Citi PWM Exodus

244 replies [Last post]
Buddy Light's picture
Offline
Joined: 2010-04-07

 anyone notice the article in the New York TImes on tuesday, chatting up how great Citi is doing-peculiar timing with the article released by reg rep on thursday

XCitiFA's picture
Offline
Joined: 2009-12-09

Anyone have any updates on when accounts under $250,000 are going to the Call Center and when Pershing takes over??Really looking forward to the next phase of this debacle. Thanks!!

Paperboy's picture
Offline
Joined: 2009-10-31

Next phase?  According to you and Reg Rep, there is no next phase - just a covert shut down.  Signing a contract with Pershing to supply a new platform beginning over Labor Day weekend is supposedly just a big smoke screen to hide a massive firing of recently established FA teams and newly hired IC's.  As to your question, accounts under $250,000 are not being sent to the call center unless it was a departing FA.  Accounts under $100,000 are being sent now as FA's are not being paid on them under new pay policy, although even this is not required.  Only accounts over $250,000 are being referred from the call center to FA's  (I have actually seen this happen).

Greenbacks2's picture
Offline
Joined: 2010-03-03

Wow! It must suck to be at C,  or any other wirehouse these days!But it was not to many years ago on these forums the wirehouse guys where bragging about how great life was. And the indy guys where trying to warn them  that they had little control of there future. I for one cannot imagine living life at a $#!t hole firm and the pressure you must be under.

Greenbacks2's picture
Offline
Joined: 2010-03-03

Wow! It must suck to be at C,  or any other wirehouse these days!But it was not to many years ago on these forums the wirehouse guys where bragging about how great life was. And the indy guys where trying to warn them  that they had little control of there future. I for one cannot imagine living life at a $#!t hole firm and the pressure you must be under.

Buddy Light's picture
Offline
Joined: 2010-04-07

today began the second wave of interviews for  the investment machines (IC's) at LIC. according to two of the potential lads looking for an employment opportunity- management couldnt give a clear, concise description of  how cpwm is structured or what their job function will be. the potential candidates described management as frenzied and in a rush to have them sign paperwork and start immediately. they declined to sign paperwork and asked to be placed on the citi dnc list.

Lou Mannheim's picture
Offline
Joined: 2010-03-18

In the San Francisco Bay Area, there was a Regional Investment Manager and 2 Area Investment Managers (down from 4 at one time).The RIM was laid off last month and now one of the two AIMs just quit to take a management job at Wells Fargo Advisors. He saw the light and jumped off the sinking ship. There have been a ton of departures and no new hires added to the teams. I still laugh when I remember how Debbie M. and Tim W. said CPWM was going to be the best place to work on the Street and attract top talent. Tim W. even claimed top advisors at MSSB were calling him wishing they could join the new CPWM RIA structure. Yeah, right! I heard a big management meeting was called in New York for all of the remaining AIMs and Market Leaders. I wonder what the announcements will be.How long until Citi sells the remaining CPWM client assets to outside RIA firms in exchange for an ongoing 25bps? 

Greenbacks2's picture
Offline
Joined: 2010-03-03

He jumped off one turd and onto another! Smart move. 

Buddy Light's picture
Offline
Joined: 2010-04-07

Wells is done training a manhattan team and one team located in westchester. When does Manuel say enough and send Debby and Tim W back to the NIC

XCitiFA's picture
Offline
Joined: 2009-12-09

 Anyone have any insight into the meetings taking place this week? Have they announced which RIA firm they've hired to take over all the HNW accounts yet?Any recent FA departures?It seems like the exodus has slowed down after more than 50% of the reps left. Maybe it's easier to have clarity about the situation looking from the outside in; but I just don't see how the remaining reps can truly believe that they have a future there with under 300 reps remaining and the company openly stating that they're looking to farm out the business to outside RIA's..............  

Greenbacks2's picture
Offline
Joined: 2010-03-03

The reps that stayed must have no hope, they must be the most pathetic reps any where to stay and wait there turn to be shown the door.      Even the person at Walmart handing out carts has more hope and brighter furure then these reps.  

XCitiFA's picture
Offline
Joined: 2009-12-09

greenbacks2;I don't know if they all feel that way... Speaking to wholesalers, that cover us both, they say, some are just putting up a front but are actively researching their options, but there are some who are loving the windfall of accounts they've been able to scavenge, not thinking about their futures. These bottom dwellers are like the roaches attracted to the roach motel or the Hotel California for that matter, (staying long enough to give management time to exit Broker Protocol), "you can check out any time you like, but your clients, can never leave"!!! LOL!!I would be nauseus going to work there everyday just waiting for that next shoe to drop........It's inevitable, they have publicly stated that an outside RIA will be getting the business going forward.............That trains never late!!!

