40% Cut in Pay for Merrill Brokers

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floridabroker's picture
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I was talking to some of my friends still at BAI, errr Merrill Lynch and was wondering what the thundering herd thinks of having a 40% cut in the grid on all leads/referrals provided by the bank?  Its not too late.  Get out and save yourselves like the rest of us have already done!!  McCann should have no trouble picking off Merrill Brokers as the bank puts in more and more of its screw the broker policies.  This 40% haircut is only the first of many to come.  You have a new daddy now.  Get used to it!

borei's picture
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Daddy? Sally is da new mommy!

Winston Smith's picture
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Haven't heard anything about this.  When was this announced?
What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts.  Checking accounts, by the way, that we can't even see/follow on our screens!  Oh, and did I mention my clients already have checking accounts.  Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity. 

Squash1's picture
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Joined: 2008-11-19

Banks and brokerages never mesh...Look at JPM, at least they don't try to and a "real" brokerage firm. Sure they have Bear Stearns for High End and advisor in branches, but the advisors in branches is just for conveinience and stickyness of their bank clients..

Omar's picture
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Joined: 2009-03-19

Winston Smith wrote: Haven't heard anything about this.  When was this announced?
What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts.  Checking accounts, by the way, that we can't even see/follow on our screens!  Oh, and did I mention my clients already have checking accounts.  Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity. 

The best part is when you open the new accounts for your clients which you don't get paid on, you will have to pleasure of getting all of the service calls going forward.   Get ready to learn how to order checks, atm cards, set up overdraft protection, rebate fees....etc.

If you are a ML legacy broker, whatever you do, don't sell banking products. That will come back to bite you!

Winston Smith's picture
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Joined: 2009-01-13

Omar wrote: Winston Smith wrote:
Haven't heard anything about this.  When was this announced?
What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts.  Checking accounts, by the way, that we can't even see/follow on our screens!  Oh, and did I mention my clients already have checking accounts.  Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity.  The best part is when you open the new accounts for your clients which you don't get paid on, you will have to pleasure of getting all of the service calls going forward.   Get ready to learn how to order checks, atm cards, set up overdraft protection, rebate fees....etc. If you are a ML legacy broker, whatever you do, don't sell banking products. That will come back to bite you!

I asked the BAI banker lady about why I would do this even though my clients already have checking accounts and I don't get paid on these new ones and can't even help a client follow the activity and she said something about being a "team player" and that her kid is in college.  Again, I'm not even joking.   I'm going to stop thinking now so that Ken doesn't hear me.

Omar's picture
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Winston Smith wrote: Omar wrote: Winston Smith wrote:
Haven't heard anything about this.  When was this announced?
What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts.  Checking accounts, by the way, that we can't even see/follow on our screens!  Oh, and did I mention my clients already have checking accounts.  Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity.  The best part is when you open the new accounts for your clients which you don't get paid on, you will have to pleasure of getting all of the service calls going forward.   Get ready to learn how to order checks, atm cards, set up overdraft protection, rebate fees....etc. If you are a ML legacy broker, whatever you do, don't sell banking products. That will come back to bite you!

I asked the BAI banker lady about why I would do this even though my clients already have checking accounts and I don't get paid on these new ones and can't even help a client follow the activity and she said something about being a "team player" and that her kid is in college.  Again, I'm not even joking.   I'm going to stop thinking now so that Ken doesn't hear me.

Don't worry, Ken is on his way out. He was tired of selling checking accounts too.

No, seriously, don't give in and sell bank products. It will only make your clients more sticky to the firm if you ever leave.

Sportsfreakbob's picture
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Joined: 2008-08-24

Winston
No disrespect, but i just cannot believe you arent joking about those stories.
Team Player?

SFEZ's picture
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floridabroker wrote:I was talking to some of my friends still at BAI, errr Merrill Lynch and was wondering what the thundering herd thinks of having a 40% cut in the grid on all leads/referrals provided by the bank?  Its not too late.  Get out and save yourselves like the rest of us have already done!!  McCann should have no trouble picking off Merrill Brokers as the bank puts in more and more of its screw the broker policies.  This 40% haircut is only the first of many to come.  You have a new daddy now.  Get used to it!

 
I don't know the official details, but:
 
1- The conversion rates on referrals form the Bank side has been very poor so far.
 
2- I think the haircut in payout is only for a year or two, then it kicks up to full grid.....
 
This would never be a reason to leave......If they give you 5 leads, and you convert 2, but at a lower payout, it's still 2 new relationships.......
 
There are plenty of accounts I brought in over the last year that needed a discount on a wrap fee or on individual trades......I was still more than happy to bring it in and take the gross...... 

SFEZ's picture
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Joined: 2008-10-25

Winston Smith wrote:
Haven't heard anything about this.  When was this announced?
What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts.  Checking accounts, by the way, that we can't even see/follow on our screens!  Oh, and did I mention my clients already have checking accounts.  Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity. 

You are suppose to see them on PMAC......There's probably a lag of a month or two, but you'll be able to see them soon......
 
I don't know about CA's getting fired, but they do get some money for each account opened, which is why they are involved in the push.....

