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Wachovia layoffs

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Jun 6, 2009 1:01 am

Brokers with los over 5 years and tt under 150k will get the ax by month end. Trainees not on track will get axed as well.

Rips

Jun 6, 2009 1:03 am

I have done 45 key hh and hoefully I ll get to 50 before June 30 to get 50 bps

Jun 6, 2009 1:13 am

Our CFA’s have been gone for a while now. We don’t come up with ideas at the home office like Edwards did. Research can be accessed but it is outsourced. Don’t you remember all those great stock reports that where client friendly. Remember our analyst were selected each year buy the Journal as all stars. ? You don’t hear it now because we don’ t have any. They were all let go along with muni syndicate , too. And it is the Trust company’s turn now. Keep the assets get rid of people. Then when it breaks sell it. It’s a bank.

Jun 6, 2009 1:27 am

I have 59 HH that meet the criteria. They will all be completed by June 30th. Pbly by next week. Now if the market will just cooperate and not tank before month end! I have seen my eligible assets come up by several million since April. And household in the black went from high 40’s to nearly 60 now. Several more on the cusp and a good mkt will get them there easily. I have been doing envisions all along so it wasnt like starting from scratch to get this done. 

Jun 6, 2009 1:29 am

I did hear the <150k FA’s a/o June 30th will be gone. I have heard these folks have been told this. Second hand info. 

Jun 6, 2009 1:40 am

They will get letters from h.o.soon

Rips

Jun 6, 2009 1:57 am

Have they set the date for the loan option. I have heard sometime in sep.

Jun 6, 2009 8:46 pm

There is a conf call replay on Infomax. Says the promisory not will go out around 8-15. The money should be paid around the end of Aug. But then again we were supposed to get retention, so who the heck knows until it happens or not. 

Jun 6, 2009 9:16 pm

I m assuming it will be similar structure as the last retention when wach bought age. If you decide to leave just pay the money back?

Jun 9, 2009 1:38 am
skbroker:

I m assuming it will be similar structure as the last retention when wach bought age. If you decide to leave just pay the money back?

  If you decide to leave, or get canned.. you pay the money back, and with Envision plan they have all the information on your client?
Jun 9, 2009 7:07 pm

This thread appears to be all RUMORS…no one in the WFA system has gotten any letters for producers under the $150K production level and potential layoffs. We have several producers under these levels and no one has gotten any memo, emails, or offical corporate letters stating they will be terminated by June 30th, 2009. It is possible that it may happen, but not within the next three weeks. Also seriously doubt that WF will provide any retention bonus at all. Ludeman has already warned and told all FA’s in the system that Wells will not

pay retention bonuses due to political pressure and TARP money that Wells received. So it is doubtful that any layoff will happen. Yes, the Regional Trust Reps have been eliminated. With volume down on the exchanges, certainly volume is down for revenues. That is an inheiritent problem within the industry.   So until we hear something concrete and believable, these posts and thread would be considered rumors and sensationalism, with the intent to create havoc and dispear within the inner walls of WFA. No ISG employees have been given walking papers either that I am aware. And yes I am a 25+ veteran of AGE and now WFA.   Of course with this firm, anything can happen and wouldn;t be a bit surprised if the $150k cut actually happened.   Envision and forefront is an easy deal for the long termers to that want to stay at WFA. Its a payout defferred over 9 years. We had financial horizons in the past and the clients never really cared about the reports. In this case you just filled in the blank forms and create the envision report. It is a hokey process that will ultimately cost WFA millions of dollars in deffered comp. The clients that stay thru all the BS from AGE to Wach to WFA are already loyal clients. Loyal to the FA not the company. The WFA client has been jerked around so much and now the account fees, shows there loyalty remains with the FA not WFA. All WFA FA;s best be prepared for more Bitching and complaining from clients once the new account fees hit the accounts later this year. The envison reports are meanlingless to the client, but account fees that nickel and dime the clients. WFA will certainly see what clients are loyal after the account fees. Lets face it, most FA's are simply order takers, and many clients know of the on-line commission savings. Getting rid of low producers won't save accounts, but wil save money especially when it comes to insurance benefits and costs to keep the low producers in the office.   Let's see what happens in the next 6 months, It should be interesting times. Ben Edwards would always tell us how many FA have been newly hired or quit the firm. Now a days we never know how many FA have choosen to leave WFA. The only thing that holds FA to WFA is the retention bonus that they all got and don;t want to pay the money back to go elsewhere. Wach was pretty shape in finding a way to retain brokers. The big question is what happens after the 66 months for retention bonus is up. My prediction...many brokers leave and retire or look elsewhere.  It;s a tough industry and most all AGE brokers have been kicked in the ass real hard and have been screwed after many years of hard work. The merger between AGE and Wach was the worst thing that could possibly happen to some very good hard working and quality people.  Ben Edwards was a ICON within the industry.
Jun 9, 2009 11:34 pm