Greenbacks2's picture
Offline
Joined: 2010-03-03

XCitiFA Well put.

Halloran's picture
Offline
Joined: 2010-04-22

With over half of CPWM FAs GONE since October, one would think there's a sea change in a more positive direction in the works.  Not so.  Here's what's happening based on my perspective as a previously very silent lurker here for months. Managers (AIMS), etc are either gone as noted in other posts or have one foot out the door. There is NO future for them at Citi and they know it. The strongest ones are fleeing to high ground at Wells, PNC, and others. Unless a manager is on the edge of a vested retirement, they have zero incentive to stay on this sinking ship. There is NO recruiting or hiring within the channel.  I've asked why and I've been told 'we're hiring' or 'we're working on a new offer structure' and hiring is around the corner.  I am not aware of one new hire anywhere. The most aggressive bank channel in the country is Wells and even if Citi matched their offer, they'd attract nobody whatsovever with a grain of competence. The biggest change now vs. past months is HOW FAs are leaving. October - early 2010 most Fas left on their own. Everyone I know is looking and continues talking to other firms. Even people who tell me they are not, are lying. I know people in every team around my area who are talking individually and also as a 'team'. They're playing all their cards and basically weighing their options as a team move or as an individual. They're lying to their teammates about their intentions and they're lying to hiring authorities.  There will be a quite a few who leave end of April, first week of May. Nobody should be surprised. I'd bet 12-15 FAs gone by 5/10 minimally. The future of the platform is a 3rd party model with a nice split on rev to Citi. It makes perfect sense given the RIA structure and it's already so broken the cost of rebuilding is too high. A couple months from now it'll be a skeleton anyway. Get ready to be sold or get off the sinking ship while you can. WHY?  I had a meeting last week with a manager I met with in Jan.  His firm has hired a lot of Citi Fas since last year around the country. So far the numbers we were talking about in Jan have not changed thank goodness, but I got the crap grilled out of me on my transfer strategy. He would not say but I got the impression there's some directive to be extra thorough on anyone coming out of Citi. Anyone get the same impression lately?

Halloran's picture
Offline
Joined: 2010-04-22

Greenbacks2 wrote:The reps that stayed must have no hope, they must be the most pathetic reps any where to stay and wait there turn to be shown the door.      Even the person at Walmart handing out carts has more hope and brighter furure then these reps.   Pathetic is a bit rough.  The water is near boiling and maybe some people don't mind that.

Buddy Light's picture
Offline
Joined: 2010-04-07

the meetings in manhattan for sia's and managers have finally concluded. turns out the meetings were nothing more than an evil pep rally. anyone who thinks this is going to reverse course and go back to cis is delirious. management told the sia's to slowly reduce head count and begin to eliminate the weaker team members, either by cutting their payout (due to lack of revenue/performance) or compliance reasons. senior management asked the sia's for a commitment to keep the new strategy hush hush- the same way they asked the anointed leaders when they first proposed the idea in secret meetings in july 2009. of the reps at the july meetings, i believe there are 2 left from 5. the cuts will be gradual between now and september when pershing steps in. (the less reps, the cheaper the platform, the less reps the less salaries have to be paid-get it) expect the team leaders to convey to fellow team members that the meetings were nothing more than the usual b.s. this place has become nauseating with the amount of garbage they expect the reps to put up with. it stinks around here.

TickTock's picture
Offline
Joined: 2010-01-16

Buddy Light and HalloranAre they still grandfathering under $100K households? and annuity trails?How many FAs are hitting their goal for new managed assets?When departed FAs leave with their managed assets - does the team have to make up for the loss of assets?When do they go full out - all households need to be over $250K and managed?I am curious how they are going to communicate to a $500K+ account with laddered bonds - "Hey pay 1.5% or its the call center". Will it really happen?Just what mail etc. has been officially communicated to clients?

Buddy Light's picture
Offline
Joined: 2010-04-07

Tick Tock, i am uncertain as to what accounts will be grandfathered and which will be sent to the nic (currently there are less than 20, yes 20, reps handling calls for some 5 billion in assets) clients have multiple accounts and it will be a very sticky process to shift through each account to prevent from going to the nicno rep is ahead of their 09 t-12. goals havent been formally set. however branch goals for cpwm referrals came out last week and were received with a hardy laugh. 250k+ will go live befire the pershing conversiononly 2 reps have left  teams so far with little in managed accountsa client wants 500m in tax free's, with a fee of 1%, a yield of 3%= 15000 annual income...as terri dial said at the first town hall "you have to look at the yield the client will receive."  this statement was said in front management, reps, debbie and tim. the yield would be 2%, thats 33% of the clients income going to cover fees. thats putting the client back in citi.no correspondence has been sent to clients, the reps and ic's are the lines of communication.  

