Working stiffs, UNITE!
A federal judge on Wednesday rejected H&R Block Inc.'s (NYSE:HRB -
News) attempt to stop three brokers from jumping to SunTrust Banks Inc.
(NYSE:STI - News) and taking many of their clients with them.
The judge on Wednesday, however, said that the brokers have returned a
customer list they had taken, and that H&R Block has taken steps to
assign new account brokers to their clients.
He also said that what "tips the scale" in favor of the brokers was that
their actions constituted "business as usual in the brokerage community."
"H&R Block's standard operating procedure for recruitment and hiring
instructs and encourages just the kind of behavior about which H&R Block
is now complaining," the judge wrote.
"(Brokers) and their employers live by the sword and die by the sword," he
added. "(The) employment of the extraordinary remedy of injunction in
this dynamic milieu is unwise."
I wasn't as lucky when I left HRBFA a few years ago.The judge approved a TRO on me that lasted for several months. It's nice to see that a judge gets it, the fact that HRBFA is hard at work recruiting from other firms and certainly expects a recruit to bring clients.
The judge on Wednesday, however, said that the brokers have returned a customer list they had taken, and that H&R Block has taken steps to assign new account brokers to their clients.
yeah, and they didnt stop off at kinkos to help themselves to a couple copies of that list before rolling into H and R to drop the originals off...
I left HRBFA because of the uncertainties of a tax prep company being able to excell at running a brokerage firm. Also. my production was high enough that I got a decent offer to jump to large wire house. From what I know it seems like HRBFA is hanging in there as a decent place for an FA.
And, once again I will say that I think HRB is a spectacular shorting opportunity. Where are all the earnings coming from? Subprime mortgages. Very speculative subprime mortgages at that. Their brokerage unit is still losing money. Next year they are expecting 57% if earnings to come from their mortgage division. I think Mr. Bernanke may have something else in mind.