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Kurt Kuhn's Comments

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Bailed-Out Firms Distributing Cash Rewards:

Bailed-Out Firms Distributing Cash Rewards: "Please Do Not Call It A Bonus"

Commented Feb 26, 2009 at 20:38:31 in Politics

“Other private banks are highly interested in hiring these same advisors and would gladily pay these advisors nearly 1.5 to 2 times their trailing 12 month revenue as a signing bonus. If the employer like Morgan Stanley did not compensate these advisors for this transition, many of the advisors will surely leave to go to other banks and be paid for essentially enduring the same process that she would by chosing to stay at Morgan Stanley. If the advisor moves with their clients to a similar institution with similar products and services, they will be paid for making the change. What many of you do not understand is that if a large number of advisors leave to go to compeititors, it will have a significant effect on the revenue for the company. If Citibank and Morgan Stanley lose a significant amount of revenue, it is going to be very difficult for them to repay their TARP loans. In addition, without this revenue source the banks financial condition could worsen and force them to need additional TARP funds to remain a going concern. ........”
Bailed-Out Firms Distributing Cash Rewards:

Bailed-Out Firms Distributing Cash Rewards: "Please Do Not Call It A Bonus"

Commented Feb 26, 2009 at 20:38:01 in Politics

“The advisors have to take on a great deal of labor intensive projects in dealing with their clients when their firm changes ownership. What if you had invested millions of dollars with Citbank-Smith Barney and one day your statesments started coming from Morgan Stanley, would you not expect an explanation? Would you not have to be convinced that Morgan Stanly had the same products and services that you invested in at Citi-Smith Barney? What about your loans and checking accounts, do they not have to be changed? Would you want to know the terms of these accounts? Basically, the Financial Advisor has to rebuild his entire client list which provides his entire income. During this time period he normally would be bringing on new clients and increasing his level of service to his current clients. The advisor did not ask to be sold to another bank and as a result he would be forced to perform hetic and unusal duties that are surely going to lower his annual income. It is necessary to compensate the advisor for navigating and successfully completing this disruptive process.....”
Bailed-Out Firms Distributing Cash Rewards:

Bailed-Out Firms Distributing Cash Rewards: "Please Do Not Call It A Bonus"

Commented Feb 26, 2009 at 20:36:50 in Politics

“The Financial Advisors that work in the Wealth Management Divisons of Investment Banks have nothing to do with the Investment Bank's Institutional Products. The Wealth Management Divisions are extremely profitable and typically generate pre-tax margins of 15-25%. In addition, they drive a great deal of revenue that goes into the Investment bank's earnings. The advisors have had no involvement in any of the positions on the Investment Bank's trading books and they had nothing to do with the deals generated by the Investment Bank. ..(continued)”