Considering BAC

Are you nuts?

please explain

big career mistake. take it from someone who was an fa for bac. don’t do it, and thank me later. if you do it shame on you.

I think they really want 350k plus for transfers

BAC is the worst place you could go to.  they will sell you a bill of goods and never deliver.  i urge you to talk to all the recruits that came over in the last few years and see how they feel.

run Forest run!!!

It would be the worst mistake you could make.  Please believe me and
the others who have posted.  After a very lengthy career with a major
wirehouse firm and many opportunities throughout the years to be
recruited elsewhere, I moved to BAI because I believed they truly had a
different business model that would allow me to grow my business.  It
was full of empty promises.  In addition,  you would not believe what
you have to put up with on a day to day basis just to do business. 
Further, the payout is low, you earn bonus based on meeting metrics for
production you really already earned.  I could go on and on.  Look
anywhere else but there.

They said that the client managers would bring me referals, that I would not have to worry about leads, and that a check would be offered.  They have not mentioned a check amount yet.  Do you all know how much they usually offer?  ALso, I see everyone’s negativity towards BAC, but what is it that they do so wrong?  How is their payouts low?  I need some good answers because to me it seems like a good deal right now.

Who's they? I was told that years ago too and it never happened. When I left, I was generating 90% of my revenue off clients I brought. Which leads to the next point. Get it in writing that what you bring to them is yours. Your client managers will be cross selling bank products to clients. Not sure of the area/location but that could have something to do with your success. Also, will you have one or multi cm's? How long have they been there? If you are taking over from a previous rep, why did they leave.

I have not had the opportunity to question them yet on those questions.  They is the VP of marketing who has been interviewing me.  Also, why did you leave?  I am glad to hear from more than one person as this could persuade me not chose BAC.  Are you now indy?

I am indy. I have worked in all three channels. I left because since I was already doing everything myself and did not get any support, why give them anything. Don't leave just because you think you will get access to more clients to work with. Rely on yourself for that.

I remember there being a story a couple of years ago, it was pretty well known at the time, of BAC recruiting a multi-million dollar producing team from Merrill in Ohio I think, to move them to San Diego with promises they would have access to the entire Southern California area BAC clients.  Well a year or so into it, they were denied that access and lost a ton of money in production due to it. 

Wow.  Any ideas on if BAC is still like this?  Most of the stories I have read have been from the last few years past.  Have they changed?

There are generally several ways that you can be partnered.  One is to have a Premier Banking Client Manager, another is to have a branch(es) to which you are assigned.  Other possibilities are to be partnered with a Business Banking CM or a Commercial Bank CM.  One or both of the first two is most common.  What they don’t tell you is that the CM’s usually have other FA’s that they work with and that they are not necessarily loyal to you.  Further, that the incentive they have to refer to you changes all of the time.

As far as the up front money, I can only tell you that I would never have accepted a deal structured the way it was if I knew then what I know now.  You received a smaller percentage up front with a higher percentage available at the end of 13 months or 25 months upon hitting certain percentages of your trailing 12 production.  Most other firms structure their deals as all up front or small variations of that and the total deal is higher.  The up front money is structured as a promissory note which you agree to pay back no matter the reason for leaving.  This is a source of a great many arbitrations if you look at the FINRA site.

Instead of focusing on production which is your main reason for being there, they require that you do a certain number of financial plans for clients, that you enter notes of all of your client contacts into a new but awful contact management system, that you do a certain number of referrals to your CM or Private Bank, etc.  These are some of the metrics that your bonus is contingent upon.  Remember, your bonus is money that is held back from your production (ie. you have already earned it) that they are now going to arbitrarily pay you with it.
 
Further, you must get trade pre-approvals for $100m trades of just about anything, that you have switch letters signed or break point forms approved before entering mutual fund trades, etc.  Try seeing how user friendly the research is if you have transaction based accounts.  They also hold back 10% of your gross produced from an account that is referred to you from your CM for one year.  I could go on and on.  If you compare the grid to the other firms it is lower almost across the board.  There are additional elements to the payout that can/do reduce what you ultimately get.

Let this fool go over to BAC and learn for himself.

alwaysbullish put it well. 

today1 is right on point also.  I didn’t have time to elaborate when I was writing my previous post so, thank you today1 for explaining it further.  I have spoken to many other recruits who have taken a huge financial penalty for going to BAI, including myself.

A friend of mine switched to BAC 1.5 years ago. He has extensive industry experience with a regional and a wirehouse. He loves it there. I ignore everything I read on this forum.

A friend of mine switched to BAC 1.5 years ago. He has extensive industry experience with a regional and a wirehouse. He loves it there. I ignore everything I read on this forum.

