Banks

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ezmoney's picture
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Joined: 2004-11-30

Well,
I just got my good Fu$kin from BOA bank. fee beased payout droped from 36 to 31% and trails cut from 31% to 22%. They say we should make it up with the new bonus program, but these fu&$ers can't be trusted. Now what do I do? What a mistake!
 

menotellname's picture
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Joined: 2004-12-01

The banks will change their comp plan every year.  They dropped an insurance multiplier on my end.

troll's picture
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Joined: 2004-11-29

ezmoney wrote:
Well,
I just got my good Fu$kin from BOA bank. fee beased payout droped from 36 to 31% and trails cut from 31% to 22%. They say we should make it up with the new bonus program, but these fu&$ers can't be trusted. Now what do I do? What a mistake!
 

Sorry to hear it EZ.......when I considered my change I looked at banks, and this was a concern of mine.
If you want some feedback on indy life, PM me and I'll answer any questions you may have.

bankrep1's picture
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Joined: 2004-12-02

Build a book at a small institution.  When the institution f#cks you, you fucl them.  Thats my plan

rightway's picture
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Joined: 2004-12-02

All in the name of making sure no one gets too big.  You go in and
work your tail off building a fee based business, forgoing the up-front
commissions you may hve gotten otherwise, and BOOM...your thank you is
a pay cut. 

The banks have done this and will continue to do so, especially as more
and more people move to a fee based way of thinking (It is FREE revenue
to them!).  It really is just the price for getting all of those
juicy referrals everyone brags about.

What to do?  Its a career choice, and I have yapped my opinion on the matter too many times to count out here.

Indyone's picture
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Joined: 2005-05-31

EZ,
I had a similar experience...the last four years I was there, we had four different comp plans, each one less than the last.  The last one at the beginning of 2005 was one of my final straws and I bailed...along with over 30% of the rep force.  This apparently got management's attention as I understand that they finally made a comp plan change that was positive for the reps, but along with that came a new, tougher non-compete for everyone to sign.  The poor fools that stayed fail to understand that as soon as they sign that non-compete and lock in, they'll be looking at a new, less generous comp plan next year and they'll be screwed.  All they are seeing now is dollar signs, but soon those dollars will be smaller and they'll again be miserable and more locked in than they ever were.  You are correct...bank management cannot be trusted.
It's my humble opinion that there is a tremendous amount of jealousy among bankers.  When I was first told that by another vet, I didn't believe it, but my oh my, how my eyes were eventually opened.  There's much jealousy among senior management, most of who made less than many of us, and commercial lenders (who have traditionally been the big boys in the bank).  We were never offered stock options as this was a way that commercial lenders and senior management were placated ("but YOU have stock options!").  When it was obvious that I was leaving, lo and behold, stock options and a potentially better new comp plan came out of the closet and I understand that the remaining kool-aid swilling reps now have stock options, along with their shiny new comp plan.
This may not be the case with large bank programs (although it appears to be the case at BOA now), but I faced it on a regular basis.  I don't miss the political bullsh*t at all, even though at the moment, I'm not quite making what I was at the bank, I am infinitely happier and ultimately expect to make considerably more with less effort on my part and a more manageable book size.
EZ, I don't know if you are deep enough into the program with sufficient AUM and customer loyalty to go indy, but if you are, that would be the path that I would take.  If not, look at either a firm w/o a nasty non-compete (I understand that EDJ only chases training costs in the first three years) or a firm that will eventually allow you to transition to indy (such as Raymond James).  If you are big enough to go indy, look at either Raymond James or LPL(where I went), as these are two high quality indy firms where you can avoid politics, endless mind-numbing meetings and ever-shrinking grids.  Good luck.
Merry #%*+$&#!*@!@*& Christmas, huh?!!!

thebanker's picture
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Joined: 2005-08-28

try moving to BOA private banking side---I have always heard good things about them.

