Ben and Jerry

Every word or expression gives rise to different associations when people hear them. For example, the word Investment Banks strongly associates with well-known names of financial organizations: Goldman Sachs, Morgan Stanley, JP Morgan, Bear Stearns, and Merrill Lynch. Huge giants that reigned investment banking sector by generating transcendental profits via equity, debt or other types of offerings, simultaneously engaging in derivatives or trade in equities and M&A procedures.

Today when the financial sector is well developed and experiences economies of scale and scope we didn’t hear the word “Investment Banks” anymore, just investment banking. What happened with those who formerly represented the whole investment banking sector and were the example of perfect asset and management spearheading benchmark. Any investor who has been around will tell the following:

Investment banks were taking short term liabilities and vast amount of leverage for the bright days, forgetting about bad ones. Increased Return on Equity and improved financial position at the expense of external funds make them blind and complacent. They turned blind eye on future payouts and ignore the swelling bubble of Long Term Capital Management. As the result massive layoffs, tiny earnings per share, acquisitions processes, Chapter 11 of Bankruptcy Code and many other unexpected and undesirable things happened. However disappearance of investment banks doesn’t mean that investment banking activity is dead by itself.

Of course, when huge giants and market are facing collapse it may seem that situation could seem to be worse. However, big fortunes gained by those investors who are ready to invest during bad times and investment banking activities should be more active exactly at this period. Several suppositions in support of the idea that investment banking activities will prosper:

1. Since European and American markets don’t attract the same myriad amount of investors as they...