Bac

Quick and Reilly had about 1000 brokers prior to the Bank of America merger.  In the Northeast markets that I'm familiar with, all of them have lost at least 30% of those brokers.  They have been able to make up some of that lost ground by rapidly hiring new Pathways (trainee) brokers but they haven't been successful in recruiting experienced advisors.  So my rough guess would be that they've lost 300 advisors and had a small gain of 50 recruits, mostly new people. 

Some rumors are circulating that the Banc of America Investments president, Tim Maloney, will be let go shortly if he doesn't stem the tide in the Northeast.  I'm not sure what he can do about it at this point. It's too late to revamp the comp plan (even though they just negotiated a small concession on the managed products) and the bank's referring partners, Premier Bank, is probably in worse shape than the investment side.  It's odd, though, that the Consumer Bank (which is the Bank of America that most people are familiar with: checking, savings accounts, CD's, loans, etc.) is doing very well. 

[quote=BACFA]

Premier Bank, is probably in worse shape than the investment side.  

Premier Bank itself is very well funded.  They have high salaries, nice furniture, and even company credit cards.  However, to get a bonus, they have to hit very high loan, deposit, and investment goals.  Most are unable to hit their goals so they're under constant pressure by management.  The ones that do hit the goals do it by circumventing the investment numbers.  Therefore, most of the Premier Bankers are cranky (they have a high turnover rate due to morale) and the ones that are doing well don't need to refer any investments. 

“Im a Banker now”!!!



just got off conf call and it seems I should be calling for Loan biz on my clients. I dont get paid for it (other than getting back the trails they stole in the form of a bonous at the end of the year) It is obvious to me that the premier side banking is where they make all the money. No mention was made that of 60 brokers in a large metro office only 20 will do over 200k in production, which is less than 40k a year at out that payout level. They dont care if we make money. they dont pay us a salary!! Why should they care. We are here as a sidekick to premier as their “investment guy” while they try to take the quarterback postion in the relationship

amen brother!

I've heard client managers are leaving, reps are leaving.

Last year in the some parts of the NE, approx 80% of 140 brokers did less than 300k (BOAs target level).

I hope all who are there aren't sticking around for things to "get better". Or worse, waiting to pick off accounts of people leaving for other firms.

It's a bank, not a brokerage firm. Big money will get kicked up to private bank. There is no way the product platform can compete with MS, Mer, SB, and the good independants.

Build your book for yourself, not the bank.

My buddy is a client manager on the west coast and she said that client managers are flocking away from BAC because they made the goals so hard that only a few can hit. Didn’t Fortune rated BAC the most admired megabank in 2005? The problem with the NE BAI people leaving, is the problem only isolated in that area or through out the country?

I think it will only get worse for the FA. When I can’t stand it any more. I’ll move on to indy.

I know of many departures from West, East and Gulf Coasts. I laugh when I read claims about BAC being one of the best companies in the U.S. at which to work.

One only has to look at their W2 and compare to 10 years ago; going in the wrong direction. Terrible salary and cost of living increases not even keeping up with inflation. Bonus not achievable!!

They are going to have a lot leave over the summer.I know of 4 300-500k prod brokers signing up with the indys I am not ready just yet

Glad I made the move out of there.I had a trailing 12 of over 500 ,so received a nice package to leave. In my opinion , 2 types of brokers still there 1) trails(managed and C shares )greater than 300k waiting for something to change.2) trailing 12 production less than 300 and offers to leave are hard to come by.

Since I have left ,former collegues have not stopped ringing the phones .DONT BE THE LAST MAN STANDING.

I'm still at BAC and two years ago, I HAD a trailing 12 of $500K+.  I lost it while waiting for this place to get better (and converting my book).  Thankfully, the companies I'm talking to are aware of the awful merger in the Northeast.  They look at it as buying a broker at half-price.  That's part of the reason why Indy is looking attractive now.  The wirehouses understand that my 12 month production is ramping up again because I wrapped everything (although the net amount to me sucks with the new payouts) but they're still basing their comp deals on my low trailing 12.