Cowboy93's picture
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Joined: 2005-05-10

Who would have ever thought there was no such thing as easy money?  Well, I guess maybe someone who recommends building a business the "rightway," and all of our mothers who told us you know what about things that seem too good to be true.  The only job and income security is a satisfied client base, preferably--by a phenomenally large margin--one whom you have cultivated yourself.
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southcampus's picture
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Joined: 2005-09-20

I hope I get some responses to my post. I am about to sign on the dotted line with them. Now I'm not sure. I was informed that the comp plan was going to change because fee based were a 36% payout while regular commissions were at 31%. The guys that have been part of the process with me informed me that it was being changed because govt/NASD/SEC saw that as enticement to brokers to push certain products. They did say something about the bonus being added back in.
I figure that is true,  but that being said how then  does Jones get away giving 30% payout on C shares, 35% B shares and then the big 40% for pushing A shares?
I'm strongly considering making the switch, and mainly to the bank for the good benefits, being able to have a fee based platform, a great referral base, and the substantial up front packages they are willing to give out. And I'm sick of working by myself all the time. I know I might be limiting my income on the upper end, but I've never really cared about being at those levels, would rather spend more time with the kids.
I'd like to see what people think.
 

doberman's picture
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Joined: 2005-02-22

southcampus:
I hope I get some responses to my post. I am about to sign on the dotted line with them. Now I'm not sure. I was informed that the comp plan was going to change because fee based were a 36% payout while regular commissions were at 31%. The guys that have been part of the process with me informed me that it was being changed because govt/NASD/SEC saw that as enticement to brokers to push certain products.
------------------------------------------
I don't buy it. They also could have bumped-up regular commissions to 36%, to remove the "enticement".
Here's my take on the situation, but first a little background: BOA has purposefully lowered CD rates to some of the lowest in the nation. Their business plan is to avoid holding over 10% of the deposits in the country (some banking regulation). With extremely low CD rates, bank referrals to brokers become almost automatic. Example: Ms. Smith has all her accounts with BOA. Well, her $100,000 CD just matured and the new CD rate is awful. But she isn't going to close-out all her accounts just to get a higher rate somewhere else. So, she's taken over to Joe Blow (the bank broker) to try and get some better rates.
I believe BOA knows this and has lowered the pay-out expecting a sharp increase in AUM due to run-off from the low CD rates. This strategy might be considered genius, on BOA's part. Heck, you could also argue that even with the lower pay-outs, the increase in AUM will make-up for it.
Just my take on it.

scrim67's picture
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Joined: 2005-04-28

I am in a bank program and building my practice primarily thru fee based.   
I know that throughout my career there will be plenty of changes including comp plan tweaks.       It's how we react to these changes that are most important.
I hope the changes that come down the road aren't too drastic.  I would like to stay in one place for a long time as I build.
I will take a little less $$$$$  to be where I want to be.
I guess I'm more like Tom Brady than Johnny Damon.
Happy holidays all!!!!!

troll's picture
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Joined: 2004-11-29

thebanker wrote:try moving to BOA private banking side---I have always heard good things about them.
Why in the name of all that is holy would you encourage someone to move from ONE bank program where they are unhappy with declining payouts to ANOTHER bank program where they will likely face the same issues?  At both of them you are viewed as merely an empoyee and THEY OWN THE CLIENT BASE!
Think about it....

bankrep1's picture
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Joined: 2004-12-02

Joe,
Not everyone wants to own a business.  There is alot of BS that goes with that.

troll's picture
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Joined: 2004-11-29

bankrep1 wrote:
Joe,
Not everyone wants to own a business.  There is alot of BS that goes with that.

True.  Boy, can I testify to that.  I've spent a lot of time the last week or so getting QuickBooks set up with my expenses, and taking care of issues related to my taxes and documentation for my S-corp.  Once it is done right the first time, though, it should be easy to maintain. Either way, it's worth it for me. 
But do they think moving to a large bank like BofA will help with their payout issue?
Merry Christmas and Happy Hannukah.

bankrep1's picture
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Joined: 2004-12-02

It's just like any other career.  There are good employers and bad.  The banks in general don't understand anything long term because there always getting bought out, buying someone etc.  So there is constant change, management turnover, etc.  This is why I chose to work at a credit union, the idea of the need of immediate profit (to boost shareholder value, meet a quarterly goal etc, does not exist.
I think if you enjoy the entrepreneural side of things going independent is the way to go, but as a former business owner I know you have to deal with alot of non-revenue generating hassles that can side track you from what you need to be doing.

