40% Cut in Pay for Merrill Brokers

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Nov 18, 2009 6:42 pm

I was talking to some of my friends still at BAI, errr Merrill Lynch and was wondering what the thundering herd thinks of having a 40% cut in the grid on all leads/referrals provided by the bank? 

Its not too late.  Get out and save yourselves like the rest of us have already done!!  McCann should have no trouble picking off Merrill Brokers as the bank puts in more and more of its screw the broker policies.  This 40% haircut is only the first of many to come.  You have a new daddy now.  Get used to it!

Nov 18, 2009 7:45 pm

Daddy? Sally is da new mommy!

Nov 18, 2009 8:20 pm

Haven't heard anything about this.  When was this announced?


What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts.  Checking accounts, by the way, that we can't even see/follow on our screens!  Oh, and did I mention my clients already have checking accounts.  Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity. 
Nov 18, 2009 8:26 pm

Banks and brokerages never mesh...Look at JPM, at least they don't try to and a "real" brokerage firm. Sure they have Bear Stearns for High End and advisor in branches, but the advisors in branches is just for conveinience and stickyness of their bank clients..

Nov 18, 2009 8:47 pm
Winston Smith:

Haven't heard anything about this. When was this announced?

What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts. Checking accounts, by the way, that we can't even see/follow on our screens! Oh, and did I mention my clients already have checking accounts. Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity.







The best part is when you open the new accounts for your clients which you don't get paid on, you will have to pleasure of getting all of the service calls going forward.   Get ready to learn how to order checks, atm cards, set up overdraft protection, rebate fees....etc.



If you are a ML legacy broker, whatever you do, don't sell banking products. That will come back to bite you!

Nov 18, 2009 8:55 pm
Omar:
Winston Smith:

Haven't heard anything about this.  When was this announced?



What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts.  Checking accounts, by the way, that we can't even see/follow on our screens!  Oh, and did I mention my clients already have checking accounts.  Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity. 




The best part is when you open the new accounts for your clients which you don't get paid on, you will have to pleasure of getting all of the service calls going forward.   Get ready to learn how to order checks, atm cards, set up overdraft protection, rebate fees....etc.

If you are a ML legacy broker, whatever you do, don't sell banking products. That will come back to bite you!



I asked the BAI banker lady about why I would do this even though my clients already have checking accounts and I don't get paid on these new ones and can't even help a client follow the activity and she said something about being a "team player" and that her kid is in college.  Again, I'm not even joking.   I'm going to stop thinking now so that Ken doesn't hear me.
Nov 18, 2009 9:06 pm
Winston Smith:
Omar:
Winston Smith:

Haven't heard anything about this. When was this announced?



What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts. Checking accounts, by the way, that we can't even see/follow on our screens! Oh, and did I mention my clients already have checking accounts. Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity.

The best part is when you open the new accounts for your clients which you don't get paid on, you will have to pleasure of getting all of the service calls going forward.   Get ready to learn how to order checks, atm cards, set up overdraft protection, rebate fees....etc. If you are a ML legacy broker, whatever you do, don't sell banking products. That will come back to bite you!





I asked the BAI banker lady about why I would do this even though my clients already have checking accounts and I don't get paid on these new ones and can't even help a client follow the activity and she said something about being a "team player" and that her kid is in college. Again, I'm not even joking.   I'm going to stop thinking now so that Ken doesn't hear me.





Don't worry, Ken is on his way out. He was tired of selling checking accounts too.



No, seriously, don't give in and sell bank products. It will only make your clients more sticky to the firm if you ever leave.

Nov 18, 2009 9:22 pm

Winston

No disrespect, but i just cannot believe you arent joking about those stories.
Team Player?
Nov 18, 2009 10:39 pm
floridabroker:

I was talking to some of my friends still at BAI, errr Merrill Lynch and was wondering what the thundering herd thinks of having a 40% cut in the grid on all leads/referrals provided by the bank? 