Ludeman has already warned and told all FA’s in the system that Wells will not
pay retention bonuses due to political pressure and TARP money that Wells received.
*****************************************************
Who the hell thinks there still getting a retention bonus???!! Good grief you cant be serious.

Jun 10, 2009 1:08 am

[quote=Downunder]This thread appears to be all RUMORS…no one in the WFA system has gotten any letters for producers under the $150K production level and potential layoffs. We have several producers under these levels and no one has gotten any memo, emails, or offical corporate letters stating they will be terminated by June 30th, 2009. It is possible that it may happen, but not within the next three weeks. Also seriously doubt that WF will provide any retention bonus at all. Ludeman has already warned and told all FA’s in the system that Wells will not

pay retention bonuses due to political pressure and TARP money that Wells received. So it is doubtful that any layoff will happen. Yes, the Regional Trust Reps have been eliminated. With volume down on the exchanges, certainly volume is down for revenues. That is an inheiritent problem within the industry.   So until we hear something concrete and believable, these posts and thread would be considered rumors and sensationalism, with the intent to create havoc and dispear within the inner walls of WFA. No ISG employees have been given walking papers either that I am aware. And yes I am a 25+ veteran of AGE and now WFA.   Of course with this firm, anything can happen and wouldn;t be a bit surprised if the $150k cut actually happened.   Envision and forefront is an easy deal for the long termers to that want to stay at WFA. Its a payout defferred over 9 years. We had financial horizons in the past and the clients never really cared about the reports. In this case you just filled in the blank forms and create the envision report. It is a hokey process that will ultimately cost WFA millions of dollars in deffered comp. The clients that stay thru all the BS from AGE to Wach to WFA are already loyal clients. Loyal to the FA not the company. The WFA client has been jerked around so much and now the account fees, shows there loyalty remains with the FA not WFA. All WFA FA;s best be prepared for more Bitching and complaining from clients once the new account fees hit the accounts later this year. The envison reports are meanlingless to the client, but account fees that nickel and dime the clients. WFA will certainly see what clients are loyal after the account fees. Lets face it, most FA's are simply order takers, and many clients know of the on-line commission savings. Getting rid of low producers won't save accounts, but wil save money especially when it comes to insurance benefits and costs to keep the low producers in the office.   Let's see what happens in the next 6 months, It should be interesting times. Ben Edwards would always tell us how many FA have been newly hired or quit the firm. Now a days we never know how many FA have choosen to leave WFA. The only thing that holds FA to WFA is the retention bonus that they all got and don;t want to pay the money back to go elsewhere. Wach was pretty shape in finding a way to retain brokers. The big question is what happens after the 66 months for retention bonus is up. My prediction...many brokers leave and retire or look elsewhere.  It;s a tough industry and most all AGE brokers have been kicked in the ass real hard and have been screwed after many years of hard work. The merger between AGE and Wach was the worst thing that could possibly happen to some very good hard working and quality people.  Ben Edwards was a ICON within the industry. [/quote]

Well put!  I will go one further.  I think that WFA will be floored at the amount of advisors who will walk by the end of the year.  I know of many who are working out their deals and lining up their ducks to leave later in the year.  Most, us included, want to put a bit more distance between the market bottom and thier move.  Timing the move after the account fees hit should also help the cause.

