Shakeup At Merrill

Are they running out of prospects with $1 million to invest?  Or, are they not building quality relationships through their lending platform?

They are merging with jones. jones brokers can sell merrill funds A shares. jones guys won’t know any diff. as long as the funds are on “preferred” list.

All kidding aside, I used to wonder why Merrill didn’y buy Jones and use it for low end accounts.  Kind of a shabby-chic boutique for the unsophisticated investor, while keeping the Merrill Lynch image of world class service for the high net worth investor.

[quote=Starka]All kidding aside, I used to wonder why Merrill didn'y buy Jones and use it for low end accounts.  Kind of a shabby-chic boutique for the unsophisticated investor, while keeping the Merrill Lynch image of world class service for the high net worth investor.[/quote]

I doubt they'd fit together. Filling a room with EJ and ML brokers would be like lumping in your closet suits from Sears and Brooks Brothers.

sears=ML?  

[quote=frumhere]sears=ML?   [/quote]

Yeah.  That must be it.

Not even a Jones broker, which obviously you are frumhere, could make that mistake! 

ML brokers outclass EJ brokers seven days a week.  Not even a debatable topic.

Local muni players in T shirts mixed with Bobby Jones wearing private club members…

Strip mall offices mixed with marble floored, walnut paneled class A office space.

Plymouths and Porsches 

you people are so insecure. it’s pathetic! im just waiting for the day you’re on top…2025? 2030? just think, when you are, you just might be able to afford a brooks brothers suit. as long as you’re not, im long sears. now i know why the stocks done so well.

Actually not a Jones broker. 

[quote=frumhere]Actually not a Jones broker.  [/quote]

Don't sweat it, some of us knew you were joking 

[quote=youcanhatemenow]you people are so insecure. it's pathetic! im just waiting for the day you're on top...2025? 2030? just think, when you are, you just might be able to afford a brooks brothers suit. as long as you're not, im long sears. now i know why the stocks done so well. [/quote]

Let me guess, a member of the EJ brain trust bragging about being "on top" of a JD Powers survey....

Let’s get back to Mother Merrill for a minute?  Are they running out of million dollar idiots who buy into their marble floors and walnut paneling?  If I were the client, I would take a guy (or gal) with a set of balls, a good head on their shoulders, and a set of scruples over that dog and pony show any day of the week. 

I heard Jim Cramer say that Merrill is the "every man broker."  Are you kidding me?!  Merrill is the place if you have 100k, if not, you get kicked to the curb. (just like all the majors do).

ML + EDJ  =  BMW + Hyundai  =  Tiffany's + Wal-Mart  

[quote=Soothsayer]Let's get back to Mother Merrill for a minute?  Are they running out of million dollar idiots who buy into their marble floors and walnut paneling?  If I were the client, I would take a guy (or gal) with a set of balls, a good head on their shoulders, and a set of scruples over that dog and pony show any day of the week.  [/quote]

Jealousy is just sooooo ugly...<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Hardly.  I’m not into engendering institutional loyalty with my clients.

[quote=Soothsayer]Hardly.  I'm not into engendering institutional loyalty with my clients.[/quote]

No one is, no matter how you misunderstand the broker culture at places like ML.  BTW, they're no jealous of your strip mall office, why are you fixated on their nice digs? 

[quote=mikebutler222]

[quote=Soothsayer]Hardly.  I'm not into engendering institutional loyalty with my clients.[/quote]

No one is, no matter how you misunderstand the broker culture at places like ML.  BTW, they're no jealous of your strip mall office, why are you fixated on their nice digs? 

[/quote]

I don't have a strip mall office, and I don't work at Jones.  They are jealous however of my really hot wife.

[quote=Soothsayer][quote=mikebutler222]

[quote=Soothsayer]Hardly.  I'm not into engendering institutional loyalty with my clients.[/quote]

No one is, no matter how you misunderstand the broker culture at places like ML.  BTW, they're no jealous of your strip mall office, why are you fixated on their nice digs? 

[/quote]

I don't have a strip mall office, and I don't work at Jones.  They are jealous however of my really hot wife.

[/quote]

Hey, if that theory helps you to sleep at night.

I wouldn't want to be the one to let you in on the news that guys and gals at ML (as with every other major firm) come in all shapes and sizes, most have every bit as much integrity and smarts as you, don't put on "dog and pony shows" and simply have better access to the best tools and resources than you. Some fancy themselves as stock jocks as you, other take a different approach, but they don't seek "idiot" clients and  they're not deluding into thinking that their interests and their firms are perfectly aligned on every issue.

I wouldn't want to be the one to let you in on the news that guys and gals at ML (as with every other major firm) come in all shapes and sizes, most have every bit as much integrity and smarts as you, don't put on "dog and pony shows" and simply have better access to the best tools and resources than you. Some fancy themselves as stock jocks as you, other take a different approach, but they don't seek "idiot" clients and  they're not deluding into thinking that their interests and their firms are perfectly aligned on every issue.