no idea's picture
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Joined: 2005-11-15

southcampus,
i've been having the same thoughts about the bank platform as you have and will probably be approaching some banks in the near future about joining them.
 

rightway's picture
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Joined: 2004-12-02

southcampus wrote:I hope I get some responses to my post. I am
about to sign on the dotted line with them. Now I'm not sure. I was
informed that the comp plan was going to change because fee based were
a 36% payout while regular commissions were at 31%. The guys that have
been part of the process with me informed me that it was being changed
because govt/NASD/SEC saw that as enticement to brokers to push certain
products. They did say something about the bonus being added back in.
I figure that is true,  but that being said how then  does
Jones get away giving 30% payout on C shares, 35% B shares and then the
big 40% for pushing A shares?
I'm strongly considering making the switch, and mainly to the bank
for the good benefits, being able to have a fee based platform, a great
referral base, and the substantial up front packages they are willing
to give out. And I'm sick of working by myself all the time. I know I
might be limiting my income on the upper end, but I've never really
cared about being at those levels, would rather spend more time with
the kids.
I'd like to see what people think.
 

A career is a long time.  Banks breed a feeling of being happy
with being conservatve.  Everyone goes through periods of time
when their drive and direction seems challenged, but I feel it is
important to look at our own core.  If you have an entrenpenuerial
(sp?) spirit  and drive inside of there, eventually most banks
will not let that fly.  This business is tough enough, and the
thought of building one only to eventually not let the core out, is
wasteful and sad. 

Indy seems to be the ultimate in exercising this spirit, while there
are many other avenues that are less risky.  I work as the main
component of a 6 person team in an office of almost 100 people.  I
can go in our suite and turn off the world, or take an office tour and
visit to get ideas and jokes.  My creativity can run rampid, I get
to manage rookie brokers, I get an expense account, top notch tools,
and all the freedom I wish.  Be careful settling just yet.

waterboy's picture
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Joined: 2005-12-27

Hey Folks,Love the discussions. BOA comp plan ...complete joke.!!Put together from the peeps that have only banking background.NO REGARDS FOR THE FOLKS WORKING ON COMMISH. They have taken away the incentives for the banks to refer to the reps.You need to work your book .That sound you hear is the reps heading for the exits

waterboy's picture
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Joined: 2005-12-27

 With extremely low CD rates, bank referrals to brokers become almost automatic. Example: Ms. Smith has all her accounts with BOA. Well, her $100,000 CD just matured and the new CD rate is awful. But she isn't going to close-out all her accounts just to get a higher rate somewhere else. So, she's taken over to Joe Blow (the bank broker) to try and get some better rates.
----------------------------------------------------------
Doesnt happen .The bank no longer gets credit for referrals to the rep....They get credit for the #of c.d`s not the $ amount.It is conceivable to see a customer with a c.d renewing get sold a 6mos.9mos and 12 mos in place of the 1 that matured.Kill 3 birds with 1 stone.

giff74's picture
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Joined: 2005-06-30

joedabrkr wrote:
thebanker wrote:try moving to BOA private banking side---I have always heard good things about them.
Why in the name of all that is holy would you encourage someone to move from ONE bank program where they are unhappy with declining payouts to ANOTHER bank program where they will likely face the same issues?  At both of them you are viewed as merely an empoyee and THEY OWN THE CLIENT BASE!
Think about it....

Remember big banks have to answer to who....Wallstreet. My payplan changed three times this year, THREE TIMES DURING 2005. None of the changes were in my favor. The reward trips were so far out of whack we have four managers going from our area and no producers!
OK, I know I am into bank bashing right now, I am going indy next week and leaving a top ten bank. The bank trained me, got me licensed even provided a good mentor and then when I became profitable bent me little by little over the barrel. Now its to the point that they havent released next years pay plan yet, no one knows how much or how they will get paid. Dont believe the hype, banks dont know how brokers work, they hardly know they need us and they wont make bank employees refer to us. So why not just go find our own meat and truly keep what we kill.

troll's picture
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Joined: 2004-11-29

giff74 wrote:joedabrkr wrote:
thebanker wrote:try moving to BOA private banking side---I have always heard good things about them.
Why in the name of all that is holy would you encourage someone to move from ONE bank program where they are unhappy with declining payouts to ANOTHER bank program where they will likely face the same issues?  At both of them you are viewed as merely an empoyee and THEY OWN THE CLIENT BASE!
Think about it....

