Wanna-be Regional Smack Talk
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WP,
At Jones, despite having a boatload of low producers, we have at least 350 FA's producing north of about 850K. The cutoff for going to the Managing Partners conference is $650K in transaction revenue (so not including trails). My buddy just squeeked in this year for the first time, and he was at about 850K in total gross. In 2007, the firm averaged almost exactly 300K in production per FA, and $48mm AUM per FA. So, that means that about half the FA's produce more than that (yes, it's not the median, so it's not exact). If you consider how many FA's we have with less than 5 years experience, it gives you an idea of the average production of experienced FA's. So I know it doesn't compare to the wires, but your assertion that 300K is "rock star" status is bunk.I find the arrogance of some of the people in this industry to be completely laughable.
If you produce 300k and take home about 110k as a result, that's decent money in most parts of the country. What gives you the right to look down on these people? Maybe if you focused on taking care of clients, you wouldn't lose them. A retail branch for a wirehouse is just a channel of distribution, that is it. From my experience at MS, you are either the pimp or the whore.ice - I think most people still consider Jones a regional. Even some of our wholesalers who aren’t Jones specific tell us that we get lumped in with the Stifels of the industry. I don’t know what the cutoff between regional and wirehouse is, but I’d guess Jones surpassed it a while ago.
I agree with spiff’s comments. I have similar wholesalers now(indy) as I did at Jones.
I think wholesalers either lump them with indys or regionals. They are really a category to themselves, but there is no category.
You could lump jones with Mutual Fund Store, TD Ameritrade and not be wrong.
Or you could lump them with regionals
Well then there is only one wirehouse left… UBS is NJ, ML is BAC which is one of the carolinas i think. WFC is what california… So that leave Citi Morg as the only wirehouse left.
Technically, the definition of a wirehouse is an institution whose different branches are linked by a communications system enabling them to share financial information, customer data and research.
Which pretty much makes any place with multiple branches a wirehouse.
Ha! I may be a wirehouse soon. How ironic?
Then by that definition Jones is definitely a wirehouse. We had telegraph wires stringing our Jones offices together back in 1960. Its why the messages we send today on the green screens are called wires. Ted figured that he could string a telegraph wire from point A back to STL and then build offices along the wire anywhere in between. Ed Sr. thought that Ted was crazy and that the company would go broke before he could build those offices.
Bonus question - One end of the telegraph was in STL. Where was the other end of the line?[quote=Spaceman Spiff]
Then by that definition Jones is definitely a wirehouse. We had telegraph wires stringing our Jones offices together back in 1960. Its why the messages we send today on the green screens are called wires. Ted figured that he could string a telegraph wire from point A back to STL and then build offices along the wire anywhere in between. Ed Sr. thought that Ted was crazy and that the company would go broke before he could build those offices.
Bonus question - One end of the telegraph was in STL. Where was the other end of the line?[/quote]You do realize most other firms used Wires too right...
I thought the line in the sand between wires and regionals had to do with fc headcount. What that number is, I can’t recall.
[quote=nestegg] [quote=Spaceman Spiff]
Then by that definition Jones is definitely a wirehouse. We had telegraph wires stringing our Jones offices together back in 1960. Its why the messages we send today on the green screens are called wires. Ted figured that he could string a telegraph wire from point A back to STL and then build offices along the wire anywhere in between. Ed Sr. thought that Ted was crazy and that the company would go broke before he could build those offices.
Bonus question - One end of the telegraph was in STL. Where was the other end of the line?[/quote]You do realize most other firms used Wires too right...
[/quote] Yes. I realize that Ted didn't create the telegraph wire.
[quote=Spaceman Spiff]
Bonus question - One end of the telegraph was in STL. Where was the other end of the line?
[/quote] Ummm.....Nigel Tufnel's amp?[quote=2wheeledbeemer][quote=Spaceman Spiff]
Bonus question - One end of the telegraph was in STL. Where was the other end of the line?
[/quote] Ummm.....Nigel Tufnel's amp?[/quote] Correct! Kind of... His amp had an output as well. It finally ended in Pueblo, Co. which ironicly means small town. What do I win Spiff? Back to the difference in business models... It seems like maybe wirehouses are centrally located in large cities and regionals are well in the regions the clients are, I am guessing. Can someone give us a run down of the traditional definitions and examples, also what these examples probably should be called with the changes over the past year or so?[quote=JAXSON It finally ended in Pueblo, Co. which ironicly means small town.
What do I win Spiff? [/quote] You win my very special Doug Hill picture. It's professionally framed and matted, complete with quote from Doug on one side and his smiling face on the other. Congrats. That'll be $49.95 for S&H. I take Paypal.FYI- I’ve heard that Stifel is so buried in paperwork and crap from the mere 55 UBS offices they bought that they may be freezing FA hiring for 3-6 mos. A recruiter who said he has recruited into Stifel for a year told me that today. One less regional in the game for Q3 and Q4?
The transfer process may slow up a bit to make sure they do the UBS transition correctly. I’d rather see controlled growth than uncontrolled growth. Stifel must be doing something right or else they wouldn’t attract so many new brokers.
[quote=2wheeledbeemer][quote=Spaceman Spiff]
Bonus question - One end of the telegraph was in STL. Where was the other end of the line?
[/quote] Ummm.....Nigel Tufnel's amp?[/quote] The other end of the line was here: (and I REALLY mean "end of the line") : http://www.youtube.com/watch?v=7Hg-IRZk4D0