I also agree that the retention is the only thing that is keeping most there.  If we were all a bit smarter and didn't invest the money, then I think that more would have left already.
Jun 10, 2009 2:07 am

In this case you just filled in the blank forms and create the envision
report. It is a hokey process that will ultimately cost WFA millions of
dollars in deffered comp.
***************************************************
I dont get this. Are you referring to your old AGE plans costing $$$ in deferred comp pymnt? Because the Envision/Forefront is not def comp but a forgiveable loan paid upfront.

Jun 10, 2009 2:15 am

I think that WFA will be floored at the amount of advisors who will walk by the end of the year
****************************************************
Do you really think WFA cares?? There are a ton of FA refugees out there looking to fill those empty seats. Look at the UBS layoffs. They will be happy to get paid to take a seat at WFA.  One thing I have learned is EVERYONE is replaceable.

Jun 10, 2009 3:08 am

Rumor is that WFC is already floored by the # of FA’s/teams that have left that were 1mm + producers.  There has already been a mass exodus. Just ask any leftover AGE/WF brokers in the New York, Naples, Boca Raton, Miami, Palmetto Florida branches.  No doubt the 150-200K 5 year LOS brokers are getting ready to get sliced out of the mix. The regional Mgr here is already publicly talking about it.  The average break-even per broker in most regions is in the 150-200k gross range.  These order takers need to find a job at the local Eddie Jones office as a registered assistant or something of the like…

  C'mon. If you have been in the biz for 5 years or longer and thats all the gross you can muster up? You definitely picked the wrong profession.  And you can't blame it all on the economy because the last 6 months have been some wonderful asset harvesting times from blokes like yourself.   Anyone denying the fact the WF Advisors cuts are coming needs a reality check.  Every firm trims dead weight and it is long overdue at AGE/WB/WF Advisors.
Jun 10, 2009 2:38 pm

Bud, you’re pretty close on the break even at $150-$200k.  It’ obviously different in every branch. I know my buddy who manages a Morgan Stanley office had to get $227k per FA last year to break even based on his branch P&L. That’s in a branch with about 25 FAs in a decent market. Clearly bigger offices with a lot of top end producers can afford more trainees, and more dead weight.  In small market offices with say… 10-12 FAs, even though overhead is typically lower, I can’t imagine the number being much less. 

Jun 10, 2009 8:51 pm

I was told that nearly an entire branch up in Michigan recently left… I believe they went to Stifel ? 

  It would be interesting to see a scorecard on how many advisors have left vs how many FA transfers they have paid to join (and how much has been paid to sign them).   FA cuts  wouldn't surprise me, and I think it will happen.  I don't know that AGE ever laid anyone off -- even in bad times.  Well it's a different company now, the culture is different, mgt is different, etc.   If half the firm's T12 is below 300k it seems unreasonable to think that would be the cutoff. 
Jun 10, 2009 9:19 pm
fritz:

[quote=burtonfinancial1]Bud, you’re pretty close on the break even at $150-$200k.  It’ obviously different in every branch. I know my buddy who manages a Morgan Stanley office had to get $227k per FA last year to break even based on his branch P&L. That’s in a branch with about 25 FAs in a decent market. Clearly bigger offices with a lot of top end producers can afford more trainees, and more dead weight.  In small market offices with say… 10-12 FAs, even though overhead is typically lower, I can’t imagine the number being much less. 

  It's all based on circumstances.  I have a buddie at a WS branch, he said there are 6 brokers, 23 empty offices/cubes.  How can the breakeven be 200K+ in that case.  I would think a guy doing 150K would be far better than the desk collecting dust.  [/quote]A guy only doing 150k needs to let the others that can do more have his book and leave. 6 brokers had better be doing close to 500k each or that office is history.  If anything, the break even would go up because of the fixed costs being spread across less brokers.  6 chairs filled out of 29. That is funny. How many support people? 1 probably to answer the non-ringing phone and copy the mail.
Jun 10, 2009 9:40 pm

Leave it to a Buckeye to beat down a Michigan branch!