▁stock ▁ratings ▁for ▁invest ment ▁bank ing ▁business . ▁Alternatively , ▁companies ▁may ▁threaten ▁to ▁di vert ▁invest ment ▁bank ing ▁business ▁to ▁compet itors ▁unless ▁their ▁stock ▁was ▁r ated ▁favor ably . ▁La ws ▁were ▁passed ▁to ▁criminal ize ▁such ▁acts , ▁and ▁increased ▁pressure ▁from ▁regul ators ▁and ▁a ▁series ▁of ▁law su its , ▁settlement s , ▁and ▁pro sec utions ▁cur bed ▁this ▁business ▁to ▁a ▁large ▁extent ▁following ▁the ▁ 2 0 0 1 ▁stock ▁market ▁t umble ▁after ▁the ▁dot - com ▁b ubble . ▁ ▁Philip ▁Aug ar , ▁author ▁of ▁The ▁Gre ed ▁Mer ch ants , ▁said ▁in ▁an ▁interview ▁that , ▁" You ▁cannot ▁simultaneously ▁serve ▁the ▁interest ▁of ▁iss uer ▁clients ▁and ▁invest ing ▁clients . ▁And ▁it ’ s ▁not ▁just ▁under writing ▁and ▁sales ; ▁invest ment ▁banks ▁run ▁propriet ary ▁trad ing ▁operations ▁that ▁are ▁also ▁making ▁a ▁profit ▁out ▁of ▁these ▁se cur ities ." ▁ ▁Many ▁invest ment ▁banks ▁also ▁own ▁ret ail ▁bro ker ages . ▁During ▁the ▁ 1 9 9 0 s , ▁some ▁ret ail ▁bro ker ages ▁sold ▁consum ers ▁se cur ities ▁which ▁did ▁not ▁meet ▁their ▁stated ▁risk ▁profile . ▁This ▁behavior ▁may ▁have ▁led ▁to ▁invest ment ▁bank ing ▁business ▁or ▁even ▁sales ▁of ▁sur plus ▁shares ▁during ▁a ▁public ▁offering ▁to ▁keep ▁public ▁per ception ▁of ▁the ▁stock ▁favor able . ▁ ▁Since ▁invest ment ▁banks ▁eng age ▁heavily ▁in ▁trad ing ▁for ▁their ▁own ▁account ,