The financial crisis is not too far gone; the ripple effects of it are still being felt, especially in countries like India, where the impact was slow in filtering through. It is still a very pertinent topic, especially keeping India, in mind. With this backdrop/background, a possible solution has been looked at in this work to ensure such a global crisis does not reoccur. In order to come to a possible solution a clear analysis has to be made of the possible causes of the crisis. Looking through the literature available, investment banking and credit ratings emerged as two of the many factors that lead to the financial crisis of 2007-2008. The researcher has gone into some detail to give the history of the evolution in the banking system, from commercial banks, to investment banks. The laws and regulations that helped set the scene for giving credit ratings and investment banking the inordinate power/leverage into risky or dodgy deals