Lou Mannheim's picture
Offline
Joined: 2010-03-18

One of the five team leaders from the Bay Area left yesterday. I know of at least one more departure in this area on May 1st. The manager who recently left said the program is "imploding". 

Halloran's picture
Offline
Joined: 2010-04-22

Just watch the action between Friday this week (4/30) and the next Friday.  Substantial moves will happen in groups of 2-3 in at least 3 coastal states. I'll say no more. Just come back in 10 days and tell me how informed I am.. LOL

Thunderbird's picture
Offline
Joined: 2010-04-04

Buddy Light wrote:the meetings in manhattan for sia's and managers have finally concluded. turns out the meetings were nothing more than an evil pep rally. anyone who thinks this is going to reverse course and go back to cis is delirious. management told the sia's to slowly reduce head count and begin to eliminate the weaker team members, either by cutting their payout (due to lack of revenue/performance) or compliance reasons. senior management asked the sia's for a commitment to keep the new strategy hush hush- the same way they asked the anointed leaders when they first proposed the idea in secret meetings in july 2009. of the reps at the july meetings, i believe there are 2 left from 5. the cuts will be gradual between now and september when pershing steps in. (the less reps, the cheaper the platform, the less reps the less salaries have to be paid-get it) expect the team leaders to convey to fellow team members that the meetings were nothing more than the usual b.s. this place has become nauseating with the amount of garbage they expect the reps to put up with. it stinks around here.Wow, what meeting were you at?  I don't remember hearing any of this stuff!

XCitiFA's picture
Offline
Joined: 2009-12-09

Anyone know of any more smart FA's who left yesterday as reported above??? 

Paperboy's picture
Offline
Joined: 2009-10-31

No.  I do know some smart FA's who stayed. 

Halloran's picture
Offline
Joined: 2010-04-22

A duo in Los Angleles area bolted - gone indy.

XCitiFA's picture
Offline
Joined: 2009-12-09

Paperboy wrote:No.  I do know some smart FA's who stayed. That's an Oxymoron!They're all Smart until Debbie lowers the boom!! Hello outside RIA's.....Goodbye CPWM FA's!!

XCitiFA's picture
Offline
Joined: 2009-12-09

Halloran wrote:A duo in Los Angleles area bolted - gone indy. Good for them. They'll be crazy for a few months but happier than ever before after that!!

TickTock's picture
Offline
Joined: 2010-01-16

Guy in Chicago south side left last week.I'm doing same/slightly better revenue after leaving, 50% payout, kept my CSA (she was going to be let go). Sign on bonus in cash, no loan. Happy with the $ results ... lots of work,hours and anxiety. Still doing managed accounts when its suitable, individual bonds, funds, structured products - no pressure to shove the client into a product. On a team of my choosing, statements that show the client my name and my phone number. Oh and I get to use the FAX.

Thunderbird's picture
Offline
Joined: 2010-04-04

That's nice.  The 50% payout sounds like a good deal for the client.  Keep up the good work!

XCitiFA's picture
Offline
Joined: 2009-12-09

Thunderbird wrote:That's nice.  The 50% payout sounds like a good deal for the client.  Keep up the good work!Thunderbird,What does the payout have to do with the client?? You are just jealous because you see all these reps who have left and how happy they are, yet   you stay like a scavenger, picking the bones of the clients that you and your  "teammates" scare into staying.The payout has nothing to do with the fees the clients pay, as you know it's just the amount that the B/D splits with the reps. Unfortunately for you, your b/d keeps way more than 50% and you continue to do nothing about it except try to put down reps who have. I wouldn't worry though, Debbie is gonna make that decision for you soon enough. I hope you're keeping up your end of your "PARTNERSHIP" with your teammates, I hear splits will be adjusted for laggers before 3rd quarter. Great 2 year plan being "tweaked" in less than 6 months!!Help us who've escaped the Looney Bin understand what keeps you there.............none of us can figure out why you or anyone would stay, unless your U-4 is a mess.

comptonplaya's picture
Offline
Joined: 2010-05-11

Why do former Citi employees on this site seem so obsessed with finding out "the latest" on what is happening at your former firm? We understand that you hate and despise the evil Citi.  Here's an idea, stop wasting time with your horrible past employer, move on with your life and spend your time prospecting instead! LOL!

