Investment Banking U.S.-based investment banks have undergone what many would consider substantive...

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Investment Banking U.S.-based investment banks have undergone what many would consider substantive changes in the last eleven years, over the period 2007 to 2018. This period coincides with the Great Recession, which was a significant driver of changes to investment bank business and characteristics. Such changes include wider fluctuations in mergers and acquisitions, reduced initial public offering underwriting, reductions in staffing, and associated impact on investment bank balance sheets. For this case study, address the following items: 1. Identify one of the top ten investments banks as of XXXXXXXXXXProvide a concise description of the bank’s core competency with examples of recent activities or transactions. Be sure to provide specific $ data on the magnitude of the bank’s recent activities. 3. How has the size of your selected investment bank changed in the last decade? Use $ valuations to illustrate the change. In which investment bank functions did their overall business increase and/or decrease? 4. Prepare a balance sheet analysis of the bank, comparing 2007 B/S $ values to the most recently published B/S (either 2017 or XXXXXXXXXXBe sure to include the following items, in Excel spreadsheet format: a. % change in total assets, liabilities, and equity positions over this period b. Past and current leverage position of the investment bank, and % change over this period c. Comparison of book to market value of the bank, 2007 to current value 5. Refer to the following short article and address the question in detail: a. Article: Edelmann, C., & Hunt, P XXXXXXXXXXHow the Great Recession Changed Banking. Harvard Business Review Digital Articles, 2–9 b. Question: Compare the financial analysis completed in item #3 above to the main points in the article, including changes in B/S valuation. Answer the following questions for a fictitious public offering, and show all calculations: An investment bank offers underwrites an IPO of up to 18.5m shares for ABC Company at a price of $12.50 per share. Show the $ return to the investment bank under both scenarios: 1. The 18.5m shares sell at $13.25 per share. 2. What happens if the IPO price is overstated and the shares sell for $12.25 per share?

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Project Report on Investment Banking
Student Name:
Professor: 
December 6, 2019
An Investment bank provides financial services that assist in raising capital, wealth management services, assist in mergers and acquisitions, trading of securities including derivatives and, FICC services. Investment Banking in U.S. has undergone what many would consider substantive changes in the last eleven years, over the period 2007 to 2018. This period coincides with the Great Recession, which was a significant driver of changes to investment bank business and characteristics. Such changes include wider fluctuations in mergers and acquisitions, reduced initial public offering underwriting, reductions in staffing, and associated impact on investment bank balance sheets. 
List of Top 10 Investment Banks of 2018 identified:
	S. No.
	Banks Name
	1.
	Goldman Sachs
	2.
	JP Morgan Chase & Co.
	3.
	Barclays
	4.
	Bank of America Merrill Lynch
	5.
	Morgan Stanley
	6.
	Wells Fargo
	7.
	Citigroup
	8.
	T.D. Bank , N.A.
	9.
	U.S. Bancorp
	10.
	HSBC Holdings plc
From the above list the biggest investment banks are Goldman Sachs, JP Morgan, Bank Of America and Morgan Stanley. There revenue contribution in 2018 was, Goldman Sachs: $ 6.73 bn, JP Morgan $ 5.88 bn, Bank of America $ 5.36 and Morgan Stanley $ 5.035 bn. Global investment banking revenue has increased manifold in the past few years. The major share contribution is of JP Morgan with 8.1% revenue contribution globally. Below is the figure of Investment Banking expected CAGR 4.2% in the next four years all over the world.
2. Bank’s Core Competency
Morgan Stanley is known as one of the largest leading investment bank across the globe. It consists of top financial advisory sales forces in the industry and provides services to corporate entities, government bodies, financial institutions, and high-net-worth individuals. Also it deals mostly in high-profile deals on Wall Street. It major revenue generation is from wealth management segment and investment management segment. Wealth management is the biggest branch of the bank, and also its main associated broker-dealer (Copperman et al., 2008), Morgan Stanley Smith Barney, is the only wealth management entity across the globe. Banks Financial figures as per 2018 are mentioned below:
	Particulars
	Amount 
	No. of Employees
	60,348
	Revenue
	40,107 (in $mn)
	Total Assets
	853,531 (in $mn)
	Net Income
	8,883 (in $mn)
3. Change in size of Morgan Stanley investment bank in the last decade: 
In the past decade Morgan Stanley has built its image as a more cautious and precautionary investment bank.

Investment Banking U.S.-based investment banks have undergone what many would consider substantive changes in the last eleven years, over the period 2007 to 2018. This period coincides with the Great...

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