(Bloomberg) – Michael Duffy, former CEO of Goldman Sachs Group Inc., who bought Jeffrey Epstein’s Manhattan mansion this year, received a $ 30.6 million loan from Citigroup Inc., the latest example of how the super-rich are using banks for mega-mortgage.
According to registration records, Duffy, the newly appointed chairman of crypto investment bank Galaxy Digital, received a 30-year loan in May, two months after acquiring a townhouse on East 71st Street for $ 51 million. Daffey and Citigroup declined to comment.
Read more: Former Goldman executive bought Jeffrey Epstein’s Manhattan mansion
Duffy, the former chairman of Goldman’s global markets division, bought the Epstein home more than 40% below its original listing price of $ 88 million, and the proceeds went to a compensation fund for women who accused Epstein of sexual assault.
Built in the 1930s, the 50-foot-wide limestone mansion on the Upper East Side was put up for sale about a year after Epstein’s death in August 2019. Days after Epstein’s arrest, onlookers, photographs and film crews surrounded the house. Two initials discreetly adorned the entrance: “JE”. The heavy wooden doors bore signs of scrap – evidence of the authorities breaking in. Before Epstein, the house belonged to L Brands founder Les Wexner, Epstein’s most important client over the years. In 2011, the contract for the house was transferred to Epstein’s company in the US Virgin Islands.
The prosecutor’s office said that “hundreds, if not thousands” of photographs of naked and partially clothed girls were found on the territory. Epstein was charged with trafficking in minors for the purpose of sexual exploitation, and then he was found dead in a prison cell in Manhattan, where authorities considered it a suicide.
A spokesman for Duffy previously said the former trader had never met Epstein or been at the mansion prior to his acquisition.
Duffy was promoted to chairman of Goldman’s Global Markets Division before leaving the New York firm earlier this year. He plans to join Galaxy Digital, a digital asset company founded by former Goldman partner Michael Novogratz in September.
The deal provides insight into how the wealthy are using assets to provide liquidity, while bankers are looking to offer large mortgages to their most valuable clients as interest rates remain close to record lows.
In March, the chairman of Constellation Brands Inc. Rob Sands and his wife have negotiated a $ 23.1 million loan for a Manhattan penthouse from Citigroup. A month earlier, hedge fund manager Israel Englander received a $ 25.6 million mortgage from Morgan Stanley for a townhouse on the Upper East Side. Loans for two billionaires have interest rates of 2.125% and 2.15%, respectively.
(Updates with Citi’s answer in the second paragraph.)
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