Left wachovia securities....retention question

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Feb 9, 2009 6:51 pm

Our branch recently left Wachovia Securities and today received our letters stating we need to pay back the balance of our promissory notes within ten days or else.  We are all legacy A.G. Edwards employees.  Has anyone challenged this and how has it turned out?  We understand we are in violation by not paying but we also feel Wachovia Securities did not live up to their end of the contract.  We have heard rumors of people negotiating down the amount they owe.  We have thought about having a letter drafted by our attorneys stating what I mentioned above.  Does anyone have first-hand experience with this?

Feb 9, 2009 6:53 pm

I dont have any knowledge, but would love to know the results.  Where did you go?

Feb 9, 2009 6:57 pm

Could see this topic with 100,000 views in a couple months.

Feb 9, 2009 7:00 pm

Most firms will settle it for 50% -75% of what you owe. It depends on how hard your former bom wants to press it. It hits his P&L as an immediate debit and he will want your offsetting credit ASAP.

Feb 9, 2009 7:08 pm
fritz:

Could see this topic with 100,000 views in a couple months.

+1
 
I have read that the the compliance/legal dept of the firm that people have moved to have handled the repayment/negotiation.  
 
If you went  independent then getting your lawyers involved seems like the right idea.
Feb 9, 2009 7:16 pm

your new compliance department / legal will not go near it.



Its between you and WS. You signed a forgivable loan / contract and broke it so you owe the money. they will settle to avoid the 25% of legal fees it will cost for them to win. and they will win.

Feb 9, 2009 7:19 pm

ABOM:   People on this forum have said that their new firm deducted it from their upfront money and sent a check back to the old firm.

 
I don't recall if they said the new firm had got involved in negotiations though.
Feb 9, 2009 7:31 pm
ABOM:

your new compliance department / legal will not go near it.

Its between you and WS. You signed a forgivable loan / contract and broke it so you owe the money. they will settle to avoid the 25% of legal fees it will cost for them to win. and they will win.

 
Curious what happens when brokers just leave the business?  From what Ive seen at MS they do not ask for the money back.
Feb 9, 2009 7:33 pm

Explain that Wells Fargo got $25 billion in taxpayer funds courtesy of the TARP, and show them a copy of your tax returns.

Feb 9, 2009 7:35 pm

Send a list of clients who left saying "it's not you, I just don't know about Wachovia"

Feb 9, 2009 7:48 pm

Please tell me how a whole branch leaves. Thought WS would have a problem with that kind of an exit. Did manager go as well?


Thanks
Feb 9, 2009 8:16 pm


"Curious what happens when brokers just leave the business? From what Ive seen at MS they do not ask for the money back."





That would be true for the re-payment of training cost. defiantly not true of a recruit/retention EFL. I was at MS they go after EFL's hardcore, have an attorney that thats all he does.

Feb 9, 2009 9:28 pm

Am also curious about whether your entire branch left.  Have heard that WS considers it "raiding" and acts swiftly if they think an entire branch is leaving.

Feb 9, 2009 10:16 pm

We left and went independent.  What bothers me the most is the email we received from Bob Steele on that one Friday telling us what great shape Wachovia was in.  48 hours later we were on the verge of bankruptcy and the stock opened at $.90 on Monday.   Unless you went through it, you really have no idea.  I really think we would have a good chance keeping a portion of it.

Feb 9, 2009 11:03 pm

Just pay it back.... you borrowed the money, have a promissory note, and owe them the cash.



If you are a total ass, and feel compelled to break the terms of your loan for 'other' reasons, I'm confident that they could fight you on it, and will win.



Try to negotiate something... can't hurt, but be prepared to 1.) pay up, 2.) pay their attorneys expenses, and 3.) have a knock on your FINRA disclosure that shows you left with an unsecured loan outstanding.



You are just asking for trouble by not paying them back what you owe - just my take.



C

Feb 9, 2009 11:16 pm

You should absolutely not pay it back, in fact WS should give you some sort of severance for all the bullshit they put their employees though last year. Be honest, if WB had not screwed up so badly, you would still be there.  F them.

Feb 10, 2009 12:07 am
Captain:

Just pay it back.... you borrowed the money, have a promissory note, and owe them the cash.



If you are a total ass, and feel compelled to break the terms of your loan for 'other' reasons, I'm confident that they could fight you on it, and will win.



Try to negotiate something... can't hurt, but be prepared to 1.) pay up, 2.) pay their attorneys expenses, and 3.) have a knock on your FINRA disclosure that shows you left with an unsecured loan outstanding.



You are just asking for trouble by not paying them back what you owe - just my take.



C



I think the point that Cap is trying to make here is simply this:  What is more important to you, to win a fight over this money with WS, or wrap up that loose end so you can move on with the rest of your life and make a big pile 'o dough.

Feb 10, 2009 7:23 am

It is a matter of principal, WS/WB/Ludeman broke it, they need to pay for it.  Same thing for the guys leaving MER.  If it was me, I would fight them tooth and nail.  It is one thing to be recruited away from a successful firm, but WS was not, the bad decisions of management, and the unethical nature of the firm has pushed people out.  The certainly didn't live up to their end of the deal.

Feb 10, 2009 7:24 am

Guys & Girls, little help here.  I agree that while you may be able to negotiate the amount remaining on the retention, you will ultimately have to pay something back.  My question revolves more around an entire branch that is wanting to move.  Anyone had any experience with that, or with a branch where the bulk of the production left?  Thanks.

Feb 10, 2009 7:25 am
mnbondguy:

It is a matter of principal, WS/WB/Ludeman broke it, they need to pay for it.  Same thing for the guys leaving MER.  If it was me, I would fight them tooth and nail.  It is one thing to be recruited away from a successful firm, but WS was not, the bad decisions of management, and the unethical nature of the firm has pushed people out.  The certainly didn't live up to their end of the deal.




What did the contract say that leads you to believe this?