Do most super-wealthy & rich ppl use regular banks like BOA, Chase etc?

[Pistolvania Prince]

For the day to day expenses most will still use their local credit unions, but for cash management, securities based lending, etc they will call firms like ours, UBS, Goldman Sachs, etc

 

[Ozymandeas]

They use private banks. Most of the time you don’t contact them. They contact you.

 

[Loose]

Yes, Wealth management

 

[.r.]

..

 

[getmoney310cpt]

Citi National

 

[Mowgli]

Many of them will use the same big banks everyone else uses. Chase, Morgan Stanley, etc.

The thing is those branches have "Private Banking/Client" services for high net worth individuals.

Those Private Banking clients will get wealth management, tax advisory, estate planning, and other benefits/products in addition to standard retail services that every day folk get.

How do they end up getting robbed for all their money by accountants and managers with these kind of protections in place

 

[Serious]

To OP's point there are people who arent worth mega money that will spread their money across different banks so they dont hit the FDIC limits ($250,000). I've seen that but it's rare. Some old people out there still remember the great depression.


At this point in time though I feel like 2008 showed everyone the government will bail out the banks. So that's unnecessarily cautious.

If the FDIC fails it will be mad max territory anyway.

Jpow got our back

 

[alpo]

How do they end up getting robbed for all their money by accountants and managers with these kind of protections in place

 

[-DMP-]

All of the large institutions have private bank arms that cater to high net worth clients

JPMorgan, for example, requires a minimum of $10 million in assets invested with them to qualify.

You'll get special access to investment opportunities (e.g. early IPO allocation), tax strategies, estate planning, low interest loans, etc.

Didn’t know this. 10 mill is the goal then.

 

[NaijaProdigy Redux]

Didn’t know this. 10 mill is the goal then.

Yes. Note there is a difference between Chase’s Private Client, which is really for the “mass affluent” and the Private Bank, which is targeted to that upper echelon (10M+)

 

[dora_da_destroyer]

How do they end up getting robbed for all their money by accountants and managers with these kind of protections in place

People who hand over large chunks of money to an independent financial manager/accountant are trusting that person to make investments for them as well as handle accounting and taxes. Crooked managers can skim money from what you handover, profits, or show your investment “lost money” when they really stole it, put your investment in something they actually own, etc.

 

[TheAnointedOne]

There was a black retired NFL player who tried to open a private banking account with Chase in their Arizona branch but was turned away.

Jimmy Kennedy (American football) - Wikipedia

Kennedy was the subject of an article in The New York Times about racist practices at the banking firm JPMorgan Chase. In 2018, Kennedy attempted to deposit money earned from his football career at a local JPMorgan bank after talks with an employee who made a good impression on him, Ricardo Peters. Kennedy's ample wealth would have qualified him under normal circumstances as a "private client" who would qualify for a variety of perks. However, Peters, who is black, was fired from the bank for unclear and disputed reasons, and Kennedy's application buried. Kennedy recorded later conversations with the replacement employee at JPMorgan; in them, the new employee indicated that the regional manager was afraid of talking with a large black man like Kennedy, and that the coveted private client status was unlikely to come to Kennedy despite his large deposit. In addition, Ricardo Peters said that JPMorgan sometimes turned away black people with large savings; in one incident, Peters was directly discouraged by his boss from taking on as a client a black woman who had suddenly come into a large inheritance

Yeah so even if you're a black man who's successful you still have to go through some bullshyt.