Thunderbird's picture
Offline
Joined: 2010-04-04

comptonplaya wrote:Why do former Citi employees on this site seem so obsessed with finding out "the latest" on what is happening at your former firm? We understand that you hate and despise the evil Citi.  Here's an idea, stop wasting time with your horrible past employer, move on with your life and spend your time prospecting instead! LOL! AMEN, Brother!!!!!

TickTock's picture
Offline
Joined: 2010-01-16

Simple, we just relish the fact that it gets worse and worse. No one ever wishes their ex the best... remembering the hell you left and seeing it get hotter makes you feel oh sooooo much better.

XCitiFA's picture
Offline
Joined: 2009-12-09

TickTock wrote:Simple, we just relish the fact that it gets worse and worse. No one ever wishes their ex the best... remembering the hell you left and seeing it get hotter makes you feel oh sooooo much better. Amen Brother!!  LOL!!!

Greenbacks2's picture
Offline
Joined: 2010-03-03

It seems the Ex-Jones reps must feel the same way. They just keep preaching also. You guys dodged a bullet be thankful. Thanks for sharing your experiences. We all learn from mistakes.   

XCitiFA's picture
Offline
Joined: 2009-12-09

Well, we have a 3 day weekend coming up. Lets see if there are any smart people left at CPWM who bolt this weekend! Good Luck People!!

Sportsfreakbob's picture
Offline
Joined: 2008-08-24

I think the reason x Citi employees have such a hard on for Citi is because of what they did. They farked up a good thing. They folded their Citicorp Investment Services division into SB, and sold their brokers on how great SB was and why they should hang their hats on the SB platform and use it to help their clients. Then they turned around and sold SB to the highest bidder, and left the CIS FA's and all the managers they transferred from SB to Citi, out in the cold.In addition to that, rewind, they took SB, one of the finest franchises in our industry, and mucked it up worse than BP is mucking up the Gulf of Mexico. (well maybe not worse than that, but most will get my point). I loved SB, loved the firm, loved being there, then all of a sudden.....This is a company with Senior Mangement that doesn't have a clue, and doesn't give a rats ass about anyone or anything except protecting their own ass.I think thats why x citi guys hate citi. I know its why i do. I'm over it, after a year of being out of there, doing the same amount of biz making twice the money, i guess i should thank them. I've moved on, and am finally starting to focus on growing my biz, and you're right, thats what everyone else should be doing. But you can't let go of feelings overnight towards an organization that farked up everything in sight.

XCitiFA's picture
Offline
Joined: 2009-12-09

Sportsfreakbob wrote:I think the reason X Citi employees have such a hard on for Citi is because of what they did. They farked up a good thing. They folded their Citicorp Investment Services division into SB, and sold their brokers on how great SB was and why they should hang their hats on the SB platform and use it to help their clients. Then they turned around and sold SB to the highest bidder, and left the CIS FA's and all the managers they transferred from SB to Citi, out in the cold.In addition to that, rewind, they took SB, one of the finest franchises in our industry, and mucked it up worse than BP is mucking up the Gulf of Mexico. (well maybe not worse than that, but most will get my point). I loved SB, loved the firm, loved being there, then all of a sudden.....This is a company with Senior Mangement that doesn't have a clue, and doesn't give a rats ass about anyone or anything except protecting their own ass.I think thats why x citi guys hate citi. I know its why i do. I'm over it, after a year of being out of there, doing the same amount of biz making twice the money, i guess i should thank them. I've moved on, and am finally starting to focus on growing my biz, and you're right, thats what everyone else should be doing. But you can't let go of feelings overnight towards an organization that farked up everything in sight.Sportsfreakbob,I couldn't have said it better myself !!! I'm sure you speak for all X Citi Fa's who've experienced the depths of CIS, then the pride of being a Smith Barney FA and like you said to have it suddenly, not just taken away, but basically being told that we're not good enough or not deserving enough to follow them to Morgan Stanley (although that's also not working out too well for lots of the SB guys). Citi never really had a plan for CPWM. They held us (Our assets) back from the joint venture and have been making it up as they went along. I too am gone a year now and couldn't be happier and more thankful that they did "fark it up" over there which gave me the final nudge needed to escape the insanity. I can honestly say I've never been happier!  I sincerely hope that any of the few good guys that haven't left yet are planning to leave soon or hopefully pulled the trigger this weekend.....we'll see next week................Stay tuned!!!!!!

Remo Gaggi's picture
Offline
Joined: 2010-05-22

I was THIS CLOSE to jumping to Smith Barney...and the Citi move was announced.  Man...dodged that bullet.

