Top brokerages scaling back on big ticket hires

Wall Street Bull

Wall Street’s big brokerages — or wirehouses, as they were once known — are ending the era of the high-priced broker for hire.

The New York Post reports that they do not wish to compensate the rich and famous multimillionaire advisers who have grown their empires managing wealthy customers’ portfolios.

A trio of brokerages, Morgan Stanley, Merrill Lynch and UBS, are calling an abrupt end — for now — to hiring raids and the seven-figure upfront signing bonuses they once paid to poach each other’s talent.

Commissions, fees and charges paid by customers are in a downward spiral, so these firms must make up for it in volume and make do with less, analysts say — and Morgan Stanley last week, hot on the heels of Merrill Lynch and UBS, is taking in the reins.

The move is a cultural transformation — in effect, signaling to major prospects they got too big for their britches — but it also dumbs down the field of wealth management, analysts say.

Hit the link below to access the complete New York Post article:

Wall Street’s big brokerages scale back on recruiting

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