NEW YORK, Oct 15 (Reuters) – Big U.S. banks’ wealth management businesses put in another stellar performance in the third quarter, buoyed by record levels of new money flowing into accounts and surging demand from clients to borrow against their investment portfolios.
Morgan Stanley Inc (MS.N), JPMorgan Chase & Co (JPM.N), Bank of America Corp(BAC.N)and Goldman Sachs Group Inc.(GS.N) each reported double-digit growth in wealth management loan balances and revenues this week.
While the COVID-19 pandemic devastated large chunks of the economy and put millions out of work, extraordinary government measures aimed at mitigating the economic blow have also boosted the fortunes of the wealthy by pushing down interest rates and driving a massive stock market rally.
Global financial wealth soared to a record high of $250 trillion in 2020, according to a June report by Boston Consulting Group.
That has increased demand for money managers, increased the value of assets managed by these brokerages, and made it more appealing for customers to borrow.
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