Remember big banks have to answer to who....Wallstreet. My payplan changed three times this year, THREE TIMES DURING 2005. None of the changes were in my favor. The reward trips were so far out of whack we have four managers going from our area and no producers!
OK, I know I am into bank bashing right now, I am going indy next week and leaving a top ten bank. The bank trained me, got me licensed even provided a good mentor and then when I became profitable bent me little by little over the barrel. Now its to the point that they havent released next years pay plan yet, no one knows how much or how they will get paid. Dont believe the hype, banks dont know how brokers work, they hardly know they need us and they wont make bank employees refer to us. So why not just go find our own meat and truly keep what we kill.

3 changes in one year?  That is totally messed up!
Good luck.  Be careful what you post giff.....you never know who reads this forum.  Not to make you paranoid, just be careful.

southcampus's picture
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Joined: 2005-09-20

I saw this Top 10 thing on another post right now. Here are my reasons for thinking of going to BAC. Please give feedback on what people think is right and or wrong. I'm thinking about making a big change going from Jones to BAC. Please realize I'm talking specifically about Bank of America and not any other bank system
PROS
1. Fee based platform (For some reason Jones only thinks people with more than 500,000 should have this available), and I don't have to have 1000-2000 clients to run a successul business.
2. Almost completly Referral Based (This seems to be where all the banks differ from one another. My understanding is BAC Premier Clients 100k to 3 mill have premier banking. Part of those banks comp is based on their referrals to the advisors, I don't want to get too detailed, but this is a big drawing point)
3. I'm tired of working by myself (self explanatory)
4. Great Package Being offered(very comparable to what the big wirehouses are offering)
5. Same flexibility of hours
6. Great health care, 401k, pension, no paying for stamps, phone, etc.
CONS
1) Payout changes all the time (low end of the spectrum also)
2) Maybe have to switch from branch to branch.
If anybody  anything else to add please do. Thank you.
 
 

thebanker's picture
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Joined: 2005-08-28

switching branch to branch may not be a bad thing. If you're intially stuck with a BS branch with BS sales people/manager then switching to a different branch might not be a bad thing. One more point, if you do well in a certain branch, most managers will leave you there and will not bother you. They only move you if you're not putting up numbers.As far as BAC premier banking goes, it's true. The Premier client manager is a good source of referral because they're comp plan involves dished out referrals to the FC. Not sure if this is true or not, but anything over 3-5 million has to be referred to BAC's private banking.

waterboy's picture
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Joined: 2005-12-27

Southcampus:
True about Premier,however their referrals are 1 of 4 buckets that need to be filled.
If you starting new ,you better hope your premier is strong at referring,otherwise leads can be tough to come by
 

ezmoney's picture
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Joined: 2004-11-30

With about 23 mil aum, and golden handcuffs, I guess I'm stuck at BAC until I can at least double my aum. There's pros and cons to the whole situation including the new comp plan. However, what can I do at this stage of the game???

giff74's picture
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joedabrkr wrote:giff74 wrote:joedabrkr wrote:
thebanker wrote:try moving to BOA private banking side---I have always heard good things about them.
Why in the name of all that is holy would you encourage someone to move from ONE bank program where they are unhappy with declining payouts to ANOTHER bank program where they will likely face the same issues?  At both of them you are viewed as merely an empoyee and THEY OWN THE CLIENT BASE!
Think about it....

Remember big banks have to answer to who....Wallstreet. My payplan changed three times this year, THREE TIMES DURING 2005. None of the changes were in my favor. The reward trips were so far out of whack we have four managers going from our area and no producers!
OK, I know I am into bank bashing right now, I am going indy next week and leaving a top ten bank. The bank trained me, got me licensed even provided a good mentor and then when I became profitable bent me little by little over the barrel. Now its to the point that they havent released next years pay plan yet, no one knows how much or how they will get paid. Dont believe the hype, banks dont know how brokers work, they hardly know they need us and they wont make bank employees refer to us. So why not just go find our own meat and truly keep what we kill.

