HOLLYWOOD
02-20-2009, 04:21 PM
Are we a land of Moron's? Do you think the American Sheeple are going to but the BAILOUT for BONUSES on a newly formed entity BS? I warned many there would be loopholes and trixters
Morgan Stanley to Offer Brokers $3 Billion Retention as LOANS over 9 years. Geez, another way around the government welfare and Uncle Sugars Bailouts riles/restrictions. unbelieveable :rolleyes:
Here we go...
http://www.bloomberg.com/apps/news?pid=20601087&sid=ac6yFnRPTi_I&refer=home (http://www.bloomberg.com/apps/news?pid=20601087&sid=ac6yFnRPTi_I&refer=home)
Morgan Stanley to Offer Brokers $3 Billion Retention (Update1)
Feb. 20 (Bloomberg) -- Morgan Stanley’s joint-venture brokerage with Citigroup Inc. will pay brokers as much as $3 billion to ensure they stay after the new entity is formed, a person familiar with the matter said.
Top producers may be eligible for 105 percent of their annual production, the person said, speaking on condition of anonymity because the plan isn’t public. Brokers must stay at the firm for nine years to fully benefit from the plan, the person said.
Morgan Stanley is paying the bonuses to limit departures of brokers who might be poached by other firms such as UBS AG and Credit Suisse Group AG. Banks that have received U.S. government funds have come under criticism for offering bonuses. Citigroup and Morgan Stanley received a combined $62 billion in funding from the government.
Earlier today, Wells Fargo & Co. said it won’t pay retention bonuses to Wachovia Corp.’s retail brokers because the banking industry and its clients are “suffering.” The San Francisco-based Wells Fargo acquired the bank in December.
Morgan Stanley and Citigroup’s Smith Barney unit agreed to form the joint venture last month, creating the biggest retail brokerage with more than 20,000 brokers and $1.7 trillion in assets. Morgan Stanley will control the venture with a 51 percent stake.
Morgan Stanley spokesman Jim Wiggins confirmed that the bonus plan had been made. He declined to comment on specifics, including money.
6,500 Eligible
About 6,500 of the 20,000 brokers will be eligible for the retention package, the person said. The first payment will be made in January 2010 with second in 2012. Brokers need to have been at one of the firms since the end of 2006 to be eligible for the plan. No bonuses will be given to senior executives, branch managers and support staff.
The joint venture will pay Morgan Stanley and Smith Barney brokers who produce at least $1.75 million in revenue in 2008 as much as 105 percent of that amount, including 75 percent in the first payment and a guaranteed 30 percent later. Brokers who make between $1 million to $1.74 million are entitled to 75 percent plus an additional 25 percent if they meet certain growth targets over three years.
Morgan Stanley will pay Citigroup $2.7 billion for control of the new company. It has an option to increase its stake after three years and to take full control after five years.
To contact the reporter on this story: Joshua Fineman in New York at jfineman@bloomberg.net
Last Updated: February 20, 2009 17:57 EST
Morgan Stanley to Offer Brokers $3 Billion Retention as LOANS over 9 years. Geez, another way around the government welfare and Uncle Sugars Bailouts riles/restrictions. unbelieveable :rolleyes:
Here we go...
http://www.bloomberg.com/apps/news?pid=20601087&sid=ac6yFnRPTi_I&refer=home (http://www.bloomberg.com/apps/news?pid=20601087&sid=ac6yFnRPTi_I&refer=home)
Morgan Stanley to Offer Brokers $3 Billion Retention (Update1)
Feb. 20 (Bloomberg) -- Morgan Stanley’s joint-venture brokerage with Citigroup Inc. will pay brokers as much as $3 billion to ensure they stay after the new entity is formed, a person familiar with the matter said.
Top producers may be eligible for 105 percent of their annual production, the person said, speaking on condition of anonymity because the plan isn’t public. Brokers must stay at the firm for nine years to fully benefit from the plan, the person said.
Morgan Stanley is paying the bonuses to limit departures of brokers who might be poached by other firms such as UBS AG and Credit Suisse Group AG. Banks that have received U.S. government funds have come under criticism for offering bonuses. Citigroup and Morgan Stanley received a combined $62 billion in funding from the government.
Earlier today, Wells Fargo & Co. said it won’t pay retention bonuses to Wachovia Corp.’s retail brokers because the banking industry and its clients are “suffering.” The San Francisco-based Wells Fargo acquired the bank in December.
Morgan Stanley and Citigroup’s Smith Barney unit agreed to form the joint venture last month, creating the biggest retail brokerage with more than 20,000 brokers and $1.7 trillion in assets. Morgan Stanley will control the venture with a 51 percent stake.
Morgan Stanley spokesman Jim Wiggins confirmed that the bonus plan had been made. He declined to comment on specifics, including money.
6,500 Eligible
About 6,500 of the 20,000 brokers will be eligible for the retention package, the person said. The first payment will be made in January 2010 with second in 2012. Brokers need to have been at one of the firms since the end of 2006 to be eligible for the plan. No bonuses will be given to senior executives, branch managers and support staff.
The joint venture will pay Morgan Stanley and Smith Barney brokers who produce at least $1.75 million in revenue in 2008 as much as 105 percent of that amount, including 75 percent in the first payment and a guaranteed 30 percent later. Brokers who make between $1 million to $1.74 million are entitled to 75 percent plus an additional 25 percent if they meet certain growth targets over three years.
Morgan Stanley will pay Citigroup $2.7 billion for control of the new company. It has an option to increase its stake after three years and to take full control after five years.
To contact the reporter on this story: Joshua Fineman in New York at jfineman@bloomberg.net
Last Updated: February 20, 2009 17:57 EST