Quote:
Originally Posted by xoxoxoBruce
But wasn't that $25,000,000 profit all smoke and mirrors... a perceived increase in wealth, along with trillions more, that disappeared in a heartbeat when the wizard was exposed?
Much of that profit was created out of irrational exuberance caused by people believing phony spread sheets and worthless derivatives were creating wealth, when i fact it was setting the worldwide financial web up for a fall... except The Bank of North Dakota. |
We're talking about the brokers. a.k.a. financial planners, advisors, shiny shoe whores. Brokers gather client assets, build financial plans, and invest according to those plans. They can either charge fees or commissions but not both. Those fees and commissions are what is termed production. If a broker (or team) had $25,000,000 in production but worked as an employee of the firm they would expect to receive the lion's share of that as compensation. If they didn't they would simply go independent and keep 90-95% of that $25,000,000 for themselves and their staff. The firm had damn well better make being an employee an attractive proposition to a guy like that.
Most successful brokers at a firm like that should be producing in the $600K to $2M range. These people make the money so you'd better keep them happy. Just like if you owned a high end trendy restaurant that was THE place to be because the chef is a major draw. Then you realize customers were leaving unhappy because the wait staff sucked. You don't fire the chef because you had a bad wait staff that screwed things up. You get rid of the crap and you do what it takes to keep that chef happy while you fix the rest of the business.