Wall Street Doubles Down on Lending ‘Cheap Money’ to the Rich

Tax attorney Christopher Boyett was quoted in the Financial Times about the future of lending businesses and wealth management arms of large U.S. banks in wake of COVID-19. A proposed tax bill from the Biden Administration could raise capital gains from 20% to 39.6% and close the "loophole" allowing wealthy families to transfer capital gains income tax free between generations. However, the future pace of lending by bank wealth management arms will probably depend more heavily on interest rates than tax policies determined in Washington. 

"I don't see it as tax motivated as much as investment motivated," said Mr. Boyett. "The attractiveness will go away if rates go up."

READ: Wall Street Doubles Down on Lending ‘Cheap Money’ to the Rich (Subscription required)