It was not long ago that Todd Thomson was a rising start at Citigroup (NYSE: C), with some speculating that he would someday be it’s CEO – that is, until allegations arose of inappropriate activities including Maria Bartiromo and company equipment. Since leaving Citi Thomson went on start a successful new business that caters to independent advisory firms, and continues to build a stable of well known executives.
Michael C. Brown, 52, said he left Bank of America’s (NYSE: BAC) U.S. Trust unit last week to join New York-based Dynasty Financial Partners, founded by Thomson and Shirl Penney, another ex- Citigroup manager. Brown’s clients had a typical net worth of $50 million, according to Barron’s, which ranked him 28th on its most recent list of the top 100 U.S. financial advisers.
This most recent departure from Bank of America once again ignites concerns about the firm’s ability to keep top producers. The company and large banks in particular have struggled with this, as top producers have jettisoned to greener, less regulated pastures. More than 7,300 advisers have left the four largest full-service brokerages from the beginning of 2009 through June, according to research firm Aite Group LLC.
Brown, who will be director of wealth management at Dynasty and an investor, declined in an interview to specify how many Bank of America clients will migrate with him. Typically, advisers take about 70 percent of their customers when they leave a brokerage, said White of Kaye/Bassman. Charles Britton, a member of Brown’s U.S. Trust team, joined him at Dynasty, the firm said today in a statement.
Bank of America, led by CEO Brian T. Moynihan, 51, declined 21 percent this year through last week in New York trading on concern that costs from improper foreclosures and soured mortgages may be a drag on profit. The bank also endured public hearings and investigations tied to its takeover of New York- based Merrill Lynch, which spurred the bank to take a second round of U.S. bailout funds, which was repaid last December. The future of the industry remains far from clear, but one thing is certain: headcount shifts are likely to heat up in the coming months.
