MWD FAs options

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Aug 15, 2005 3:17 pm

Anyone know if UBS, Wach, Oppenheimer or AGE is looking at MWD FAs that were let go last week? 

Aug 15, 2005 4:33 pm

Why would they look at people let go for under-performance?

Aug 15, 2005 4:58 pm

That's what I was wondering.  I have talked to a number of FAs that were let go and they were telling me to get in touch with SSB and Merrill for them.  I wanted to make sure I was up to speed and wasn't missing out on anything.

Aug 15, 2005 8:27 pm

The MS FA's better have a solid reason why they were expendable in the eyes of the new restructuring. My Director has gotten several calls from interested, recently departed FA's and has only scheduled a meeting with one of them... Even thought there was a strict criteria for letting brokers go, they will have some explaining to do... If I were on of the departed, I would be walking into the local branches with a fresh resume, asking to personally meet the branch manager/director. Time's ticking, and it may come off as more ambitous if they take the initiative to contact potential employers... But, I do understand that recruiters dont get paid if that happens, so its a crapshoot...

Aug 16, 2005 5:08 pm

I think some firms are concerned about image if they start scooping up Morgan's dregs (with all due respect, I am sure there are some good people out), and Will this hurt their recruiting efforts for bigger brokers.

Aug 16, 2005 7:17 pm

I wouldn't call those MS terminations dregs.  Not at all.  In
fact, as of three months ago they were perfectly welcome producers.



I can't imagine why any large wirehouse would be interested, to tell
the truth.  They operate the same way.  However, unless
things have changed in the past couple of years, the smaller regionals
like Piper and Stifel may be quite interested.  (Yes folks, you
can have a very productive, lucrative career at a regional--despite
what some folks want you to believe.  Plus you'll get better
treatment.)



That must suck to be only a few thousand UNDER the cutoff and have your
entire career ruined and YOUR clients stolen away like that. 
Tossed out like yesterday's garbage--should be a reminder to everyone
who works in this industry what it can be like.



"Sorry, Frank, even though you make money for the company, you don't
make enough.  So we are going to fire you and reassign your
clients--the clients you busted YOUR ass to get."



This should also give someone considering working for Morgan Stanley or any other large wirehouse something to think about.


Aug 17, 2005 9:31 am

Well-put, Inq.  I would be nervous.  Mack could steer this ship in the right direction, but anything is possible at this point.

Aug 17, 2005 10:42 am

"I wouldn't call those MS terminations dregs.  Not at all.  In fact, as of three months ago they were perfectly welcome producers."<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


"Perfectly welcome producers"? Not really. I don’t want to insult those who lost their jobs, but let’s be serious. We're talking about people above LOS 8 doing less than $225k in annual production. That’s simply pathetic.  Most were already in the "penalty box" of a 25% pay out until they passed 200K in production. They were already gently being shown the door.


There's a world of difference between being a "perfectly welcome producer" and just hanging on by the skin of your teeth. The overwhelming attitude I've heard about the cut is "why did it take so long".


Aug 17, 2005 1:18 pm

I am one of those "dregs" with 20 years with Dean Witter.  It was a great 20 years, loved my clients.  So what if I didn't churn my clients.


I can now retire at 45, thank you Phil P.!


The "pathetic" ones are those talking trash will still having to work for a firm.  I work for myself now.  I practiced what I preached.


I still miss those small accounts, they where fun to help.  Always great to see young investors trying to accumulate wealth.

Aug 17, 2005 1:53 pm

Did they offer any of the 'tenured' reps they let go some sort of comp. package or just cut you loose?

Aug 17, 2005 1:59 pm

There is a "sunset provision" for brokers over 55 that truely retire.  Something like 50% of commisions earned for one year after retirement.  The only package I got was a box to put my stuff in. 

Aug 17, 2005 2:43 pm
rickmwd:

I am one of those "dregs" with 20 years with Dean Witter.  It was a great 20 years, loved my clients.  So what if I didn't churn my clients.


