This paper examines rise and fall of non-traditional business of investment banks in neo-liberal era basing on Minsky's theory of the Stage of Capitalist Financial Development. In the United States, "Managerial Capitalism" was established through the Great Depression and following World War II. Under the prosperous Managerial Capitalism, money managers collected small savings from the households and invested them in stock market as long term investments. It created virtuous cycles of the rise of stock prices and economic growth in the early 1960s. When the US economy was destabilizing after 1966, Managerial Capitalism lost its stability. Under the new environment money managers were expected better performances by the households, and had to transfer their investment models to more active ones. Their active investment strategy strengthened their influence on the stock market, and as a result the existing system fails into malfunctioning. After the 1980s, influence of money manager was further strengthened, exercising their market power. The economy entered the stage of "Money Manager Capitalism". Changes in market environments gave significant impacts on investment banking business. Investment banks faced intensified competition in the fields of underwriting and trading business. Therefore, while strengthening advisory services such as merger and acquisition, they sought new sources of revenue. That was the business for money managers. Investment banks expanded their business by arranging securities for money managers into their preference, and provided prime brokerage services. At the same time, they also acted as money managers themselves. It means that they expanded their business to proprietary trading, merchant banking business and asset management business. As a result, investment banks earned huge profits. Money Manager Capitalism was vulnerable to a financial crisis, because of the preference for high risks and the inadequate "margin of safety". Consequently, non-traditional Investment Banking business incurred huge loss by the Subprime Financial Crisis. It is followed by disappearance of major investment banks which is subject to supervision of CSE program by SEC. However, on the other hand, the profit of traditional investment banking business continued to support the earnings of investment banks. In this sense, it is too early to conclude that the crisis proclaims the end of the investment banking model. In fact, the most serious problem is that, in spite of the underlying cause of crisis, the excessive money managing business by the investment bank became active again. To prevent the recurrence of the crisis, we must suppress excessive investments by money managers, and it is necessary to establish a horizontal regulatory system. Therefore, we have to pay attention to the regulatory reform, Dodd-Franc Act, which was enacted on July 21, 2010 in the United States. We need to check out whether the act is effective in reality and whether it can regulate excessive investment behaviors of money managers.