John Stumpf being grilled by Congress for 4 hours is old news.
Now it's Morgan Stanley's turn.
"Massachusetts officials have charged Morgan Stanley with dishonest and unethical conduct for running high-pressure sales contests. The contests in Massachusetts and Rhode Island focused on the sale of "securities based loans." The loans let customers borrow against the value of the securities in their investment accounts with their securities as collateral. <...> Galvin says the contests offered advisers incentives of $1,000 for 10 loans, $3,000 for 20 loans and $5,000 for 30 loans. He says that created a conflict of interest that violated the financial firm's fiduciary duty.”
What do you guys think of the future of large banks? Seems like cross-sell and high pressure sales tactics are under fire now, so how do you think retail banks will continue to make money?
$1,000 payment for ten loans? So, $100 per phone call assuming you had a 100% close rate? Is this what is considered 'Wall Street' these days? What a fucking joke. How is that prize considered a sales 'contest' prize? How fucking piker can you get?
I can't imagine dialing a phone for that little money, especially when it's just 'potential', instead of guaranteed. What if someone talked to you for ten minutes? What a fucking waste of time.
I didn't know MS had a sales team for retail clients? I imagine this must be their Massachusetts office.
this is MS wealth management. they're talking about financial advisors.
F'in A its a team of FAs apologies for the misnomer on my end
Hahaha stockbrokers with potential. I am with you, if I owned a firm I would buy everyone cheeseburgers and say 'forget the contest and oh yea lets not do the whole 'FA' thing because I hate hanging out with you guys.
Calling this high pressure sales tactics is a joke
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