This is a quite serious accusation. I agree that there are many shady things going on inside the investment banking business, but I won't consider it an evil business as a whole.
Well, if the investment banking business is not an evil one as a whole, it's only there is a SEC like organization.
1. The division of work is inevitable and beneficial. Professional organizations for managing fundraising reduces entrepreneurs' total cost. They may nourish some scammers, but they also helped many honest businessmen. It is hard to say which outweighs which.
It's true for the whole economy maybe
(I mean it's not sure.). However, if one investor is hurt by a fraud, he is hurt. there will be no such thing like "outweighs"
2. In the long run, scams and frauds will be revealed under the sun. The honesty scores of investment banks are tied with the honesty of their clients. For example, if large investment banks all act in an insincere way, more and more people will share the same impression to them with you. Their business will decay and die.
"In the long run"....
there will be no long run. For most of the investment banker working in the Street, five years is the whole career for them. Sell some exotic thing to you, and I get enough money to get retired. "under the sun", yeah, I will be under the sun of the beautiful beach.
3. I don't know much details about Goldman Sachs and Morgan Stanley. But I think they have government supports behind them. In a freer market like that of Bitcoin, I think investment banks will even be less "evil", because of the fact that no one can save them from the loss of credit.
We will see what happened in the e-wallet servcie again in the bitcoin investment banking industry, if there is any such kind of service.Don't trust the investment bank, especially the bitcoin investment bank.
Make decision on your own due diligence. If the investment banking service make your DD not so diligent, then don't give your money.
Maybe some day you will use the service of the investment bank. I interact with investment bank all the day. However ,remember, service only, don't trust them. You will be good if you keep to be a doubter when dealing with investment bank