4-81 One of the primary reasons that investment banks were allowed to convert to bank holding companies during the recent financial crisis was recognition that

Question

Quizplus · Accepted Answer

The conversion of investment banks to bank holding companies provided them with access to a stable source of funding in the form of bank deposits, which helped alleviate funding risks. This was seen as necessary because the operating activities of investment banks were deemed too risky, and the financial crisis had made it clear that they needed to diversify their sources of funding to prevent another collapse.

4-81 One of the Primary Reasons That Investment Banks Were