[quote=joedog]To be fair, EJ does very little IB and underwriting. The bond traders are salaried and they do not receive commissions for their trading positions. Hard to believe, but they really don’t.

However, EJ really does have one profit center - the GPs.

JoeDog


[quote=csmelnix]

Jones has one profit center the IR! COME ON - you mean the underwriting, IB business, and the bond desk aren't profit centers? Wow, you really have been brainwashed.

[/quote]   [/quote]

Didn't Jones get fined 300K for Bond markups?   It's the Kool Aid 

Exactly,

Regardless of how little they do it's a profit center - if it wasn't the advisors would be able to go to other bond desks (through Jones) for more product. 

The mutual funds in the Preferred Families paid extra incentives to Edward Jones in return for Edward Jones soliciting/recommending its clients to purchase these funds. The SEC determined that the incentives were worth tens of millions of dollars each year to Edward Jones, on top of the commissions and other fees Edward Jones received for selling Preferred Families funds. The incentives proved to be powerful motivators, as more than 95% of all Edward Jones mutual fund sales were made in these 7 Preferred Families.

However, this incentive program was not adequately disclosed to the clients of Edward Jones. This left clients of Edward Jones unaware that Edward Jones had a strong motivation to recommend the purchase of the Preferred Families to the exclusion of the other fund families they could recommend, regardless of the client’s best interests.

On the date that this settlement was released, the California Attorney General (press release, Complaint) filed an additional suit against Edward Jones. The California Attorney General stated that he did not believe that the $75 million settlement was sufficient. The California Attorney General also stated that Edward Jones could have accepted up to $300 million in improper payments.

Edward Jones has also entered into a settlement with the securities regulators in its home state of Missouri. In the settlement Edward Jones stipulated and agreed to findings that it failed to adequately disclose the revenue sharing arrangements to Missouri residents and agreed to pay fines totaling $1.5 million. (press release)

If you have lost money while invested with Edward Jones, please contact us today. We can determine whether Edward Jones violated your rights.

We help people who have suffered losses as the result of investment fraud such as this and will work on your behalf to recover losses that you have sustained.

Maybe jones should get fined ANOTHER 300K for bond MARKDOWNS. I recently was asked to bid competitively on several GM/GMAC bonds held by a (former) jones customer. 30 to 50M pieces (not 5s and 10s) and our bids on 6 diff items (GM/GMAC was ALL the cust. held. That’s a whole 'nuther story). Our bids through our bonddesk system ranged from 1 1/4 pts to 7 POINTS better. Yeh, and before y’all start in, the bids were about 30 min. apart. Needless to say that former jones customer is now MY CLIENT. How’s it go? Client’s interest first? Most ethical firm on the street? BULL$T, These Aholes will NEVER be able to recognize the truth.

Interesting article in the On Wall Street magazine.  Average income for a Jones client listed at $40K with a net worth of $200K.  Good read for all.

"Didn’t Jones get fined 300K for Bond markups?   It’s the Kool Aid"



True, but the traders didn’t earn a dime out of those trades. That went to the firm’s profit center - the GPs. (Less the 30% to 40% payout to the reps).



JoeDog

The Kool Aid is very strong.................

New Revenue sharing:

GP to new IR "Bend over" it's time you learn about Revenue Sharing........you get the SHAFT, GP'S get the GOLD.................OH, YEA...............

Isn't that easy..................