Investment Bankers

The financier Jay Cooke founded the first investment bank in the United States in 1861. Jay Cooke & Company, which was located in Philadelphia, provided loans and sold bonds to help finance the Union war effort. The bank failed during the financial crisis of 1873.

Investment banks grew rapidly after the Civil War. They played a major role in the development of our nation’s railroad system and the development of heavy industry. From the early days of the IB industry through the mega-mergers in the corporate world today, investment bankers have played a central role in the American capitalist economy. The pandemic disrupted many industries in 2020 and 2021, including investment banking. According to a report by Deloitte, the investment banking industry continues to face post-pandemic challenges, including "falling equity prices, liquidity stress, evolving financial regulations, market democratization, pricing pressure, increased client sophistication, shifts to remote working arrangements, and rapid technology advances." As of February 2025, the U.S. investment banking and securities industry was valued at $456.6 billion, with 35,334 businesses in operation, according to the research group IBISWorld.