Investment Banks

1. Investment banks?

Heya, I saw this list of Top 50 Banking Employers I noticed that most of the banks were in NY. Many of them are investment banks. So why not go have a look? Might answer your question. http://www.vault.com/nr/finance_rankings/finance_rankings.jsp?finance2007=2 Hope this helps.

2. How do investment banks (Goldman and Morgan Stanley) accept deposits?

they do it through subsidiaries and employee deposits

3. How are credit crunch and investment banks crashing out related?

oooohhh this one's easy! It's the sub-prime mortgages that were taken out in circumstances where it was only going to lead to a bad debt. The big lenders bought all this bad debt without realising just how bad it was (made bad by the fact that property prices slumped, otherwise they would have been able to liquidate the property to get the investment back) This has depleted the reserves of some really big investors. Read more about it here: http://www.thecreditcruncher.com/2008/06/sub-prime-mortgages-are-to-blame.html Hope this makes sense...frankly I am astonished that more checks were not made on these investments, this was sloppy work by someone!

4. Are there positions in investment banks related to film financing ?

investment banks seek skilled investment and one of the areas is film financing !! People are trained in this job, and you will have to seek for this particular type of job !

5. is the difference between commercial banks and investment banks getting less?

They are all pretty much the same. An investment bank may pay a little more but after you figure in the taxes then it balances out.

6. Where can I find a list of investment banks?

Shouldn't you sleep after such a dancing night, you? Starting the year with such a heavy load, sorry, question! Look, my Bank in Scotland was the Bank of Scotland... But I always fancy the Clydesdale Bank. Then I am a bit like you Xico: deep inside, I like poetical words... It's quite stormy here, what about there? Belgium for you!

7. How to invest on the premise that the Investment Banks are on a long-term downturn?

You could sell the capital markets ETF short. The symbol for iShares Dow Jones US Broker-Dealers is IAI. This avoids the high management fee Rydex ETFs but subjects you to the margin requirements of short selling. There are also long term puts available for Lehman and Goldman. For example, Lehman has puts at $10, $20, $30, and $40 strikes available to January 2010. They are expensive because of the amount of time left, but there is a fair amount of open interest in these. Goldman Sachs similarly has January 2010 puts available but the open interest hits strikes down in the $120 and $130 level...much less leverage and profit potential than in Lehman if you are right in your assertion about the downside. Be careful. Shorting stocks is very nerve wracking and can be dangerous to your financial health! Hope that helps.

8. What outlook do traders at investment banks have for their trades? 1 week? 3 weeks? 3 months?

It depends on what products they are trading, and for each prouct there are different strategies and for the type of client they are trading. All strategies are defined by the company's management Most equity traders, are looking 1 to 6 months, but as all traders do, they never go into a trade without knowing when they are getting out. So if the profit reached meets their standards they will take the profit regardless of the holding period. Traders for investments bankers are often limited to the types of trades they can enter, most can not do day trades of any kind, most can not short or do options. Most traders look at a position they have for 6 months as a trade gone bad. Becareful, there is a big difference between a trader and an investor. So the traders for mutual funds, banks, may look at things as investors and not traders. If you want to get into trading, you don't have to limit yourself to investment banking, you would do better as trading for other types of firms. And don't confuse traders with order takers, although they do the same thing, their directions are from different sources.

9. What are the differences between the products offered by investment banks asopposed to a basic finance company

investment banks usually are more conservative, they place your money on a sure thing like government bonds. Fix interest, nothing radical. Finance companies take more chances with your money, they invest on higher rates but less secured, like international stock. The risk is higher but so might be the profit.

10. How do investment banks conduct auctions of companies?

Obviously from the sell side. Most thing are bought on Credit or with loans. If the company defaults on the payment then the Bank is allowed to foreclose. Correct? When they do so they are taking a loss... say a piece of machinery costs $100,000. The Company never makes a single payment on there loan other than the 10 percent they had to put down to get the loan... that means that the equipment is still $90,000 unpaid, or 90% unpaid. When they sell it, via an auction the buyer usually pays even less than that for the machinery.. usually around 50-60%. Depending on the need for the machinery... Cause the only thing a bank can do is sell the machinery... they don't need to make shirts or whatever. In dong so the bank is out of the money... 10% paid plus 50% received from buyer is only $60,000 for an object that was worth 100,000. As far as the risk in buying... usually the buyer is less informed. By that I mean, It is the risk of the buyer to assume that the machinery is not broken or screwed up in anyway.