BACFA,  Good luck. you produced before ,you`ll do it again. If you have developed some good relationships,your clients will follow. I have taken every A client that I sought.B clients have been calling and I have been holding most of them off until my non-solicit is up. I know that I could take them (they called me) I just dont feel the headache from BAI legal team will be worth it .

test

How many of you are from the old Fleet model? What did their grid look like? I see a few guys looking at PNC as they have a nice upfront deal with a merger kicker retention bonus. It’s nice they rolled back the CSG grid however they need to fix the trail issue. They also need to comp on lending as many others do. Wild, Don’t pay us for a product, take away trails and then tell us if you do not send lending you will not get the “bonus” OUR money! Should be criminal!

I was from the old Fleet/Quick & Reilly group.  On the normal grid, every tier was higher by 4-6%.  Not as much of a change on the higher $1 million dollar producer; those were similar to Bank of America’s grid today.  However, managed products were paying 50% but the platform was horrible so nobody used them.  There were small haircuts on annuites but it wasn’t too noticeable because the bank branches were referral machines. 

does anybody know when you ACAT fund strategies accounts, do the go over in kind or do they have to be liquidated to move?

Great question. I’ve had some managers say that it had to be liquidated prior to ACAT but I think that was to scare people from taking the book.  I can’t imagine why it can’t be ACATed but I’ll know for sure (from a friend, not me) on May 15.

I agree that it can be acat'd. There may be a restriction on the account like fidelity PAS does. Once the restriction is lifted, the account goes. See if there are any instituitonal funds in the account. Some cannot be accepted at your new firm possibly because of a deal your current firm cut with the fund company.

They will acat in kind. a lcient of mine went to a jones broker and didn’t know what he was signing. turned out i was an acat form. all fund strat positions went over in kind. I then brought them back into the same acct. and continued the wrap program.

I was curious how reps who have left BAC are doing. Not in production but what tips you would give someone who was about to make the jump to indy. Did they file a TRO. Did they say bad things to your clients. How did you work to move over assets the first weeks. If you could do it all over again what would you do?

Confirmed today with CSG that the accounts are ACATable without any problems.

From what I've seen, TRO's and injunctions are at the discretion of the Market Director.  There doesn't seem to be a consistent method when going after brokers.  I saw a $500k broker leave without any problems but then when a Pathways (junior-trainee) broker left, they tried to go after him.  He was leaving the business, not taking any clients, and they wanted to go after him for the training costs.  The kid obviously didn't have the $50k they wanted so I think Bank of America was doing it to scare the other Pathways brokers.

The brokers that I talk to that departed (about ten of them) are all happier.  I haven't made the move myself, yet, but I am looking forward to that day.

What happened to the other Bank of America thread?

As of today (May 15 payday of the quarterly fee-based check), two brokers left our group.  I have my feelers out there to see who else left.  Anyone know anything?

which market did they leave from?

BACFA     WHAT ARE THE INITIALS OF THEIR MGR.

3 quit here in the southern area in the last week, sure there is more to follow

Can you be specific? Southern area? Florida, GA,??? What market??

I think most people on this forum are from the Northeast market where the Fleet merger has just occured.  The new comp plan is actually a pay raise for some Legacy Bank of America brokers (non Fleet/Quick and Reilly).

 I love BAI...Been there over a year and have had an awesome experience!  With over 10 years at Morgan, I had had enough and moved to the "bank."  Absolutley no regrets! 

Sure, there is always something to bitch about wherever you are at but the bank has introduced me to so many new clients, it's been great! 

Never got a referal while sitting at a desk at Merrill or Morgan. 

Fleet had it's problems long before Bank of America came along!

"The grass is always greener."

Prior to the merger, Fleet/Quick & Reilly generated the same amount of revenue as Bank of America.  Except Fleet had fewer brokers and less than half as many branches (ie., fewer branches per broker but still generating as much revenue).  So unless making money is a “problem”,  I’m not sure what you mean.

Go back and look.  What I "mean" about "problems" is over 1/3 of Fleet FA's and 1/3 of Q&R FA's left between late 97-99 (right after the merger).  That was not my point, my point was, everywhere there are problems.  EDJ makes money, but I have a problem with them, I don't want to work there.  MWD makes money but I have a problem with them and I don't want to work there.  Merrill makes a lot of money, but they have problems and I don't want to work there.  Things are never perfect, quit waiting for them to be that way.  BAI makes money and I am fine working here.  Sure, there I have things to bitch about but who doesn't.  Show me posts from anybody on this board that is PERFECTLY happy with their situation, when you do, go get a job!

