Wall Street Banks Lose $133 Billion in Assets as Wealth Managers Move On

NEW YORK (Reuters) – Brokerages saw top advisers depart in droves last year and shift $132.5 billion in client assets with them, a Reuters tally shows, creating headaches for some Wall Street banks at a time when wealth management is becoming an increasingly important part of business.

Unprecedented signing bonuses, cultural changes linked to acquisitions, a push to cross-sell company products, and a growing charm of joining regional outfits contributed to many of these exits which are likely to continue this year, recruiters and brokers said.

All told, at least 880 veteran brokers and their teams changed firms in 2012, according to the data, which tracks the moves of top individual advisers and teams that manage $100 million or more inclient assets. That included the departure of at least 16 $1 billion-plus advisers or teams, a numberwealth management recruiters say they usually see over several years, not in 12 months.

Morgan Stanley Wealth Management – the brokerage majority owned by Morgan Stanley and partially owned by Citigroup – felt the brunt of defections in 2012, with the departure of at least 243 veteran advisers who managed more than $39.2 billion. Bank of America Corp’s Merrill lost at least 184 advisers who managed more than $28.5 billion.

The two largest U.S. brokerages by headcount each lost at least six teams that managed $1 billion or more in client assets apiece – easily the size of an entire office branch….”

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