[/quote]

COMPLETELY ACCURATE - I could post for ever on this subject, but Greenhills tells me I spend too much time on this site. Simply put, there are a lot of misconceptions about Merrill out there.  

Simply put, there are a lot of misconceptions about Merrill out there.

Totally agreed.  Starting with the idea that they can do a better job taking care of clients than anyone else with all of their "tools."

merrill + jones = henry blodgett+ ethical analyst

merrill + jones= propreitary funds+ no conflict of interest

raymond james + jones= bank broker + real broker

lpl + jones= average prod under 150k + avg over 200k

youcanhatemeknow,

Dude....  There seems to be alot of anger built up in you.  This forum can't be taken too seriously.

Merrill + Jones = real platform with any investment choice + c-share

And how can you compare EDJ to Merrill?

Merrill + EDJ = $700k average prodcution + "over $200k"

And, last time I checked, RJ has three platforms, plus their bank structure.

P.S.

ML/RJ/LPL vs. EDJ  =  options strategies for income in flat mkts  vs.  uuhhh, which preferred fund family did you want to buy again

ML/RJ/LPL vs. EDJ  =  let me email that to you  vs.  email, heck we're lucky to have computers and pay $1400 a month for them

[quote=youcanhatemenow]

merrill + jones = henry blodgett+ ethical analyst

merrill + jones= propreitary funds+ no conflict of interest

raymond james + jones= bank broker + real broker

lpl + jones= average prod under 150k + avg over 200k

[/quote]

Did I misunderstand that, or did someone really suggest that EJs is "real", has "ethical analysts" and "no conflict of interest"?

Please be serious, you're comparing ML to the Amway of brokerage firms? 

To all ML out there- isnt it amusing to see all the misconceptions, jealousy and envy tossed out there??? Let them continue to think all they want, while we continue to manage the most assets, produce the most, and bring in the highest net worth accounts ( contrary to popular belief, we averaged an 11% increase YOY in accounts of 1 million plus.)…  Granted, there are some issues here (just like any firm), but when you add and subtract it all up- there is no comparison… It is what it is…

[quote=blarmston]To all ML out there- isnt it amusing to see all the misconceptions, jealousy and envy tossed out there??? Let them continue to think all they want, while we continue to manage the most assets, produce the most, and bring in the highest net worth accounts ( contrary to popular belief, we averaged an 11% increase YOY in accounts of 1 million plus.)..  Granted, there are some issues here (just like any firm), but when you add and subtract it all up- there is no comparison... It is what it is..[/quote]

Amen. The guy wearing the green polyester suit, standing on aged shag carpeting in his strip mall office will always have a burning jealousy issue with the guy in the Brooks Brother suit standing on a marble floor dealing with big clients. 

Henry Blodgett + $10 million for “supervisory and operational failures.” + $13.5 million fine for regarding the creation and retention of documents + $250,000 each for failing to comply with their discovery obligations in 20 arbitration case$97000 for Limit Order, Best Execution, and Other violations + $100 million in fines for issuing “fraudulent” research reports + several other fines must mean a great firm on an ethical basis.  Take a look at the 5-year number on analysts’ picks also.  I think the math speaks for itself.

I'm friendly with the local Merrill manager (have lunch once or twice a month), and he's one of the most stand-up guys I know.  Before I left Jones, he spoke with me several times about coming in with him.  I looked long and hard at the job, and in the end, decided that Merrill wasn't for me.  That doesn't mean that Merrill, and by extension, the local office is anything other than an organization of good, decent and talented people.  It means that I know I wouldn't have fit in.

I think that we, as financial professionals, can't seem to see the forest for the trees.  Abesent the occasional rogue broker, it's incredibly difficult to maintain a compliant company in the face of publicity seeking regulators who continually move the compliance target and expect these financial behemoths to keep pace moment to moment.  Instead of judging each firm by their last fine (and ALL are culpable at some point), we should be speaking with one voice.   

oops....I almost forgot....

   Another $25 million in fines for its alleged participation as a financier in the Sumitomo Corp. trading scandal + $80 Million on 2 Enron Transactions + $200 million toward the global settlement and the funds will go toward a fund to benefit customers of the firms.  That's a lot of Brooks Brother suits that got sent to the regulators.

My hands are tired from typing, I'd add more, but carpeltunnel is kicking in. 

"it's incredibly difficult to maintain a compliant company in the face of publicity seeking regulators who continually move the compliance target and expect these financial behemoths to keep pace moment to moment."-Starka

My Dear Starka,

Just go on the the NYSE site and look up all the arbitration decisions involving Merrill.  And start counting.  Those are just the ones that went to arbitration and didn't settle.  You would think the NYSE would just dedicate a site to Merrill.  It is not difficult to maintain a compliant company.  Just follow the Golden Rule.  These companies knew damn well what they were doing, don't you think for one minute they didn't. 

