Banks Eat From Hands of the Filthy Rich

In contrast, JPMorgan -- which has been championed for its relatively strong performance amid the recent market tumult -- had 9% higher revenue from its private-client operations during the same period. The bank received lower fees as performance waned, but CFO Mike Cavanagh called cash in-flows "tremendous."

JPMorgan will also gain some private-wealth clients from its acquisition of Bear Stearns.

Wells Fargo(WFC Quote), which has been handling Americans' money since the gold rush, reported double-digit growth in revenue and profit from its wealth-management business last quarter.

The bank is catering to ultra-wealthy clients who want a full-service approach. It recently started offering family retreats, on-call psychologists and a think tank dedicated to issues that affect the rich, as part of a new "family wealth group." Wells Fargo's outline of the group also emphasizes its risk-management skills.

"Traditional financial firms and family offices tend to focus only on the wealth," says Michael Cole, executive vice president of the group. "Our goal is to assist families in aligning their wealth and their values," he later adds.

On the other hand, Wachovia is honing in on the "affluent" segment. The company expanded its scope last year to include clients with at least $250,000 in investable assets, even if they are held outside the bank. Wachovia notes in its business plan that households with that threshold of wealth or more represent 83% of U.S. riches -- a large market to tap into.

Though Wachovia swung to a hefty first-quarter loss, earnings from its wealth-management business rose 10% "as asset gathering overcame market depreciation."