3 changes in one year?  That is totally messed up!
Good luck.  Be careful what you post giff.....you never know who reads this forum.  Not to make you paranoid, just be careful.

Joe, you are correct. Just because you are paranoid doesnt mean they arent out to get you. Which is how I've felt of late. Come next Friday it wont matter any more. Look out indy world here I come!

Indyone's picture
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Joined: 2005-05-31

Giff, come on in...ther water's warm!!!
BTW, what indy firm you end up associating with?

BankFC's picture
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EZMoney,
I feel you...but I think you (and I at times) are a little too focused on the "instant gratification" part, and not focusing on the long term.
Do as much fee based as you can get by with while still putting up good numbers month to month.  Build up your AUM.  Take less money upfront.
As long as the referrals keep coming, keep building those assets, and also keep strengthening those relationships, because once you have enough, you can go indy or whatever and take a good portion with you. 
The trade off for a little lower payout for me is the rapid pace at which I am building a business. 
 

BrokerRecruit's picture
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Joined: 2005-04-19

Transition will all depend on your LOS, EZ.  If you're a LOS 1, for example, most firms would look at you, even if you're only able to bring 1/3 of your book.

thebanker's picture
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southcampus wrote:2. Almost completly Referral Based (This seems to be where all the banks differ from one another. My understanding is BAC Premier Clients 100k to 3 mill have premier banking. Part of those banks comp is based on their referrals to the advisors, I don't want to get too detailed, but this is a big drawing point) A friend of mine just became a Premier Client Manager, she told me that her loan volume per qtr is 30 mil. With that in mind, I don't think PCM have time in referring b/c they make the most of their bonuses through loans/line volume.

troll's picture
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thebanker wrote:Not sure if this is true or not, but anything over 3-5 million has to be referred to BAC's private banking.
Try $500k or above. Better still, the incentive for the premier banker to bring business to the PB is greater than the incentive they have to bring it to you.

troll's picture
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BankFC wrote:
EZMoney,
 
As long as the referrals keep coming, keep building those assets, and also keep strengthening those relationships, because once you have enough, you can go indy or whatever and take a good portion with you.  
 

The other side of that coin is the branches you cover and/or your referral source at preimer banking can be taken from you at the whim of management. At least at one point BoA had a goal of one broker per branch and one assigned to premier. You can spend a lot of time building "your book" and taking less pay only to have management slice it in to three pieces to distribute to two new guys. The bank doesn't see it as "your book" any more than than they see the drive-up window as "belonging" to a specific teller.

giff74's picture
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Indyone wrote:
Giff, come on in...ther water's warm!!!
BTW, what indy firm you end up associating with?

I am hoping the water is warm and damn excited too!!!
LPL is the new place for me. I looked at RayJa also, but LPL was quicker to action and has been very good about getting me ready for the transition. LPL also put me in touch with a local firm that is established, I think that will make things much easier for the first few years. I just pay my expenses and override and go on my merry way. I cant tell you how happy I am at the prospect of no sales manager.

Greenbacks's picture
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Giff74
LPL is a good firm! But after a couple of years in that office you cannot just leave to start your own LPL office. It will be up to the OSJ he has to sign off on your clients before they can be moved!
Also he/she will need to write a letter to LPL before you can take the 24 ! If they do not do this you will have to stay in that office or change BD's 
 

Indyone's picture
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giff74 wrote:Indyone wrote:
Giff, come on in...ther water's warm!!!
BTW, what indy firm you end up associating with?

I am hoping the water is warm and damn excited too!!!
LPL is the new place for me. I looked at RayJa also, but LPL was quicker to action and has been very good about getting me ready for the transition. LPL also put me in touch with a local firm that is established, I think that will make things much easier for the first few years. I just pay my expenses and override and go on my merry way. I cant tell you how happy I am at the prospect of no sales manager.

