"we shall only see two firms, ML and SB, in the not too distant future. I'm interested on commentary. Do others see this happening, too? Basically just SB, ML, the online firms, and brokerage business offered by banks (like Wachovia Securities, BAC's)??"
who cares? why do you ask?
I think its likely that most brokerage companies will be either bank aquired or raise a bank internally. Certianly merrill and morgan are trying that. the idea of the financial superstore continues to evolve regardless of wall streets insistance that breaking off retail makes sense (again morgan and merrill)
In the end, probably you will know the brand names;
Merrill
Smith Barney
Morgan Stanley
Goldman
Wacovia came about because prus name was so bad.
UBS - because they have a better global name then paine webber.
But you might not know who owns them. So?
With the big players concentrating on the wealthy and high net wealth. Niche companies like AG edwards, jones, all regionals will always have plenty of customers around that the big boys dont want to bother with. The Online players are mostly (mostly not all) small time that nobody else wants or individuals who not only dont want help but activly avoid help. Plenty of them around. As the baby boom moves into retirement EVERYONE is going to have to handle their finances one way or the other.
As far as brokers are concerned (worried?), with the current competition of hiring away producers from each other they collect a check each time they go. Imagine working for Merrill, getting a check to go to Advest, being bot by merrill, getting another check to stay or taking another check from Morgan, then if Morgan is bought, selling yourself back to Merrill. As long as your clients come along thats all you have to worry about and why would a client care which firm you worked for?
"_I_ am not happy with SB"
Why? |
