In addition to the U.S. investment banks, we also conducted 34 interviews in two U.S. commercial banks which have been particularly successful in the investment banking business and 31 interviews in 10 merchant or universal banks in the United Kingdom, Germany, and Switzerland. All of these firms were strikingly similar in their management practices compared to U.S. investment banks, despite obvious opportunities for differences based on differences in national culture and the fact that seven of these twelve firms conducted their investment banking business in the context of a commercial bank. Finally, in collaboration with Dr. Wayne E. Baker, we conducted interviews with general and financial managers in 21 issuing customer organizations. This enabled us to obtain both the customer and the investment banker perspective on the delivery of investment banking services.
2.
YoshinoM.Y.LifsonThomas B., The Invisible Link (Cambridge, MA: The M.I.T. Press, 1986).
3.
BlauJudith, “Paradoxical Consequences of Excess in Structural Complexity: A Study of a State Children's Psychiatric Hospital,”Sociology of Health and Illness, 2/3 (1980):277–292.
4.
Commercial banks are allowed to underwrite these securities abroad and to underwrite some governmental securities in the U.S., including Federal securities and instruments backed by the “full faith and credit” of state and local governments.
5.
For a case study of the tensions between the corporate finance and sales and trading functions at Lehman Brothers prior to its acquisition (not only do investment banks advise companies which are being acquired, but they can be acquired themselves) by Shearson/American Express, see AulettaKen, Greed and Glory on Wall Street (New York, NY: Random House, 1986).
6.
BurnsTomStalkerG.M., The Management of Innovation (London: Tavistock Publications, 1961).
7.
These employment figures were obtained from the April 1983–1987 issues of Institutional Investor for Salomon Brothers, Morgan Stanley, First Boston Corporation, and Goldman, Sachs.
