When you ask Wall Street what it does, the reply generally is that investment banks direct capital to enterprises that need it most. Like an irrigation system, the financial sector routes incoming investments to thirsty recipients that hope to grow.

 

But a broad new analysis by the Bank of England shows the lion’s share of global investment-banking revenue derives not from services to the real economy but from purely financial activities.

 

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Read the full International Business Times article by Owen Davis here.