Corporate & Securities Law

Merrill Lynch Brokers' November 14th D-Day In Deciding Whether Or Not To Sign On With Bank Of America Is Just The Beginning Of The Transition Analysis

By James Eccleston

November 14, 2008.  That's D-Day for Merrill Lynch brokers who need to decide whether or not to sign on with Bank of America.  It's not surprising that more than 90% of Merrill Lynch brokers have decided to stay on with Bank of America according to Wall Street Journal Reports.  That's not because of a great arrangement.  Instead, it's because Merrill brokers were given only three weeks to review the deal, to interview with competitors, to negotiate the terms of their employment agreements and promissory notes with any competitors who chose to offer them an enticing package to move. 

But Merrill Lynch brokers have some comfort moving forward, at least short-term.  They were able to convince Merrill Lynch and Bank of America to agree to the protocol protection for moving customer accounts if they choose to move to a new firm. 

Merrill Lynch brokers and staff are highly paid.  That's part of the culture at Merrill Lynch.  Will that culture clash at Bank of America?  It certainly will.  BofA Chief Executive Ken Lewis has vowed to cut $7 billion of cost or 11% of the combined firm's $61.1 billion in cost for 2007.  And he's already said that staffers at Merrill Lynch are making a lot more money than staff people at Bank of America and that "won't last."

In addition, there's a culture clash as the securities firm of Merrill Lynch, known for it's independent streak, merges with Bank of America's more conservative banking culture.  Now competitors out there are paying 150% -200% of Merrill Lynch brokers' trailing twelve.  That's enticing and it ought to continue.

Attorneys at SNSFE assist brokers in transitioning from firm-to-firm and in negotiating these precise legal terms and protections of the employment agreement and the promissory note.

Those interested in conferring with an attorney at SNSFE should feel free to do so. 

Source:  Wall Street Journal Reports

Full post as published by FinancialCounsel on November 14, 2008 (boomark / email).