I wasn't going to make this personal but you said "I am not sure what you mean."  Here is what I mean.

Everybody has problems!!!  Stop bitching, griping, and crying and go get a few more clients, or better yet, go get another job.  I am sure you will be just as miserable whether it is indy or another bank. 

Instead of spending so much time bitching and posting about your job at BAI, take this same energy and make lemonaide.   "If you aren't bitching, you aren't happy." 

comp plan is the problem. BAC uses a 6 month avg to determine gid payout level. Just like dollar cost avg it will reduce your payout. In previous years you had 12 months to hit your numbers and then it would retro for the year day 1. not so on the 6 month avg, have 2 ok/bad months and your screwed. here are some things others have wrote



not very happy with the changes at boa. They turn the screw on their reps every year. haircuts everywhere 4$ max annuities.

A 10 % commision reduction on all biz referred from Premier bank. (goes to fund banker comp)by the way most bankers want ref credit on things you don out of your book ie 10% reduction. a trailer grid that is 7% less than transaction grid. We have a chance to get it back if we do everything they ask of us (at end of year)oh and its cliff vested stock options. next year they will turn the screw again until they see a lot of brokers leave. They really dont care what kind of production they get from brokers. They investment area has always lost money but the premier bank makes piles of cash. We are there only to provide advice so they dont lose the biz to a wirehouse. This used to be a great bank program but it is being run by bankers now. we have been joined with premeir bank and are no longer on our own . I sat through a 1 hour long confrence call on how I need to partipate in a full call day to help my my bankers meet their loan goals.

Do i get paid on any of that… nope (they paid us last yr on loan biz but you guessed it…it was cut) sorry for the rant. And about getting tons of biz from the bank its better than the wirehouse. In a large metro office only 40% of 70 fa’s will make over 55k

[quote=ezmoney]I think it will only get worse for the FA. When I can't stand it any more. I'll move on to indy. [/quote]

Are you at a bank now?  I have heard it is especially difficult to move bank customers.

[quote=bankfa10]comp plan is the problem. BAC uses a 6 month avg to determine gid payout level. Just like dollar cost avg it will reduce your payout. In previous years you had 12 months to hit your numbers and then it would retro for the year day 1. not so on the 6 month avg, have 2 ok/bad months and your screwed. here are some things others have wrote

not very happy with the changes at boa. They turn the screw on their reps every year. haircuts everywhere 4$ max annuities.
A 10 % commision reduction on all biz referred from Premier bank. (goes to fund banker comp)by the way most bankers want ref credit on things you don out of your book ie 10% reduction. a trailer grid that is 7% less than transaction grid. We have a chance to get it back if we do everything they ask of us (at end of year)oh and its cliff vested stock options. next year they will turn the screw again until they see a lot of brokers leave. They really dont care what kind of production they get from brokers. They investment area has always lost money but the premier bank makes piles of cash. We are there only to provide advice so they dont lose the biz to a wirehouse. This used to be a great bank program but it is being run by bankers now. we have been joined with premeir bank and are no longer on our own . I sat through a 1 hour long confrence call on how I need to partipate in a full call day to help my my bankers meet their loan goals.
Do i get paid on any of that... nope (they paid us last yr on loan biz but you guessed it...it was cut) sorry for the rant. And about getting tons of biz from the bank its better than the wirehouse. In a large metro office only 40% of 70 fa's will make over 55k[/quote]

Ouch!  Will you move to another bank?  Have you heard of any banks with decent programs?  Thanks.

The industry is getting smaller not bigger in terms of players. The retails banks are too far behind at this stage to catch up to big brokerage firms. They can't compete on platform, client acquisition, management, etc.

If you've got a decent book, take it elsewhere and get paid a boat-load of $$$. Then, once  you're there, leverage all the resources to grow you biz. Key is to find the right firm...culture, payout, product...depends on  your biz model. Talk to someone who knows all the players. If you want direction, I worked with a great guy who was very helpful cutting through all the BS. He got me an extra couple hundred K to boot!!

