Investment banking can be a tricky business. You can win big – or, you could lose your shirt if you put your money in the wrong hands. Basically, investment banks create capital for companies, corporations or private citizens with deep pockets. The banks that offer investment services are usually offshoots or subsidiaries of larger banks. Besides investing, they provide a number of functions like underwriting debt, assisting in acquisitions or strategizing how a business should be reorganized.
During the 2008 banking crisis, a number of investment bank collapsed; some were saved by Congress. Notably, Lehman Brothers was one of the largest and most recognizable companies that went bankrupt. Several others such as Fannie Mae, Deutsche Bank, Merrill Lynch and AIG came perilously close. The ramification of the near collapse can still be felt today.
Hedge fund advisor Martin Lustgarten gives sound advise all of his clients. He invests his money both at home and abroad. “There are many places around the world where investing can be very profitable. There are some places where you could lost it all,” according to Lustgarten. When you open an new portfolio, finding the best place to park your money is the first goal, according to Lustgarten.
He has a good eye for investing and has made his clients a ton of money more often than not. “Keeping your clients happy is job one,” says Lustgarten. Follow him on Twitter to keep up with his news and events.