Trouble Might be Brewing for Custom Loans to Wealthy Clients
Howard Diamond Quoted
By Miriam Rosen
Custom loans to financial advisors’ high net worth clients bolster the bottom lines of broker-dealers’ parent companies.
Howard Diamond, the chief operating officer and general counsel of Diamond Consultants, a New York-based recruiting firm, views the growth of loan revenues at wirehouses as a win-win situation for advisors and their employers.
“The wirehouses tend to offer better rates than commercial banks and the advisors take great pains to make sure their clients are getting the better rates — they are working with the loan officers,” Diamond says.