That’s why they are paid such bonuses.
Market activities and financing of an investment bank can lead it to be in a situation of conflict of interest vis-à-vis one or more of its customers over its finance activities business (investment banking), and vice versa. For example, the finance department of a bank offers a loan to a company A wishing to acquire Company B, while the service mergers and acquisitions of the same bank has obtained a warrant of sale of the company B. A conflict of interest her is that the bank might be tempted to favor the buyer that it funds, to the detriment of the interests of his client vendor. Similarly, through its mergers and acquisitions, for example, an investment bank has access to highly sensitive information (corporate strategy, financial details, business plan), which, in the case of a listed company, can be determinant in the evolution of the share price of the company (Efrat, 2007). Thus, capital markets services of these banks they are also sources of conflict of interest because obtaining such information would enable them to benefit from an information asymmetry between them and other shareholders for example. This is called insider trading (Schoenberg, 2006). The persons who are involved in this insider trading are investment bankers and all the jobs related to insider trading are done by them. They need to work for more than 12 hours a day in order to keep everything on track whereas general bankers work for maximum 9-10 hours a day.