Goldman, Morgan Stanley Want to Lend the Ultra-Rich More Money

  • Banks multiplied the size of their private-bank loan books
  • Goldman says it’s hiring for international lending push
An M-What helicopter, manufactured by Airbus Helicopters SAS, sits on the helipad of luxury superyacht Anna I, manufactured by Feadship Royal Dutch Shipyards, during the Monaco Yacht Show (MYS) in Port Hercules, Monaco, on Wednesday, Sept. 26, 2018. Over 125 of the world's most luxurious yachts will be displayed during the 28th MYS, which runs Sept. 26 - 29.Photographer: Balint Porneczi/Bloomberg
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For Goldman Sachs Group Inc.’s millionaire clients, it can take the firm 5 minutes to underwrite a loan to start a new business or pay down taxes. At Morgan Stanley, bankers are keen to give you bridge financing so you can bid for your mansion in cash.

Beyond the billions in trading gains and deal fees, the Wall Street firms’ profit reports this week showed they’re increasingly rushing into the booming market for lending to high-net-worth individuals. So far, it’s paying off: Morgan Stanley has tripled those loans in the past five years, while Goldman Sachs is expanding overseas.