I ignore everything I read on this forum.

You should look up the definition of the word "ignore".  Responding is not ignoring.

I want to amend my earlier post on this part: “I ignore everything I read on this forum” to " “I don’t believe anything I read on this forum.” I’ve seen too many items stated as facts that I knew to be incorrect.

Stockguy,

The person I am speaking with is in the premier investments side.  I would be reporting to him directly.  I know of a Jones person who went to BAC and now is producing close to a million.  I just want to know from those of you who are with BAC or were with them, how is the business there.  I have heard that it is a great place to grow your book.  I have a heard from many “haters” but I take them with a grain of salt.  I have heard from many haters of my current firm.  I cant imagine that it can be as bad as you haters have been saying.  I have a client who has had the same FA from BAC for almost 15 years.  Why would anyone stay that long if they hated it?

I left after three years there.  The comp plan was a moving target, rewarding different activities each year, and gradually declining.  Remember, the upfront check is just a loan, that’s all, not a gift or reward.

I know a few guys that went there and nobody is presently a fan of BAC. They tried real hard to get me there, I was close but thank goodness backed off.  It seems like 10% of the brokers love it and most don’t.

is the check a forgivable loan?  How do they figure that into your production?

poggin, did you fullfill your contract requirements and were able to not pay back any of the so called loan?  For everyone:  how much is a standard offer from them for the upfront money?

In my case the loan had to be repaid.  I don’t know what you are referring to when you say “contract requirements”.  The loan was a forgivable loan, just that, nothing else.  I was naive at the time and was very proud of what they offered.  Now I realize that they didn’t really offer me anything but a loan.  Unless they’ve changed things I’d say please don’t refer to the money as “upfront” money.

I hear your point.  By contract requirements, I meant that they say you have to gross a certain level each  year to have that portion of your loan forgiven, or that you must stay 3 years before you can leave.  Since you said your loan was repaid, you must not have met those.

OK, now I understand what you were saying.  You still have to write a check to pay a payment on the loan each year…then BAC will pay you that amount less taxes back.  I had to pay the balance of the loan to leave.  Sorry for any misunderstanding…just a little bitter here, but very glad to be independent.

how does that loan deal benefit you as a broker then?  Also, how hard was it to go indy?  I am considering that to.  I am just getting frustrated with my current firm (sure you can figure out which one it is, but I will leave it blank for now).  I want a little more availability in what I can offer my clients, and other issues as well. 

Here is what you will learn about BAISI:

That is not the story I got from the vp I was speaking to.

If you don’t get it by now…go for it!

They also penalize if you do a lot of c-share business instead of their auto pilot fee programs. I seems to recall a mid to low 20 % payout on trails. I don’t know where you work now or if you do mutual fund/annuity business but you get hammered at BAC.

     This smells like a little PR for the bank. The haters are haters because they legitimately hate people who screw them or lie to them.

     IF stockguy hasnt seen dollar amounts, terms etc then you really arent talking to them past the first recruiting call. The first conversation I had when BAC came calling they were throwing out numbers and offering paperwork. The second meeting I showed them my W2’s ( I was still a Kool Aid Drinker) and the VP wet himself. Why? Because they are desperate for FA’s.

They will lead with 1. Promise of shooting fish in a barrell because of the bank feeding you referals. 2. They will talk a lot of crap about business bankers and wealth managers working with you - wont happen. 3. They will talk about a big check. And that is the problem. You’ll get there as many others have done and then they wont get the referals. Then you will have to pay back and be tainted for any serious financial institution.

Go talk to a bank branch manager and the people that are supposed to refer to you they will look like an Arkansas Hillbilly staring at a flushable toilet. What do you mean - refer? Aren’t you supposed to build our bank ‘bizness’? Then you will realize that Banc of America Investments is to the Banks what Edward Jones Investment is to the wirehouse community; a joke.

If your numbers are worth them looking at then go Indy. If you need it, and you shouldnt if you have been successful and followed your own advice, then get some assist money from someone. The only reason people look at the bank is they are afraid to create their own business and have not learned to get referals and work with other professionals. Sorry but that is the plain truth. Otherwise you wouldnt give up the money in the cut payout that you get.

Oh, by the way, knowing about a dozen BAI guys from Dallas, Denver, KC, St Louis, Phoenix, they will tell you they only stay because they were bought in by M&A and have big books and dont want to move. Otherwise they joke about their own bank. They wait for you to bring the top 25 - 50 clients you have and then they will strip you of them as you go out the door. That is why I never went there, their own employees testimonials.

Congrats, Freeman, for telling it like it is.

