PROJECT REPORT ON Investment Banking on HSBC

BY AJIT JAIN MBA CLASS OF 2011-2013 ROLL NO: A306019110003

INDEX

No. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Topic

Page No.

Introduction

Investment banking An investment bank is a financial institution that raises capital, trades in securities and manages corporate mergers and acquisitions. Investment banks profit from companies and governments by raising money through issuing and selling securities in the capital markets (both equity, bond) and insuring bonds (selling credit default swaps), as well as providing advice on transactions such as mergers and acquisitions. To perform these services in the United States, an adviser must be a licensed broker-dealer, and is subject to SEC (FINRA) regulation see SEC. Until the late 1980s, the United States maintained a separation between investment banking and commercial banks. Other developed countries (including G7 countries) have not maintained this separation historically. A majority of investment banks offer strategic advisory services for mergers, acquisitions, divestiture or other financial

services for clients, such as the trading of derivatives, fixed income, foreign exchange, commodity, and equity securities. Trading securities for cash or securities (i.e., facilitating transactions, marketmaking), or the promotion of securities (i.e., underwriting, research, etc.) was referred to as the "sell side". Dealing with the pension funds, mutual funds, hedge funds, and the investing public who consumed the products and services of the sell-side in order to maximize their return on investment constitutes the "buy side". Many firms have buy and sell side components. The last two major bulge bracket firms on Wall Street were Goldman Sachs and Morgan Stanley until both banks elected to convert to traditional banking institutions on September 22, 2008, as part of a response to the U.S. financial crisis. Barclays, Citigroup, Credit Suisse, Deutsche Bank, HSBC, JP Morgan Chase, Banco Santander, BBVA and UBS AG are "universal banks" rather than bulge-bracket investment banks, since they also accept deposits (though not all of them have U.S. branches).

Definition: An individual or institution which acts as an underwriter or agent for corporations and municipalities issuing securities. Most also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors. Investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits from and provide loans to individuals. also called investment banker.

Investment Scenario In India

India is thought to be a first-rate investment. India has a vast potential for foreign investment and foreign players find it their next investment destination. As rightly said by Sukomal C Basu, Chairman & Managing Director, Bank of Maharashtra; India is the fourth largest economy in the world and has the second largest GDP among developing countries, in purchasing power terms. It is experiencing growth with macroeconomic stability and is in the process of integrating with the global economy. Far-reaching economic reforms initiated in July 1991 generated numerous business opportunities, leading to degeneration with removal of most licensing procedures. Economics authorities and various research studies carried out across the globe confirm the fact that India and China will rule the world in the 21st century. For over a century the United States has been the leading economy in the world but key developments have taken place in the world economy since then, leading to the change in focus from the US and the rich countries of Europe to the two Asian giants- India and China. The wealthy countries of Europe have seen the supreme decline in global GDP share by 4.9 percentage points, followed by the US and Japan with a decline of about 1 percentage point each. Within Asia, the rising share of China and India has more than made up the moribund global share of Japan since 1990. During the seventies and the eighties, ASEAN countries and during the eighties South Korea, along with China and India, contributed to the rising share of Asia in world GDP. According to some experts, the share of the US in world GDP is expected to fall (from 21 per cent to 18 per cent) and that of India to rise (from 6 per cent to 11 per cent in 2025), and hence the latter will emerge as the third pole in the global economy after the US and China.

By 2025 the Indian economy is projected to be about 60 per cent the size of the US economy. The transformation into a tri-polar economy will be complete by 2035, with the Indian economy only a little smaller than the US economy but larger than that of Western Europe. By 2035, India is likely to be a larger growth driver than the six largest countries in the EU, though its impact will be a little over half that of the US. India, which is now the fourth largest economy in terms of purchasing power parity, will overtake Japan and become third major economic power within 10 years. Any company or firm irrespective of its size, which aspires to be a global player cannot for long ignore India which is expected to become one of the best emerging economies. However the million-dollar question here for foreign players is What is the success-failure ratio? Success in investing in India will depend on four factors like: Accurate estimation or at least feasible estimation of the India's potential Proper Risk Assessment while investing in India Proper understanding of the Indian Financial System

Careful strategic planning backed by thorough research on investment industry Failure in investing in India can depend on three factors like: Underestimation of Indian investment intricacies Overestimation of investment potential in India Complexities & reservations of Indian System

One point that investors should understand about investing in India is that India is an investment goldmine for long-term growth. While short term

profits may be churned out from time to time but they are not of a pennys worth in the longer run.

Importance of investment banking

1. Investment bank is a financial institution and investment banking plays a very noteworthy role in the economy. 2. Investment banking help the corporations in raising capital. 3.It facilitate the trading of securities thereby, increasing the liquidity of the securities. 4. It provides investment opportunities to the individuals or entities. 5. Most of the corporations get advisory services from the investment banks concerning the mergers, acquisitions and divestiture. 6. In addition, because of the importance of the roles of investment bank, the commercial banks do not perform these roles.

Methodology Primary Data The primary data for this project has been collected from banks and investors .Banks like HSBC (Hong Kong and Shanghai Banking Corporation LTD) has helped in providing the data. Secondary Data The secondary data has been collected from the internet and from different books and magazines.

OBJECTIVES To study various factors, determinants and outcomes of investment banking.

 How HSBC is stimulating the customers to invest their money in the company. How HSBC is going to search for privileged customer

Scope In the pure investment banking or corporate finance relationship, investment banks fundamental purpose is to lower the frictions involved in issuing new securities.In their book Doing Deals, Eccles and Crane define the Scope of an investment bank as mediating the flow of assets between issuers and investors

a) Investment banks perform five of the six basic functions that they say are required of any well-functioning financial system. These functions are (1) Pooling resources and subdividing shares, (2) Transferring resources across space and time, (3) Providing mechanisms to manage risk, (4) Providing information, and especially prices, needed to coordinate decentralized decision making in the economy (5) Providing mechanisms to solve problems of asymmetric information, agency problems, and incentives.

Limitations 1. The scope of my project is limited to 50 customers. 2. The data provided by the customers may not be reliable. 3. Because of the privacy and the confidentiality of the bank and the investors, I was not able to secure much data.

