Wachovia Retains Goldman for "advice"

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Brokermike99's picture
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http://www.marketwatch.com/news/story/wachovia-reportedly-taps-goldman-advice/story.aspx?guid=%7BFA94E224-1188-4251-B81E-92A47AA8F30A%7D&dist=news

 
 
So does anyone know the scoop on our retention bonus if we're sold or spunoff like a redheaded step-child. I checked my contract quickly and didn't immediately see anything on assignability???????

Trusted Advisor's picture
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This is an interesting one for all of us involved in the merger.  Wouldn't it be nice if we could just go back in time (kind of like a "do over") pre-merger?  Ahhh . . . Nest Eggs all over the place.

Gordon Gekko's picture
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Joined: 2007-07-08

I thought WB hired some other search firm for the CEO. It does smell a little M&A ish. I would assume we are still on the hook for the remaining loan balance if WB sells out.

lajolla59's picture
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Joined: 2008-05-22

from what my buddies tell me the best thing that could happen to wachovia securities (bank side) is for them to be taken over. the environment is one where none of the different lines of business gets along with brokerage or the comp plan discourages it. also, the fa has to give up some much in referral fees that when he does get a referal the "cost" is so high its not worth it. and, they used to work well with wealth but even that partnership has gone down the tube. all the top fa's are leaving or looking!

dartboard's picture
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Joined: 2008-06-11

I have only talked to one FC that likes the takeover by wachovia. wachovia so oversells how well things are going you have to be supicious. danny was bragging about our profits on the last conference call. He so does not get it. He cut out our profit sharing plan and he brags about how profitable we are. Why do I care now. It makes me and all AGE people mad...not glad danny. The wachovia execs do not get it that they are dismantling our culture . Well, maybe so because they don't talk about it anymore. That's right . AGE people,listen for that word from them. Gone.

Gordon Gekko's picture
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JPM was mentioned on CNBC as a potential buyer of WB in the near term to increase their banking presence. I know a lot of legacy AGE guys are pissed, I don't know how this would help.

fritz's picture
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Joined: 2006-01-11

Moral is in the toilet from what I hear.

Gordon Gekko's picture
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The market is not helping FC psychology with the legacy AGE guys, as is the daily negative news of WB Corp. I am not planning to leave immediately but it wouldn't take much to push me over the edge. I imagine a lot of FCs are closer to that edge.

dobbs's picture
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Joined: 2008-06-09

Gordon Gekko wrote:
The market is not helping FC psychology with the legacy AGE guys, as is the daily negative news of WB Corp. I am not planning to leave immediately but it wouldn't take much to push me over the edge. I imagine a lot of FCs are closer to that edge.
 
The big question is:  Where else is it different?  Besides stirring up all the independent fans here...

Gordon Gekko's picture
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I agree with that statement, which is why I am staying put. The flip side of the coin is that FC's are coddled and like to bitch a lot over trivial stuff. I only see Ray Jay as a possible alternative, but they could get bought out too. I could care less if WB gets gobbled up by JPM. At least there would be a credible leader with Jamie Dimon (no relation to Dustin, I am sure).

mnbondguy's picture
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Joined: 2008-05-13

WB will either get acquired or sell the securites side  to raise capital for the bank is my guess.  I cannot see them issuing stock as these prices.  Spinning off the securites side (Pru owns 38%), would probably net the bank 10billion+. 
 
A spin-off would boost moral at the the securites side (at least short term), but that still wouldn't get the AGE culture back. 

nestegg's picture
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Joined: 2007-06-14

mnbondguy wrote:WB will either get acquired or sell the securites side  to raise capital for the bank is my guess.  I cannot see them issuing stock as these prices.  Spinning off the securites side (Pru owns 38%), would probably net the bank 10billion+. 
 
A spin-off would boost moral at the the securites side (at least short term), but that still wouldn't get the AGE culture back.  I wouldn't mind being spun off...but I doubt that unless WB is bought out...we are one of the few profiatble parts of the co right now so I don't see WB spinning us off now,

Broker Fee's picture
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Joined: 2004-11-30

Last I heard the Wachovia Securities contributed less than 15% to Wachovia Bank's bottom line. Add in the fact that the unit is profitable & would make good trade bait & that sounds like one of the few great options left that can raise $10-12 billion for the bank. These guys are bankers at heart & they know who butters their bread & it ain't WS.

BukiRob's picture
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Joined: 2008-06-23

Broker Fee wrote:Last I heard the Wachovia Securities contributed less than 15% to Wachovia Bank's bottom line. Add in the fact that the unit is profitable & would make good trade bait & that sounds like one of the few great options left that can raise $10-12 billion for the bank. These guys are bankers at heart & they know who butters their bread & it ain't WS.
 
Most recently we were told that we contribute about 30% and that number is growing.  Based on our current run rate shows the securties will contribute 1.2 billion dollars, after tax, to Wachovia Corp.   

Broker Fee's picture
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BukiRob wrote:Broker Fee wrote:Last I heard the Wachovia Securities contributed less than 15% to Wachovia Bank's bottom line. Add in the fact that the unit is profitable & would make good trade bait & that sounds like one of the few great options left that can raise $10-12 billion for the bank. These guys are bankers at heart & they know who butters their bread & it ain't WS.
 
Most recently we were told that we contribute about 30% and that number is growing.  Based on our current run rate shows the securties will contribute 1.2 billion dollars, after tax, to Wachovia Corp.   
I would be shocked if Securities earnings were that high. But as with as many billions in losses that the banks have sucked up...anything is possible over the last quarter or 2.

Hydeho's picture
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Joined: 2007-02-23

2008 Revenue annualizing out as 9 Billion
Pre-tax margin 26%
Revenue growth 1Q08 vs 1Q07 up 48%
Client assets 1.1 trillion
372 FA have joined so far 2008
Fee based assets faster then any other firm. Faster then Merill, SB,UBS and Morgan combined

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