     
Go talk to a bank branch manager and the people that are supposed to refer to you they will look like an Arkansas Hillbilly staring at a flushable toilet.

No I am not a pr person for the bank.  I read all of these and it seems cut and dry, but I have spoken to a few who are at the bank who say they like it there.  And by the way, the EJ crack makes me laugh.  If I noticed one thing in these “posts” on this forum, it is that EJ gets more bashing than BAC.

I am open to anyone who can have an intelligent discussion with me to continue but not with all the wise cracks.

Then why do you come here?  No offense, but are you really a broker because you sound slightly retarded.

The  Bank of America threads had quieted down for a while. I’m glad to see that it’s up again.  Very entertaining (“reality show” and “Arkansas hillbilly”).

dont get me wrong i have met a few successful recruits that were at BAC, hey i was even one of them.  but the majority of all the other recruits that came over in my opinion just blew up their careers by making the transition to BAC.  you might have had a chance if you were recruited early when the pie was big, but most of the branches have been mined for their top accounts and same thing with any good CM.  they will tell you that they only have 4% penetration, but believe me the other 96% of their clients you wouldnt want to wipe you a$$ with.  think of the gold rush.  those who got in early found large nuggets, the rest just hung themselves after fighting over the scraps.  if you want a credible outside opinion ask the wholesalers what they think.  in most instances i wouldnt say that, but even wholesalers with deep pockets cant overcome the mindless brainwashing and dictatorship that BAC provides.  at bac it is there way of the highway.  i decided to leave instead of being morphed into a broker in a box.  and yes management represents the bank, not brokerage no matter what they tell you.  why else would they tie compensation to note taking.  having to contact a client 8x a year who makes you no revenue, but the bank feels is important, is retarded. hey but if you dont they hold back your fee-based revenue and other commission.  do you think that would ever fly at merrill, morgan, or any other place that believes in the entrepreunerial spirit?  personally i rather spend my time prospecting for new business than having to color coordinate my clients and figuring out how to manipulate a system that doesnt work so i get paid.

[quote=stockguy]I have a client who has had the same FA from BAC for almost 15 years. 

I’ve said my 2 cents worth.  I hope you will give serious consideration
to the more reasoned responses you have gotten from here such as mine
and feng shui and BACFA.  There are plenty of other firms out there to
consider if you are bent on making a change.  I would agree that you
will see some success stories but they are few and far between.  Those
that seem the happiest are those that a) have been there so long that
they are entrenched, ie. they prexisted the PB&I model and have
deep books and old connections throughout the bank, and b) those that
have come out of the Pathways channel and don’t know any better because
BAI is all they have ever experienced.  If you seriously talk to the
experienced brokers who were recruited from outside, my guess is you
will find the vast majority to say they wish they had never done it.  I
have been in the business a long time and fell for a very smooth
recruiting pitch that made it sound as if it would be impossible not to excel with the model that they have.  Do I have sour grapes?  Yes, but
they are directed at myself for being so stupid.  As I’ve said, I have
been in the business a long time and everything I had ever heard about
working for a bank brokerage I chose to overlook because of the
recruiting pitch.  It was a very bad mistake on my part.  It is not
because I’m quirky or not a team player, quite the opposite even if I
say so myself.  The odds are you will not get what you think you have
signed up for.

Also, just to elaborate on your question about the upfront money.  It is generally a 6 year forgivable loan.  They do not forgive any portion of it just because you achieved a production threshold.  The clock starts again when you receive the back end amounts if you do meet the percentage of trailing 12 production that is specified in your situation.  Each year, as was mentioned before, you trade checks with them.  You write them a check for 1/6 of the upfront amount and receive one back from them for the same amount less taxes.  If you leave at any point prior to the end of 6 years from when the clock started, they will try to get the remaining amount back from you.  Again,  and I mentioned this in one of my previous posts, read the FINRA.org arbitration case synopsys’.  There are 20+ dealing with BAI filing arbitrations to recover the promissory notes.  In almost every case the respondent counterclaimed for Breach of Promise and and Fraudulent Inducement.  Even though BAI prevailed in these cases the fact that the counterclaims are for the same reasons should tell you something.  Please believe it.

Thank you allways bullish.  I Like to hear a voice of reason.

I appreciate all of you who gave honest answers without the sarcasim.  I really am interested in BAC and was looking for some guidence on what to do.  My earlier rant was because this posting board is constantly bombarded with negative comments.  It gets old listening to the same thing over and over again. 

