Some BAC brokers quitting tomorrow

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Mar 30, 2006 8:33 pm

Word on the street is that there will be several brokers leaving tomorrow (after their paychecks hit the checking account).  This is in the Legacy Quick & Reilly footprint in the Northeast.  Not the usual scrubs dropping out of the business, either.  Anyone hear anything else?

Mar 30, 2006 10:06 pm

True    March has been a tough month for BAI ...april,may and june will be worse.


Then again BAI doesnt give a damn about losing quality people,They are being replaced by A.G ED brokers with next to nothing in trailing 12.Their new hires are led to believe that premier will make their life easy


HA HA HA HA   GOOD LUCK


Mar 30, 2006 10:34 pm
waterboy:

True    March has been a tough month for BAI ...april,may and june will be worse.


Then again BAI doesnt give a damn about losing quality people,They are being replaced by A.G ED brokers with next to nothing in trailing 12.Their new hires are led to believe that premier will make their life easy


HA HA HA HA   GOOD LUCK




Has AG Edwards been losing a lot of brokers? What changed? Excuse my ignorance.

Mar 30, 2006 11:27 pm

I don't know if AGE is specifically losing a lot of brokers but Bank of America is bringing over many inexperienced reps that don't do their homework before signing on. Their suckering them with, "The Branches and the Premier Bank have monthly investment referral goals of $650,000 to you."  In reality, they can hit their goals without doing a cent of investment referrals by doing mortgages and loans.  Or they'll throw out "The Private Bank (of BAC for high net worth clients) can only take on clients over $3 million so anything less than that, such as those poor clients with only $2.5 million investable assets have to go to you."  Actually, Bank of America's Private Bank thinks that the Financial Advisors are morons and do anything to avoid referring to them.  Oh well, it's kind of nice seeing management look so confused and nervous these days. 

Mar 31, 2006 8:55 am

AGE adjusted their comp structure for non-fee based biz.  Many of the reps who aren't heavy in managed money are seeing a pretty big decrease in income as a result.  Big groups are looking at possibly leaving together.

Mar 31, 2006 9:02 am

why would a bac broker leave today when fee based will hit the grid 15 apr.? unless they are majority transactional.

Mar 31, 2006 10:02 am

good point ez. May 15 will be the day you see departures if there is any. My bet is if they screw everyone on the 1/4 bonus you will see an mass departure

Mar 31, 2006 2:52 pm

[quote=BACFA] "The Branches and the Premier Bank have monthly investment referral goals of $650,000 to you."  In reality, they can hit their goals without doing a cent of investment referrals by doing mortgages and loans. "

If the branches and Premier have investment goals, how do they bypass this and just do only mortgaes and loans? SOunds kinda strange. Also, that's alot of referral they're asking from the Premiers, 650,000k.

Mar 31, 2006 4:00 pm
Dirk Diggler:

Has AG Edwards been losing a lot of brokers? What changed?



Not that I know of.  AG Edwards has been doing well lately.




Mar 31, 2006 7:14 pm

The banker asks.


If the branches and Premier have investment goals, how do they bypass this and just do only mortgaes and loans? SOunds kinda strange. Also, that's alot of referral they're asking from the Premiers, 650,000k.
 


They have combined goals invest/mtg/loans  $11 million per qtr..One way they cheat the system is getting clients out of cd`s and/or savings acct and open a self directed brokerage acct( bypassing the advisor) using a money mkt fund yielding 3.75% apy.


They are using mm funds that pay nothing to advisor.Thats why they go the self directed way.


Whoever goes there will be MISERABLE.


GLAD TO BE FREE FROM THAT HORRIBLE ATMOSPHERE

Mar 31, 2006 7:20 pm

What's the payout like at Bank of America?

Mar 31, 2006 9:37 pm

B of A has two grids: one for brokers with less than 5 years experience and one for greater than 5 years.  Within your length of service, there's also a separate grid for your trail business. This includes all C share and L share (from annuities) trails.  A little known fact is that the original 2006 comp plan was going to shove the managed wrap fees into the diminuitive trailer grid as well. It was pulled out at the last moment but I wouldn't be surprised to see it in there next year.


Less than 5 years experience Production:



$0-400K = Revenue 31%, Trailers 23%
$400-500K = 34%, 26%
$500-600K = 36%, 27%
$600-700K = 37%, 28%
$700-800K = 39%, 29%
$850-$1 million = 40%, 30%
over $1 million = 41%, 31%

Greater than 5 years experience Production:



$0-200K = Revenue 20%, Trailers 15%
$200-250K = 25%, 19%
$250-300K = 28%, 21%
$300-400K = 31%, 23%
$400-500K = 34%, 26%
$500-600K = 36%, 27%
$600-700K = 37%, 28%
$700-800K = 39%, 29%
$850-$1 million = 40%, 30%
over $1 million = 41%, 31%

In other words, if you're allergic to money, B of A is a great place to work.

Mar 31, 2006 9:40 pm

Wow! Are you still there? Are you allowed to do outside insurance business? If so, send me a PM.

Mar 31, 2006 9:49 pm

I'm still here but I've been looking around and checking out wirehouses and other banks.  However, reading this forum has really stirred my interest in going independent.  Not sure what you mean by "outside insurance." 

Apr 1, 2006 1:28 pm
BACFA:

I'm still here but I've been looking around and checking out wirehouses and other banks.  However, reading this forum has really stirred my interest in going independent.  Not sure what you mean by "outside insurance." 


I was bank channel and made the leap to independence last summer...best move I ever made.  If you're tired of politics, low (an lower) payouts, endless meetings (pep sessions), managers who play favorites, and ridiculous, unnecessary overhead (I know, redundant with managers), then you might want to take a hard look at life as an independent.  Everything I see confirms what I was originally told by many...if you want to do indy right, look at Raymond James and LPL.


Outside insurance just means that you can offer fixed insurance products away, or apart from, your broker dealer.  LPL allows me to do this, but I seriously doubt that a bank would allow it.


See my sig line below...I 100% believe in that statement...and don't think for a minute that Jones or Wachovia are truly independent platforms.  Those models are a far cry from what I saw at RJ and LPL.  Good luck in your search for the right answer...

Apr 1, 2006 2:07 pm

It's Saturday...those reps actually leave?!!

Apr 3, 2006 11:34 pm

3 guys left.  Talked to some of the others and most are waiting until the May 15 check.  A few of them have significant trails ($50K or more) paying in April (hence the May 15 paycheck).  At B of A, separately managed accounts do not get the fees "fronted."  So we don't really see anything until that quarterly fee gets paid.

Apr 4, 2006 9:21 am

Looking at that grid and considering all the political B.S. I can't imagine why ANYONE would want to work there.....or at least not ANYONE who could get a position anywhere else!

Apr 4, 2006 9:54 pm

Believe me, a lot of brokers (myself included) are fools for staying this long.  We took a huge revenue hit when we converted our business to fees and trails in 2005, expecting that we would build from there in 2006.  Nobody thought the grid would look like that in 2006.  Especially that awful trailer grid, which kind of demeans the effort that we put forth in 2005.     

Apr 4, 2006 10:12 pm

So true....they roll out fee based in March 05 ,reduced annuity payouts by 40% and sell it to us that we are creating a better future by annuitizing our book.  WHAT A FOOL I WAS TO BELIEVE THEY WOULDNT MESS WITH US LESS THAN 1 YR LATER.


Glad to see N.E reps leaving.