I can now retire at 45, thank you Phil P.!


The "pathetic" ones are those talking trash will still having to work for a firm.  I work for myself now.  I practiced what I preached.


I still miss those small accounts, they where fun to help.  Always great to see young investors trying to accumulate wealth.



I don't want to make this personal Rick, and you really do have my sympathies, but please don't tell us someone with over twenty years as a rep has to "churn" to produce over $225k. After twenty years a reasonable asset base with a reasonable production rate will put you well over $225k. If you’ve gone off to be independent, I wish you the very best.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Aug 17, 2005 2:57 pm

It could be perceived as churning depending upon the amount of assets you have under management.  The key to this business is new money.  If no new money comes in, yes, then a lot of people churn to grow revenue.

Aug 17, 2005 3:41 pm
frumhere:

It could be perceived as churning depending upon the amount of assets you have under management.  The key to this business is new money.  If no new money comes in, yes, then a lot of people churn to grow revenue.


With twenty years to gather assets you don't need to "churn" to hit $225k. All you need is a reasonable amount of AUM which shouldn’t be a problem to meet after that much time. Even at a rate of 50 bps, it only requires 55M in assets, which after twenty years is very little.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


The insinuation is obvious, if you'd doing better than the bottom 10%, you must be churning. There are plenty of new people to the business here and there's no reason to spread that kind of misinformation in front of them. The more experienced people already know that isn’t true.




Aug 17, 2005 3:45 pm
rickmwd:

There is a "sunset provision" for brokers over 55 that truely retire.  Something like 50% of commisions earned for one year after retirement.  The only package I got was a box to put my stuff in. 


When the word first went out, the end of July, did you have an inkling you might be effected? Do they provide you with information about where you rank in the entire company and within your LOS? Were you already in the reduced payout "penalty box" and if so, how many years were you there?



 Just trying to spread some information here to those not involved.

Aug 17, 2005 4:25 pm

I don't think the cards were tipped for all to see, but I would think someone in that bracket should have seen it coming.

Aug 17, 2005 4:41 pm
rickmwd:

I still miss those small accounts, they where fun to
help.  Always great to see young investors trying to accumulate
wealth.





Aaaaaaaaaa!  You sound like someone who actually enjoys helping
people with their investments.  You sound like someone who enjoyed
his work.  No no no no!  That's not the way the business
works anymore!  Gather as many assets as you can.  Then
gather more!  Make as much money as you can at all costs!!! 
Then next year, make more!!!   Money money money money! 
F*** the little people.



I'll bet you even like talking about investments and the market in social situations, don't you? 

Aug 17, 2005 4:44 pm

"F*** the little people. "


Oh, that's just silly. You don't have to "f***" anybody to hit $225k after 20 years.


Aug 17, 2005 4:51 pm

There is a fine line that seperates an advisor who is not making the cut, and one who has a lower priced comfort level. what's wrong with a guy who is very content with a level of production  that gives them an income of $125,000. It'sfunny that when you are highered, management paints a picture of you running your own business, the way you want it. Eventually, they are always wanting you to do more.  

Aug 17, 2005 5:57 pm

Last year I did 211k.  62 million under management.  Spotless U-4. Mostly bonds and long term stock holdings. I have never been in the penalty box. I was 80% transactional business.  Taxfree, CMO's and Treas....MS cut the commisions and we are at a 40 year low in rates.  Did it cause me to fall below $225k?  Yes, last year.  Did they give warning? Maybe to the guys below 200k.   BTW I was a "Sears Broker" and liked it.


Sorry to offen so many using the "churn" word.  The new term for that is managed money, wrap accounts, etc.  Please don't bother to respond to my post. I will not read them. Like I said I am retired at 45.  Reading these posts take me away from things I'd perfer to do and piss me off. Not much can be done now anyway.  I'll have a margarita and think of how lucky I am.  If you are unable too to the same, then try.