Unit-II Review of literature

Article on Investment banking

Investment Banking
Kris Howard Investment Banking The intensely competitive, action-oriented, profit-hungry world of investment banking can seem like a bigger-than-life place where deals are done and fortunes are made. Investment bank includes but is not limited to bringing an established company to the market, by that I mean taking company with the capabilities but not capital of expanding, and raising money through other investors or the stock market (IPO) for a commission, I chose this field because of my personal experience with my father and his company, I've seen him go from starting off as a cold calling broker, to running a brokerage firm, to starting a brokerage firm, all the way to having his own investment firm. I feel like I would do better with jobs where you set your own hours and work at your own pace. A lot of the work is commission based so the more your work the more you make, this would also benefit me because it would drive me to work more, money is my motivation.

Article on Investment banking -Katrina lamb.

The Regulatory Infrastructure In the United States, investment banks operate according to legislation enacted at the time of Glass-Steagall. The Securities Act of 1933 became a blueprint for how investment banks underwrite securities in the public markets. The act established the practices of due diligence, issuing a preliminary and final prospectus, and pricing and syndicating a new issue. The 1934 Securities Exchange Act addressed securities exchanges and broker-dealer organizations. The 1940 Investment Company Act and 1940 Act established regulations for fiduciaries, such as mutual funds, private money managers and registered investment advisors. In Wall Street parlance, the investment banks represent the "sell side" (as they are mainly in the business of selling securities to investors), while mutual funds, advisors and others make up the "buy side".

The Chinese Wall Protects Investors Against Conflicts Of Interest.

The Great Wall of China was constructed to protect the people of China from invaders. That Chinese concept of separation also came into investing in 1929, when the separation of investment banking from brokerage operations was embraced by the securities industry regulators. This was spurred by the stock market crash that occurred the same year, and eventually served as a catalyst for the creation of new legislation.

]Rather than forcing companies to participate in either the business of providing research or providing investment banking services, the Chinese wall attempted to create an environment in which a single company could engage in both endeavours. This wall was not a physical boundary, but rather an ethical one that financial institutions were expected to observe. The effort went unquestioned for decades until the scandal-plagued '90s brought it back into the spotlight. In this article, we'll take you through some historic examples to show why a Chinese wall is needed and why legislation was created to keep it in place.

Investment Banking
Institutions, Politics, and Law
Alan D. Morrison and William J. Wilhelm, Jr.

Investment Banking: Institutions, Politics, and Law provides an economic rationale for the dominant role of investment banks in the capital markets, and uses it to explain both the historical evolution of the investment banking industry and also recent changes to its organization. Although investment decisions rely upon price-relevant information, it is impossible to establish property rights over it and hence it is very hard to coordinate its exchange. The authors argue that investment banks help to resolve this problem by managing "information marketplaces," within which extra-legal institutions support the production and dissemination of information that is important to investors. Reputations and relationships are more important in fulfilling this role than financial capital. The authors substantiate their theory with reference to the industry's evolution during the last three centuries. They show how investment banking networks were formed, and identify the informal contracts that they supported. This historical development points to tensions between the relational contracting of investment banks and the regulatory impulses of the State, thus providing some explanation for the periodic large-scale State intervention in the operation of capital markets. Their theory also provides a technological explanation for the massive restructuring of the capital markets in recent decades, which the authors argue can be used to think about the likely future direction of the investment banking industry.

Unit-III Company Profile

Who is HSBC?
Its slogan describes its function that is ,"The world's local bank". Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBC's international network comprises around 8,000 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 220,000 shareholders in 124 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts. HSBC provides a comprehensive range of financial services to around 100 million customers through four customer groups and global businesses: Personal Financial Services (including consumer finance); Commercial Banking; Global Banking and Markets; and Private Banking.

Group Values and Business Principles

The HSBC corporate character defines the values and principles inherent in all our everyday dealings. The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.

Board of Directors
The Board of Directors of HSBC Holdings plc

D J Flint, CBE, Group Chairman

Age 55.Joined HSBC as an executive Director in 1995. Chief Financial Officer, Executive Director, Risk and Regulation until 3 December 2010. A non-executive director of BP p.l.c. and a member of the Large Business Tax Forum.Co-Chairman of the Counterparty Risk Management Policy Group III in 2008.Chaired the Financial Reporting Council's review of the Turnbull Guidance on Internal Control in 2004.Served on the Accounting Standards Board and the Standards Advisory Council of the International Accounting Standards Board from 2001 to 2004.A former partner in KPMG. Mr Flint has extensive financial experience particularly in banking, multinational financial reporting, treasury and securities trading operations. In 2006 he was honoured with a CBE in recognition of his services to the finance industry. He is a member of the Institute of Chartered Accountants of Scotland and the Association of Corporate Treasurers and he is a Fellow of The Chartered Institute of Management Accountants.

S T Gulliver, Group Chief Executive

Age 51.Group Chief Executive with effect from 1 January 2011. Chairman, Europe, Middle East and Global Businesses until 31 December 2010. An executive Director since 2008.Joined HSBC in 1980.Appointed a Group General Manager in 2000 and a Group Managing Director in 2004. Chairman of HSBC Bank plc since 21 April 2010, HSBC Private Banking Holdings (Suisse) SA since 25 February 2010, HSBC Bank Middle East since 15 February 2010 and HSBC France since January 2009. Chairman of The Hongkong and Shanghai Banking Corporation Limited

with effect from 1 January 2011. Deputy chairman and a member of the Supervisory Board of HSBC Trinkaus&Burkhardt AG. Co-Head of Global Banking and Markets from 2003 to 2006. Head of Global Markets from 2002 to 2003.Head of Treasury and Capital Markets in AsiaPacific from 1996 to 2002. Mr Gulliver is a career banker with over 30 years international experience with HSBC. He has held a number of key roles in the Groups operations worldwide, including in London, Hong Kong, Tokyo, Kuala Lumpur and the United Arab Emirates. Global Banking and Markets is the wholesale banking division of the Group with operations in more than 60 countries and territories.

S A Catz
Age 48.President of Oracle Corporation.A non-executive Director since May 2008.Managing Director of Donaldson, Lufkin & Jenrette from 1997 to 1999.Joined Oracle in 1999 and appointed to the Board of Directors in 2001. MsCatz brings to the Board a background in international business leadership, having helped transform Oracle into the second biggest producer of management software and the world's leading supplier of software for information management.