11. How many vacation day do major investment banks give in the UK?

You start at 25 days a year and depending on the organisation, you may accrue more. I would suggest that, if you are interviewing at a few companies, you just call their (and their competitors) HR department and ask them the question. You won't need to disclose any information, just say you're looking at applying for a job with them... Best of luck! P

12. Do investment banks sponsor their entry level workers to return to school?

13. What are hung loans? How do they relate to investment banks and buy-outs/take-overs?

Hung loans is debt that is stuck on the books of the investment banks because no one will buy the loans from them. A leveraged buyout is typically funded by the sale of bonds.

14. Who caused this housing crisis and who caused this problem with insurance giants and huge investment banks?

15. What questions I got to ask to real estate investment banks? I need to pick between 4 firms for a perm. loan.?

Mario, I'm a Canadian RE invester (small) with about 55 rental units, commercial and residential. The best way to get answers is being honest, and telling whoever you call upfront you're new at this, and hired to choose a lender for 50 Million (or whatever) dollars for your firm. Ask them simply how it works and what fee's they charge. For instance, there's sometimes a fee built into the interest rate that you don't know about that gets kicked back to the mortgage broker. I've had 1.5% fee's literally eliminated to 0% depending on the size of the mortgage (or blanket mortgage.) Good luck, oh, and here's money in the bank for you: Ask a bunch of my friends at the best online realestate forum run by investers much bigger and smarter than me: Its called magicbullets forum, tell them NetWorth / Chrisvet sent you. They'll give you phenominal advice.

16. Will top investment banks hire me if I have these qualifications?

It might depend on which school you went to for undergraduate studies. I heard that top investment banks usually hire graduates from top schools. You will start high if you attended a prestigious school. If you didn't, you can always work your way up too. I believe getting a MBA is going to be worth your while. Best of luck.

17. Why have Investment banks suffered due to subprime crisis? I expected only commercial banks would.?

The investment banks were either 1.) stuck with packages of subprime loans they created and couldn't sell or 2.) Believed in them and invested their own capital in them. They used these securities as collateral to buy all kinds of different assets on margin. As the subprime securities lost much of their value, the banks didn't have nearly enough capital to meet the margin requirements for all the other securities they bought. They were then forced to sell good assets to raise capital, and no one would give them a dime for the subprime assets b/c no one was sure whether they had any value. This forced selling / de-leveraging caused the value of the other assets to fall, so you had this death spiral.

18. Do investment banks finance companies and their IPO's?

Investment banks help the companies through the process of financing and doing the IPO. They sell the securities to the public. They may also invest some of their money in the securities. Venture capitalists invest money in companies that they think will do well in the future. They invest to make money. They help companies by providing loans and equity capital, but the vulture capitalists are in it to make a buck. Additional info: The investment banks, when helping companies issue stock, are doing something that is highly regulated and controlled by the SEC and others. They have to be very careful to follow all the securities laws. Venture capitalists are just trying to get rich by helping companies with good ideas. They usually gather together capital and try to find good places to invest it to make a great return. They are risking big investments in companies in the hope of a successful company and a great return.

19. What would it take for Goldman-Sachs (or Merrill Lynch, or other investment banks) to draw up new stocks?

There is not sufficient information in your question to respond properly. The actual cost incured by an underwriter is not material to an issuers since all the cost will be covered by the underwriting and deducted from the monies paid to the issuer. Also the cost of the underwriting will vary depending on the experience of the underwriter, most expenses are standard and each has their own schedules. The underwriter would have to meet with the potential issuer and determine how much they want to raise and what percentage of the company are they willing to give up for that money. No decision could be made without a full business plan by the issuer emphasising what the plans are for the monies to be raised and audtited financials of the issuer. Additionally the underwriter will need a complete listing of the major shareholds and what percentage they will be giving up, if any. If the underwriter decides to bring the issue public, all the filings will be done by the underwriter with the help of the issuer. The project will be run pass the syndicate for their approval and or comments. This is some of the work that has to be done, I'm not sure where you're going with your question. To properly respond more details would be needed

20. How do you compare the balance sheet of a basic finance company with an investment banks balance sheet?

I'm not clear what you are trying to get at, but if you are looking for ways to evaluate stocks, please see the following site: http://ibooyah.com/blog/2006/11/evaluating_potential_stock_inv_1.html