Winston Smith's picture
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Joined: 2009-01-13

Yes, she does get paid. $75. But the CA's have no option not to do it when they are being threatened that if they don't open enough it will effect their next years comp. To me, this sounds like the checking account equivalent of the mutual funds sales contest saga of '02. These idiots never learn. True f'ing story (tfs).

THE BUBBLE GROWS's picture
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Winston Smith's picture
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Joined: 2009-01-13

I was told it was going to be a win-win.

JackBlack's picture
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Joined: 2008-08-26

Winston Smith wrote:I was told it was going to be a win-win.

When your BD says it is a win-win it time to reach for your wallet, because you are gone to pay.
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BACFA's picture
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Joined: 2006-03-26

I was swallowed up by BAC from Quick & Reilly.  The bank product push always starts out innocently but ends horribly for the FA.
 
1. Extra pay for those willing to "help" the clients (ie $75 to the CA's now).
 
2. Permission to call your clients with an innocent script.
 
3. New scripts rolled out to start selling your clients CD's, mortgages, safety deposit boxes, pretty ATM cards.
 
4. The extra pay turns into a deduction of your pay if you DON'T do it (BAC's trail grid, about 8% lower than the normal grid and you get to "earn" it back).
 
5. New bankers getting hired by BAC to just cold call all your ML clients, whether you want them to or not.
 
6. Economy crashes and all those new bankers are let go.
 
7. Your clients can now only call you to order new Nascar checks.
 
Bottom line, don't do it.

Incredible Hulk's picture
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Joined: 2006-03-24

mlgone wrote: who didn't see this coming.  I did in Feb 09 when I was told I was assigned a "bank specialist" to review my book.

Wow. So much for client privacy. I'm sure the ML new account forms signed a decade ago included some language about BAC "bank specialists" reviewing their accounts for ways to generate more revenue.

Winston Smith's picture
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Joined: 2009-01-13

That doesn't sound like a win-win at all.

Wet_Blanket's picture
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Joined: 2008-11-13

Incredible Hulk wrote: mlgone wrote: who didn't see this coming.  I did in Feb 09 when I was told I was assigned a "bank specialist" to review my book. Wow. So much for client privacy. I'm sure the ML new account forms signed a decade ago included some language about BAC "bank specialists" reviewing their accounts for ways to generate more revenue.
 
Good point.  Aren't they beefing up, or already did, SP laws so that affiliates can't use client information without the client's consent?

mnymker's picture
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Joined: 2007-04-24

After working for SB during the Citi takeover...it is clear that BofA will wreck ML the same way Citi tried to do SB.
 
Last one out the door at ML turn the lights off!

DeadBull's picture
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Joined: 2009-07-23

Quit griping about getting a haircut on a referral you didn't have to cold call or network for.  40% off of something is better than nothing. 

Winston Smith's picture
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Joined: 2009-01-13

He is right. 40% of something that is free is still free. Stop it with your Thoughtcrime, I am very grateful for my "referals", all of which seem to be based on how large a mortgage someone has with the bank. Power is tearing human minds apart and putting them back together in new shapes of your own choosing :)

SFEZ's picture
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Joined: 2008-10-25

Winston Smith wrote:Yes, she does get paid. $75. But the CA's have no option not to do it when they are being threatened that if they don't open enough it will effect their next years comp. To me, this sounds like the checking account equivalent of the mutual funds sales contest saga of '02. These idiots never learn. True f'ing story (tfs).

 
The CA's in  my office stayed late night and were involved in the push, but the handful of CA's I spoke to about it weren't thrilled about the work night, but didn't feel like their job was on the line......Not sure why your CA feels like she may lose her job......I would think that ship has sailed, and those who survived cutbacks earlier in the year are safe now.....
 
I agree it's a dumb idea, but I easily pulled my clients out of the batch BOA said were eligible/suggestions for the promotion.......

Sportsfreakbob's picture
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Joined: 2008-08-24

Mnymkr, you hit it on the head. I also left SB, just before the MS merger. Boy am i glad i did.
But aside from that, i saw over 10 years or so, what Citi did to SB. What a shame.
 
I'm indie for 6 months and couldnt be happier.

LogansRun's picture
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Joined: 2009-01-25

Wealthy Investors Lured Away as Brokerages Battle to Keep Them
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By Alexis Leondis

Nov. 17 (Bloomberg)

"Merrill clients aren’t leaving for independent advisers because of anxiety following Bernard Madoff’s multibillion- dollar Ponzi scheme, Krawcheck said at the Oct. 5 press conference."

Really Sally???    - You lie!

and I used to think she was for the FA, but the spin goes on... Scare 'em into staying! Talk about misleading spin; Give me a break. No respect for this as the AGENDA is blatanly obvious. This is what happens when a well intentioned 'leader' sells out to the inevitable shareholder interest and then we all hear why opening credit lines or cross selling firm products is good for relationships.   

They're all about scare you to stay and get you to sell crap that makes the assets sticky. This model is dead.

"It's good for the firm, it's good for the broker, AND it's good for the client." - spoken like so many great Regional managers, regional "product specialist," "Lending experts", branch managers rolling out new "stuff"...

Right! So glad to never have to deal with a regional director explaining the strategic objectives and why it will help me and my clients. Just hit delete button on these people. They don't care about clients one stinking bit.

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