Investment Bank
Also called: bulge bracket, IB, merchant bank
An investment bank advises on deals, raises capital, and trades securities, earning fees and spreads rather than interest on loans. Its main divisions are advisory, capital markets, sales and trading, and research. The Glass-Steagall separation from commercial banking was repealed in 1999, and post-2008 rules re-imposed a narrower version by restricting proprietary trading rather than the combination itself.