V H C Cheng, GBS, OBE

Age 62. Chairman of HSBC Bank (China) Company Limited and, since 21 January 2010, of HSBC Bank (Taiwan) Limited. An executive Director since 2008 and a member of the Corporate Sustainability Committee since 28 May 2010.Joined HSBC in 1978.Appointed a Group General Manager in 1995 and a Group Managing Director in 2005.A director of HSBC Bank (Vietnam) Limited.An independent non-executive director of Great Eagle Holdings Limited and MTR Corporation Limited.Vice Chairman of the China Banking Association. A member of the National Committee of the 11th Chinese People's Political Consultative Conference ('CPPCC'), and a senior adviser to the 11th Beijing Municipal Committee of the CPPCC. Ceased to be chairman and a director of The Hongkong and Shanghai Banking Corporation Limited on 1 February 2010 and of HSBC Global Asset Management (Hong Kong) Limited on 4 February 2010. Ceased to be a director of HSBC Bank Australia Limited and a member of the Exchange Fund Advisory Committee of the Hong Kong Monetary Authority on 1 February 2010.A nonexecutive director of Swire Pacific Limited from 2005 to 2008.Awarded the Gold Bauhinia Star by the Hong Kong Government in 2005.

Mr Cheng is a career banker with extensive international business experience particularly in Asia. Mr Cheng is Vice President of the Hong Kong Institute of Bankers and was chairman of the Process Review Panel for the Securities and Futures Commission and of the Standing Committee on Directorate Salaries and Conditions of Service of the Hong Kong Government. Chairman of the Council of the Chinese University of Hong Kong since October 2009. He was seconded to the Hong Kong Government's Central Policy Unit from 1989 to 1991 serving as an adviser to the Governor of Hong Kong.

M K T Cheung, GBS, OBE

Age 62.Non-executive chairman of the Airport Authority Hong Kong.A non-executive Director since February 2009 and a member of the Group Audit Committee since 1 March 2010.A nonexecutive director of Hang Seng Bank Limited, HKR International Limited and Hong Kong Exchanges and Clearing Limited.A non-official member of the Executive Council of the Hong Kong Special Administrative Region.Non-executive chairman of the Council of the Hong Kong University of Science and Technology. A director of The Association of Former Council Members of The Stock Exchange of Hong Kong Limited and The Hong Kong International Film Festival Society Limited. Ceased to be a non-executive director of Sun Hung Kai Properties Limited in December 2009.Chairman and Chief Executive Officer of KPMG Hong Kong from 1996 to 2003. A Council Member of the Open University of Hong Kong until June 2009. Awarded the Gold Bauhinia Star by the Hong Kong Government in 2008. Dr Cheung brings to the Board a background in international business and financial accounting, particularly in Greater China and the wider Asian economy. He retired from KPMG Hong Kong in 2003 after more than 30 years' distinguished service with the firm. He is a Fellow of the Institute of Chartered Accountants in England and Wales.

J D Coombe
Age 65.Non-executive chairman of Hogg Robinson Group plc.A non-executive Director since 2005 and chairman of the Group Audit Committee since 30 July 2010.A member of the Remuneration Committee and, since 26 February 2010, the Group Risk Committee.A nonexecutive director of Home Retail Group plc.A trustee of the Royal Academy Trust. Former appointments include: executive director and Chief Financial Officer of GlaxoSmithKline plc; non-executive director of GUS plc; a member of the Supervisory Board of Siemens AG; chairman of The Hundred Group of Finance Directors and a member of the Accounting Standards Board. MrCoombe brings to the Board a background in international business, financial accounting and

the pharmaceutical industry. As Chief Financial Officer of GlaxoSmithKline he had responsibility for the Group's financial operations globally. He is a Fellow of the Institute of Chartered Accountants in England and Wales.

R A Fairhead
Age 48.Chairman, Chief Executive Officer and a director of Financial Times Group Limited.A non-executive Director since 2004. Chairman of the Group Risk Committee since 26 February 2010. A member of the Group Audit Committee, having ceased to be chairman on 30 July 2010.A member of the Nomination Committee.A director of Pearson plc.and a non-executive director of The Economist Newspaper Limited. Ceased to be chairman and a director of Interactive Data Corporation on 30 July 2010. Former appointments include: Executive Vice President, Strategy and Group Control of Imperial Chemical Industries plc.; and Finance Director of Pearson plc. MrsFairhead brings to the Board a background in international industry, publishing, finance and general management. As the former Finance Director of Pearson plc.she oversaw the day to day running of the finance function and was directly responsible for global financial reporting and control, tax and treasury. She has a Master's in Business Administration from the Harvard Business School.

J W J Hughes-Hallett, SBS
Age 60.Chairman of John Swire & Sons Limited.A non-executive Director since 2005.A member of the Nomination Committee and, since 26 February 2010, of the Group Risk Committee.A member of the Group Audit Committee until 1 March 2010.A non-executive director and former chairman of Cathay Pacific Airways Limited and Swire Pacific Limited.A non-executive director of The Hongkong and Shanghai Banking Corporation Limited from 1999 to 2004.Atrustee of the Dulwich Picture Gallery and the Esme Fairbairn Foundation.A member of The Hong Kong association and of the Governing Board of the Courtauld Institute of Art. Awardedthe Silver Bauhinia Star by the Hong Kong Government in 2004. Mr Hughes-Hallett brings to the Board a background in financial accounting and the management of a broad range of businesses in a number of international industries, including aviation, insurance, property, shipping, manufacturing and trading, in the Far East, UK, US and Australia. He is a Fellow of the Institute of Chartered Accountants in England and Wales.

W S H Laidlaw
Age 54.Chief Executive Officer of Centrica plc.A non-executive Director since January 2008.A

member of the Remuneration Committee. Former appointments include: Executive Vice President of Chevron Corporation; non-executive director of Hanson PLC; Chief Executive Officer of Enterprise Oil plc; and President and Chief Operating Officer of Amerada Hess Corporation. Mr Laidlaw brings to the Board significant international experience, particularly in the energy sector, having had responsibility for businesses in four continents. He has a Master's in Business Administration from INSEAD.

