Not sure if this is true or not, but anything over 3-5 million has to be referred to BAC's private banking.
Try $500k or above. Better still, the incentive for the premier banker to bring business to the PB is greater than the incentive they have to bring it to you.
Mike, just wondering, the Premier that you were partnered up with, gave most of the big fishes to private banking? It's supposed to be Premeir --> FC --> Private banking (if limits were reached)
No, it's Premier---> Private Banking with a cash incentive that can't be equaled by the FC (licensing requirements that PB doesn't face). The minimum was 500k (often 300k) for PB. PB is simply more profitable for the bank per dollar of client asset because often they're using internally managed "trust funds" (nothing more than mutual funds run inhouse by PB) with a fee on top of the fund's management fee.
The only time I can imagine an FC referring to PB is in the case where an individual wants the bank to act as trustee. Otherwise the FC could do whatever's required himself. BTW, we had an ongoing problem with PB poaching BoA Securities clients based on calls from tellers, loan officers or even premier people calling them when a client of BoA Securities had a sizeable cash position, even if the FC was aware of the cash balance. I watched PB and BoA Securities battle at several levels above my pay grade over this issue and PB almost always won because of the profitablity difference.
It doesn’t take much to get above the pay grade level of an FA at BAC. That pisses me off also. No respect or regard what so ever for what value we bring to the table at this company.
mike, ezmoney, what part of the country are you guys at? I’m on the west coast and Private banking is pretty much hands off for accts under 3-5mil. I’m surprised that Private banking would take a 500k acct from the FC, that just seems too small of a pie from them, espcially when BofA’s Family Wealth Advisor (division of private banking) requires at least 50 mil. like the adage, a bank is a bank is a bank. Not sure if a jump is suitable for you guys but Wells Fargo has a better platform according to my buddy who made the move, where the FC is on top of totem pole and is not poached by premier or private banking.
[quote=thebanker] I'm surprised that Private banking would take a 500k acct from the FC, that just seems too small of a pie from them, espcially when BofA's Family Wealth Advisor (division of private banking) requires at least 50 mil. [/quote]
There's every incentive for someone working at PB to take every account about their stated minimum. They plug them into their common trust fund accounts or even SMAs and get paid. Why would they NOT take the account? In fact I had a problem with PB people telling our joint referral network that PB was to get, by bank policy, first dibs on any account above $300k. Remember, PB could pay cah incentives for referrals that BoA Sec can't. Also, the FWA program doesn't even enter into the picture given how few 50M opportunities there really are in bank lobbies.
According to my experience as well as feedback at lunch with my private bankers. PB @ BAC is not interested in anything less than 3 mill in investable assets. I know for fact oof many accts. less than 3 mill that were handed off to BAI to handle because the accts. were to small.
as a side note, are private banker client’s mostly credit centric? (lines/loans of credit?) Seems like PB at BAC has it easy, they’re getting good referrals from the branches.
you are correct. PB wants to loan money more so than handle investments. Afterall they are the “bank”.
[quote=ezmoney]you are correct. PB wants to loan money more so than handle investments. Afterall they are the "bank".[/quote]
Now that's interesting, because it wasn't my experience at all. PB still thought of themselves as the trust department and lending was a side tool. I suppose it has to do with local management.