What do investment banks actually do? And do they really deserve the outrageous salaries some of these fat cats think they are entitled too? First off investment banking is supposed to be a way for the average joe to in on the Money action. What exactly is that anyway? Money is constantly being traded from one person with a good idea to another. Sometimes it maybe diamonds, precious stones, fine art, commodities, stocks, real estate and any other investment that comes around. The investment banker arranges the all the interested parties and draws up all the paperwork to keep everything legal and is supposed to make sure that all parties are properly represented. More or less it could be explained as someone that brokers or barter the deal, so everyone is happy. Investment banking is one of those industries that has changed from its origin.
Do these banker really deserve the fat paychecks regardless of profit and loss of their brokered deals? I have always been one for a performance based compensation schooling. If the deal goes well everyone should profit. On the other hand someone should be liable when deals go bad... That is just not the way things have been going lately.
Should the salaries have caps? Here I'm going to stick to my performance based salary statement but the argument of salary caps does have its merits.
Just out of high school I decided to be self employed, after running a successful manufacturing business I had a problem of making more money than I knew what to do with. I started investing, after 23 years of investing I now want to share my strategy with a select few that want an extra edge in their own investing.