J R Lomax
Age 65.Former Deputy Governor, Monetary Stability, at the Bank of England and a member of the Monetary Policy Committee.A non-executive Director since 2008.A member of the Group Audit Committee since March 2009 and the Group Risk Committee since 26 February 2010. A non-executive director of The Scottish American Investment Company PLC and Reinsurance Group of America Inc., and since 7 July 2010, Arcus European Infrastructure Fund GP LLP. A director of the Council of Imperial College, London and a member of the Board of the Royal National Theatre.A member of the Business Advisory Group to the UK Secretary of State for Business since 18 May 2010. Former appointments include: Deputy Governor of the Bank of England from 2003 to 2008; Permanent Secretary at the UK Government Departments for Transport and Work and Pensions and at the Welsh Office from 1996 to 2003; and Vice President and Chief of Staff to the President of the World Bank from 1995 to 1996. Ms Lomax brings to the Board business experience in both the public and private sectors and a deep knowledge of the operation of the UK government and the financial system.

I J MacKay, Group Finance Director

Age 49. An Executive Director since 3 December 2010. Joined HSBC in 2007. A Director of Hang Seng Bank Limited until December 2010. Chief Financial Officer, Asia Pacific from September 2009 to 2 December 2010 and Chief Financial Officer North America from 2007 to September 2009. Former appointments include: Vice President and Chief Financial Officer of GE Consumer Finance and Vice President and Chief Financial Officer of GE Healthcare - Global Diagnostic imaging. Mr MacKay has extensive financial and international experience. He has worked in London, Paris, USA and Asia. He is a member of the Institute of Chartered Accountants of Scotland.

G Morgan
Age 64.Non-executive chairman of SNC-Lavalin Group Inc.A non-executive Director since 2006.A member of the Remuneration Committee. A member of the Board of Trustees of The Fraser Institute and the Manning Centre for Building Democracy. A non-executive director of HSBC Bank Canada from 1996 to 2006. Former appointments include: Founding President, Chief Executive Officer and Vice chairman of EnCana Corporation; director of Alcan Inc. and Lafarge North America, Inc. Mr Morgan brings to the Board a background in technical, operational, financial and management positions and has led large international companies in the energy and engineering sectors. He has been recognised as Canada's most respected Chief Executive Officer in a national poll of Chief Executives. He is currently a business columnist for Canada's largest national newspaper.

N R N Murthy, CBE
Age 63.Chairman and Chief Mentor and former Chief Executive Officer of Infosys Technologies Limited.A non-executive Director since 2008. Chairman of the Corporate Sustainability Committee since 28 May 2010. A director of the United Nations Foundation.Ceased to be a director of Unilever plc on 12 May 2010.A former non-executive director of DBS Group Holdings Limited, DBS Bank Limited and New Delhi Television Limited. Mr Murthy brings to the Board experience in information technology, corporate governance and education, particularly in India. He founded Infosys Technologies Limited in India in 1981 and was its Chief Executive Officer for 21 years. Under his leadership, Infosys established a global footprint and was listed on NASDAQ in 1999. During his career he has worked in France and India.

J L Thornton
Age 56.A non-executive Director since 2008. Chairman of the Remuneration Committee since 28 May 2010. Non-executive chairman and a director of HSBC North America Holdings Inc. since 2008.Professor and a director of the Global Leadership Program at the Tsinghua University School of Economics and Management.Chairman of the Brookings Institution Board of Trustees.A non-executive director of Ford Motor Company, News Corporation, Inc. and China Unicom (Hong Kong) Limited. A director of the National Committee on United States-China

Relations and a Trustee of Asia Society, China Institute, The China Foreign Affairs University, the Palm Beach Civic Association and the United World College of East Africa Trust. A member of the Council on Foreign Relations, the China Securities Regulatory Commission International Advisory Committee and China Reform Forum International Advisory Committee. Former appointments include: non-executive director of Industrial and Commercial Bank of China Limited from 2005 to 2008; Intel Corporation, Inc. from 2003 until 18 May 2010; and President of the Goldman Sachs Group, Inc. from 1999 to 2003. Mr Thornton brings to the Board experience that bridges developed and developing economies and the public and private sectors. He has a deep knowledge of financial services and education systems, particularly in Asia. During his 23 year career with Goldman Sachs, he played a key role in the firm's global development and was chairman of Goldman Sachs Asia.

Adviser to the Board D J Shaw

Age 64.An Adviser to the Board since 1998.Solicitor.A former partner in Norton Rose.A director of HSBC Bank Bermuda Limited, HSBC Private Banking Holdings (Suisse) SA and HSBC Private Bank (Suisse) SA.An independent non-executive director of Kowloon Development Company Limited and Shui On Land Limited.

History of HSBC bank

2009
In 2009, HSBC garnered accolades and awards, released solid financial results, provided honest assessments of the economic landscape, supported victims of natural disasters in the developing world, and reaffirmed its position as the world's leading international emerging markets bank.

Delivering strong performance

In a year that saw many casualties in finance, HSBC stayed strong. It was one of a small number of financial institutions that did not receive government financial assistance in any form. Amid fluid market conditions, HSBC reported strong results, sending a positive message to the public and investors. HSBC's success was recognized with the title 'Global Bank of the Year' in the Euromoney Awards for Excellence 2009. HSBC also won 14 regional awards along with 'Best Global Debt House' and 'Best Global Transaction Banking House'.

Looking East
With the world's centre of gravity shifting from West to East, HSBC announced that Group Chief Executive Michael Geoghegan and some members of executive management will relocate to Hong Kong in 2010. As Michael noted, "The reality for a company as large as HSBC is that we will always have many 'homes' around the world." HSBC also scored a flurry of 'firsts' across Asia during the year. It pioneered renminbidenominated trade settlement across all its ASEAN (Association of Southeast Asian Nations) markets under the RMB trade settlement pilot scheme. It became the first locally-incorporated foreign bank in Vietnam when it commenced operations in Ho Chi Minh City on 1 January 2009; it also set to be the first foreign bank to open a branch in Jaffna, Sri Lanka, and the first foreign bank in China to underwrite financial-institution-issued yuan-denominated bonds.

Sustainability and community

HSBC gave the Hong Kong Red Cross a total of USD28.2 million (HKD220 million) for the victims of the 2008 Sichuan earthquake in south-western China - the biggest single donation received by the HK organization for disaster relief. The money will be spent rebuilding the homes of some 410,000 victims, providing temporary accommodation and constructing rehabilitation centres.

