Merrill vs BAC

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Sep 15, 2008 1:10 pm

Currently at Merrill should I leave now that we are owned by BAC

Sep 15, 2008 1:15 pm

What happens with our no compete?

Sep 15, 2008 1:32 pm

I would definitely be shopping around.  It depends on your AUM and LOS.  If you're asking us, you probably won't have a retention package.

 
There will be much bigger things to go after than your non-compete.
 
I believe it's always better to leave on your terms as opposed to someone else's.
Sep 15, 2008 2:00 pm

Stay put, there are worse fates than being sold to a bank.

 
Admittedly, i've not looked at the details of this deal, but if it's anything like most bank/broker marriages little will change at your level.
 
You should hope and pray the deal sticks and closes. Of course at 29 bucks a share it ought to.
 
Lastly, a retention deal is coming to broker near you. In fact you will be getting a retention deal of some sort. Hang in there.
 
 
Sep 15, 2008 3:45 pm

Thanks everybody.  I appreciate your input and feedback.

Sep 15, 2008 9:22 pm

former bac guy here. I have no idea how they think they will pull this off. BAC is terrible at running a brokerage firm and they're going to integrate the biggest one??? The only asset Merrill has is their army of advisors. there will be major adverse selection with who stays ( not to insult anyone considering it, but if you believe in the 80/20 rule, there is no way the top 20% of merrill advisors swallow the pill BAC will try to pass off).

 
Anyone else feel we're bordering on enormous regulation being imposed similar to the New Deal? Wall street as we knew it is a memory. 
Sep 16, 2008 11:55 am

I read in another post that Merrill will be keeping their name and absorbing BAC advisors?

 
Can anyone corroborate this?
Sep 16, 2008 2:09 pm

Merrill is going to absorb all of <?: prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />BAC’s brokers and their subsidiaries, i.e. Quick and Riley ect...  Merrill will also absorb BAC’s Investment banking.  The Brokerage and Investment bank will keep Merrill’s name. 


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How this all plays out will be interesting.  For me personally I’m in my fifth year of production and a mid-level producer. I can see mid-level producers like myself getting pushed out.  I believe the large producers will get large retention packages, whether they are from BAC or MER.  We are hearing they may increase payouts to top producers and cut payouts to lower producers. 



What is everybody else hearing?


Sep 16, 2008 2:25 pm

That's tough, harsh. Goodluck with what you decide to do.

Sep 19, 2008 3:51 pm

I'd be worrying where they're gonna find the $7B in 'cost cuts'?

Sep 19, 2008 3:55 pm

Real Estate and overhead.  Typically, the brokerage people do not get laid off (since those are the only units actually making money right now).

Sep 19, 2008 9:06 pm
harshworld:

Currently at Merrill should I leave now that we are owned by BAC



My opinion, which is only an opinion....

If you are low to lower mid tier FA then leaving will be more financially rewarding.  If you care about you clients more than a "quick" buck then hold out an give it a shot.  The deals should always be there.

Think about the good and bad things about being "acquired" by BAC.  Write out the list and use the +s and -s in your decision.

One strange thing that I think was eluded to in this topic....while it BAC acquiring ML, the reality is that the ML Wealth Management Group is taking over the BAC group.  I've seen that happen in other companies and being on the ML side is a good thing...but be careful when listening to me...I've drank a lot of Kool-Aide.

--WM

Oct 13, 2008 8:42 am

Any word on the ML retention package?

Oct 13, 2008 7:06 pm

My opinion is the guys under 500k will get the short end of the stick.  when i was at bai they cut payouts significantly for guys under 300k and lumped everyone into 1 category regardless of LOS.  luckily i wasnt in that camp.  i believe payouts after witholdings were around 25% or so.  i heard rumors that they were going to raise the threshhold to 500k and cut payouts for anyone under 500k but postponed since they had a exodus of advisors.  with the new merrill reps im sure the 500k plus guys would be ok but the rest are screwed unless they can quickly ramp up there production in this environment.

Oct 13, 2008 7:19 pm

I would feel sorry for the merrill guys. But hell that firm/reps has screwed alot of people over the years, so they get what they decerve. I hope they have fun working for the worst bank ever! Good luck. you'll  need it more than ever, and the likelyhood is, it won't do you a lick of good.

Oct 13, 2008 7:58 pm

I am very comfortable with the merger as I have mentioned.   They have combined two major powerhouses, and in times like these, that is a very positive thing to my clients.

Oct 13, 2008 9:17 pm

What happens to retention dollars with the U.S. government buying stake in BAC / MER?   
Any impact?

Oct 15, 2008 5:17 pm

I heard rumor that the BAI retention deal was announced today. Can anyone confirm or offer more?  I've heard from 2 separate sources and both were very neg. 

Oct 15, 2008 5:39 pm

I heard that a small Merrill "satellite" office in my area is being forced to move into the local BAC branch, because it has space. There are only 5 advisors, so space is not an issue. But man, not the image you're trying to portray. However, the local BAC branch is at least in a historical building, so it at least "looks" nice.

Oct 17, 2008 12:00 am

Just wait until they make you account for the paper clips. Ever heard of Six Sigma? Some guy at the bank gets paid a lot of money to sweat the small stuff.