Its not too late.  Get out and save yourselves like the rest of us have already done!!  McCann should have no trouble picking off Merrill Brokers as the bank puts in more and more of its screw the broker policies.  This 40% haircut is only the first of many to come.  You have a new daddy now.  Get used to it!




 
I don't know the official details, but:
 
1- The conversion rates on referrals form the Bank side has been very poor so far.
 
2- I think the haircut in payout is only for a year or two, then it kicks up to full grid.....
 
This would never be a reason to leave......If they give you 5 leads, and you convert 2, but at a lower payout, it's still 2 new relationships.......
 
There are plenty of accounts I brought in over the last year that needed a discount on a wrap fee or on individual trades......I was still more than happy to bring it in and take the gross...... 
Nov 18, 2009 10:41 pm
Winston Smith:

Haven't heard anything about this.  When was this announced?


What I have seen lately, unfortunately, is threatening emails to us in the branch that our complex is not opening enough $10,000 Bank America checking accounts.  Checking accounts, by the way, that we can't even see/follow on our screens!  Oh, and did I mention my clients already have checking accounts.  Haha I'd really be laughing if my CA didn't come to me crying this week because she thinks she's going to be fired if she doesnt call the clients on this "campaign"... I wish I was joking...it's insanity. 

You are suppose to see them on PMAC......There's probably a lag of a month or two, but you'll be able to see them soon......
 
I don't know about CA's getting fired, but they do get some money for each account opened, which is why they are involved in the push.....
Nov 19, 2009 7:32 am

Yes, she does get paid. $75. But the CA's have no option not to do it when they are being threatened that if they don't open enough it will effect their next years comp. To me, this sounds like the checking account equivalent of the mutual funds sales contest saga of '02. These idiots never learn. True f'ing story (tfs).

Nov 19, 2009 9:56 am

Nov 19, 2009 10:03 am

I was told it was going to be a win-win.

Nov 19, 2009 10:14 am
Winston Smith:

I was told it was going to be a win-win.



When your BD says it is a win-win it time to reach for your wallet, because you are gone to pay.


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Nov 19, 2009 10:43 am

I was swallowed up by BAC from Quick & Reilly.  The bank product push always starts out innocently but ends horribly for the FA.

 
1. Extra pay for those willing to "help" the clients (ie $75 to the CA's now).
 
2. Permission to call your clients with an innocent script.
 
3. New scripts rolled out to start selling your clients CD's, mortgages, safety deposit boxes, pretty ATM cards.
 
4. The extra pay turns into a deduction of your pay if you DON'T do it (BAC's trail grid, about 8% lower than the normal grid and you get to "earn" it back).
 
5. New bankers getting hired by BAC to just cold call all your ML clients, whether you want them to or not.
 
6. Economy crashes and all those new bankers are let go.
 
7. Your clients can now only call you to order new Nascar checks.
 
Bottom line, don't do it.
Nov 19, 2009 10:53 am
mlgone:

who didn't see this coming. I did in Feb 09 when I was told I was assigned a "bank specialist" to review my book.





Wow. So much for client privacy. I'm sure the ML new account forms signed a decade ago included some language about BAC "bank specialists" reviewing their accounts for ways to generate more revenue.

Nov 19, 2009 10:53 am

That doesn't sound like a win-win at all.

Nov 19, 2009 10:54 am
Incredible Hulk:
mlgone:

who didn't see this coming.  I did in Feb 09 when I was told I was assigned a "bank specialist" to review my book.



Wow. So much for client privacy. I'm sure the ML new account forms signed a decade ago included some language about BAC "bank specialists" reviewing their accounts for ways to generate more revenue.

 
Good point.  Aren't they beefing up, or already did, SP laws so that affiliates can't use client information without the client's consent?
Nov 19, 2009 11:43 am

After working for SB during the Citi takeover...it is clear that BofA will wreck ML the same way Citi tried to do SB.

 
Last one out the door at ML turn the lights off!
Nov 19, 2009 12:26 pm

Quit griping about getting a haircut on a referral you didn't have to cold call or network for.  40% off of something is better than nothing.