2008
2008 was an exceptionally challenging year for HSBC. The unprecedented turbulence in the financial markets and the risk of a worldwide downturn brought a range of government and central bank interventions across the globe. HSBC, whilst welcoming any support for the banking system, remained one of the most strongly capitalised and liquid banks in the world. In December HSBC announced a 750 million capital injection for its UK subsidiary from its own resources and also created a new $5 billion global fund for small and medium sized businesses to ensure that they have access to appropriate credit in the current economic climate. Even in this difficult climate, HSBC has continued to consider opportunities for growth, especially in emerging markets. In March, HSBC entered the Korean Insurance Market; and in August it became the 1st foreign bank to hold a 20% interest in a domestic Vietnamese bank when it increased its stake in Techcombank. HSBC built on its considerable operations in Indonesia with the purchase of a major stake in Bank Ekonomi in October which doubled its network to over 190 outlets in the country. HSBC also strengthened and deepened its presence in Central and Eastern Europe including opening new offices in Georgia and Kazakhstan, and expanding the range of services provided in Poland, the Czech Republic and Austria.

HSBC continues to be committed to reducing the impact of its operations on the environment. In June solar panels were fitted to the roof of HSBCs head office in Canary Wharf as part of the bank's US$90 million Global Environmental Efficiency Programme, launched in 2007, to introduce renewable energy technology, water and waste reduction programmes and employee participation across its 10,000 offices around the world. In December HSBC formally adopted The Climate Principles which will help to embed climate change considerations into core business strategies and activities.

2007
2007 was a year of challenges for HSBC. The weakness in the American property market affected its US subsidiary, HSBC Finance Corporation, and in February the bank issued a trading statement to warn investors about the impact of bad debts. Many other banks follow suit and by the end of the year HSBC is winning plaudits for its early announcement and prudent handling of the situation. In a strategic review of its consumer and mortgage lending businesses, the bank announces the closure of Decision One, its sub-prime mortgage loans wholesale channel. Elsewhere, HSBC continues to expand its business in key markets and through key products. In April, the bank officially incorporates in China and the chairman announces the intention to 'significantly invest in and develop our business in the country.' By the end of the year HSBC is operating from 53 outlets in the country up from 39 and is the first foreign bank to receive permission to open a branch in rural China. September sees the official launch of HSBC Premier the world's first truly global banking service which is soon dubbed 'The world's local bank account.' HSBC continues its long-standing engagement with the environmental agenda when it launches the HSBC Climate Partnership in May. This five-year, US$100m project aims to tackle the causes and impact of climate change. The bank also appoints Nicholas Stern to the post of special advisor on Economic Development and Climate Change. The bank's principles are put into practice to good effect in its new HQ in Mexico which wins Gold awards for its environmental design, construction and operation. This is just one of many awards that HSBC receives throughout the year - others include Asia's top retail bank and the Best International Islamic Bank. Both looking back, and looking forward, HSBC announces during the year that it has commissioned a new history of the bank to be published in 2015 to coincide with the bank's 150th birthday.

2006
2006 was a year of development and change for HSBC.

Strategic acquisitions throughout the year increased market share and customer numbers especially in the Americas. In February HSBC Latin America Holdings (UK) Limited entered an agreement to acquire the majority of Lloyds TSBs branch assets in Paraguay, and this was quickly followed by the acquisition in March of a stake in FinancieraIndependencia - one of Mexicos leading companies in the sub-prime consumer loans market with over 100 offices throughout the country. In November, the bank entered fresh pastures with the purchase of GrupoBanistmo. This banking group, based in Panama, gave the bank access to the markets of Colombia, Costa Rica, El Salvador, Honduras and Nicaragua for the first time in its history. HSBC continued to focus on the development of its personal financial services business in Asia especially in China where the bank was able to offer a new RMB deposit service to domestic customers. Business customers also benefited with the launch of the International Business Centres which facilitate SMEs around the world with their cross border trading. Climate change and environmental issues remained important to HSBC during the year. Eight thousand bins were removed from HSBCs head office in June as part of the programme to reduce the amount of waste sent to landfills by 8% by the end of 2007. In June HSBC signed up to the UN principles for responsible investment and was also named the winner in the first FT Sustainable Banking Awards. In May HSBC bid farewell to Sir John Bond, and welcomed Stephen Green as Group Chairman.

Group structure
HSBC Holdings is a public limited company incorporated in England and Wales. Headquartered in London, the HSBC group operates in five regions: Europe; Hong Kong; the rest of Asia Pacific; including the Middle East and Africa; North America; and South America. The entities which form the HSBC Group provide a comprehensive range of financial services to personal, commercial, corporate, institutional and investment, and private banking clients. To more easily promote the Group as a whole, HSBC was established as a uniform, international brand name in 1999. In 2002, HSBC launched a campaign to differentiate its brand from those of its competitors by describing the unique characteristics which distinguish HSBC, summarised by the words 'The world's local bank'. References to HSBC on this website refer to the HSBC Group of discrete legal entities, each of which is wholly or partly owned by HSBC Holdings plc. HSBCs largest and best-known subsidiaries and their primary areas of operation are: Subsidiary Primary area of operation

The Hongkong and Shanghai Banking Corporation Limited Hong Kong SAR, with an extensive network throughout Asia-Pacific.

Hang Seng Bank Limited SAR

Hong Kong

HSBC Bank plcUnited Kingdom HSBC France France Household International, Inc. HSBC Bank USA N.A. State in the US HSBC Bank Brasil S.A.-BancoMltiplo Brazil US New York

HSBC Private Banking Holdings (Suisse) S.A. Switzerland, Hong Kong SAR, Monaco, Luxembourg, United Kingdom, Singapore and the Channel Islands. GrupoFinanciero HSBC, S.A. de C.V. Mexico

International network
HSBC's international network comprises around 8,000 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

Global Banking
HSBC's global expertise is at the core of the global banking we offer our corporate and institutional clients. Our collective knowledge of global economies, sectors, industries and institutions, coupled with our understanding of local markets and cultures worldwide, help us deliver innovative solutions to our clients. Through our global banking advisors and the support of financial products, planning and execution, we enable our clients to take advantage of growth opportunities - domestic, cross-border or in emerging markets. We provide global banking through teams comprising of corporate banking, investment banking, project and export finance, asset and structured finance, trade finance, and payments and cash management. Corporate banking is the client relationship management organisation, which draws upon the expertise of multi-disciplinary product specialists from our global businesses including global markets, investment banking, asset management and financing. Clients are served by sector-

based client service teams that combine relationship managers and product specialists to develop financial solutions to meet individual client needs. Investment banking focuses on origination and execution of corporate finance and mergers and acquisitions (M&A) assignments, divestitures, financial restructurings and associated financing solutions. Leveraged and Acquisition Finance provides innovative financing solutions to help our clients achieve their strategic objectives. Global Banking

