Huge Team Leaves ML!

Large team in Houston and another huge team in ATL also. All to UBS.

Out of the frying pan…into the fire…

so they finally figured out what the rest of the country had already figured out? ubs is the big winner here…taking over 1000 advisors across the country in a major major market share shift…the advisors going there are not small…



they took a team in dallas from goldman i’ve heard that did $10m in production…looking for some verification on this one, but heard it from more than one person

ATL - you are correct. I misspoke about Houston. It was Dallas. Don’t know about the production, although I heard it is big. UBS has dealt with its problems early on. They still have the media stuff with the DOJ but the platform and the firm are rock solid and it is more conducive than any firm to the non-proprietary model. They all have freckles, though. UBS is just fortunate that it has powder in its keg to act in an environment which encourages FA’s to do some soul searching while firms through their FA’s under the bus.

im on a huge team at ml in the tri state area and they are talking about leaving as well. my brother is at ubs in nyc and he says the door there is wide open with ms and ml teams coming over.(im at the tail end of poa)

OH, none of them are going the EDJ? they have a new wonderful transfer broker plan??

Sad when UBS is now the top place to go.  They never seemed to have a good reputation, have they gotten better, or is it that just everybody else has gotten worse, and they write the biggest checks?

What is going to happen when UBS needs to sell the USA ops to remain afloat?  Last I checked, there are no stolen treasures from tyranny left.

Sad when UBS is now the top place to go.  They never seemed to have a good reputation, have they gotten better, or is it that just everybody else has gotten worse, and they write the biggest checks?

When their upfront $ are gone and they still stucj with the taxes . . .

ATL - you are correct. I misspoke about Houston. It was Dallas. Don’t know about the production, although I heard it is big. UBS has dealt with its problems early on. They still have the media stuff with the DOJ but the platform and the firm are rock solid and it is more conducive than any firm to the non-proprietary model. They all have freckles, though. UBS is just fortunate that it has powder in its keg to act in an environment which encourages FA’s to do some soul searching while firms through their FA’s under the bus.

what will biz look like in one year?   no one knows.



grab some security.



now.   put money in your wife names

[quote=bancofamigo]ATL - you are correct. I misspoke about Houston. It was Dallas. Don’t know about the production, although I heard it is big. UBS has dealt with its problems early on. They still have the media stuff with the DOJ but the platform and the firm are rock solid and it is more conducive than any firm to the non-proprietary model. They all have freckles, though. UBS is just fortunate that it has powder in its keg to act in an environment which encourages FA’s to do some soul searching while firms through their FA’s under the bus.

It was Dallas TX UBS that just had a team come over from Goldman:

[quote=rep_rep]

It was Dallas TX UBS that just had a team come over from Goldman:

[quote=Ferris Bueller]S&P just downgraded UBS to a sell.[/quote]

I think the IRS is about to downgrade to strong sell!!
ROFLMAO!!

<h1 id=“Story_TopPageNavigation_line” =“storytitle”>UBS faces wider U.S. tax case: WSJ

helped tens of thousands Americans avoid paying taxes, according to
Monday’s edition of The Wall Street Journal. The Journal said tax
investigators believe that UBS helped many more than the 17,000 people
that was initially estimated. The paper added that several people
involved in the case said UBS is in talks with the Justice Department
to avert a possible felony indictment by admitting to criminal conduct
and paying a penalty of about $1.2 billion.

It’s hard for me to understand why a successful advisor would want to move to a firm that is under investigation for tax evasion…

Didn’t hurt the incoming Treasury Secretary

[quote=HymanRoth]It’s hard for me to understand why a successful advisor would want to move to a firm that is under investigation for tax evasion…
[/quote]
In addition to which, if they really did this - tens of thousands?? - how could a firm be so dumb as to think they could get away with that.

[/quote]

You don’t sound like a homer…just a naive idiot.  Just because they ‘suck less’ than the other wirehouses doesn’t mean they don’t suck.

They were in ‘constant improvement mode’ when I left about 4 years ago…

Once the rosy feeling is done from those big front checks, it will be interesting to see how people feel when they have to deal with UBS back office incompetence and the Swiss compliance people.
[/quote]

the best critics of ML are employees of UBS.   i work at ML.  still the best platform on the street.  however management is a joke(just like everywhere else).  when it comes down to servicing big clients, they come to ML, and then the advisor transfers to a competitor to get paid.  all the wirehouses are going through major transformation, ml, ms, sb, and ubs.  ubs has been quiet for some months now.  they were hit huge with losses just like everyone else.  the swiss goverment bailed them out just like the us did to the u.s. wirehouses.  what people have forgotten is the tax evasion!  do you actually think that the u.s. goverment is going to let that pass by??  How about some of the funds that were invested with Madoff??  they will be spun off or sold.  in the summer, this hit the news.  also recently it agained resurfaced.    if ubs so was great, why would they be offering such ridiculous packages?  there would be no need to garner so much interest. ubs is smart in their short term strategy. 

