MSSB the new MER?

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Apr 5, 2009 8:13 am

Thoughts.  I'm sure that this has been a topic that has posted before, but perhaps perspectives are new this time around.

 
The largest brokerage force without being under the umbrella of a large bank like BofA or Citi.  The latest news I see is that people are going to Morgan and SB.  Usually a sign of desperation is the firm that offers the largest packages and I read that now Merrill is now the highest overtaking UBS.
Apr 5, 2009 9:59 am

Facts? Figures? Guesstimates?

Anything?

I heard that UBS was doing 220 packages last fall. I never saw anyone get anything that high, but heard it through the grapevine.

Apr 5, 2009 4:28 pm

wasabi -- you mean 260



but UBS is now 220 (MS,BAC,SB) are all at that level too (100 to 120 upfront with 100 in 2 and 3 yr backends) all over 9 yrs.



the 260 may seem big but the talent that UBS acquired over last 100 days is unbelievable, major upgrade for a firm that wants to be about 7-8k FA's servicing large wealth centers and not having a branch in every strip mall.



In 3 years that 260 (amortized over 9) will be worth it.



not to take anything away from Morgan. they are doing a good job as well and they have had the high deal off and on for the last 2 years (especially the 180% upfront they had just for UBS in retaliation for UBS taking gormans own FA)

Apr 6, 2009 8:00 am

UBS packages were 265% in my area as of last fall.  Don't know where they are now. 

Apr 6, 2009 8:16 am

They are now 400% in my area but you get canned on April 20th and then have to pay it back.

Apr 6, 2009 9:36 pm
NOVA:

They are now 400% in my area but you get canned on April 20th and then have to pay it back.





Wow, pray Obama doesn't institute a stupid tax. You'd be broke!

Apr 6, 2009 9:37 pm

no they where 260 with 165% upfront --



Bt as I said now 220 with 120 upfront; only good for Q1/Q2 fa's in both AUM & T12 have to have 50% fee based and only MS,MER,SB,WS fa's no bankers.

Apr 7, 2009 7:51 am

I was trying to be funny.  I'll try harder next time.

Apr 7, 2009 9:49 am

I heard that, after the merger, MSSB will be promising 260% deals, but paying in peanuts and laughing all the way to the bank... that doesn't control them. Jump on the gravy train now!

IMO, everyone should cut a deal as soon as possible... don't wait until the last second, before trans packages, payouts and comms are obsolete and everyone is making salary. Yay!

Apr 7, 2009 1:01 pm

Merrill has been the top dog for so long and I still think they will stay on top. It does not matter how many FAs are at a particular firm - profitability and  production per broker is all that matters, and I hate to say it - but I do not think we will catch them with this JV.


I have noticed ML is not popular on these pages...why? I have worked for SB my whole career and I have always thought ML was a good shop...what am I missing???
Apr 7, 2009 2:29 pm

They were highly praised here six months ago, but after B of A acquired them, they've taken some serious abuse. I suspect it's mostly due to the speculation that their culture and autonomy will be destroyed by the bank.


Does anyone here think ML will eventually split from B of A and become a stand-alone firm again?
Apr 7, 2009 2:39 pm

I hope so.

Apr 7, 2009 3:00 pm
Borker Boy:

They were highly praised here six months ago, but after B of A acquired them, they've taken some serious abuse. I suspect it's mostly due to the speculation that their culture and autonomy will be destroyed by the bank.


Does anyone here think ML will eventually split from B of A and become a stand-alone firm again?
 
I do.  I am guessing they will be taken private again at some point.  I think there may be some other firms that will ultimately move in that direction.  If there was more capital floating around, now would be the time to do it due to the depressed stock prices.  I think that ship has sailed, though, for MSSB and Wachovia/WF.
 
Alternatively, BoA could look to strip away all the excess costs, leaving just the highest producing FA's, then sell it to the highest public bidder once they realize it is truly not one of their core competancies.  Or just spin it off to a separate company because the parts are more valuable than the sum.  A classic case of buy low/sell high.
 
I never thought the BoA/Merrill marriage would last more than 5 years.
 
 
Apr 8, 2009 7:51 am

Igrift, I agree.  I've worked for MER my whole career and am now transitioning to SB.  Essentially, when I started MER had FAs as their core business....now, FAs are an ancillary business behind the larger businesses of banking, lending, mortgages(countrywide(changing names next month by the way to BofA Home Loans), and credit cards(MBNA).  I felt proud to be MER when I was the big division of the company and I'm going to MSSB to be the big division of the company again.

 
Any thoughts on my belief that MSSB is becoming what MER once was and MER is becoming a smal division of a large bank(similar to SB under Citi)?
Apr 8, 2009 6:40 pm

Mer to MSSB,



You're exactly right. MSSB will be the only wire that is a true wealth management firm and not just a small piece of a large bank.

Apr 8, 2009 10:46 pm

Your correct.

 
John Mack is the f&^%$ man.
Stole SSB
dodged subprime
 
ms/ssb the new heat