Morgan Stanley facing loss of Advisers handling tens of billions of Benjy bucks - is the issue technology or is this a fig leaf to cover financial issues at MS ? Bounced checks , trading delays , problems with foreign currency transactions sounds ominous to me....

http://www.silverdoctors.com/beat-the-bank-run-if-you-are-the-first-out-you-get-the-best-deal/#more-12757

BEAT THE BANK RUN- IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL!!

SEPTEMBER 2, 2012 BY THE DOC 17 COMMENTS

Submitted by SD Contributor AGXIIK:

Dr Willie has advised us that Morgan Stanley appears to be on the ropes.  I’ll weigh in with my observations and some ‘on the ground’ suggestions.
MS failure?   That would explain the 600 CPAs hired at $500 an hour to dive into an unnamed bank  on Wall Street.  No one has named the bank or banks that received a hypo from the Fed in the last month.  It was $800 million and this is the first time since 2008 that the Fed has done a hypo.  Someone was real short on liquidity.

If you are in the umbra of MS your money will be gone ala MFG, protected by the 7th Circuit court ruling
that your money used as collateral is now the property of the creditor.

IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL.

If you are in the penumbra your money is at complete risk given the new rules in the MMA market that are designed to prevent bank runs.  The southern Euro tier countries have limits that range from $400 to $1,500 max withdrawals a day coupled with draconian currency and PM border controls. If your money is in the bank you will not be able to get to in.Spain has seen 5% of its bank deposits flee in July. The bank run is a full blown race to exits.  Remember this one fact.  IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL.    Game over in Spain folks.

People are trading their skills through time banks in Spain.    Did you see the movie ‘In Time”  It’s real in Spain.   Bank holidays are real and coming to a town near you.  Credit Agricole reported a 63% drop in earnings due to losses in their Spanish bank subsidiaries.  No comment was made about the capital and equity losses suffered by CA due to these Spanish banks in the tank.   Dexia Bank is about to hand the Waffle Countries a $125 billion haircut.  It’s Dexia’s third run to the well in 2 years.
Some say the US is worse off than the Euro zone   Could be given the 50 states are all pretty much bankrupt.  At least some of the Euro zone like Belgium, Finland and  Germany are still sort of ok but going into recession.

With this in mind and know the present regime would love to stay in power, if MS goes down and takes a few other banks with them the DC crowd will declare a bank holiday.  Here is how Susanne Posel describes the potential scenario.

On Friday there is banking shut down with the blame shifted to a Flame like virus.  Its a false flag like the tests done at Nat West and RBS in UK and Ireland
On Monday the banks reopen with the assurances that there is nothing to be concerned about—virus problem solved
72 hours later martial is declared since the problem was not the virus. It was and will be the systemic failure of the banking system in the US and maybe Europe.
That 72 hours will be your queue to close your accounts and remove yourself from the banking system.   Taking cash from your account and buying any form of supplies you need to get by will be the order of the day.  Buying some silver at your LCS early Monday morning will be a good idea. Take the day off. Close the shop and fill up your gas tanks and other petro stockpiles.  Move away from the city if you can, take a 1 week vacation and bivvy somewhere outside ground zero.
This is what I would do and have done nearly everything on my list some time ago.  The cash conversion is in process and maybe a little phyzz purchase will top off the tanks.

Remember, the first ones out get the best deal!!

and.....


http://www.reuters.com/article/2012/08/31/us-morganstanley-smithbarney-idUSBRE87U0YY20120831

(Reuters) - Several dozen Morgan Stanley Smith Barney advisers who manage tens of billions of dollars of client money are considering leaving the firm, saying that widespread technology problems have made it very difficult for them to do their jobs, according to people familiar with the matter.

The group has hired a lawyer to argue that they should be able to keep lucrative retention payments even if they quit, and they have also drafted a letter to Morgan Stanley CEO James Gorman outlining their concerns, though the letter has not yet been sent, the sources said.

Rebecca Rothstein, one of the firm's top advisers based in Beverly Hills, spoke to him on the group's behalf, two sources familiar with the conversation said.

Rothstein, who is close to Gorman and not part of the group, told him about the difficulties advisers and their clients are having - from trading delays and problems with foreign currency transactions to inaccurate account statements and bounced checks - and warned the group was planning to quit, one of the sources said.

Gorman told Rothstein that he was aware of the problems, and that management was working through the problems, the source said. He also told her that advisers should direct their complaints to Greg Fleming, who heads the brokerage division and is more closely involved with day-to-day issues.

The group of advisers - which one source said totaled 48 and two others said was roughly 40 - are still weighing whether to leave the firm. Several have individually voiced their concerns to Fleming and other senior executives who are working through the technology issues.