Sportsfreakbob's picture
Offline
Joined: 2008-08-24

To clarify, i was never a Citi/CIS FA. I was SB the entire time i was there. But i understand what the Citi FA's must have been feeling. And what a mess Citi was, and apparently, still is

Mcwhinney eats it's picture
Joined: 2010-03-23

Chicago Area manager left/got canned today... Also lost at least one advisor the Friday before labor day.  Under 10 real reps left in Chicago.  It's all coming down.

XCitiFA's picture
Offline
Joined: 2009-12-09

Hello Everyone,Is there a new hard date for CPWM switching to Pershing?When do the TRAK accounts have to be liquidated? And if they are pushing managed accounts, what happens to these managed accounts once they move to Pershing.....New Managers??Do they still pay for Annuity Sales/Annuity Trails?? If so, what rate do they payout at?Thank you for any answers you can provide..............It's very appreciated!!

TickTock's picture
Offline
Joined: 2010-01-16

Client piece in the last statements had a legal mumbo jumbo of the firm retaining the right to liquidate TRAK accounts with 30 day notice regardless of client taxable situation - ie. long term gains etc.  Clearly, setting themselves up to sell out and go into the new platform.Rumor is that CPWM is bleeding profits - expenses are the same, revenue down significantly - more cuts coming from staff, back office, low lever producers (anyone below $500K a year is toast)  etc. and holding on to the clients with trail annuities and A/C shares - not dumping into the call center for fear of loosing the client.

Buddy Light's picture
Offline
Joined: 2010-04-07

heard a big producer in westchester jumped for hsbc but realized his viagra was still on the sinking ship and swam back to citi. things must be improving. whose cutting salaries in february after pershing conversion? 

XCitiFA's picture
Offline
Joined: 2009-12-09

Buddy Light wrote:heard a big producer in westchester jumped for hsbc but realized his viagra was still on the sinking ship and swam back to citi. things must be improving. whose cutting salaries in february after pershing conversion? Buddy, Is that true? Did an advisor leave CPWM for HSBC and then return to CPWM??How bad can it be at HSBC????? Also, could you explain more about salaries being cut after the conversion to Pershing and is it now being pushed to next February???Thanks!

N.D.'s picture
Offline
Joined: 2009-07-14

I don't know about advisors, but Citi clients are leaving in mass exodus...http://www.youtube.com/watch?v=bKkFfj68HzY

Buddy Light's picture
Offline
Joined: 2010-04-07

i know a lot of reps/managers at HSBC and they all have very positive things to say about the program. anyone in the bank channel knows HSBC has a very respectable retail brokerage business. reps there make good $$ and are citi's main competition aside from wachovia/wells fargo.  he probably spent all his retention $ on penile implants and when tiny tim w asked for his money back, the rep had already spent it on his little weenie. there are more and more talks about cit cutting the floor in early 2011 before the pershing conversion in february. what about the town hall meeting? i thought it was supposed to be about how great cpwm was doing-not how much better the bank is doing now that all the reps have left the branches. 

XCitiFA's picture
Offline
Joined: 2009-12-09

Wishing everyone a Very Happy INDEPENDENCE Day!Hopefully a big 3 day weekend for those FA's who haven't jumped yet .  If not, I don't know what to tell ya.............Enjoy the long weekend!!

Buddy Light's picture
Offline
Joined: 2010-04-07

well, here we are... more than half the reps have left and the ones that stayed are merely waiting to be hung in front of long island city. its official -say good bye to the floor in 2011. thanks to the pikers who have sat around collecting a check, citi will no longer afford this free gift policy because finra requires all gifts to associates to be less than $100. time to start looking for a new home before the warm days in the Hamptons turn to cold NYC winters. this is a slow painful death, one in which Rambo would not survive. all hail King Pandit! for C is a "screaming buy!"

XCitiFA's picture
Offline
Joined: 2009-12-09

Buddy,Do you have any updates on CPWM?? This thread got awfully quiet recently.................

TickTock's picture
Offline
Joined: 2010-01-16

Not much, they delayed going to Pershing (back office is never ready). Overseas clients were sent to the call center. Annuity registrations all messed up, clients assigned to a call center in MD or the FA who left is still on the statements. In Chicago, they are selling out of annuities and C shares and putting clients into SB Advisor - a product that will be a challenge to adminstrate from NY (every account is different). One downtown team is telling clients that a 3 year Series 7 rep age 28 is the "expert" on writing covered calls and protective puts - and he should have descretion on your account.... with dividend stocks and the covered calls - they can provide income for life and do better than a variable annuity with income guaranteed for life.  There is no compliance or standards for suitability because as an RIA they are a "fidicuary".  My old Citi branch has sent me referrals vs. to these clowns.

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links

 

Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×