Comments on: Why BofA can’t tell Merrill brokers what to do http://blogs.reuters.com/felix-salmon/2012/02/16/why-bofa-cant-tell-merrill-brokers-what-to-do/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: FifthDecade http://blogs.reuters.com/felix-salmon/2012/02/16/why-bofa-cant-tell-merrill-brokers-what-to-do/comment-page-1/#comment-36106 Fri, 17 Feb 2012 05:29:17 +0000 http://blogs.reuters.com/felix-salmon/?p=12216#comment-36106 Some think those who sell investments to clients should not get paid; that’s only their greed talking. A good adviser won’t get it right 100% of the time, but he’ll get it right more times than not. He’s dealing with the vagaries of human nature, he has to interpret what the client wants, what the client needs, and find the best fit from what is available. Of course he should be paid.

I don’t agree with double charging fees though. We sell funds at NAV with no load on them. We refund any kickbacks we may be entitled to back to the client. We charge the client a straightforward and fully transparent fee. But then we are only in little old Switzerland. And we don’t deal with any Americans. The SEC are very strict about that and even Americans who have not lived in the US for 20 years and who have their centre of economic existence in Europe have to use a US broker to give them advice that mostly ignores the rest of the world.

Sometimes I think the US is screwed. But then I realise it’s just screwed up.

]]>
By: kaylabi http://blogs.reuters.com/felix-salmon/2012/02/16/why-bofa-cant-tell-merrill-brokers-what-to-do/comment-page-1/#comment-36075 Thu, 16 Feb 2012 15:55:28 +0000 http://blogs.reuters.com/felix-salmon/?p=12216#comment-36075 Bank of America Corp. and Citigroup Inc. climbed more than 2.1 percent as a measure of European lenders gained
http://modernfinancereport.wordpress.com  /2012/02/13/u-s-stocks-rise-on-greek-au sterity-vote-bank-of-america-corp-and-ci tigroup-inc-climbing/

]]>
By: skeptometric http://blogs.reuters.com/felix-salmon/2012/02/16/why-bofa-cant-tell-merrill-brokers-what-to-do/comment-page-1/#comment-36074 Thu, 16 Feb 2012 14:49:06 +0000 http://blogs.reuters.com/felix-salmon/?p=12216#comment-36074 “When selling a third-party product, the broker is working wholly for the client.” What? He’s working for the products that pay sales commissions. You won’t get a no-load mutual fund from an M-L broker. Does a used-car salesman work for the car buyer? Only if he refers people to classified ads.

]]>
By: Sechel http://blogs.reuters.com/felix-salmon/2012/02/16/why-bofa-cant-tell-merrill-brokers-what-to-do/comment-page-1/#comment-36069 Thu, 16 Feb 2012 10:33:25 +0000 http://blogs.reuters.com/felix-salmon/?p=12216#comment-36069 It amazes me that investment banks believe they can shove over-priced investments designed not to perform as advertised and not risk destroying their franchise. Why would anyone pay 90 basis points a year for the right to earn 75% of the s&p or investment in customized fixed income products that have unexplained credit risk.

More and more people are realizing that listening to your broker does not provide for anyone’s financial security other than that of the broker.

]]>
By: DCUK http://blogs.reuters.com/felix-salmon/2012/02/16/why-bofa-cant-tell-merrill-brokers-what-to-do/comment-page-1/#comment-36063 Thu, 16 Feb 2012 03:08:41 +0000 http://blogs.reuters.com/felix-salmon/?p=12216#comment-36063 Been there. Your observations are right on the mark!

]]>
By: mondovibe http://blogs.reuters.com/felix-salmon/2012/02/16/why-bofa-cant-tell-merrill-brokers-what-to-do/comment-page-1/#comment-36061 Thu, 16 Feb 2012 02:12:44 +0000 http://blogs.reuters.com/felix-salmon/?p=12216#comment-36061 good to hear the brokers don’t want to sell what they don’t believe in but didn’t Merrill Lynch just slide trillions in questionable bundles into FDIC BoA last fall…

]]>