BAI/ML FA's shared info

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BAI?'s picture
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Joined: 2008-11-04

Ok ML folks it's time we start putting our two heads together.  We are both being fead lines from our management in regards to leads, products and how the landscape will eventually look.  This post is not to complain but rather for us two groups to figure out what is what and to share ideas. <?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
 
 
First, could a ML FA explain to me how much you are paid on brokered CD's and Loans?   Also, are there any goals associated with those two prodcuts?  I have heard BAI will have the same workstations as ML FA's and I want to see how I can leverage those two opportunities. 
 
 
ML FA's please feel free to shoot back questions for us BAI folks.  Thanks

badmove?'s picture
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Joined: 2006-06-10

THERE WILL NO LONGER BE ANY BROKRED CD'S

BAI?'s picture
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Joined: 2008-11-04

So where do you send them if you can't do them?  Most of the Client Managers got canned today so who will service them?

GordonGekko12's picture
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Joined: 2009-02-25

I was told we would have brokered CD's sooner rather than later. Other large Bank/Brokers sell them.....US Bank....Wells...JPM/Chase.

ThatGuyML's picture
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Joined: 2008-12-17

badmove? wrote:THERE WILL NO LONGER BE ANY BROKRED CD'S
 
That is incorrect.  Brokered CDs will continue and payout differs based on issuing bank, etc.
 
I think you'll be happy with our workstations.  Our tech is user-friendly and easy to navigate.

whalehunter's picture
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Joined: 2005-11-28

Good Luck.

JoeNatlanta's picture
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Joined: 2008-12-16

what the heck is a brokered cd

Anonymous's picture
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armycolors's picture
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Joined: 2009-03-14

 x2

armycolors's picture
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Joined: 2009-03-14

What's the grid like in Merrill?
BAI is:

$0 -$199,999.99

20%

10%

$200,000 -$249,999.99

20%

10%

$250,000 -$299,999.99

20%

10%

$300,000 -$349,999.99

20%

10%

$350,000 -$399,999.99

31%

23%

$400,000 -$499,999.99

34%

26%

$500,000 -$599,999.99

36%

27%

$600,000 -$699,999.99

37%

28%

$700,000 -$849,999.99

39%

29%

$850,000 -$999,999.99

40%

30%

$1,000,000 >

41%

31%

cutacheck's picture
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Joined: 2009-02-21

you are all wrong

cutacheck's picture
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Joined: 2009-02-21

Broker cd's are done. I tried to move 5 million to a Merrill FA but BAC is not keeping anymore in inventory. BAI will be absorbed by MER and they will inherit our compliance. Good luck with that. By the time we completely merge meaning that we are using there technology in 12 months more than 50% of the brokers will have left BAI. Mer brokers will not adapt to the system because if they do they will bury there clients in checking accounts, mortgages and cd's and if they decide to leave the assets will be sticky. PS I heard that Florida alone has lost all but one million dollar producer to Wachovia, and CT lost 4 to Morgan. When can we start suing BAI for misrepresenting the model to recruit brokers???

whalehunter's picture
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Joined: 2005-11-28

If you watched Kenny Lewis on CNBC this morn it was rather sad when he was asked about the "thundering herd" We have lost a few producers and some that we would have let go anyway.. Sure should make the existing suckers feel good about their stature in the firm.

Wasabi Avenger's picture
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Joined: 2007-04-17

cutacheck wrote:Broker cd's are done. I tried to move 5 million to a Merrill FA but BAC is not keeping anymore in inventory. BAI will be absorbed by MER and they will inherit our compliance. Good luck with that. By the time we completely merge meaning that we are using there technology in 12 months more than 50% of the brokers will have left BAI. Mer brokers will not adapt to the system because if they do they will bury there clients in checking accounts, mortgages and cd's and if they decide to leave the assets will be sticky. PS I heard that Florida alone has lost all but one million dollar producer to Wachovia, and CT lost 4 to Morgan. When can we start suing BAI for misrepresenting the model to recruit brokers???That is the dumbest rumor ever.

