Investment banks are companies or entities that carry out all the activities of advice, set-up, intermediation and execution of so-called corporate finance operations. Their clients are so-called corporate clients as well as states.
These activities are the so-called Corporate Finance (corporate finance), Structured finance ( structured finance ) and Capital Markets (financial markets) operations.
They carry out financial engineering and mergers and acquisitions operations.
Investment banks engage in stock market brokerage and fund management for their own account and for the account of third parties.
Investment banking is sometimes defined restrictively as devoted to market activities while corporate finance would be the prerogative of investment banks, but in large banks the term investment banking includes all of these. activities
Investment banks refinance themselves in the banking market, where they borrow from other banking institutions.
The big American investment banks disappeared in the crisis of 2008 like Lehman Brothers or Bear Stearns (bought by JP Morgan) or, like Goldman Sachs, took the statute of bank holding, losing their specificity by extending their activity to the bank. deposit.