Investment Banking Associates

The first investment bank in the United States was established by the financier Jay Cooke. Just months before the start of the Civil War, Cooke founded Jay Cooke & Company in Philadelphia, which made loans and sold bonds to help finance the Union war effort. The investment banking industry grew rapidly after the war. Companies interested in raising capital began selling securities in the public markets, and financial firms became an active partner of the issuing company: acting as underwriter of the financing, distributor of the resulting public offering, and a jack-of-all-trades attending to the miscellaneous transaction details. Firms such as Goldman Sachs (founded in 1869) and Salomon Brothers (1910) became household names. From the early days of Jay Cooke & Company and Goldman Sachs to today, associates have played a significant role at investment banks.

The investment banking industry has been in a state of transition as a result of new rules on capital and risk taking established by the federal government after the 2008 financial crisis, increasing business competition, and reduced profitability. The pandemic also affected the finance industry, with business lockdowns and consequent slowdown in the economy in 2020 and 2021. Post pandemic, banks have reduced their office property holdings and have moved away from trading activities, and instead are focusing on expanding their wealth management divisions.