NOFX's picture
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Joined: 2006-09-22

If BAC gets it's way, there will be NO BROKERED CDs.  They consider it competition with the consumer bank.  Additionally, the margins on homegrown CDs is a lot thicker.  They stare through you when you point out that brokered CDs keep the $ in the system to be revisited another day. 
 
MER may think they will get to run the show, but the BAC noose will slowly tighten and you will see that "risk management" (ie: bankers protecting their jobs) will slowly sanitize what was once MER.
 
Remember who bought who.  Welcome to MCD.

Omar's picture
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Joined: 2009-03-19

NOFX,

Yup, BofA will slowly but surely move MER closer to their way of doing things. I agree, broker CDs are available now, but they are going to go away.   Also, payouts will decrease and compliance will increase. This is what BofA has always done in past mergers to the acquired firm.

BACFA's picture
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Joined: 2006-03-26

I'm not so sure that brokered CDs will be removed.  It's a lot easier to dictate terms to 2,000 FAs than it is to 16,000.  I think (and am hoping) that ML has more leverage in the business decisions. 
Oh yeah, and to cutacheck, you lose whatever credibility you might have when you throw out a ridiculous rumor like that.

cutacheck's picture
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Joined: 2009-02-21

BACFA and Wasabi, you guys obviously are execs. at BAC. Why would that be a ridiculous rumor when the model is broken down. Why wouldn't large producers leaving.   A word of advice. Start looking for a new job, you just got replace by a MER branch manager.

BACFA's picture
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Joined: 2006-03-26

cutacheck, I think I've beat up Bank of America enough on these boards to qualify as a lowly FA, not management.  Your sweeping statement: PS I heard that Florida alone has lost all but one million dollar producer speaks for itself.

MinimumVariance's picture
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Joined: 2008-08-20

U work for a commercial bank!! Why in the world would you expect them to enable YOU to raise deposit liabilities for some other company? You have a duty to your employer, who has a duty to the shareholders of BAC to maximize profits. Whadaya think U R sposta do? Protect your clinets? watch out for their best interests? A dual form of fiduciary duty (which you don't have other than to your employer) cannot co-exist in this form of an organization.  

GordonGekko12's picture
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Joined: 2009-02-25

Brokered CDs are not going anywhere.  MER was the largest seller of BAC brokered CDs.  All other major commerical banks allow their brokers to sell other CDs.  From a compliance perspective.....it would be in our best interest to offer other CDs. 

armycolors's picture
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Joined: 2009-03-14

Good luck!

cutacheck's picture
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Joined: 2009-02-21

We started with 26 brokers and are now down to 13. What a great sh*t show. If only there were more wirehouses for people to cut checks to.    Does anyone know if we are keeping our Branches? I would assume since everything is for the benefit of ML advisors the next shoe to drop for us BAI brokers is the loss of our last source of referrals (branches).

B0NEHEAD's picture
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Joined: 2009-03-21

Dude, you're not seeing the whole picture here, we're bankers now. The Merrill guys will get all of the investment leads while we get mired in banking products. I heard that the Merrill guys don't want to refer bank products to their clients because they are afraid it will tie the clients to the bank and then they too will get bogged down in this crap. We are the new CMs, get used to it.

Borker Boy's picture
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Joined: 2006-12-09

Why not switch over to Merrill, guys?

Bank of Amerrill's picture
Joined: 2009-01-27

We technically aren't even supposed to talk to each other yet. No internal transfers at least for now.

B0NEHEAD's picture
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Joined: 2009-03-21

It's our clients that make us BAI. We have raised their expectations and sold them on the relationship. Just because our genius leadership has abandoned the model doesn't mean that our clients are gong to lower their expectations. The Merrill guys never set the bar so high when it comes to banking and don't do near the volume of transactions that our clients do. Clients are not happy. This was a shortsighted decision that will come back to bite them in the arse.

