The investment banking profession is passing through an acid test. Against the backdrop of the inherent conflicts of interest, implementation of ethical practices seems to be the only savior.

"History tells us that the money changers have used every form of abuse, intrigue, deceit and violent means possible to maintain their control over governments and countries by controlling money and its issuance."

JP Morgan, as a person, was as greedy as anyone in Wall Street today. But the similarity stops there. He extracted a lot from the society. But, in turn, he gave even more. He made a major contribution in the creation of US Steel Corporation, General Electric and International Harvester leading to a multiplier effect in income generation. By contrast, while the investment bank bearing his name has greedily extracted from society, its contribution has been entangled in various controversies. To its credit (or discredit), it has been a part of the most horrible corporate failure in AmericaEnron, the erstwhile energy-trading giant. The investment bank has been working for years with the company and has always taken pride of its association with it. But its golden silence post-Enron has raised deep concern. In recent times, the bank's list of clients who have met with disastrous end has just been getting longer with the addition of bankruptcies of Kmart Corp., the retailing giant, and Global Crossing, a telecom company.

Sometimes, insights acquired by an investment bank from advisory services rendered to a company were used to help its competitor in a hostile takeover. Moreover, an attractive cut-money (officially known as consultancy fees) also awaits the investment bank for orchestrating an M&A deal. Investment banking business thrives on M&A. Therefore, they have the incentive to inflate the M&A activity.

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