Banks Eat From Hands of the Filthy Rich

As banks shave down on money-losing housing business, they're also tapping into a lucrative, high-growth area: private-wealth management.

Low- and middle-income families are buckling under the pressures of debt burdens, declining home values, high costs and a weak job market. They have little excess money to throw onto banks' profit margins. On the other hand, the Astors, Rockefellers and Vanderbilts of the world may have lost some wealth amid the market turmoil, but they're still rich.

These clients want to protect and expand their wealth for generations to come, which can translate into a long-term relationship with their investment advisors. Furthermore, the market for private-wealth clients has grown -- both in the U.S. and abroad -- as baby boomers look to invest their assets wisely and emerging economies spawn new prosperity. ...