In a lengthy discussion with a team that seems determined to leave JP Morgan Securities, multiple points of the recruiting and due diligence process were uncovered. Given the depth of the conversation, the highlights seemed to be noteworthy and of value to the wealth management discussion.
With assets under management and revenues at all-time highs across the industry, recruiting is white-hot. Deal percentages are at the highs, while hurdles inside deals are near all-time lows. It is a seller’s market in every way.
You happen to be tethered to a Wells Fargo logo. The conversation is much different given the missteps that have come from that firm in the past 24 months. Whether it be fraudulent account openings or a newly minted CEO making racially insensitive remarks, Wells Fargo has stumbled its way to where it currently resides – a recruiting afterthought.
Here is how that conversation went last week:
“Should we even look at Wells Fargo? I’ve heard their deal is big, but will the fog ever lift from that place? Leaving JPM and the brand itself is really our only challenge with client transition – I can’t imagine the extra weight explaining a move to Wells Fargo would entail.”
“Are serious teams really going there or is it just straight-up money grab? It feels like anyone that goes there is striking a massive almost off-book deal. That’s just our perception. Merrill Lynch is probably a more interesting name than Wells at this point.”
Oof. Merrill (a division of Bank of America) is more interesting right now. If there was ever more painful wealth management recruiting take we’ve yet to hear it.
But that is where Wells Fargo finds itself. The biggest deal on the street, paying recruiters up to 10% deal fees, and adjusting deals for teams in any way possible to lure them into the fold.
As the saying goes, “desperate times call for desperate measures.”