One of the primary reasons that investment banks were allowed to convert to bank

holding companies during the $2008$ financial crisis was recognition that

their operating activities were too risky and they needed the cushion of bank

deposits to alleviate funding risks.

the industry had acquired too muct.capital during the previous decade.

bank holding companies needed the ability to underwrite new issues of

corporate securities$.$

it was the only way an investment bank could qualify for federal bailout funds.

the Federal Reserve was unable to purchase troubled assets from investment

banks