a housing market crash, which led to a financial crisis that spread throughout the entire global financial system.
The housing market had been growing rapidly in the early 2000s, and many people were buying homes with subprime mortgages they couldn’t really afford. Banks and other lenders were giving out these loans to many people who didn’t have good credit or steady jobs. When the housing market bubble eventually burst, home prices began to decline, leaving many homeowners with mortgages that were worth more than their homes. This led to a wave of defaults and foreclosures, which caused the value of mortgage-backed securities and other investments based on these mortgages to plummet.
Many banks and financial institutions had invested heavily in these securities, and when their values dropped, many of these institutions became insolvent or went bankrupt. This created a financial crisis, as many investors and businesses lost confidence in the financial system, leading to a credit crunch and a severe economic contraction.
The Great Recession led to high levels of unemployment, a decrease in consumer and business spending, and a decline in economic growth. Governments around the world implemented policies to try to stabilize the financial system and stimulate economic growth, including fiscal stimulus programs and monetary policies such as low interest rates and quantitative easing. The effects of the Great Recession were felt for years, and it is considered to be one of the worst economic crises in modern history.
Check out The Big Short, a movie which details the lead up and development of the crash. If you haven’t already, make sure to watch the other movies on this list of finance classics!
by the finance major | Feb 20, 2023 | Education
The Great Depression was a period of extreme economic hardship that began in the late 1920s and lasted throughout the 1930s. It started in the United States but quickly spread to other countries around the world.
During the 1920s, there was a lot of speculation in the stock market, which caused stock prices to rise rapidly. However, many of the people investing in the stock market did not have the financial means to support their investments, and when the stock market crashed in 1929, many people lost their life savings.
The crash of the stock market led to a decline in consumer spending, which in turn led to a decline in production and employment. As people lost their jobs, they had less money to spend, which caused businesses to struggle even more. This downward spiral led to a period of extreme poverty and hardship for many people.
To make matters worse, many banks failed during this time, which led to widespread panic and bank runs. People lost their savings when banks closed, and many businesses were forced to close as a result.
The Great Depression ultimately came to an end with the start of World War II, which brought about a large increase in government spending and a surge in economic activity. However, the Great Depression remains an important event in world history and a reminder of the importance of sound economic policies and financial regulation.
by the finance major | Feb 20, 2023 | Education
In the late 1990s, there was a period of rapid growth in the technology industry, and many new internet companies were created. Investors were very excited about these companies and believed they would become extremely valuable in the future. People started investing a ton of money in these companies, even if they didn’t have a proven business model or weren’t making any profits.
This led to a lot of speculation and hype around these companies, and their stock prices began to rise exponentially. Some companies even went public in initial public offerings (IPOs), and their stock prices soared even higher.
However, the bubble burst in 2000, as investors began to realize that many of these companies were not making any profits, and their stock prices were based on hype and speculation rather than sound financial fundamentals. Many companies went bankrupt, and their stock prices plummeted. This caused a lot of people to lose a lot of money, and it had a ripple effect on the broader economy.
The dot com bubble crash was a lesson in the dangers of speculation and investing in companies without a proven business model or sound financial fundamentals. It showed that it’s important to do your research and invest wisely, rather than following hype and speculation. As Warren Buffet wisely said, “be fearful when others are greedy, and greedy when others are fearful.”
Check out this list of companies that flopped during this time.
by the finance major | Feb 19, 2023 | Career, Education
In the finance industry, the term “front office” refers to the parts of a firm that directly generate revenue through interactions with clients. This can include functions like sales, trading, and investment banking. In general, front office roles are focused on generating revenue for the firm and often involve working closely with clients to help them make investment decisions or execute transactions.
Front office roles are often seen as prestigious and highly competitive, as they can be very lucrative and offer a lot of opportunities for professional development. However, they can also be high-pressure and require a lot of hard work and long hours. Some examples of front office roles in finance include:
- Sales: Sales professionals work with clients to identify their needs and sell them financial products like stocks, bonds, and derivatives.
- Trading: Traders buy and sell financial assets in order to make a profit for their firm or their clients.
- Investment banking: Investment bankers help companies raise money by underwriting and issuing securities like stocks and bonds, and they also provide advisory services for mergers and acquisitions, corporate finance, and other strategic transactions.
Front office roles are critical to the success of financial firms, and they are a key area of focus for many professionals in the industry.
For an explanation of Back Office vs. Middle Office, click here.
by the finance major | Feb 19, 2023 | Career, Education
In the finance industry, there are two main sides of the business: the Buy Side and the Sell Side.
The Sell Side refers to banks, brokerage firms, and other financial institutions that sell financial products and services to their clients. This can include things like investment research, underwriting, and market-making. Essentially, the Sell Side helps clients buy and sell financial assets.
The Buy Side, on the other hand, refers to institutional investors like pension funds, hedge funds, and private equity firms that buy and hold financial assets. These investors are looking to generate returns on their investments by buying and holding securities like stocks, bonds, and other financial instruments.
So, to summarize, the Sell Side helps clients buy and sell financial assets, while the Buy Side actually buys and holds those assets in order to generate returns for their investors.
Many professionals work on both sides over the course of their careers.