Asset and structured finance Payments and cash management Corporate banking Project and export finance Investment banking Trade and Supply Chain Asset and structured finance HSBC's Asset and Structured Finance (ASF) specialists can help larger businesses with very unique financing needs. We can help minimise costs such as capital gains and withholding taxes. Tailor-made products help to minimise funding costs or maximise investment returns using most forms of financial instrument including finance leasing and structured bond issues, as well as the use of equity instruments and derivatives. ASF also specialises in aircraft finance and in arranging and underwriting tax leasing. Corporate banking Corporate Banking is HSBC's client relationship management organisation, which draws upon the expertise of multi-disciplinary product specialists from our global businesses including global transaction banking, global markets, investment banking, asset management and financing. HSBC is a preferred corporate bank for top-tier global corporates and institutions, meeting their strategic, financial and capital-raising needs. With over 10000 offices in 82 countries and territories, HSBC is recognised for its global reach and extensive local knowledge.

Our commitment to our clients is a relationship based on a deep understanding of our clients' business environments and internal strategies for growth. Our relationship banking professionals are chosen for their knowledge of the macro issues and trends that affect economies, and for their ability to recommend the most appropriate financial products for our clients. HSBC is in a strong position to meet clients' varied needs, as it also draws upon the expertise of multi-disciplinary product specialists; from global transaction banking, global markets and investment banking, asset management and financing. We offer financial solutions to our clients backed by our commitment to superior execution and sustainability. HSBC services the diverse, complex and long-term financing requirements of over 1,00 core clients including the world's largest institutions and corporations. We provide these clients with a platform to issue the full spectrum of financing instruments and transactions, from vanilla debt to more structured and solution-driven transactions.

Industry coverage

Autos Industrials Chemicals Media Construction and building materials Metals and mining Consumer brands Real estate Energy and utilities Reserve managers Financial institutions Retail Financial sponsors Technology Global finance companies Telecoms Governments and public sector

Investment banking An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions, and provides ancillary services such as market making, trading of derivatives, fixed income instruments, exchange, commodities, and equity securities HSBC advisory investment bankers focus on origination and execution of corporate finance and mergers and acquisitions (M&A) assignments, divestitures, financial restructurings and associated financing solutions. This, combined with our Global Markets expertise, ensures that we are able to provide our clients with the full suite of strategic financing including debt capital markets, loan syndication, equity capital markets, equity-linked capital markets, structured and asset backed securities, and leveraged finance. Our investment bankers offer specialist sector knowledge and broad geographic reach with advisory teams located in EMEA (Europe, Middle East and Africa), the Americas and Asia, ensuring that we offer deep market knowledge and efficient execution to our clients in each region. HSBC has a long-term commitment to our clients in emerging markets, which is delivered through our coordinated coverage and global-local infrastructure. Our emerging markets expertise and experience in complex negotiations and cross-border activities has earned us the respect of our clients

Global Payments and Cash Management Cash Management redefined HSBC's commitment to supporting your cash management needs goes well beyond our extensive global coverage. We are continually investing in cash management products and services to deliver value-added solutions to enhance your working capital management and meet the evolving needs of our clients' business. Through our

process of listening to your needs and delivering the right solutions, we are committed to helping you make the most of your financial assets. We operate on a global basis but also work on a local level to ensure that cross-border differences are identified and any related benefits utilised. Our teams of specialists ensure that whether you need solutions across the world, regionally or locally, we have the skills, expertise and resources to deliver them. We automate as many functions as possible, while ensuring you remain in control. Our cash management solutions are designed to integrate with our clients' business systems and are delivered via HSBCnet and HSBC Connect, HSBC's global Internet banking and host-to-host delivery channels. Through a unique process of combining the development of our cash management solutions and our delivery channels, HSBC brings truly innovative solutions to its clients.

Project and export finance HSBC has a long and successful track record in project and export finance (PEF) transactions globally, across a broad range of industries. Our Project and Export Finance business within is responsible for:

Multi-sourced medium- and long-term export credits backed by official Export Credit Agencies (ECAs) Project Finance and Project Advisory Services Forfeiting facilities providing non-recourse finance to exporters Trade Finance Risk Distribution on behalf of HSBC Group members

Unit-IV Objectives
Objectives of investment banking
Various factors, determinants and outcomes of investment banking
Factors Past market trends
Sometimes history repeats itself; sometimes markets learn from their mistakes. You need to understand how various asset classes have performed in the past before planning your finances.

Your risk appetite

The ability to tolerate risk differs from person to person. It depends on factors such as your financial responsibilities, your environment, your basic personality, etc. Therefore, understanding your capacity to take on risk becomes a crucial factor in investment decision making.

Investment horizon
How long can you keep the money invested? The longer the time-horizon, the greater are the returns that you should expect. Further, the risk element reduces with time.

Investible surplus
How much money are you able to keep aside for investments? The investible surplus plays a vital role in selecting from various asset classes as the minimum investment amounts differ and so do the risks and returns.

Investment need
How much money do you need at the time of maturity? This helps you determine the amount of money you need to invest every month or year to reach the magic figure.

Expected returns
The expected rate of returns is a crucial factor as it will guide your choice of investment. Based on your expectations, you can decide whether you want to invest heavily into equities or debt or balance your portfolio.

Objective 2
The unique advantages of HSBC Securities That Simultates people to invest in the company.
The global presence of the HSBC Group allows you to take advantage of an array of services and resources not readily found anywhere else:

Access to equity and fixed income research and economics of HSBC Global Research Access to domestic and international research of respected third-party providers Access to fund and money managers with in-depth knowledge of local and global markets, as recommended under the HSBC Multimanager Program., a global centre of excellence within HSBC Group Straight-through processing on the Canadian, U.S. and Hong Kong markets Unprecedented access to over 30 global markets, including marketplaces in Singapore, Japan, Hong Kong, Australia, Germany and the United Kingdom

Sophisticated solutions such as derivatives, options, and customized structured notes through the HSBC Securities Derivatives Products Group A suite of tax-efficient products designed specifically to meet the needs of our clients Extensive global banking capabilities through HSBC Premier.

