How Did the Investment Banking Industry Get Started?

The investment banking industry has its roots in the early merchant banks of Europe, which emerged in the 1600s and 1700s. These banks provided financing for trade and helped to fund the expansion of the British and other European empires.

The modern investment banking industry, however, can be traced back to the 1800s and the rise of the "house of issue" in the United States. These firms, such as J.P. Morgan & Co., were involved in underwriting and distributing securities for corporations.

The investment banking industry continued to evolve over the next century, with the development of new financial instruments and the growth of global capital markets. In the 1920s, the U.S. investment banking industry was transformed by the creation of the modern stock market, which led to the growth of firms such as Goldman Sachs and Morgan Stanley.

Since then, the investment banking industry has continued to evolve, with the rise of new players and the expansion of financial services into new markets around the world. Today, investment banking is a global industry that plays a vital role in supporting the growth and development of companies and economies around the world.