>They are different things. Retail banks take risks with their money (if a lend doesn't pay off, they are the ones that pay for it), IBs take risks with other p

>They are different things. Retail banks take risks with their money (if a lend doesn't pay off, they are the ones that pay for it), IBs take risks with other people's money. When I buy stock in, say, Google or General Motors, whose money are they taking risks with? I didn't tell Google that I wanted them to put money into Uber, nor do I think it's a great idea. Too bad for me I guess. And what do you mean "they pay for it"? Do you think when Joe Public defaults on his mortgage it comes out of the broker's bonus? No, the default risk is priced into every transaction the bank does. You and I and every other shareholder or bondholder pay for it. Investing is investing.