Privacy and Security

HSBC's Privacy Principles between customers and the bank Our business has been built on trust between our customers and ourselves. To preserve the confidentiality of all information you provide to us, we maintain the following privacy principles: 1. We only collect personal information that we believe to be relevant and required to understand your financial needs and to conduct our business. 2. We use your personal information to provide you with better customer services and products. 3. We may pass your personal information to other HSBC Group companies or agents, as permitted by law. 4. We will not disclose your personal information to any external organisation unless we have your consent or are required by law or have previously informed you. 5. We may be required from time to time to disclose your personal information to Governmental or judicial bodies or agencies or our regulators, but we will only do so under proper authority. 6. We aim to keep your personal information on our records accurate and up-to-date. 7. We maintain strict security systems designed to prevent unauthorised access to your personal information by anyone, including our staff. 8. All HSBC Group companies, all our staff and all third parties with permitted access to your information are specifically required to observe our confidentiality obligations.

Unit-V

Questionnaire

Investment Planning Questionnaire

Your Financial Goals 1. What is the primary goal of your investments? Pleasechoose the most important one. a. I am saving to use these funds for a large purchase or expense, such as a car, home down payment or othergoal within five years b. I want to invest for the long-term, but I need thisinvestment to generate cash flow and provide regularincome now.

c. I want capital growth and income, without specificemphasis on either d. I would like long term growth. Although I have noneed for income now or over the next 10 years, I mightappreciate a small portion be invested in fixed-incomefor stability. e. Im only interested in aggressive growth over the longrun.I want to maximize my potential return.
Options A B C D E Total No. of respondents 12 10 6 8 14 50

Pie chart of primary goal of investors

a b c d e

2. Your personal time horizon is an important part of yourfinancial strategy. What percentage of this investment doyou plan to spend within the next 5 years?

 More than 50%* 30% to 50% Less than 30% I dont plan to spend any of it.

Options >50% 30% - 50% < 30% I dont plan to spend any of it Total

No. of Respondents 6 18 16 10 50

Percentage of investment by a group of people to be spent within next 5 years

20 15 10 5 0 >50% 30% - 50% < 30% I dont plan to spend any of it No. of Respondents

Personal Background Information

3. Please check the range below which includes your age: Under 30 50-59 30-39 60-69 40-49 70 and over Age group Under 30 30 39 40 49 50 59 60 69 70 and over Total No. of Respondents 9 16 11 7 4 3 50

Age Range Of Investors

18 16 14 12 10 8 6 4 2 0 Under 30 39 40 49 50 59 60 69 70 and 30 over No. of Respondents

4. Which of the following best describes your currentemployment situation? Please choose one:

 Full-time Homemaker Part-time Unemployed Retired Student Employment Situation Full time Part time Retired Home maker Unemployed Student Total No. Of Respondents 16 10 6 4 8 6 50

Employment situation of Investor

Full time Part time Retired Home maker Unemployed Student

5. In how many years do you plan to retire? I am retired 11-20 years 1-5 years More than 20 years

 6-10 years Planning of Retirement Retired 1 5 years 6 10 years 11 20 years More than 20 years Total No. Of Respondents 6 7 12 9 16 50

Planning Of Retirement
18 16 14 12 10 8 6 4 2 0 Retired 15 years 6 10 years 11 20 More than years 20 years No. Of Respondents

6. How many dependents do you have? (Please do not includeemployed members of your household.) None Three One Four or more Two Dependents Of Investors None No. Of Respondents 6

One Two Three Four or More Total

14 12 10 8 50

Dependents of Investors
16 14 12 10 8 6 4 2 0 None One Two Three Four or More No. Of Respondents

7. Please indicate which of the following includes your annualpersonal income, before taxes: Under`25 lakhs `25 lakhs -`50lakhs `51 lakhs -`75,lakhs Annual personal Income Under 25 Lakhs 25 Lakhs 50 Lakhs `76 lakhs-`1crore `1.01crore-`2crore Over`2crore No. Of Respondents 17 10

51 Lakhs 75 l;akhs 76 lakhs 1 Crore 1.01 Crore 2 Crores Over 2 Crore Total

8 6 5 4 50

Annual personal Income

18 16 14 12 10 8 6 4 2 0 Under 25 Lakhs 51 Lakhs 76 lakhs 1.01 Over 2 25 Lakhs 50 75 1 Crore Crore Lakhs l;akhs Crore 2 Crores

No. Of Respondents

8. Which of the following statements best describes youremployment situation? a. My household financial situation is very substantiallysecure and stable. b. My household financial situation is substantially secureand stable. c. My household financial situation is moderately secureand stable. d. My household financial situation is somewhat insecureand unstable. e. My household financial situation is very insecure andunstable situation a No. of respondents 6

b c d e TOTAL

11 16 10 7 50

financial situation of investors

18 16 14 12 10 8 6 4 2 0 a b c d e employment situation of investors

Acceptable Investment Risk

9. You are offered the opportunity to buy into a speculativeproperty venture for `2,00,000. You have a 50% chance ofgetting back`10,00,000 within 5 years and a 50% chance oflosing your money. Would you buy into the venture for` 2,00,000? Definitely Probably not Probably Definitely not Maybe

option definitely probably maybe probably not definitely not total

number of persons 6 11 16 10 7 50

investment in speculative venture

definitely probably maybe probably not definitely not

14% 20%

12% 22%

32%

10.Which of the following statement best describes yourattitude towards the level of risk or volatility that you areprepared to live with during the time these assets will beinvested? a. I am aware that the value of a mutual fund fluctuatesdaily and to varying degrees depending on the type offund. I would feel most comfortable investing in fundsthat tend to generate more stable returns year-to-year,as opposed to funds that fluctuate widely. b. I am comfortable with the fact that the value of myinvestments will fluctuate daily, however I wouldprefer that roughly half of my assets be invested in lessvolatile fixed-income securities and that the balance beinvested in equities, which tend to be more volatile. c. I am comfortable with volatility and seek aggressiveinvestments knowing this strategy may result in shorttermdeclines in value but better chance of long-termgains. Nevertheless, I do worry when thew stockmarket drops significantly. d. I fully accept volatility and seek aggressiveinvestments knowing that in the short term, thisstrategy may result in declines in value, but in the longterm, I have a better chance of realizing capital gains.