GordonGekko12's picture
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Joined: 2009-02-25

Bonehead- If they were going to make the BAI reps bankers (who by the way don't have a clue on processing a mortgage application) why did they let go of 85% of the Premier bankers that only do mortgages and CDs? If they wanted the BAI brokers to do bank products for everyone they would have put you on a salary by now and not paid you a retention bonus.

B0NEHEAD's picture
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Joined: 2009-03-21

The whole point was to reduce salaries. We're still paid based on gross production and even if they pay us a few bps on bank products, they still come out way ahead. How much do you think they saved by eliminating all of those salaries? How much more do you think you will make this year? Now think about the difference, it's huge. They're getting us to do two jobs while paying us for one.

GordonGekko12's picture
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Joined: 2009-02-25

I get that....and I get that I am working three times as hard for the same money.   I do like the fact that the client has one contact for everything (me or my assistant).  At that point the client is then my client not the "banks." Only time will tell how this all works out.....I think eventually (like 18 months) it will work out.  

 
 

armycolors's picture
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Joined: 2009-03-14

BAI is going to be a mood point in 18 months.

BACFA's picture
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Joined: 2006-03-26

B0nehead: Yes, Bank of America saved money by getting rid of CM salaries.  But CM's were never worth the salaries that they made so what they actually did is stem the losses.  It was a redundant position that did little to the bottom line of the bank.  Imagine if B of A hired 2,000 Sales Assistants tomorrow to service existing clients.  And then fired all of them a year later.  Were the Sales Assistants really integral to the relationship?  And did the Bank "save" money by firing the Sales Assistants?  It's more like the Bank had an awful one year experiment and wasted a lot of money and finally decided to cut their losses. 
Every other bank and wirehouse model has the FA as the main contact for the relationship.  It's funny listening to our conference calls these days.  It's like the BAI management "discovered' the new FA-and-Client model.  On one of the calles, a senior manager actually said, "This is the type of advisor/client relationship that I've always dreamed about.  And now we finally have it!"

Borker Boy's picture
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Joined: 2006-12-09

Why don't BAI and Merrill guys just move to Edward Jones?
 
After all this mess, are we still considered inferior?

B0NEHEAD's picture
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Joined: 2009-03-21

I agree that the old model wasn't working well, but that's not an indictment of the CMs, but rather the model itself. They should have trimmed the CM ranks by half, and gotten rid of at least half of the non-qualified clients. They never should have had a $250k mortgage as a qualifier. In my area homeless people pay that for a refrigerator box. Anyway, you can't tell me that a good salesperson with a book of highly qualified clients couldn't justify their existence. CMs are being paid 9 bps on mortgages with little flexibility to lower the rates. Even a crummy MLO can get paid 50 bps on their mortgages and they have the ability to lower their rate. That's like $50k on $12M in mortgages. Let's see what I did today.....I ordered checks, I helped a client who had a question on a HELOC, a client called about a W-9, and another client called about a mysterious transaction on her account and the 800# wasn't able to help to her satisfaction so they suggested she call me. Oh and I gave a client rates on a fixed rate option because my BS was too busy to call them when he said he would. Maybe this will work for you guys, but it aint what I signed on for. Enjoy your new career.

Omar's picture
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Joined: 2009-03-19

Yup Bonehead,

The amount of service work for bank related products has accelerated in the last week. That's all I have been doing this week...ordering checks, quoting cd rates, transferring funds...etc. My clients have been apologizing because they know I'm not suppose to be doing this but the hold times are 20+ minutes on that shat 800 number.   We have become Financial Adbankers!

