National banks generally provide trust services for their customers. A trust is a pool of money left with the bank for management. The owner provides the bank with instructions on the goals and purposes of the trust. The bank then determines when and what securities to buy and sell for the trust. National banks retained the right to buy and sell securities and stock on behalf of their customers.
Many banks own discount brokerage services.
National banks may also sell mutual funds. Unlike deposits, however, mutual funds are not insured. Portfolio Securities Commercial banks hold two portfolios of securities. These securities may be sold at any time to replenish a deficient reserve stock. The second portfolio is composed of longer-term securities and used primarily to diversify risk away from the loan portfolio.