The newspaper reports that the firm, which has expanded its buttoned-up wealth management division since the 2008 financial crisis, created a pilot program that divided financial advisers into “teams” and offered them financial incentives for selling securities-based loans — one of the firm’s biggest money makers, according to a source and e-mails obtained by The Post.
Those loans are a major profit center for the bank. In 2015, company-wide sales of so-called SBLs jumped by 31%, to $25bn, Gorman said in a January 2016 presentation.
Morgan Stanley, through a spokeswoman, insisted the program was “extremely limited” and didn’t pay out cash — but instead deposited “credits” to a special account that could be used for “qualifying business expenses,” like marketing.
To access the complete New York Post article hit the link below: