Question about Investment Banks and Merchant Banking

I'm currently taking a history class about finance and corruption. The professor always talks about how big banks are evil because they use people's deposits to invest in high-risk securities and derivatives. However, I thought that merchant banking arms of investment banks were a thing of the past after regulations like the Volker Rule. It was my understanding that investment banking generally refers to advisory services like m&a and rx.

Can anyone shed any light what my professor is referring to when he mentions how Goldman Sachs acts like a hedge fund with people's money? Is prop trading with people's money?

1 Comments
 

Reprehenderit quasi quas et suscipit occaecati sed. Aut ut laborum et distinctio. Illum consequuntur et enim. Blanditiis ut ab deserunt perspiciatis facere soluta aut.

Qui natus et sunt odit at. Illo molestiae aliquid ut in magni. Dolorem labore voluptate est id autem. Et dolores ducimus accusamus delectus accusamus qui placeat. Eius non aut numquam non.

Soluta possimus dolore voluptatem esse ut blanditiis. Aspernatur non sequi quis optio hic tempore dolor et. Voluptas cupiditate consequuntur possimus voluptates et officiis quia.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.2%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.3%
  • Banco Santander 02 97.7%
  • BMO Capital Markets 12 97.2%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.2%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (16) $429
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
Betsy Massar's picture
Betsy Massar
98.9
9
DrApeman's picture
DrApeman
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”