Welcome aboard, giff!  I also established at LPL and am really pleased with the set-up.  If it ever does get crappy, though, I'll probably migrate to RayJay as they were a close second.
Let us know how things go for you...there may be a few glitches along the way, but I'm confident that you are headed for a better place...

BankFC's picture
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mikebutler222 wrote:BankFC wrote:
EZMoney,
 
As long as the referrals keep coming, keep building those assets, and also keep strengthening those relationships, because once you have enough, you can go indy or whatever and take a good portion with you.  
 

The other side of that coin is the branches you cover and/or your referral source at preimer banking can be taken from you at the whim of management. At least at one point BoA had a goal of one broker per branch and one assigned to premier. You can spend a lot of time building "your book" and taking less pay only to have management slice it in to three pieces to distribute to two new guys. The bank doesn't see it as "your book" any more than than they see the drive-up window as "belonging" to a specific teller.

 
Geez Mike...just because YOU got branches taken away, assets taken away, etc etc at all the banks you worked for doesn't mean that is how it is for EVERYONE.
Honestly I am amazed you're still in the business considering all the transitions you've been through.  I don't mean that derogatory.  I'm just saying, you've had a rough go of it, but it's not that bad for everyone...as a matter of fact it's a pretty sweet deal some places, especially smaller sized banks like mine!
It's ok, I understand you're a little jaded.

troll's picture
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BankFC wrote:mikebutler222 wrote:BankFC wrote:
EZMoney,
As long as the referrals keep coming, keep building those assets, and also keep strengthening those relationships, because once you have enough, you can go indy or whatever and take a good portion with you.

The other side of that coin is the branches you cover and/or your referral source at preimer banking can be taken from you at the whim of management. At least at one point BoA had a goal of one broker per branch and one assigned to premier. You can spend a lot of time building "your book" and taking less pay only to have management slice it in to three pieces to distribute to two new guys. The bank doesn't see it as "your book" any more than than they see the drive-up window as "belonging" to a specific teller.

Geez Mike...just because YOU got branches taken away, assets taken away, etc etc at all the banks you worked for doesn't mean that is how it is for EVERYONE.

Show of hands, FC, which one of us has personal experience at BoA? Is your hand up? Mine is. I know the facts and the policies there, you don’t. Why did you have to try to turn that into a personal attack? Feeling a tad uncomfortable?
BTW, I didn't have any branches taken from me (had they been able to hire in my area, I would have), but I saw it happen a number of times. It had nothing to do with the FC effected, it had to do with BoA policy to have A SINGLE broker in each branch. Whenever they could hire, they shifted coverage of branches.
Look, I wasn't being personal with you, I was simply stating BoA policy. If that gets under your collar, sorry.
BankFC wrote:
Honestly I am amazed you're still in the business considering all the transitions you've been through.

I'll take that under advisement, given your vast experience in the business.
BankFC wrote:
I don't mean that derogatory.

Why, of course you don't.
BankFC wrote:
I'm just saying, you've had a rough go of it, but it's not that bad for everyone...as a matter of fact it's a pretty sweet deal some places, especially smaller sized banks like mine!
It's ok, I understand you're a little jaded.

FC, I’m trying to be easy-going with you, but you insist on injecting yourself into conversations where you have no idea what you’re talking about. The topic was specifically BoA, not your bank. I hope life is just dandy for you there, but your experience, such as it is, means nothing when the topic is a place where you’ve never hung your hat.
Now, was that clear enough and gentle enough for you? BTW, I'm anything but jaded and I certainly don't feel I've had a "rough go" of anything. Every transition I've made has been my own choice, each was worth something and each led me to where I am now, loving life and trying to cut my handicap. I'm doing just fine, thanks.

troll's picture
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SonnyClips wrote:Paranoia is a heightened sense of awareness.
 
