Explain how the credit crisis encouraged some securities firms to convert to a bank holding company (BHC) structure Why might the expected return on equity be lower for securities firms that convert to a bank holding company structure ...

While securities firms were allowed to borrow shor ...

Explain how the credit crisis encouraged some securities firms to convert to a bank holding company (BHC)

Question:

Explain how the credit crisis encouraged some securities firms to convert to a bank holding company (BHC) structure. Why might the on equity be lower for securities firms that convert to a bank holding company structure?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...