It gets old listening to the same thing over and over again.  [/quote]

Kinda quite all the sudden.  I would like to get any BAC person’s take on their bond inventory and how they do with a vs b vs c shares.
Thanks

Bond inventory is probably the same as any wirehouse and fairly easy to use with BondDesk. They also have the faddish structured products.  IPO allocations tend to be generous except for the really hot ones like Visa.  Extra forms are required for B shares over $50k and C shares over $100k. Not too big of a deal (at least they allow it).

BACFA are you still at BAC?  How does that relationship work with the CM?  I keep hearing about it and wonder how it works?

i’ll tell you how the relationship works with the CM given my experience with them, and since i had quite a few of them.  here is how it goes in a nutshell.   they are supposed to refer you business for investments and you are supposed to refer them loans and deposits.  for their investements which when i started was about 1.5 million a quarter or so. and i was supposed to refer them loans and deposits of about 3mill.    i know it has probably changed now.   anyway,  they end up under performing dramatically, actually maybe if your lucky referring 10% of their given metric, but you end up keeping your end of the bargain doing bank work and getting them their numbers so you get your holdbacks on your commissions.  you go complain to your manager and then your manager tells you that you need to ‘coach’ them since you are the better salesperson.  you end up trying to coach your CM and meet with your manager again in 3 months and complain to him that nothing has changed. your manager tells you to be patient and let review in another 3 months how things are going.  meanwhile you are on commission and your lazy CM is getting a salary for sitting on his a$$.   he is lazy and you end up wasting a lot of your production time.  ironically this is counterintuitive to what they say when you sign on.  they tell you that it works in the opposite way you get unlimited referrals and just sit them and roll in the dough.   then you figure it out and leave…that is unless you want to be a broker, banker,and a manager of you CM all in one.  personally i rather cold call and take my career into my own hands.

Yes, I’m still at BAC. I seriously contemplated leaving several times but was offered various things to stay (accounts, fee-based book, assistant).   They’ve also given me multiple CM’s to partner with but those have never worked out.  Like I said before, there’s generally only one partnership that works in every territory.  The other FA’s just suffer through it because they need them to hit their year-end bonuses (which is really a repayment of our own trailers).

Thanks iceco1d. I’m sure that type of realization happens at every firm. But the difference at BAC between what is promised and what is actually delivered is pretty incredible.  I think for new FA’s that come here knowing that the CM’s are worthless and are willing to build a book on their own, it’s actually a decent place to start.

You get a gross check.  Then 1 year later you write BAI a check for 1/6th of the amount.  Then 2-3 weeks later it comes back to you through payroll with 5% of the outstanding amount added to imputed income.  This now is part of the gross pay for that pay cycle and you have to pay taxes, etc. 

My 2005 gross @ BAC: $400k.  2008 I will do $750k.  Stay away - don't take a slice of my pie! 

Wow I thought BAC was a dead subject around here. Didn't have time to read through all seven pages of responses, so some of this could be repetitive, which should be a sign of how many people feel the same way at BAC

I suppose every branch is different, but I have basic grocery store accounts at BAC and my branch local deposit program is through them.  The branch employees are really young, the branch is dirty, the clientele are very rough and undesirable, I really try to drive through without touching anything and drive away fast.  I can’t imagine being captive and having to service that kind of clientele.  I would jump out of a window if I actually had to talk to someone that started a conversation with, “I was thinking about starting to save $25 a month for my kids college.”  I would vomit.  And every single banker I have ever talked to says the same thing about their in house FA, “they are okay, but I don’t refer to them, my clients don’t want risky investments.”  Granted that is the FA’s fault for not educating their referral source/center.  But, people like their bank to be their certificate of depreciation holder.  They want their banker to give them a toaster and a bottle of water when they belly up to the counter for their security blanket.  They don’t look to a novice FA in a bank branch for comprehensive financial guidance, just does not happen.  And, the clients existing at the bank will be gone fast because you would probably be the 4th FA they have had in as many years, they get sick of it.  Look for a good independent practice that needs a junior advisor and you will be happier in the long run.

very interesting to see such negative posts. i don’t come on here very oftern but find it interesting every time i do. for so many people to be so negative i gotta believe they either are not truly fas at the firm or they are very unsuccessful and have nothing better to do than to bash their firm.

If broad negative generalizations are generally wrong, then why bother with:

bacfa,

I am not having a bad experience at BAC.  But I think that if the overwhelming response about BAC is negative, it says something about the firm.  Obviously, there will be exceptions (just ask the guy at the top of a pyramid scam), but dismissing negative comments as failed brokers is a disservice to those that are seeking our opinions.