VFK, you may in fact be right.  However, I would expect the 800 lb gorilla to have the most arbitrations.  Additionally, their business model calls for them to use some very sophisticated strategies as well.  As you should know, the more complex the strategy, the more likely there will be some misunderstandings.

I should add that we all remember that each of us is one trade away from an arbitration.  It’s an humbling thought, and we should try to refrain from the “holier than thou” mentality as far as our business is concerned.

Look, you can't even relate the Blodgett mess to the Merrill Lynch broker.  The brokers had nothing to do with hiring any analyst.

ML + Ed= Analyst and great research + No research= Financial Planner + Car salesman= Hedge funds, options, money managers, exchange traded funds for the wealthy etc. + A share mutual funds

I don't work for ML.  I used to and moved to a fabulous regional/money manager and now I will be working for SB.  You can figure out where I work unless you are not familiar with great money managers/Bill Miller or you work for ED.

Oh, I forgot.   ML + ED= Great technology + NO technology= Emails + No email access

"VFK, you may in fact be right.  However, I would expect the 800 lb gorilla to have the most arbitrations.  Additionally, their business model calls for them to use some very sophisticated strategies as well.  As you should know, the more complex the strategy, the more likely there will be some misunderstandings"-Starka

Starka,

The majority of those were brought on by Mr. & Mrs. Jones.  Nothing complex about bad investments and unsuitable recommendations.  But you are right we are all one complaint away.  If you have been in the business long enough, you are bound to get one.  I do recall a broker who lost almost all $2,500,000 of a client's money trading stocks on margin.  Did the firm call him a crook, a rogue broker, or a thief...... uh-uh....they called him a President's Council member.  Make's you wonder.

When I was a teenager, I had the privelege of playing golf occasionally with a gifted and compassionate judge.  (It’s no coincidence that he was later appointed to the US Appellate Circuit.)  We’d talk about a lot of things during the day, and he apparently had a good time when I’d try to pick his brain about the law.  Once I asked him how, during the trial, he could bang the gavel and make more or less instant decisions that would affect the outcome of the trial.  In short, how did he know when someone was lying.  I’ve always remembered his answer:  “Follow the money, and you’ll know what happened.”

All the Major Firms are pretty much the same.... its the individual advisors who drive the business.  I don't sell the firm.... I sell My Team.

I think selling the firm can hurt you in the long run.  If your firm is in the news every other day and doing stupid things then the clients are mad at the firm and leave.

You can get great services & products anywhere if you are an objective advisor.  Sell yourself and do what's right for the client, and you will always have a book of business.

[quote=youcanhatemenow]

oops....I almost forgot....

   Another $25 million in fines for its alleged participation as a financier in the Sumitomo Corp. trading scandal + $80 Million on 2 Enron Transactions + $200 million toward the global settlement and the funds will go toward a fund to benefit customers of the firms.  That's a lot of Brooks Brother suits that got sent to the regulators.

My hands are tired from typing, I'd add more, but carpeltunnel is kicking in. 

[/quote]

Are you too tired to detail the fines of EJ and their "conflict free" Amway method of selling mutual funds? 

I think the point that a lot of people miss is that there is going to be a rogue FA anywhere. 

Do you realistically think that at Jones there aren't a handful of brokers that are churning assets to bring home more money so that mama can buy more shoes.  Or at Merrill, do you not think there is another broker that is selling a VA to an 80 year old with health problems? 

The bottom line is what Starka said about the 800lb gorrilla.  Someone once told me that SSB (one of my clients) should be ashamed for the $200M fine they got hit with last year and the $75M fine Jones received was nothing big compared to that.  Bottom line - Citigroup sneezes away $200M and hardly knows it, same with Merrill.  Jones gets hit with $75M and it's proportionally a much bigger deal. 

Now that RJFS has taken the big slap from the regulators, does this mean that indies clearing through b/d like RJFS are going to face the same sort of attention or was this in another RJFS channel and means nothing to the indies?

I just can't imagine that in this strong regulatory climate idies won't some day get equal attention.

It’s the banks that need looked at.

When I was a teenager, I had the privelege of playing golf occasionally with a gifted and compassionate judge.  (It's no coincidence that he was later appointed to the US Appellate Circuit.)  We'd talk about a lot of things during the day, and he apparently had a good time when I'd try to pick his brain about the law.  Once I asked him how, during the trial, he could bang the gavel and make more or less instant decisions that would affect the outcome of the trial.  In short, how did he know when someone was lying.  I've always remembered his answer:  "Follow the money, and you'll know what happened."

Damn Starka, I hate to admit it, you are much wiser than I'd ever imagined.  I must pay to you the ultimate compliment for someone in this business....your clients are lucky to have you as their advisor.  I appreciated the story.

Starka: Are you sure that quote (“Follow the money”) was from da judge or from deep throat?

From the judge.  Why?

When I was younger, I asked my parents if there was really a tooth fairy.  They said sweatly,“Little Frumhere, you want truth, you can’t handle the truth.”–>now I come to find out that someone used there line in a move.  

I guess they were right, no matter what Jack Nicholson said.