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Investment Banking strong profitability stems above all from its unique business model. Compared with commercial banks, first of all, investment banks wholesale business. In addition to brokerage, investment banking basically belong to the wholesale business. The top five investment banks in the United States, only Merrill Lynch also maintains a large brokerage business department. Second, the investment banking business based knowledge-intensive places. In essence, the investment bank is a financial consulting industry. Financial advice is not only an independent investment banking, investment banking and other intellectual foundation. For example, in order to assist issuers in securities issued, you first need to assist them in designing securities, which requires a comprehensive, in-depth research and analysis. In fact, research, analytical ability, rather than financial, marketing strength, is the investment bank's core competitiveness lies. Of course, funding, marketing strength can not be ignored. For example, in order to assist companies in mergers and acquisitions, but also help them to make the necessary market operations. This requires adequate funding, marketing strength. However, both the securities underwriting, securities trading, or mergers and acquisitions, investment bankers are inseparable strategizing. For investment bankers who beats, financing, marketing and other market operations is not a problem.

Fundamentally, the investment bank's profitability stems from its powerful unique business culture. In the capital markets, is proportional to the rewards and risks. In general, commercial banks more cautious, more attention to the safety of funds and liquidity. Of course, investment banks focus on risk management and internal control, but when compared with commercial banks, investment banks more "greedy", in order to achieve higher yields at higher risk assumed. Adventure and innovation go hand in hand; typical as in the margin and financial derivatives innovations. A common characteristic of these innovations is to leverage business; popular to say that "leverage." They exponentially magnified gains, and exponentially amplify the risks. As the saying goes, "as also Xiao, also lost." During the subprime mortgage crisis, the five investment banks got into trouble, of course, there are a variety of reasons, for its part, "bet" of too is its direct cause.
从根本上讲，投资银行强大的盈利能力来源于其独特的商业文化。在资本市场上，回报与风险成正比。一般来说，商业银行更为审慎，更为重视资金的安全性和流动性。
During the subprime mortgage crisis, Bear Stearns, Lehman Brothers, Merrill Lynch and other Wall Street investment banks eventually escape the robbery, the ultimate problem is that investment banks played a dual role. On the one hand, they are the referees, with its research reports about global capital flows of hot money movements; hand, they are the players to create and participate in a variety of high risk and high returns and extremely complex financial products traded. This also makes them become a direct manufacturer of the crisis, became a target.
The direct cause of the financial crisis in the U.S. subprime mortgage crisis. As 2006 began, the U.S. housing market began to turn, prices began to fall, leading to a substantial increase in subprime mortgage delinquencies, Subprime Lendin