Morgan Stanley spokesman James Wiggins said the firm was aware that brokers have been voicing complaints about the new technology, but did not know anything about this specific group of advisers.

"No such letter has been sent to management and no mass exodus has been threatened," he said. "Management's door is always open to discuss with any concerns they may have."

Wiggins also said that while some brokers are bemoaning the changes Morgan Stanley has installed, there are others who have not complained about the conversion and, in fact, prefer the new system. "There is a very large number of financial advisers who are doing just fine," he said.

The firm declined to make Gorman or Fleming available for an interview.

Reuters was not able to obtain a copy of the letter, but was briefed on it by two Morgan Stanley Smith Barney advisers and an adviser from a rival firm who had seen it.

FINANCIAL BLOW

The group's revolt is the latest sign of the concerns about technology at Morgan Stanley Smith Barney, which was formed from the largest-ever U.S. wealth management merger when Citigroup Inc and Morgan Stanley agreed to combine their retail brokerage businesses in 2009. It employs nearly 17,000 advisers overseeing $1.7 trillion in assets.

The advisers' complaints stem mostly from the rollout of a new technology platform dubbed "3D" on which they manage clients' money, store information and look up research reports and market data. The system's rollout has taken longer than expected and been beset by technical problems that have angered clients and advisers.

Still, even some advisers who are upset about the glitches say that management appears to be taking the complaints seriously and working to resolve problems.

The firm has encouraged employees to submit complaints into a program called "We Hear You," and two senior executives in the U.S. operation, Doug Ketterer and Andy Saperstein, have been meeting with advisers in recent weeks to smooth over tensions, several sources said.

A large departure of disaffected brokers would be a blow to Morgan Stanley Smith Barney on both a financial and a reputational level because of their stature and the amount of money they oversee, industry experts said. The larger an adviser's client asset base, the more revenue he or she generates for the firm.

Several of the advisers involved in the budding revolt have worked at Smith Barney for decades. They run groups named after them in New York, New Jersey and California and are members of Morgan Stanley's Private Wealth Management Group, which only works with clients who have at least $20 million in assets.

Four advisers who signed the letter, and whose names Reuters has learned, together manage about $47 billion. Those advisers either declined to comment on the matter or did not return phone calls and emails seeking comment.

A mass resignation's biggest impact would likely be a loss of assets as clients moved their money with the advisers, said Alois Pirker, research director at the Boston-based Aite Group, which studies wealth management trends. "It's not just that the asset count is down, but it also represents future revenue flows," said Pirker.

It is unclear where the advisers might go, though rivals such as Bank of America's Merrill Lynch division and Wells Fargo & Co are often trying to poach wealth managers with large sums of money under their control. Other advisers have left big firms in recent years to strike out on their own in independent wealth-management shops.

BROKERS SEEK LEGAL HELP

If the advisers decide to leave, they will ask to keep the retention awards - nine-year forgivable loans they received in two lump sums in 2010 and 2012 - that are supposed to be repaid if they quit, said the sources.

Lawyers who represent brokers in employee disputes say that it is unlikely the group would be successful in this effort, since contracts are usually written in air-tight legal language and firms like Morgan Stanley are aggressive in fighting such cases.

"The law is fairly black and white when it comes to the laws of a contract," said Rich Schwarzkopf, a New York-based recruiter who works with brokers.

Typically, when brokers leave before such "golden handcuffs" are unlocked, they go to a rival firm that offers an upfront payment to cover lost money.

Yet some advisers who are serious about leaving have been seeking legal advice regarding their ability to keep those payments, several recruiters and industry lawyers said.

Erwin Shustak, a San Diego-based lawyer who represents brokers in employee-dispute cases, said at least four different groups of Morgan Stanley Smith Barney brokers have contacted him recently.

"Everybody that has come to us has expressed the same problems," said Shustak.

But is the real problem / issue technology os something grimmer ?????

JIM WILLIE: MORGAN STANLEY FACES IMMINENT FAILURE & RUIN, MAY SEE 1ST PRIVATE STOCK ACCOUNT THEFTS

AUGUST 30, 2012 BY THE DOC 22 COMMENTS

Jim Willie’s latest Hat Trick Letter, ‘Firestorms & Currency Twisters‘ is a MUST READ!!
Willie states that Morgan Stanley faces IMMINENT FAILURE & RUIN, that The older employees are selling all of their stock, and thatMany workers are making contingency plans for their next positions in another firm.
He states that JP Morgan will devour the carcass, and that The Morgue may be preparing to execute the 1st ever private stock account vaporization/ rehypothecation.

AN ABSOLUTE MUST READ!!!  [Read more...]