Underwriting, advisory, and asset and wealth management services are mostly fee-based services that do not put much of a firm’s capital at risk. In addition, asset and wealth management services are similar to the trust services that have always been allowable for banks.
But in the current environment, the bigger stability risk is a protracted period of high unemployment, rather than excess borrowing. When people don’t have jobs, their spending is curtailed and they have difficulty servicing their debts. It is also worth noting that over the past 6 months, many households have improved their finances and paid down debt.