"No News" Not Good News For Morgan Keegan Sale

Monday, October 03, 2011 07:54
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Attrition from Morgan Keegan has been negligible as advisors wait for news that the firm has found a buyer, but recruiters warn that those looking for a big retention bonus may be disappointed.

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Morgan Keegan has been on the market since June, when it finally paid $210 million to settle claims its subprime mortgage securities practices were "arbitrary" at best.

 

But as just about every potential buyer on the list fails to seal the deal, recruiters hope the firm's 1,200 advisors will get nervous and start looking for a new home.

 

As it stands, some are staying in order to see whether they'll get a massive retention bonus. 

 

What could that look like? Securities America reps only got 15% of their annual production for staying when their firm finally sold to Ladenburg Thalmann a few months ago.

 

Given the length of time we are looking at here, Morgan Keegan may be in a similar boat. It's a buyer's market out there and motivated sellers don't have much leverage.

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