I can’t confirm the validity but I heard some of the following:<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />

The ML “transition” packages were offered to 53% of advisors that generate 78% of the business.

The new comp is expected to favor the top tier advisors and potentially alienate the lower tier advisors.  This is consistent with the “grow or go” emphasis that I’ve heard discussed.

Only about 20% of the Bank of America advisors will move over to Merrill Lynch.  I don’t know what this means for the other BoA advisors.  Will they remain in branches?  Are some of their advisors a cross between a teller and an advisor?  What’s the structure like at BoA?

BoA will retain control of Human Resources and Information Technology.  I wonder if this means that they will shut down either the <?: prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Jacksonville, FL or Hopewell, NJ ML campuses. 

--WM

[quote=WealthManager]

The new comp is expected to favor the top tier advisors and potentially alienate the lower tier advisors.  This is consistent with the “grow or go” emphasis that I’ve heard discussed.

 [/quote]

Bondo, those guys should absolutely leave. The bank is always all about “right here, right now.” That will never, ever change. They live for quarterly earnings. They will move CD rates, loan rates within the end of the month to hit “goal” just to say they did it and worry about the bottom line later. Case in point - they moved deposit rates down one quarter I was there for businesses, then upped their “risk free” CD rate (buy a 9 month CD with a 7 day lockup then no penalty for early withdrawal) that might be competitive. They chase off their core deposit base by shaving a few bps then come back soon after with some stupid teaser rate for the money that is always moving form bank to bank (non-core deposits). All just so they can hit a number by quarter end. Miserable way for the bankers to maintain business when things used to be competitive. Recognize what I am explaining, this is their mindset. Right here, right NOW. There maybe a few guys moving up like a rocket to the “line” but there are not enough to justify their modis operandi. It is a loss they can live with.



I was talking to a ML guy who was asking about BofA. He mentioned the frog in a pot of boiling water analogy we have bantered about. He brought up a fable of the frog who took a scorpion across a river. The frog asked the scorpion to not sting him if he took him across, to which the scorpion agreed. When the frog reached the other side, the scorpion stung him. The frog asked why? The scorpion replied, “I am a scorpion, it is my nature.”

Admin - I have never heard of that as far as the being so plain about it.  It is more subtle.  Either way, it is what the client understands.  They figure the line could be called, not renewed, lowered or the rate jacked up - if they move.  Some think this way.  There are some bankers who do not know that twisting is illegal and they are a little more cluelessly brazen.  Others who know what is going on but push things to the edge are craftily subtle.

Hear from a friend that over 20 from ML to UBS this weekend in Florida. Recruiting people to fly down from all over the east coast to help open new accounts. Al;l expences paid, including GOOD hotels!!

Yes I had a prospect who was a small business owner with lines of credit at Bank of America. After signing the transfer paperwork and starting the ACAT, the bank told him if he did move his account to Merrill from BAI he would no longer have his lines of credit.

I had a couple like that - but I moved the lines and they were on better terms (securities based lending). BofA will not do this kind of lending except for margin. They will do it only for a business purpose. Long story short - it took some doing, but I got better loan terms and moved the lines and the assets.

Anyone know the Bank of America FA Payout?

We left today to go to UBS. 1.1 million team w/ 80 million in production.

oops assets.

Good luck guys.

Good luck.  How are you doing 1.1 Million on only 80 Million in assets? 

The BAI payout is anywhere from 15 to 25% less than ML’s depending upon where you are in production and LOS. The kicker is the complete lack of a worthwhile deferred comp. The “Discretionary Bonus” is funded in part by reducing grid on 12b-1 fees (A’s, B’s and C’s) to 25%. Then after you do a number of other non revenue oriented tasks they have the discretion of paying you the “award”. The discretion is whether or not 5 layers up think the business unit did all that it could do in their estimation. Growth and profitability of the FA are not relevant pieces of the consideration of the discretion.



I would not worry that the ML’ers will go there immediately. It will take a couple of years. They call it simplifying the plan and making it more fair for your team (translated - bring your comp down to the bankers’). That is why you here the frog analogies. There is the frog in a pot of water on the stove, but better is the frog carrying the scorpion across the river. The scorpion says I won’t sting you if you take me across. But does, responding, “Because it is my nature.”

bancofamigo: He probably brought up that analogy based on having read an excellent autobiography by Sal Lauria called “The Scorpion and the Frog”, a novel based on his time at a few boiler room firms affiliated with the mob and subsequent arrest for activities conducted in this capacity. Many of the same firms from “Born to Steel” by Gary Weiss are also chronicled in “Scorpion and the Frog.” The book is out of print although it’s easy to get a used copy on Amazon. I just picked it up about six months ago.

We’re 98% fee based on our accounts and run our own stock strategy. PIA at ML PMP at UBS. And the assets were at 100 million at the beginning of the year.

Thanks Dr. X. The scorpion and frog is also an Aesop Fable.

Nov 14 (Reuters) - Ninety percent of Merrill Lynch & Co Inc financial advisers who were offered bonuses to stay on with Bank of America Corp had signed up for them as of late Thursday, the Wall Street Journal said, citing people familiar with the firm.

Last month, BofA reached out to Merrill Lynch's 15,500 financial advisers, offering retention packages to the group which the bank has described as Merrill's "crown jewel".

Friday is the deadline for the brokers to accept the offer, the paper said.

No one at Bank of America could immediately be reached for comment.

I still have not heard what happens if you don’t sign…?

Probably a good proxy of where this market is going (down).  FAs rather take the $$ NOW (and leaving clients out of the equation) then make a go at it at a different firm.

[quote=Merrill]

Nov 14 (Reuters) - Ninety percent of Merrill Lynch & Co Inc financial advisers who were offered bonuses to stay on with Bank of America Corp had signed up for them as of late Thursday, the Wall Street Journal said, citing people familiar with the firm.

Last month, BofA reached out to Merrill Lynch's 15,500 financial advisers, offering retention packages to the group which the bank has described as Merrill's "crown jewel".

Friday is the deadline for the brokers to accept the offer, the paper said.

No one at Bank of America could immediately be reached for comment.

If they don’t sign then they may not participate in distributions.