BAI?'s picture
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Joined: 2008-11-04

Jesus do you guys want some cheese with that wine! Grow some nuts and tell the clients who are not profitable or don't want to talk about options besides there CD's to go $hit in a hat. I think the new model is great! I get to talk with new prospects and if there is no opportunity then ba bye. For my profitable clients the I'll suck it up and call the PRC.
Oh if you need some tissues let me know and I'll send you a box LOL just kidding

cutacheck's picture
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Joined: 2009-02-21

Bonehead and OMAR I agree 100%.    BAI? yes you are right about getting the nonprofitable clients out however even though tthe CM's were a loss on paper they were able to attract and keep wealthy clients at the bank. If you have a good client that is experiencing fraud the CM would usually hold there hand and make things right. Now we have to either pass things on the PRC which is a waste of time. We have to do it ourselves to ensure our good client does not get sick of getting the run around and next thing you know he is transferring out because of something you have no control over. I personally think this new model will be a complete failure in 12 months. I love how the articles talk about ML advisors getting 500 leads.   Don;t they realize that we as advisors already sat down with those prospects who want nothing to do with investments. Eventually ML will realize they are getting nothing but wood.

BAI?'s picture
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Joined: 2008-11-04

This question is for ML FA's:  How do the fees in your fee based platform work?  Do you get paid quarterly like BAI or monthly like Wachovia?  Also, when you open a brand new fee based account do you get the first year fee's fronted to you all at once or do you have to wait for the inception fee and regular quarterly fees to hit? 
 
 
 
I'm sorry guys I couldn't help it but doesn't this article make you want to laugh?  C'mon BAI guys what do you think? 
Bank of America Launches Client Referral Program

Apr 15, 2009 9:56 AM, By Kristen French
Bank of America is in the process of rolling out a client referral program for its global wealth management division, which includes Merrill Lynch and the bank’s former Banking & Investments division (BAI), with a combined 18,000 financial advisors. BofA launched a pilot for the program in three states in early March, and will take the program national in the next 30 to 60 days. It is one of several referral programs the bank is putting together as part of its integration with Merrill Lynch, including one that would offer leads from the commercial banking division to certain Merrill Lynch advisors. ...
 
 

DireWolf's picture
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Joined: 2009-04-16

BAI turning into a gong show! I look foward to getting on the new platform with more product . What really burns me right now is that our payout/comp reflects us being paid as "bank brokers" in a bank program where we should be getting biz/referrals. But the program has been dismantled, and we are now on our own... Which would be fine with me if I was on the ML grid and getting paid for it. We are not expected to go on the ML grid until may 2010. So until then, we are stuck on our current grid which is consistant with a Bank Program- WTF. I have seen the ML grid and it is quite nice, and the best part- no hair cut on trails!
 
I know ML FA's are pretty pumped to tap into BOA bank clients. These guys think that people are lined up at the branches to invest. They are being sold a bill of goods... The joke is certainly on them!

cutacheck's picture
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Joined: 2009-02-21

Direwolf you are 100% right.    I am having several of my high net worth clients write letters to Lewis and Benson complaining about the dismantling of PBI.   Not like it will do any good but at least it is noise.   It is only a matter of time before these mofo's get canned. It would be great if they just sold off ML.   Can you imagine how many lawsuits we will have when FA's convince people to come out of CD's and into investments and if they loose money.   I am looking forward to this new model getting crushed.     If we are subject to all the compliance now why wouldn't ML be in the future. "switch letters, 100k trade approval, email rejections, annuity disclosure.   Its so funny to watch these execs try and put a spin on this. They r just happy to have jobs they really could care less.

today1's picture
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Joined: 2008-05-07

i heard that bai just announced brokers are being pulled out of the branches completely and are being moved to the complexes.  also heard that the complex managers now have control over who gets referrals.  is this true?  if so that is way too much power for a complex manger to play favorites with a select few brokers.  i see this new system blowing up in everyones face.

armycolors's picture
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Joined: 2009-03-14

Just hand the non-worthy clients over to the PRC. Don't even bother to connect them, just shoot them the freakin 800 number.
Dont waste your time guys. You Ex-CMs were worthless pieces of $#!^s that did nothing but what a personal banker could have done at the branch. All they did was baby their givin book of business.
BofA should have abandoned that retarded model years ago. Some lame ass management thought that it would be a great idea to keep the CMs around as 'gatekeepers' all these years, what a gay ass concept. The result was BAI slowly turned into a tea party for the ladies, FA got their hands tied behind like bitches waiting to be B**tFu**ed. There were never any referrals anyway, what force FAs to take a F**kin haircut?
 

