Ken Lewis' Dare to ML FA's

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ReaganWeNeedU's picture
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Joined: 2008-11-05

ML FA's:  Your firm was going under.  Why do you need to be paid to stay? 
 
Long-time reader of this site.  Finally compelled to register and post.  Merrill guys:  either leave or stay, and be happy you have a firm that's healthy and intact.  You now have a firm you won't have to defend to your clients about stability.  Stay and run your practice.  Grow it.  But this entitlement mentality is absurd.
 
Ken Lewis is daring you to leave in this environment.  How do you think your clients are going to recieve this call.  "Dr. Johnson, this is Bob at Merrill Lynch.  I've left the firm and moved to XYZ firm/indy, etc., and I'd like you to come with me.  As you've probably heard Bank of America is buying us."
 
Dr Johnson:  "I'm happy for you Bob, but you've been telling me for months Merrill was going to be OK, and now with the addition of Bank of America, I feel pretty good.  Exactly why is this a bad thing for me?" 
 
(Waaa.....because you didn't get enough of a check to stay?  Puh-lease.  Take Ken's Dare.)
 
Go ahead and leave.  And watch your clients stay.  Ken's a banker, yes, but it's not his first rodeo.

whalehunter's picture
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Joined: 2005-11-28

Maybe you don't know the biz. They buy YOU not the firm.

ReaganWeNeedU's picture
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Joined: 2008-11-05

They bought the FIRM for 50B.
 
And some guy doing a pathetic 325k is "insulted" he didn't get a "retention"?  I'm just trying to see why this guy who should be thrilled he doesn't have to disrupt his practice entirely feels he's "due" any money from the white knight?
 
P.S.  I'm an FA.  t-12 925.  No team.  So spare the "you don't know the bizness" crap.
 

Mucho de Tejas's picture
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Joined: 2007-03-08

Ken,
 
I worked for your POS firm and it sucked, nice attempt to psychologically screw with the weak minded. You will lose eventually.
 
Tejas

daytradah's picture
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Joined: 2006-11-05

ReaganWeneedU:
 
Agree about stay or leave decision. But this non sense that you cant take a book away from Merrill or BOA is some haven of safety is Booooolshhyte.  The market conditions will not prevent this
 
If your clients are not selling or changing anything most will go with you.
 
You are correct that some will not go with you and want to be at BofA.
 
Your top 50% will go with you initially wherever you want. If you go INdy and double your payout you are safe. You can pick up another 25% over the course of a year.
 
You could even lower fees for wishy washy clients and still and come out ahead if you go INdy.
 
 

ReaganWeNeedU's picture
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Joined: 2008-11-05

Daytradah,
 
No doubt on your points.  My point is the entitlement mentality of folks that frankly ain't going anywhere, and if they do will be screwing themselves.  We can all be as arrogant about what percentage of our book will go with us, but in this envioronment, at Merrill, Mother Merrill, the percentage is signficantly less right now.  And right or wrong, it is what it is.  Ken didn't pay a significant retention to the lower level producers for one reason -- he didn't have to.
 
I'm just tired of my ML friends whine about how they are being "screwed".  Hello.  Stan O'Neil screwed you.  You now have a "get out of jail free card" in essence.  So why does that entitle you to a free payday?  Because you can go to Morgan for a 250% check?  TAKE it!!   And see how much you're making in 3 years.  God Bless'm. 

CutterJon's picture
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Joined: 2007-06-01

i feel the same way about the entitlement mentality.....i had a guy leave my AGE office to ML for the big check, he was a rising star type new in the business but still got over 100%.  So he calls me last week bitching about not getting retention because he just got a deal LAST YEAR, he seriously felt he should be compensated again
 
now, if you went through this WS mess from the AGE side then we earned another from my opinion....but im off to Finet in March

Morphius's picture
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Joined: 2007-07-21

Welcome aboard, Reagan, and thanks for de-lurking.  Keep posting.I don't disagree with your point about the attitude of entitlement of
many FAs, although I don't begrudge them trying to take what the market
will bear.   But your comment that:ReaganWeNeedU wrote: We can all be as arrogant about what percentage of our book will go with us, but in this envioronment, at Merrill, Mother Merrill, the percentage is signficantly less right now.  What evidence do you have that the average client retention has dropped for departing ML brokers? 

footsoldier's picture
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Joined: 2006-04-30

 
Shutup and stay. If you decide to  leave you better have a well-designed exit strategy. If you are going the indy route, my choice 2 years ago, read Robert Fragrasso's book first. It outlines how a successful transition can be accomplished.
 
It's all in the preparation. Gee, what a concept..........
 
If you think you need the team environment, or the ability to walk in and comisserate (sp?)with another broker, indy isn't the fit. Unless you team up with a more experienced indy advisor.
 
It appears that the wirehouse model isn't profitable enough for the big companies anymore. I was talking to a close friend yesterday and as soon as his 7 year gig is up...he's going indy. He says if he wasn't handcuffed to the company, he would have been gone a year after he left Jones to go to Smith Barney.
 
Who is left? UBS or MS.
 
IMHO indy is quickly becoming THE best option for seasoned reps. It just takes planning and a year or so of hard work.

BukiRob's picture
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Joined: 2008-06-23

ReaganWeNeedU wrote:They bought the FIRM for 50B.
 
And some guy doing a pathetic 325k is "insulted" he didn't get a "retention"?  I'm just trying to see why this guy who should be thrilled he doesn't have to disrupt his practice entirely feels he's "due" any money from the white knight?
 
P.S.  I'm an FA.  t-12 925.  No team.  So spare the "you don't know the bizness" crap.
 
 
Why should anyone be surprised by MER's actions regarding its brokers?   This is MER management being perfectly consistent. It serves up horse manure to its brokers and tells them its lobster and steak....

bullinachinashop's picture
Joined: 2008-07-18

Well a lot of people are taking Ken's dare.
 
Two million dollar producers left today at my branch.
 
My guess is that their client retention will be over 90%.

Vin Diesel's picture
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Joined: 2007-04-18

merrill reps have been told for years by management that they are the best in the biz, so they expect to get paid more than other reps.
 
it will be intersting to see how bofa approaches this integration. do they leave ml & reps alone, or do they blend it with its bai.
imo i think they will follow the citibank approach and utilize ml's technology and platform and bring it to the retail bank branch level. if done properly this could be standard for all banks going forward; having a true wirehouse advisor in the branch. this may also be part of the new regulatory enviroment as the lines between bank products and investment products will be clearer.

ezmoney's picture
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Joined: 2004-11-30

they'll be paid as Ken says they'll be paid, with a low payout.

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