Citi PWM Exodus
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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..............
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.
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!!!
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?
[quote=Greenbacks2]
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.
[/quote]
Pathetic is a bit rough. The water is near boiling and maybe some people don't mind that.
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.
Buddy Light and Halloran
Are 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?
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 nic
no 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 conversion
only 2 reps have left teams so far with little in managed accounts
a 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.
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".
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
[quote=Buddy Light]
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.
[/quote]Wow, what meeting were you at? I don't remember hearing any of this stuff!
[quote=Paperboy]
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!!
[quote=Halloran]
A duo in Los Angleles area bolted - gone indy.
[/quote]Good for them. They'll be crazy for a few months but happier than ever before after that!!
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.
That's nice. The 50% payout sounds like a good deal for the client. Keep up the good work!
[quote=Thunderbird]
That's nice. The 50% payout sounds like a good deal for the client. Keep up the good work!
[/quote]
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.