BACFA's picture
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Joined: 2006-03-26

The CM-FA model was a failed experiment.  You can always achieve better client service with redundancy but a business will lose money trying to justify it.  That is why this type of model is non-existent anywhere else in our industry.
If there were fewer CM's and they had more of a support-type role, then I think it would have made more sense (both for advisors and for the bottom line of B of A).  However, a full blown assault on client relationships was doomed from the start. 
Every bank program in the nation either has licensed platform associates handling referrals or the bank branches simply printing a CD list and giving it to the advisors to call.  We were the freaks of the industry.
 
As for the 500 ML leads, they are crap leads.  However, for the typical Merrill advisor who has never received a warm lead, it will probably keep them occupied and optimistic.  I think it's more to keep the ML advisors from leaving. 

BAI?'s picture
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Joined: 2008-11-04

BACFA It's funny listening to our conference calls these days.  It's like the BAI management "discovered' the new FA-and-Client model.  On one of the calles, a senior manager actually said, "This is the type of advisor/client relationship that I've always dreamed about.  And now we finally have it!"
 
Wow BACFA you sound like you listened to the same call as I did.   Gotta love Jim........
 
today1 that is a horse %hit rumor
 
Armycolors is officially my new favorite person on this blog!  Call it how you see it brother..
 

whalehunter's picture
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Joined: 2005-11-28

BAI reps need to group together and do something!

BACFA's picture
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Joined: 2006-03-26

I've already called the UAW.

Omar's picture
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Joined: 2009-03-19

Here is what I heard recently:

ML Advisors will be getting most of the "leads". These "leads" are our CMs old clients that we couldn't get to invest with us. So really, they have already been worked and are table scraps.   They will be distributed by complex managers based on who is giving each other reach arounds.

Advisors who are in branches are going to lose them. We are headed to the wire house model. However, I've heard of a possible "pilot program" where low level producers can stay in the branches and receive salary plus a grid payout. In return, they will cannot open accounts over $250K and those leads go to a ML Advisor. Sounds like some type of junior program. For those of you from Fleet Bank, this is the rebirth of the IR program. Also, this is why I think they adjusted the FA I comp plan....to keep some of them for this program.

For banking products (mostly mortgages), we will receive some type of comp retroactive Apri 1st for our troubles. No idea how much...but something.

I've also heard the the top BAI advisors in each complex are to be taken care of. In other words, it's likely that they will get some leads and accounts from brokers who have left to keep them happy while we transition...in 2010.

I believe that BAI is slowly being dismantled broker by broker and only the top few Advisors will be moved to ML. Others will have a choice to go into this "pilot program" or to get out. I know many don't want to believe that but this is my own theory. Only time will tell and in the meantime if you are not a top producer I would make sure you have a backup plan.

UntouchaBULL's picture
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Joined: 2009-04-17

This demonstrates the differences in ML and BAI culture.  You shouldn't be worried about brokered CDs and the payout.  I suggest you work on how your going to prospect and bring in new assets.  CDs are not going to make a million dollar relationship stick.  The secret is the relationship.  Brokers sell, advisors don't have to sell because we find the solution that fits the needs of the individual client.  As far a payout, we would not be able to post such information on a blog, sorry.

BACFA's picture
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Joined: 2006-03-26

You mean the payout grid?  Those are posted on these forums all the time.

BAI?'s picture
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Joined: 2008-11-04

Thanks untouchable for putting all our misconceptions about ML FA's to the side.  You sound very humble and thank you for your valuable input of this blog.  We were all wondering what the key to being a good FA was.  Thanks pal!<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />

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Windy, did you pay some of these jokers to come on here and draw the fire off of you? 
 

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