The article I saw on Fund Fire this morning had two teams, both originally from Goldman, and did a combined 46mm in production.  That hurts.

UBS was making up for lost ground since, as you said, they had some news issues which was hurting them.  The media have been reporting the Tax probe issue regarding some folks in Switzerland.  UBS’ head stepped down and the board put the UBS America head in charge (Marten Hoekstra) of the whole company.  The board is well aware of the issue yet the still put the US guy in the chair. 

UBS also dealt with the CDO stuff early on while there was still somewhat of a market.  The Swiss government did put in $16 Billion and UBS ended its dividend.

If UBS is looking to sell - to whom would that be?  that dance is over and the chairs are gone.  UBS is around 40% of the GDP of Switzerland.  Banking is over 70%.  UBS USA (Wealth Management) is a smaller part of the whole.

Their new planning platform rivals any trust department or private bank.  They are not building some monolithic culture like some other places.  They are trying to build an open architecture firm.

Everyone has their freckles, but it seems that UBS’ are fading.  Of course in this world that doesn’t mean they won’t be front page tomorrow.  The idea that they are just willy-nilly throwing big checks out simply doesn’t make sense.  Firms don’t make money on folks with the upfront being paid until into the deal.  That is long term, not short.

So I heard MS is looking for some payback-



Offering 180% (260 all in) upfront for UBS advisors (1q guys I assume). Anyone else confirm this?

did the head of ubs's wealth management 'step down' or is he a wanted fugitive by the F.B.I.??

[quote=ABOM] So I heard MS is looking for some payback-



Offering 180% (260 all in) upfront for UBS advisors (1q guys I assume). Anyone else confirm this?



[/quote]



That would be too funny if many UBS guys went to MS and vice versa. Sweet shell game.

He stepped down when the charges were announced last year “to properly defend himself.”  By this year, as talks between the US Treasury and the Swiss Government (the two’s laws differ on providing client names and tax evasion) and between the DOJ and UBS, the Former head did not come back to America and was declared a fugitive.  He is living in his home in Switzerland.

Hate to break it to you guys but Merrill like my name implies is a sinking ship.  They, meaning BofA, are cutting the bottom 25-30% and the top 25-30% are running into the arms of UBS and MS and other firms.  The Thundering Herd is thundering out of the damn building.  Other firms are laughing at the few that are staying.  Merrill offices across the country are being decimated by layoffs and top producers walking.  A year or so from now they should be about 10% maybe 15% of the current assets under management.  If you are there still I have one word for you that will the single most important career move.  LEAVE, or RUN, or GET THE HELL OUT OF THERE.  Ok the last one wasnt one word but you get the picture.  BofA did such a wonderful and brilliant job of wealth management pre-Merrill, NOT, they are going to do just a little bit better.  You are on a sinking ship and it is time for you to do what I have done and leave.  You still have time to get on with one of the NEW top 5, if you wait for everybody else to go you wont get as good deal.  I jumped off and havent regretted it, i was actually relieved.  Prospects were increasingly hesitant to do business with me in the last couple of weeks, mainly b/c they had been watching the news.  BofA is running this into the ground.  I have a friend still there pretty high up but about to finalize his departure.  If you are in the Virginia, NC, SC, Georgia, FL area and you are a small office you are about to be cut.  He is leaving mainly b/c he is sick of laying off peope that dont deserve it.  He told me that within those five states they are going to cut about 30% of the total workforce by Feb. 14.  Happy Valentines Day!!!  If i were you I would make plans now.  Dont say you werent warned or didnt see this coming.  BofA could give a you know what about loyalty.

As a Client Associate, I would really like to know from what source your friend gets his information from regarding job cuts in the Southeast.  I am in a small office (college town) and the other CA and I are terrified for our jobs. 

[quote=mydogisgoldie]As a Client Associate, I would really like to know from what source your friend gets his information from regarding job cuts in the Southeast.  I am in a small office (college town) and the other CA and I are terrified for our jobs.  [/quote]


Is your dog Jewish?

Dont say you werent warned or didnt see this coming. BofA could give a you know what about loyalty.

