Wachovia Bank Brokers
I was being recruited to join the ISG group of Wachovia Securities but it sounds like their fate is up in the air. Does anyone know where they stand in this merger?
Yeah, the bank brokers will stay with the banking unit and will be absorbed into Citi.
Conf. call today disputes the answers above. The status of ISG (bank based brokers) at Wachovia is still in negotiations. It's supposed to be announced soon though. My hunch is that they go with SB
It will definitely comfirm one way or the other what all of us wondered for a long time. Was the wirehouse the readheaded step child? ISG, PCG and FiNet are all Wachovia Securities Advisors in name but they are not all treated like they are under one roof. As close as they are to being independant, it is understandable for FiNet to be singled out and even grouped in with the wirehouse since most came from there or are managed by or housed in branch offices.
However, ISG is a completely different animal with its own antiquated pay grid, depending heavily on relationships with financial specialists and money movement in the bank they are located. Corporate directories are seperate for wirehouse and bank reps and Pru still has a percentage stake in the legacy contract with Wachovia Securities.
As we all know bankers don't value the importance of the difference between a wirehouse and a bank branch rep other than how the higher payout effects the bank's bottom line. IMO, the ISG division was created to leach clients away from the wirehouse brokers since bank brokers have access to all accounts held within the Wachovia Umbrella(told not to steal, wink wink) whereas wirehouse people have no access to anything other than the brokerage accounts.
It was hysterical when wirehouse branch managers were pushing ALOC's likened to perverted old men offering candy children. Anything and everything to make clients bank sticky and then part ways with the expensive rainmakers when the onslaught of financial services began to blow up. My guess is that bank reps will go with the bank and become SB.
Think about it.
You will not have a Wachovia broker sitting in an Citibank branch, dealing with customers who have accounts at the bank (now Citibank), and getting referrals from Citi customers. It just won't work and makes no sense.
If Wachovia is lucky they will be able to sell the ISG to Citi. Citi can change the locks at any time and the Wachovia rep is on the street, or they can hire him over to Smith Barney and let him keep his office and acat the accounts, etc.
Just another reason the Wells deal looks superior to the Citi deal. Do a deal with WFC and the ISG stays intact and can even grow.