Geoffrey's BIP IB Final - When filling this out please add...

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Chapter 1 -
1.
Looking at the leverage ratios of former pure-play investment banks GS and MS in Exhibit
1.4, why were these banks able to operate at higher leverage ratios as investment banks,
compared to as bank holding companies?
2.
U.S. companies currently report their financials based on U.S. GAAP rules. Many
companies in Europe report according to IFRS (International Financial Reporting
Standards) rules. There has been a movement for all companies to shift to an IFRS basis
globally. When this occurs, what may happen to the leverage ratios of US banks?
3.
Why might a universal bank be better able to compete against a pure-play investment bank
for M&A and other investment banking engagements?
4.
Investment bank clients can be categorized into two broad groups of issuers and
investors. These two groups often have competing objectives (issue equity at the highest
possible price vs. acquire stock in companies at the lowest possible price). Who within the
investment bank is responsible for balancing these competing interests?
See p. 13-14
- It is usually the senior banker on the deal team (in either ECM or DCM, depending on the
transaction) that will be held responsible for the relationship management in this scenario
- They also work with bankers in the classical banking groups to help execute the transaction
successfully and negotiate terms
5.
What is a key consideration in determining the cost and other parameters of a corporate
debt offering, and why is it important?