The cuts are everywhere not just Southeast.  You should be scared.  You will know by the 6th whether you have a job or not.  That is when CA’s will find out nationally if they have been cut.  The names have already been chosen, they just have not told anyone yet.  Basically alot of dead man walking in all size offices.  I think that SMO are safe for now.  However, they may be the next to be consolidated, etc.

these others are right.  BofA uses something called six sigma, not sure you have ever heard of it but it is a computer system used to determine workers worth to an organization.  lots of companies use it.  anyways  the person i heard this from is one that is doing a lot of the firing.  its not his choice but he doesnt have a book anymore himself and makes a huge salary so they are making him do the dirty work.  he is actually in talks with his old firm about coming back as is most of the people in his complex.   anyways i would start looking if i were you.   if you wait, well, you can figure it out from there.  they will not spare anybody right now.  the only reason BofA isnt cutting everybody at the same time is, public relations.  their name has been dragged through the mud the past couple of weeks laying off 10,000 people at once wouldnt improve it.  so they are laying off 1,000 at a time.  i wouldnt be surprised you come in monday and more people in your office are cut.  they started with pmd’s now that they slaughtered them they are moving onto CA’s and POA’s.  i am not trying to scare you to death i just want you to have a heads up.  once you leave relief will shower over you.  i have had sooo many people tell me that even the ones who got laid off. 

MLsinkingship,

Buddie of mine on a 4 person team of about 2 million.  Client called them late last week asked them if they received any form of bonus or $$$ in the last 2 months.  They explained yes but it was “retention.”  Client cut them off and said “I am pulling my account(s)”.  6 Accounts worth 11 million gone.  Can imagine that is not the only story like that going around.

[quote=fritz]Buddie of mine on a 4 person team of about 2 million.  Client called them late last week asked them if they received any form of bonus or $$$ in the last 2 months.  They explained yes but it was “retention.”  Client cut them off and said “I am pulling my account(s)”.  6 Accounts worth 11 million gone.  Can imagine that is not the only story like that going around.

Client left because of retention? Great client. My clients want to do business with a successful well paid advisor. You think they want to do business with a struggling rookie. I have an $8,000 watch which was a gift from my wife. Had a client ask about it one time and in an emberassed way said “It was a gift”. Client said “Dont be embarassed, I want to do bus with a succesful person”. My clients say “If you are good enough to receive a retention, I want to do bus with you”

Client left because of retention? Great client. My clients want to do business with a successful well paid advisor. You think they want to do business with a struggling rookie. I have an $8,000 watch which was a gift from my wife. Had a client ask about it one time and in an emberassed way said “It was a gift”. Client said “Dont be embarassed, I want to do bus with a succesful person”. My clients say “If you are good enough to receive a retention, I want to do bus with you”

First down 50%, now down 60%. ??. If I were a client down 60% I would leave too. Who would you want to do business with, a succesfull broker in the business 17 years or a struggling rookie that may not be there in 2 years? Not a naive comment, its just that you are prob 500k or less and jealous

First down 50%, now down 60%. ??. If I were a client down 60% I would leave too. Who would you want to do business with, a succesfull broker in the business 17 years or a struggling rookie that may not be there in 2 years? Not a naive comment, its just that you are prob 500k or less and jealous

Thanks for the information.  It is a very scary time at ML especially if you are a hard working CA.  I have been sending out a lot of resumes.  Just hard to get a foot in the door for an interview here.  I have worked hard at ML and I knew this was probably going to happen given BOA track record.  I kept telling the people in my office all that “this is a great thing for ML” BS was just that and wait until after January 1.  We lost a guy Monday who just got all of his licenses and had not even started in production left.  BOA said they would pay him until February 6, but otherwise “don’t let the door hit you on your butt as you leave.”  What a bunch of crap.

The cuts are everywhere not just Southeast.  You should be scared.  You will know by the 6th whether you have a job or not.  That is when CA’s will find out nationally if they have been cut.  The names have already been chosen, they just have not told anyone yet.  Basically alot of dead man walking in all size offices.  I think that SMO are safe for now.  However, they may be the next to be consolidated, etc.

small market offices

[quote=fritz]

Heard a big team out of Cincy left today.  Over $5mm in production.

[quote=bondo]Heard a big team out of Cincy left today.  Over $5mm in production.[/quote]

BS. there isn’t 5mm in cincy

If it is the team Bondo said then they might not be 5 mm but he’s one of the top 100 fa’s at ML. A huge PIA producer and he had most of upper management at PG. I live 80 miles south and he was a legend in our office.

[quote=bondo]Heard a big team out of Cincy left today.  Over $5mm in production.[/quote]

BS. there isn’t 5mm in cincy

When a team leaves Goldman, depending on your reference point, many of you will call them huge.  Keep in mind, the minimum account size at Goldman is $5 million, and the average account size is approximately $20 million.  In order to survive at a firm like that, a investment professional must be doing $500,000 in revenue within their first 2 years, and about $1 million in revenue within their first 3-4 years.  The payouts are much lower at Goldman than other firms, so that is why teams leave for other firms.  Goldman never has problems attracting new talent, and they rarely buy a book of business, if ever.  They rely heavily on their brand name to hire and retain talent, and it works very effectively.  From GS, you can only go to a few other firms who cater to those clients, like MS, CS, or UBS.  Channel conflict is a big issue.  GS pounds on broker-dealers that have corner brokerage service, saying its a dilineation of the resources of the firm.

