UBS - Rumors sale of WMUS

or Register to post new content in the forum

20 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
May 29, 2009 12:51 pm

I heard from a colleague and a fellow fa that UBS is considering selling WMUS to RBC. ...Any comments or additional info...?

May 29, 2009 1:49 pm

I've heard RBC as well. Also hearing Deutsche Bank is or at least was in the mix.  Imho, sale is not if, just who and when. 

May 29, 2009 5:54 pm

When is the infamous Florida court date?  Will that have an impact of the timing?  If yhey are found guilty of fraud and banned from the state, wouldn't they want a suitor lined up?

May 29, 2009 7:31 pm

my bro is at ubs.  he also has heard the rumor of rbc.  he has also heard the rumor of goldman. 

May 29, 2009 9:45 pm

If it happens, just be prepared for ZERO retention if you are doing less than $500k.

May 30, 2009 8:37 am

I have heard RBC, DB and JPM. My guess is that there maybe another "spin off" of smaller office to a regional (maybe RBC), then a layoff of more FA's and then a sale of the majority of WM-USA to someone.

 
I do see UBS keeping the private wealth offices in the US.
May 30, 2009 10:15 am

It would be another  "brilliant" move by Hoekstra and his sycophants.  Buy a regional, Piper, at the top and sell to their arch rival, RBC, at the bottom.  When are they going to bounce this guy so he can go back to selling Amway?

May 31, 2009 10:28 am

Goldman would not be interested in all of WMUSA- it would essentially be a downmarket move for them and I really do not see them doing that.

After another round of FA cuts, a 3 way split of the firm is still a compelling rumor:  lower middle to RBC, upper middle to JPM, high end retained as UBS Private Bank.   

Efforts to reduce back office, eliminate training, cut lower producers leaves a firm that is more efficient and easier to sell. 

Only area in the US that has grown duing all of this is UBS Private Bank.

Jun 2, 2009 2:10 pm

Any more RBC - UBS rumors?

Jun 2, 2009 2:33 pm

I've asked around and keep hearing RBC, but only a portion of the company.  I'm thinking the piece by piece sell off is more likely. Doubt highly that DB is in the mix though at this point.  Also hearing the next round of head cutting is happening within 60 days. $300k and perhaps higher is the number if LOS 5+. 

Jun 3, 2009 6:14 pm

You would think the whole thing is worth more than a 2- or 3-way split?!?  Regardless, I'm sure they will do the opposite of what they should do.


Next round of layoffs to be week of 17th this month. Not sure if that includes FA's. (In my opinion it will be support staff only).

Jun 3, 2009 6:33 pm
ShotInTheDark:

You would think the whole thing is worth more than a 2- or 3-way split?!?  Regardless, I'm sure they will do the opposite of what they should do.


Next round of layoffs to be week of 17th this month. Not sure if that includes FA's. (In my opinion it will be support staff only).



I heard next round of layoffs will be mostly support staff, but some will be FAs, mostly NFAs who were hired in 07' who's contractual time was not yet up when April cut came around. The next big round of cuts is July, that one will shake things up big time. $300k min at LOS 5+ I have heard multiple times.

Jun 3, 2009 10:54 pm

I heard all this speculation is nonsense...actually i know it is...one day there may be more layoffs of underachievers but its not on the radar...now as for the other firms bloated with sub 300k producers...mmm



you tell me where the market will be in 6 months and ill tell you what the layoffs will be

Jun 4, 2009 7:37 pm

I have not heard anything about this. I know that the staff and Weehawken people who are interveiwing for positions have until sometime this month to get hired or they are gone.



I do not see another layer of cuts happening.



Tide of recruiting is now swinging to ML ( biggest deals) and Citimorg.

Jun 4, 2009 8:32 pm

I was so happy when I heard the UBS brass was firing people and crying the blues.


I KNEW these idiots would be wrong.  (lke always) 
 
BINGO    Almost to the day-march 9th multi generational low in Markets.
 
UBS losers call the bottom.    UBS leadership is so clueless.
 
Now they want to target teh super rich....  hahahahahhahahaahahahahahahahahahha
 
UBS is a GD joke  
Jun 5, 2009 8:01 am

Secretknowledge...what about the partial or full sale of WMUS?

Jun 5, 2009 10:20 pm

I find that people who spend this much time speculating about senior management do it because they don't have enough clients to occupy their time.

Jun 10, 2009 4:17 pm

Secretknowledge (and/or anyone!),



Tell more...I hear that the U.S. wealth unit is NOT for sale. Is the worst behind this firm RE: the cross border case? Or will this heat up again into July? Are they still winning over FA's with their deals? Are they more of a boutique and will they be more nimble or face hurdles RE: size vs. larger competitors? Will the wire houses make a comeback and the independent fad fizzle? Curious to hear anyone's opinion. Is this the firm to join or flee? Who's the fairest of them all?   

Jun 10, 2009 5:02 pm
LogansRun:

Secretknowledge (and/or anyone!),



Tell more...I hear that the U.S. wealth unit is NOT for sale. Is the worst behind this firm RE: the cross border case? Or will this heat up again into July? Are they still winning over FA's with their deals? Are they more of a boutique and will they be more nimble or face hurdles RE: size vs. larger competitors? Will the wire houses make a comeback and the independent fad fizzle? Curious to hear anyone's opinion. Is this the firm to join or flee? Who's the fairest of them all?   





Interesting post.



Currentley, I believe that everything is for sale. They shopped U.S. Wealth management in February and could not get a good enough price to sell.



There will still be a good bit of bad publicity in the immediate future with regard to:



1. Cross Boarder law suits

2. Lehman Structured Product Sales ( N.H. Suit)

3. IRS push for 52,000 account records from Swiss.



In the recruiting wars they are now a net looser of reps. They have lost a number of large teams over the past two weeks to Merrill and CitiMorg. Merrill seems to be the most aggressive on the street at this time.



I do not think a 7,000 FA firm is a botique. As far as UBS moving fast, that would take a very large change in culture. Also, moving fast does not mean you are making intelligent moves. I think management is having a hard time dealing with the falling revenue environment that the industry finds it's self in. AT a time when you neeed to be making decisions quickly, UBS sems to have slowed down further. The main strategy is to go after UHNW and HNW clients. They seem to have totally forgoten the corporate, foundation type markets.



Wirhouse vs. Independents. I do not think that there is one correct answer. It depends what you think is correct fior your business. The migration from commission to fee based business over the last decade has made it easier for large producers and teams to migrate to independent channels. However, I do not see this happening in mass.



The main issue with wirehouse profitability is the size of the fixed cost structure versus the revenue base. this is especially true at UBS. The overhead expenses are to high. They still need to take a large amounnt of overhead cost out of the firm to obtain good margins. I do not see them doing this. they seem to want to try to outsmart or outlast the current situation instead of dealing with it.



Who is the fairest of all? I am not sure. I believe that the cross selling nature of Bank America and Wells Fargo will put them at the top. Although, this did not seem to work at SB. Interesting article in Fundfire about ML reps bringing in 5 billion $ of net new based on leads from bank. It states that 10,000-20,000 leads per month are being generated for ML reps from bank.

Jun 10, 2009 5:09 pm
SouthernBroker:

I find that people who spend this much time speculating about senior management do it because they don't have enough clients to occupy their time.


+1