Big banks in the United States are cashing in on credit extended to wealthy individuals. The credit extended by the wealth management divisions of the big banks make up over $600bn on their loan books.
In the second quarter of 2021, the credit transactions by wealth managers of JPMorgan Chase, Bank of America, Citigroup and Morgan Stanley toppled $600bn.
The bulk of the chunk of the credit value was mainly influenced by decisions of the wealthy to either buy real estate, double down investments in the stock market or potentially lighten their tax bills.
Focus turns onto the wealthy
As the economic woes of the Covid-19 pandemic continue to cast a shadow on the US economy, wealth managers have increased their credit worthy assessment policy. They have asked customers to pl…