When a team leaves Goldman, depending on your reference point, many of you will call them huge.  Keep in mind, the minimum account size at Goldman is $5 million, and the average account size is approximately $20 million.  In order to survive at a firm like that, a investment professional must be doing $500,000 in revenue within their first 2 years, and about $1 million in revenue within their first 3-4 years.  The payouts are much lower at Goldman than other firms, so that is why teams leave for other firms.  Goldman never has problems attracting new talent, and they rarely buy a book of business, if ever.  They rely heavily on their brand name to hire and retain talent, and it works very effectively.  From GS, you can only go to a few other firms who cater to those clients, like MS, CS, or UBS.  Channel conflict is a big issue.  GS pounds on broker-dealers that have corner brokerage service, saying its a dilineation of the resources of the firm.

-

Just a blog name … I’ve worked in wealth management before … and by wealth management, I don’t mean brokerage … there is a difference, despite that everyone seems to want to adapt that name these days … I know the ultra-high net-worth busines well, and I think those who work at corner brokerages are making comments without really understanding the models, the complexity, and the level of sophisticated investing that takes place at that level.  I can guarantee that team that left Goldman was loaded with MBA’s from schools like Harvard, or Wharton, or GSB, or wherever.  They simply do not hire people who cannot speak with a client at an extremely high level about aet allocation, aet location, structural planning, and all the different areas of investing.  When a team leaves GS for UBS, they are doing it for a one-time bonus check, because they are then selling for a company that represents everything GS doesn’t, which is having brokerage units that serve all levels of investors … At that level of clientele, UBS is tainted by its attachment to Paine Webber … just like Morgan Stanley has to deal with being referred to as Dean Witter.

Just a blog name … I’ve worked in wealth management before … and by wealth management, I don’t mean brokerage … there is a difference, despite that everyone seems to want to adapt that name these days … I know the ultra-high net-worth busines well, and I think those who work at corner brokerages are making comments without really understanding the models, the complexity, and the level of sophisticated investing that takes place at that level.  I can guarantee that team that left Goldman was loaded with MBA’s from schools like Harvard, or Wharton, or GSB, or wherever.  They simply do not hire people who cannot speak with a client at an extremely high level about aet allocation, aet location, structural planning, and all the different areas of investing.  When a team leaves GS for UBS, they are doing it for a one-time bonus check, because they are then selling for a company that represents everything GS doesn’t, which is having brokerage units that serve all levels of investors … At that level of clientele, UBS is tainted by its attachment to Paine Webber … just like Morgan Stanley has to deal with being referred to as Dean Witter.

[quote=NewRep73]Just a blog name … I’ve worked in wealth management before … and by wealth management, I don’t mean brokerage … there is a difference, despite that everyone seems to want to adapt that name these days … I know the ultra-high net-worth busines well, and I think those who work at corner brokerages are making comments without really understanding the models, the complexity, and the level of sophisticated investing that takes place at that level.  I can guarantee that team that left Goldman was loaded with MBA’s from schools like Harvard, or Wharton, or GSB, or wherever.  They simply do not hire people who cannot speak with a client at an extremely high level about aet allocation, aet location, structural planning, and all the different areas of investing.  When a team leaves GS for UBS, they are doing it for a one-time bonus check, because they are then selling for a company that represents everything GS doesn’t, which is having brokerage units that serve all levels of investors … At that level of clientele, UBS is tainted by its attachment to Paine Webber … just like Morgan Stanley has to deal with being referred to as Dean Witter.

-

-

Who tells people there are no fees? YOU? where did you get such an idea that reps will bold face lie to a client. To even make such an a**umption is a reflection of YOU, not the average Rep.

Do you think clients are so stupid they are oblivious to the fact that there is a cost to doing business? AGAIN a reflection of your ideas NOT mine.

Annuities? Really? Aren’t you going to sell me on that upfront haircut that the broker takes on those?  How is that pro-client?  Show me an annuity that actually can’t be replicated much cheaper using derivatives.  The problem with financial advisory is because there are people out there telling people “it’s so simple, when the market goes up, you make money and when the market goes down, you don’t lose money, plus you don’t pay any commissions or fees.”  I’m sure some 65 year old Grandmother buys that.  I’d rip that thing apart and find all the hidden fees in it if I saw a client with one of those in their portfolio and show them exactly how the broker got paid on that instrument, which supposedly has “no commissions or fees”.  It’s frightening that people think annuities are pro-client.  This is part of the reason I don’t work on that side of the industry anymore, because I refuse to claim that ignorance is a legitimate excuse for not educating the clients on all the fees.