 

thebanker's picture
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mikebutler222 wrote:thebanker wrote:Not sure if this is true or not, but anything over 3-5 million has to be referred to BAC's private banking.
Try $500k or above. Better still, the incentive for the premier banker to bring business to the PB is greater than the incentive they have to bring it to you.Mike, just wondering, the Premier that you were partnered up with, gave most of the big fishes to private banking? It's supposed to be Premeir --> FC --> Private banking (if limits were reached)

troll's picture
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BankFC wrote:
EZMoney,
I feel you...but I think you (and I at times) are a little too focused on the "instant gratification" part, and not focusing on the long term.
Do as much fee based as you can get by with while still putting up good numbers month to month.  Build up your AUM.  Take less money upfront.
As long as the referrals keep coming, keep building those assets, and also keep strengthening those relationships, because once you have enough, you can go indy or whatever and take a good portion with you. 
The trade off for a little lower payout for me is the rapid pace at which I am building a business. 
 

You mean the rapid pace at which you are building the BANK's business(not your own)......

troll's picture
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thebanker wrote: mikebutler222 wrote:
thebanker wrote:Not sure if this is true or not, but anything over 3-5 million has to be referred to BAC's private banking.
Try $500k or above. Better still, the incentive for the premier banker to bring business to the PB is greater than the incentive they have to bring it to you.
Mike, just wondering, the Premier that you were partnered up with, gave most of the big fishes to private banking? It's supposed to be Premeir --> FC --> Private banking (if limits were reached)
No, it's Premier---> Private Banking with a cash incentive that can't be equaled by the FC (licensing requirements that PB doesn't face). The minimum was 500k (often 300k) for PB. PB is simply more profitable for the bank per dollar of client asset because often they're using internally managed "trust funds" (nothing more than mutual funds run inhouse by PB) with a fee on top of the fund's management fee.
The only time I can imagine an FC referring to PB is in the case where an individual wants the bank to act as trustee. Otherwise the FC could do whatever's required himself. BTW, we had an ongoing problem with PB poaching BoA Securities clients based on calls from tellers, loan officers or even premier people calling them when a client of BoA Securities had a sizeable cash position, even if the FC was aware of the cash balance. I watched PB and BoA Securities battle at several levels above my pay grade over this issue and PB almost always won because of the profitablity difference.  

ezmoney's picture
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It doesn't take much to get above the pay grade level of an FA at BAC. That pisses me off also. No respect or regard what so ever for what value we bring to the table at this company.

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mike, ezmoney, what part of the country are you guys at? I'm on the west coast and Private banking is pretty much hands off for accts under 3-5mil. I'm surprised that Private banking would take a 500k acct from the FC, that just seems too small of a pie from them, espcially when BofA's Family Wealth Advisor (division of private banking) requires at least 50 mil. like the adage, a bank is a bank is a bank.  Not sure if a jump is suitable for you guys but Wells Fargo has a better platform according to my buddy who made the move, where the FC is on top of totem pole and is not poached by premier or private banking.

troll's picture
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thebanker wrote: I'm surprised that Private banking would take a 500k acct from the FC, that just seems too small of a pie from them, espcially when BofA's Family Wealth Advisor (division of private banking) requires at least 50 mil.
There's every incentive for someone working at PB to take every account about their stated minimum. They plug them into their common trust fund accounts or even SMAs and get paid. Why would they NOT take the account? In fact I had a problem with PB people telling our joint referral network that PB was to get, by bank policy, first dibs on any account above $300k. Remember, PB could pay cah incentives for referrals that BoA Sec can't. Also, the FWA program doesn't even enter into the picture given how few 50M opportunities there really are in bank lobbies.

ezmoney's picture
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According to my experience as well as feedback at lunch with my private bankers. PB @ BAC is not interested in anything less than 3 mill in investable assets. I know for fact oof many accts. less than 3 mill that were handed off to BAI to handle because the accts. were to small.

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as a side note, are private banker client's mostly credit centric? (lines/loans of credit?) Seems like PB at BAC has it easy, they're getting good referrals from the branches.

ezmoney's picture
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you are correct. PB wants to loan money more so than handle investments. Afterall they are the "bank".

troll's picture
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ezmoney wrote:you are correct. PB wants to loan money more so than handle investments. Afterall they are the "bank".
Now that's interesting, because it wasn't my experience at all. PB still thought of themselves as the trust department and lending was a side tool. I suppose it has to do with local management.

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bump

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