Major events at UBS- Sale in the works now?
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Burton, How did those two guys survive the last RIF with those numbers? Also, to answer your question, recruiting call volume is indeed up. LATime for an update on UBS…
I KNOW of at least 2 FAs who have been told directly by BMs that they need to get their plan B in place asap. This since Monday this week. LOS 7 $205k gross and another at $180 ish in production with 4 LOS.
Payout grid adjustment DOWNWARD for bottom quintiles is weeks away- I think it’s a foregone conclusion. It’s more of the ‘starve em out’ approach.
I maintain my prediction that a SALE or other major change concerning the entire US wealth management group will happen before Halloween. Rumor mill is heating up. Rumors where the particulars are concerned are usually bogus, but they always precede a legitimate event.
UBS advisors can verify this. Recruiting calls from firms directly and external recruiters seem so spike dramatically just prior to large events. I’m hearing that the volume is dramatically up this month. True?
You didn’t hear this from me…
I have first hand knowledge that branches (UBS) in New Jersey are shutting down and consolidating as we speak.
[quote]
UBS advisors can verify this. Recruiting calls from firms directly
and external recruiters seem so spike dramatically just prior to large
events. I’m hearing that the volume is dramatically up this month.
True?
[/quote]
True. The boys have been targeting UBS almost exclusively for a month.
Funny thing is that the majority of UBSers seem to have the head-in-sand mentality. Is it really that hard to see the writing on the wall?
[/quote]
Burton, How did those two guys survive the last RIF with those numbers? Also, to answer your question, recruiting call volume is indeed up. LA[/quote]How did they and others survive the last RIF? Imagine a few of these scenarios and more
1) Some low producers who would have or should have been cut in April were on teams and "protected" but have since been cast off, teams split or dissolved and some teams have moved and left Jrs behind, etc.
2) Some were "protected" by BOMS. Were on the list but BOM got "one off" exceptions and bought them some time to flounder another 6 mos.
3) LOAs (leaves of absence), in certain states the laws make it impossible to RIF people on LOA, qualified State Disability, etc.
I could probably dream up a few more likely scenarios but you get the drift. There are plenty out there.
You're right that smaller producers with shorter LOS's were spared, but they did have a cutoff off production level for longer LOS's-- $250K. We are a smallish market, and we lost long LOS producers that were <$250K. What are you all hearing about short LOS, 1st quintile producers? LA4) UBS didn’t have a specific level of production in mind for their cuts, so brand new FA’s straight out of training programs and smaller producers in SMALLER markets were spared.
Lew,
First quintile loe LOS should be fine. Level 3 NFA's gone with few exceptions. Most management is level 3 or worse and will still be around...go figure.I agree w/ what you are saying. However, UBS will take a huge realized loss if they sell what is left of PaineWebber. So I would bet a sale comes when/if UBS returns to profitability, maybe next year or 2011.
[quote=pewter]
What are you all hearing about short LOS, 1st quintile producers? Really???? Ther is a threat to a 1st Q?? anywhere...?[/quote] Bite me, sh1t-for-brains. A first quintile new FA might be doing well relative to his or her newbie peers, but his or her absolute numbers may not make the cut. Ask some of the first quintile trainees at Merrill that were cut several months ago, when they halted the training program (which is now unhalted). So, yes, there is always a threat when you have numbskulls running firms and making kneejerk, broadbased cuts. Geesh. LAUBS cuts jobs at U.S. wealth arm: sources On Wednesday September 23, 2009, 7:01 am EDT </div> <!-- ./end of article hd --> <p>By Juan Lagorio and Lisa Jucca</p> <p>NEW
YORK/ZURICH (Reuters) - Swiss bank UBS AG, which suffered massive
client withdrawals after a high-profile U.S. tax fraud probe, has cut
around 200 jobs at its U.S. wealth management arm, sources familiar
with the matter told Reuters.
The layoffs, which one source said
come on top of the 8,700 job cuts already announced and involve junior
and new advisors, signal an effort by UBS (VTX:UBSN.VX - News; NYSE:UBS - News) trim under-performing staff after its brand name was damaged by the U.S. tax row.
“It’s probably a combination of factors,” said David Williams, an analyst with Fox-Pitt, Kelton.
"I
would not be surprised if there had been a business downturn since the
Internal Revenue Service litigation and there is maybe an element of
performance review."
Swiss rival Credit Suisse (VTX:CSGN.VX - News)
is by contrast on a hiring spree, even though it cut its annual target
for new relationship managers by a third to 200 advisers.
The U.S. layoffs mark a change from UBS’ aggressive hiring of new wealth managers toward the end of 2008.
New
hires helped the U.S. wealth management arm to attract 16 billion Swiss
francs ($15.66 billion) of new client money in the first quarter of
2009. But it has suffered outflows since.
The job cuts represent 2.5 percent of the 7,939 financial advisers UBS had in the United States at the end of June.
A
source familiar with the situation said the layoffs were new employees
who had completed the training program or were new advisers in the
field.
“It looks as if the job cuts involve mainly junior staff with small portfolios,” said Vontobel analyst Andreas Venditti.
A second source familiar with the situation confirmed the layoffs. UBS was not immediately able to comment.
FRESH CUTS
Even
though UBS’ name has suffered during the tax dispute, the Swiss bank
was able to put a major headache behind it when it settled the issue in
August.
But its main rivals in the U.S. wealth management space, including Merrill Lynch and Citi (NYSE:C - News), are also suffering.
“The
advantage for UBS is that right now, there is no big U.S. financial
institution with positive brand association,” said Williams. "But they
will have to go a long way to make sure there is no lasting damage from
the U.S. tax litigation."
In April, the world’s second largest
wealth manager by client assets cut 2,000 U.S. jobs as part of a
restructuring plan to cut 8,700 jobs worldwide.
UBS Wealth Management Americas saw net new money outflows of 5.8 billion Swiss francs ($5.5 billion) in the second quarter.
Besides the tax dispute, UBS has been hurt by executive departures, bad bets on auction rate securities and write-downs.
UBS
increased its presence in the United States in 2000 with the $10
billion acquisition of PaineWebber Group, a brokerage firm with over
8,500 brokers and $500 billion in client assets.
McCann also taking Ron (Obama Commie)Wolf’s Job too as head of entire UBS USA.
Much better times ahead if you can just not get fired.