Credit Suisse Derby Ends, UBS and Wells in Winners’ Circle
UBS picked up almost one-third of Credit Suisse’s U.S. brokerage force in the frenzied recruiting battle that erupted after CS announced it was closing the business, according to a final tally that has been leaked to k-tcc.
UBS Wealth Management Americas hired 101 of the 336 “relationship managers” who had worked at its Swiss rival, second only to the 111 who joined Wells Fargo Advisors, according to the document, which was circulated internally this week to certain CS managers.
UBS’s haul is widely viewed as more impressive because Credit Suisse had encouraged its advisors to join Wells by offering financial and operational-transitioning incentives. It also gave Wells’ recruiters exclusive access to its branches.
UBS scooped up many of Credit Suisse’s largest teams, according to Roger Gershman, an industry recruiter with Consultants Period.
Credit Suisse, which closed the doors of most of its U.S. branches officially last week, also compiled a list of all brokers who went to Wells Fargo. They include 30 in New York and more than 15 in the Philadelphia area, where Wells does not have a big presence.
Spokespeople for Wells Fargo and UBS did not return requests for comment.
The tallies, which were leaked to k-tcc on condition of anonymity, detail where the Credit Suisse brokers ended up by firm, broker name and date of hire at the new firm.
Morgan Stanley took the show position, netting 67 Credit Suisse advisors, including 27 who worked primarily in New York and Miami with Latin American clients.
Credit Suisse had granted Morgan Stanley the same variety of recruiting exclusivity for the Latin American brokers as it had given Wells Fargo for the rest of the producers.
A Morgan Stanley spokesman said he “would not challenge” the numbers, adding that another eight are expected to join from the Latin American group.
UBS was a “huge winner,” said a branch manager at a large regional firm, but it also made “a gargantuan financial commitment.” The manager, who spoke on condition of anonymity because his firm did not authorize him to speak, said it was difficult to compete with the size of the deals being offered by UBS.
UBS’s recruiting and retention loans jumped by $300 million in the fourth quarter to over $3 billion, according to regulatory filings. The firm’s aggressiveness also attracted a raiding arbitration claim from Credit Suisse. Advisors who went to UBS and other firms, meanwhile, have brought arbitration claims against CS for withholding their deferred compensation.
Some large producers took the Wells deal, in part, to facilitate collection of large deferred compensation that was due them and that Credit Suisse is withholding from those who went to other firms.
John Stumpf, Wells Fargo’s chief executive, said on a quarterly earnings call last November that the competition for Credit Suisse advisors had quickly turned into a “feeding frenzy.” He cautioned shareholders to not expect major revenue gains for the bank from the arrangement.
Neither Wells, Credit Suisse nor Morgan Stanley have disclosed terms of the arrangements they negotiated regarding the “exclusive” recruiting rights.
|Hiring Firm||# of Employees|
|Merrill Lynch (PBIG)||6|
|Chicago Family Wealth||3|
|Matt Gardiner Family Office||1|
|RGT Wealth Advisor||1|
|Hovde (Reginal IB)||1|
For the full list of advisors joining Wells Fargo, click here.