Banks are fond of loan syndication because it helps them invest in a diversity of projects, thus spreading their risks. Citigroup has been the lead arranger for numerous destructive and misguided projects worldwide. The process for issuing stocks and bonds is known as underwriting. Bonds act as a kind of distributed loan, enabling companies to borrow money from thousands of investors instead of from one large bank. Bonds can be issued by companies to finance the overall work of a company, or they can be issued to finance a specific project.
Stocks are titles which signify partial ownership of a company.
Stocks are usually issued to finance the overall operations of a company, and are rarely tied to a specific project. Underwriting services are where Citigroup makes much of its profits. This is also how many large projects in developing countries are financed. A bank's role as financial advisor to companies varies depending on the specific situation. For instance, a bank may be involved in managing and investing the money raised for the project, or in helping convert, use, and manage the revenues generated by the project, or in both of these activities.