Dr. James Falter, CFA CFP ® unytprof1@gmail.com

Investment Banking Explained: An Insider’s Guide to the Industry, Michel Fleuriet, McGraw Hill, ISBN: 0-07-149733-1, ©2008

Course Description
This course introduces the student to financial institutions from the perspective of both the consumer and the financial institution manager. The student will become familiar with the financial services offered to the public and with the financial, operational, and organizational aspects of the institution. Topics may vary but will address commercial banking, investment banking, asset liability management, new financial services, and mergers and acquisitions.

Outline of Course Outcomes
Upon successful completion of the course, students should be able to:

Define the history of banking and key financial products
Explain how investor “transactions” are conducted and how regulation impacts financial markets.
 Identify the major operations within commercial banks
 Communicate the strategy of “Relationship Management”
 Contrast the investment banking function with the traditional commercial banking

 Assess trading strategies in capital markets (equity and fixed income)
 Define the process of equity offerings
 Communicate the relevance of regulation to banking and financial institutions
 Explain the Merger & Acquisition process (M&A)
 Calculate the synergies (financial) from mergers & acquisitions
 Define operations of mutual funds and securities firms
 Define “alternative” investments, their importance to financial markets and investment


Teaching Methodology

Through a combination of lecture, student led presentations, in class discussions problem-solving sessions (teams and individuals), students will be exposed to the abovementioned outcomes in Financial Services and Investment Banking. An active learning environment will be encouraged. Accordingly, student inquiry and involvement will be highly encouraged.

Course Requirements and Grading

A student’s degree of mastery of the concepts and competencies are evaluated by his/her performance based on two examinations, a team presentation of a research project, and an individual research paper.

Group Project

In groups of 3-4 students (no more than 4, no less than 3), students will research one investment bank from the list below. Questions that should be answered include:

  1. What is the history of the Investment Bank?
  2. How does the Investment Bank generate revenues? (explain its product mix)
  3. How is it structured (organizational)?
  4. What is its global position (competitive)…hint, use Porter’s model (seen in the course)
  5. How to it handle (manage) the financial environment of 2007-2010?
  6. Future plans for the firm (growth)?

This project should be about 10 pages types and a PowerPoint presentation (10 slides) should be prepared for discussion (presentation to the class)

  •   Bank of America (Bank of America Merrill Lynch)
  •   Barclays (Barclays Capital)
  •   BNP Paribas (BNP Paribas CIB)
  •   Citigroup (Citi Institutional Clients Group)
  •   Credit Suisse
  •   Deutsche Bank
  •   HSBC
  •   JPMorgan Chase (J.P. Morgan Investment Bank)
  •   Morgan Stanley
  •   Nomura Holdings
  •   UBS (UBS Investment Bank)
  •   Royal Bank of Canada (RBC Capital Markets)
  •   Royal Bank of Scotland
  •   Wells Fargo (Wells Fargo Securities)

Individual Project

The individual research paper should focus on a common activity in Investment Banking, Mergers & Acquisitions. The students should identify one “major acquisition/merger” that occurred in the last ten (10) years, summarize and critique the relevance of the transaction. The “major acquisition/merger” should be “pre-approved” by the professor to eliminate redundant topics within the class. This paper should involve a historical perspective and ultimately address the success (or lack of success) of the transaction. Questions that should be addressed:

  1. How did the transaction occur? Cash, stock, acquisition, merger…provide a history
  2. Were synergies actually created? Explain, support
  3. Was shareholder value created for acquiring firm? Explain, support

This paper should be appropriately cited and approximately 10 pages. Additionally, each student will present their findings, summarizing their research in a PowerPoint presentation (10 slides or less). It is important to attend class as I will provide insight into this project in our discussions with examples that you can build upon.


Exam 1 (Chapters 1-8)
Exam 2 (Chapters 9-17)
Team Presentation of Research Project Individual Research Paper

Weighting 35.0% 35.0% 10.0% 20.0%



Grading Scale

Percentage 93.3-100% 90.0-93.2% 86.6-89.9% 83.3-86.5% 80.0-83.2% 76.6-79.9% 73.3-76.6% 70.0-73.3% 66.6-69.9%

Grade A
A- B+

B B- C+ C C- D+

63.3-66.5% D 60.0-63.2% D- <60 F

Class Policies

Attendance will not be taken regularly and will not be included in determining your course grade. However, it is important to understand regular attendance is necessary to learn the material and pass examinations. Should you not attend class it is your responsibility to obtain missed material, notes, etc.

Make-up examinations
The Provost of the College must approve make-up final examinations.

Academic Dishonesty
Students are encouraged to work together on ungraded projects and problems. Students are also encouraged to study together for examinations. However, graded INDIVIDUAL papers and examinations (including make-up and take-home examinations) must be your own work.

Academic dishonesty occurs when a student represents someone else’s work as his or her own; it includes actions such as, but not limited to:

  •   Copying another person’s paper
  •   Copying another person’s words or ideas without putting quotation marks around them or

    citing them as a source

  •   Copying entire sentences and paragraphs from a print or electronic source without

    providing proper documentation and credit

  •   Allowing another person to write your paper and make revisions to your work
  •   Collaborating with others on examinations or assignments where the work is to be done


  •   Manipulating data
  •   Cheating

Investment Banking Course Schedule: 2010

Day Chapters

Outcome or Activity

June 21 1 & 2

Introduction to class/instructor “Origins of Banking”
“Historical Perspective of Financial Products”

June 22 3 & 4

“Investment Banks vs. Commercial Banks”
Discussion of Individual Project

June 23 5 & 6

“Global Financial Markets” “Relationship Management”

June 28 7 & 8

“Trading and Capital Markets” “Trading Strategies”

June 29

Exam 1 (Ch 1-8)

June 30 9, 10 & 11

“Equity Research” “Equity Offerings” “IPO’s”

July 5 12 & 13

“Fixed-Income Business” “Strategies in Fixed Income”

July 6

Group Projects and Presentations Due

July 7 July 12

14 & 15

“Mergers & Acquisitions” “Valuing Synergies in M&A”

Jul 13 16 & 17

“The Process of a Merger/Acquisition” “Asset Management”

July 15

Exam 2 (Ch 9-17)

Jul 19 18

“Alternative Investments”

July 20

Individual Projects and Presentations Due

July 21

Individual Projects and Presentations Due