options a b c

no. of people 8 18 15

d total

9 50

Attitude towards the level of risk

20 18 16 14 12 10 8 6 4 2 0 a b c d Attitude towards the level of risk

11. We would like you to think about the possible outcomes of investment opportunities. The following two ventures have differentmost likely returns, the first of 15%, the second of 20%. But as with most investment opportunities, there are also other possibleoutcomes, including a

large loss (50% of the investment) or a large gain (also 50% of the investment).Please compare the followingtwo investment opportunities. VENTURE 1 POSSIBLE OUTCOMES (CHANCES OUT OF 10)

Most likely return: 15% Chance of 15% return: 7 in 10 Chance of large loss: 1 in 10 Chance of large gain: 2 in 10

Most likely return: 20% Chance of 20% return: 5 in 10 Chance of large loss: 2 in 10 Chance of large gain: 3 in 10

If you were investing 10% of your current net worth and could only choose one, which would you prefer? Venture 1 Venture 2

options venture1 venture2 total

response 21 29 50

Possible outcomes of investment opportunities

venture 1 venture 2

12. You have the opportunity to play one of these two wheels of chance offering different possible payoffs. The chances of eachpayoff are indicated by the numbers inside the wheel. Which wheel of chance would you prefer to spin? Wheel 1 Wheel 2

option wheel1 wheel2 total

response 36 14 50

Preferance of people to spin the wheel

wheel 1 wheel 2

13. Looking at the overall pattern of the annual gains and losses on an investment of `5000000, please indicate which of the followingfour portfolios you would prefer owning YEAR 1 1 2 `6,00000 `4,00000 YEAR 2 YEAR 3 YEAR 4 `500000 `8,00000 YEAR 5 `4,50000 `6,00000

`3,50000 `6,00000

`4,00000 `3,00000

3 4

`7,50000 `7,00000

`5,50000 `8,00000

`7,00000

`9,00000

`6,00000 `5,00000

`15,00000 `9,00000

portfolios 1 2 3 4 total

number of investors 7 20 14 9 50

Preference of portfolios of investment

1 2 3 4

Analysis of Questionnaire
After reviewing the results of this questionnaire, your financial advisor will ensure that relevant factors have been considered in order to recommend to you one of the following Investment Fund Mixes. Investment Mix Total Score Range Investment Objectives Suggested Portfolio

20% Equity 80% Income

Less than 85 points

Emphasizes predictable income flow with protection of capital. Designed for Conservative Investors with moderate tolerances for Income volatility in year-to-year returns and having Portfolio medium-term requirements for invested funds, or investors seeking a regular source of income.

40% Equity 60% Income

85 to 10000points

Dual emphasis on achieving capital growth over time and on moderate income flows. Designed for conservative investors seeking a balanced trade-off between capital growth, without excessive volatility in year-to-year returns, and current income.

Conservative Income & Growth Portfolio

60% Equity 40% Income

101 to 125 points

Primarily long-term growth with secondary consideration paid to capital preservation in the near-term. Designed for patient investors who do not require substantial current income from their investments and are willing to sustain volatility in their capital value.

Balanced Growth Portfolio

80% Equity 20% Income

126 to 145 points

Maximum long-term potential capital growth with greater year-to-year volatility and low emphasis on providing current income. Designed for investors seeking maximum potential growth while willing to sustain significant fluctuations in capital value.

Growth Portfolio

100% Equity

More than 145 points

Maximum long-term potential capital growth, exclusively through equity investing, with greater year-to-year volatility. Designed for investors who may want to combine this Fund Mix with fixedincome investments.

Aggressive Growth Portfolio

Unit-VI Conclusions and findings

In todays world taking investment decision is a vital activity and significantly the process of investment Banking is constantly evolving especially as far as the investment banking products are concerned. In fact a survey in the market scene shows that these are the banks that are constantly inventing new products. What is a major factor to be taken into account is that these products are usually accompanied by very high profit margins and this basically is mandatory as the buyers are not sure how to value them. The only negative point to this whole scenario is that as these products cannot be patented or copyrighted, they are very often copied quickly by other Investment Banks. This basically causes a downslide and the margins are forced downward as the pricing approaches commodity pricing; hence it can be said with conclusion that in the history of investment banking though many have theorized that all investment banking products and services would be commoditized, and the concentration of power in the bulge bracket would be eliminated yet in real life it has failed to happen. The reason behind this is simple and while many products became commoditized, new ones were constantly being invented. Take for example the trading stocks for customers, which is now a commodity style business. However at this juncture it is worth being mentioned that by creating stock derivative contracts is now a very high margin business. This is simply as the contracts are difficult to evaluate and apart from that while many products have been commoditized, an increasing amount of investment bank profit has come from proprietary trading. This thus is a must as size creates a positive network benefit. It cannot be denied that for first time investors or those not confident of the market the Investment banks have a vital role to play as they are basically the institutions that assist public and private corporations in raising funds apart from providing them strategic advisory services for various kinds financial transactions. Investment banks differ from commercial banks. Thus while a commercial bank serve to directly take deposits and make commercial and retail loans the investment banks act more on an advisor capacity. In recent years, however, the lines

between the two types of structures have blurred and now there is not much tangible difference between both kinds of banks. It is imperative to mention here the Glass-Steagall Act of US. The act was initially created in the wake of the 1929 market crash and what is significant is that it basically prohibited banks from both accepting deposits and underwriting securities. In the coming years however we notice that the Gramm-Leach-Bliley Act repealed the Glass-Steagall in 1999. Whatever be your choice of investment the basic rule remains the same and thats you must go to a proper person for investment advice before you make a deposit. A good investment banker is a trusted advisor to their client - a CEOs first call for strategic advice Investment bankers are most valuable when they can provide unique insight regarding a companys operations or strategic direction As part of a normal client dialogue, investment bankers will show clients strategic ideas that may or may not be obvious to their client CEOs often use their bankers to approach potential counterparties on an informal basis Investment bankers typically handle negotiations and most other aspects of the M&A process, allowing management to focus on running their business Process management Valuation Structuring Fairness opinion Purchase / Sale documentation

Whatever else it takes

Bibliography
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