1 "Douglas - Sidigeer law," the former investment bank.
After World War I, U.S. companies financing the manner in which a fundamental change, corporate finance through more equity and bond markets, the indirect financing of steady decline. Before 1929, the U.S. government issued new regulations of the securities companies must have intermediaries, and the bank was not directly involved in securities issuance and underwriting, the business only through the bank holding the securities industry for the subsidiary bodies. Therefore, many new companies in the industry with the help of investment banks to enter the market, investment banks controlled by these companies issued bonds and equities underwriting and, as the market may be about "money trust." Through commercial banks under the securities subsidiary body to enter this market and its customers with margin loans. During this period, almost all commercial banks and investment banks are engaged in securities (mainly corporate bonds) business, business-so that the two are inseparable and integration. Securities underwriting and distribution to the 20 investment banks has brought huge profits.