Go back and look.  What I "mean" about "problems" is over 1/3 of Fleet FA's and 1/3 of Q&R FA's left between late 97-99 (right after the merger). 

You're going back nine years to compare Fleet and B of A's program? Why not talk about S & L's from the '80's? I've been through three bank mergers (within the last nine years) and most people, including Northeast management, would agree that this is the worst one.

That was not my point, my point was, everywhere there are problems.  EDJ makes money, but I have a problem with them, I don't want to work there.  MWD makes money but I have a problem with them and I don't want to work there.  Merrill makes a lot of money, but they have problems and I don't want to work there.  Things are never perfect, quit waiting for them to be that way.  BAI makes money and I am fine working here.  Sure, there I have things to bitch about but who doesn't.  Show me posts from anybody on this board that is PERFECTLY happy with their situation, when you do, go get a job!

Your situation is different than the other posters here. You went to B of A from Morgan Stanley as opposed to enduring the Fleet merger. So your frame of reference is not the same. If I walked into Bear Stearns and they handed me 50 family accounts with $10 million each, I'd be heckling the whining brokers, too.

I wasn't going to make this personal but you said "I am not sure what you mean."  Here is what I mean. Everybody has problems!!!  Stop bitching, griping, and crying and go get a few more clients, or better yet, go get another job.  I am sure you will be just as miserable whether it is indy or another bank. Instead of spending so much time bitching and posting about your job at BAI, take this same energy and make lemonaide.   "If you aren't bitching, you aren't happy." 

If people didn't complain on this site, it would be pretty boring to read. If you're so happy, what's your name and how are you doing at B of A?

ILMJ says

Never got a referal while sitting at a desk at Merrill or Morgan. 

Thats not the problem...As stated many times,Let the broker keep what he/she earns. Dont have me input 3 contacts a day into the system and tell me I may get my commissions next Feb when they were earned this Jan.The whole idea of keeping the contacts updated is simply ,when you walk out the door the new broker will have a point of reference when trying to retain the relationship.Dont tell me the contact system was designed to help me,We all know we need to stay in contact with our clients if we want to retain them.Its just another way for mgt to not pay you what you deserve.

DONT PEE ON MY LEG AND TELL ME IT`S RAINING

Someone’s peeing on my leg, and it ain’t raining!

broker count of people quiting thus far in A large metro area south central.



7 FAs

[quote=bankfa10]broker count of people quiting thus far in A large metro area south central.

7 FAs [/quote]

Why not be specific about where?

Dont worry bankfa10 …we wont guess who you are and tell your boss…

I'm being offered a pathways advisor position over in the east coast. Does anybody know the breakdown of the "Pathways compensation payout grid". Any help would be greatly appreciated. Thanks.

Before  I left (recently )  salary of 40k...grid is geared twds using their mutual fund wrap program.

Managed money pay out was 30%

mutual funds 15%

annuities( good luck getting them approved as pathways) 10%

you are being offered a position and can’t seem to ask your future mgr or future peers about comp? Go back to grade school.

Real funny, true, but not nice, ezmoney.  And waterboy's right about Pathway's writing annuities, it's tough to get them through if you're a trainee.  However, if you're doing fee-based, you can flip all the B shares and annuities that you want.

Pathways are generally paid $40K salary.  In a rare instance, they'll pay more for an experienced broker that they couldn't hire through the normal method (most brokers have to "qualify" on a revenue vs. experience grid, not something you need to worry about).  Wrap and insurance business is paid at 35%.  Mutual funds are paid at 15% and annuities at a dismal 10%.  You're on this system for 18 months and then the salary gets faded out while you get put onto the normal grid.  Which, by the way, is lower for wrap and insurance business but is higher for the rest.  Do a forum search for more detailed info on this.

I truly think Pathways is a great program in the middle of a horrid system.  You'll need to ascertain what accounts and branches you'll be covering.  If you're not decisive, they'll stick you with all the under $5k accounts in the whole region and you'll be forced to service them.  Don't believe the nonsense about Premier Bankers (Client Managers).  They're not going to refer you their good clients' investment dollars, especially when they see you giggling about the score you got last week on the Series 7.