I agree each expierence is different.  For those of you who have been sitting around wondering, did I take the bac job or not, i did.  I have been there for a while now.  So far, my cm has given me several referrals, the pbs have given me several.  I have not seen the horrible things everyone here is so adiment about.  I know the payout is lower than elsewhere, but I got a good offer so I can't complain.

Thanks for the update stock guy.  We’ve all been sitting around wondering & worrying.   I know I speak for many, when I say that it is a relief to know you’ve made a job change.   Nice to see you start a thread, dismiss all information shared on it that didn’t fit your game plan and go on ahead with what you were planning on doing all along.  Bravo! 

what were you on vacation for the last month there DB Cooper?

Yep, had a good time too.  Got to go.  I’ve got a  cm and a pbs to suck up to! 

bank  brokers. a sad case, and i was one of them!

DB Cooper, you seem to let people think you are not a kool aid drinker, yet, in another post you say you are because you complain about the new managed money platform.  So which is it?  By the way, BAI is a great place to work, we would welcome you with open arms.

What DB, no response?

[quote=stockguy]

DB Cooper, you seem to let people think you are not a kool aid drinker, yet, in another post you say you are because you complain about the new managed money platform.  So which is it?  By the way, BAI is a great place to work, [you haven't been there long enough to make an intelligent decision] we would welcome you with open arms. [I am now convinced you are that g@y RM I used to work for.]

Wow, you take care of people's money with that attitude?  Do you treat your clients like that?  For your information, DB Cooper and I are friends just having some fun.  I guess though that you have a lower level education and could not come up with anything better than calling me gay?  Wow you are so smart.  I would surely send my family to see you because I would be so assured they would be cared for...... You must be short because you make fun of others to have the attention off of you.  I know your type.  Well, I can not waste my time reading this posting that has people like you on it.  I hope your life is successfull, let me know how that works out for you. 

[quote=stockguy]

Wow, you take care of people's money with that attitude?  Do you treat your clients like that?  For your information, DB Cooper and I are friends just having some fun.  I guess though that you have a lower level education and could not come up with anything better than calling me gay?  Wow you are so smart.  I would surely send my family to see you because I would be so assured they would be cared for...... You must be short because you make fun of others to have the attention off of you.  I know your type.  Well, I can not waste my time reading this posting that has people like you on it.  I hope your life is successfull, let me know how that works out for you. 

wow that was the best you got?

Yep, you win.

I’m switching to BAC from EDJ.

I’m switching to BAC from EDJ.

I like the business model as described by a friend who moved there two years ago. I believe the decision on which firm is best is very much an individual decision based on the strengths, weaknesses, circumstances, and goals of the person. Others fit better as an independent, or at a wirehouse, or at a regional, or at a local bank, etc. There is no right answer or perfect place, and each of these different categories can vary with the individual location and manager. I believe BAI lines up nicely for me, everything considered.

good luck. you’ll need it

I have a friend that left Jones and went to US Bank and he is grossing like $350K + from segment 3 numbers. So, sometimes the banks are good for you and your family's well-being. However, I am not sure how US B and BAC compare but I would assume, key word, that they are similiar.

Yes, I do. That is why I made a poor attempt at a disclaimer. All I know is that he was doing $15K gross/mo at Jones and has doubled that if not more. I would be all over that if I had the opportunity. Basically, he makes just as much as most “successful FA’s” and does zero prospecting. However, I do know another cliche…“the grass is always greeener.”

stockguy and bambi,

Hey I have been at BAI now for 2 months, and I feel it was a good decision for me.  I can’t speak for everyone else but for me it has been the right move.

As a recent BAI defector, back to the wire-house, I would say buyer beware of the BAI hype. The new plan has no incentive for the consumer bank to refer to BAI. You might get the referral if a prospect walks in, knowing the bank handles investments, and wants to talk to an investment person. Premier is starting to understand that the sale is far easier if they refer to BAI Discount (free investment services, etc. if they carry a $25m balance in deposit accounts). The successful CM’s (bankers) I knew were very loyal to discount, not their FA’s. No long term incentive in comparison to the others and a cash payout which is 25% less than the street is something to be aware of as well. The bank is very quarterly earnings focused and have begun pushing production into higher yielding (fixed annuities) products to drive quick numbers. It is the issue with the bank - they are so transactionally oriented especially now - be it a CD, whatever. If you have any ability at all to network your town, then stay out of the bank. It is the most un-FA place to work on the street (although they are technically not on the street since they have 1,700 FA’s and clear through Fidelity. The good news is though they are starting to realize there is a problem since thy have lost so many top producers.

Completely stupid, actually.

But then authoring over 4700 replies to people you’ve never met and who generally don’t like you for zero payout and no specific purpose has some question as well.