Securities Law Blog

In the wake of the turmoil in the securities industry, many industry insiders foresee a spike in recruiting and raiding litigation in the months to come. Bank of America Corp. is offering Merrill brokers bonuses of as much as 100% of their annual trailing twelve month production to keep Merrill brokers from going independent or fleeing to a competitor. No doubt, Bank of America realizes the importance of retaining brokers and their clients' assets. It has been reported that brokers who generate at least $1 million in fees and commissions are eligible for the retention bonus at that level. Bank of America is trying to prevent attrition in Merrill's brokerage ranks. Evidently, Merrill's brokers are getting pummelled by recruiting calls. Given the state of the market, brokers from other firms must be weighing similar offers. Even before the recent market turmoil, recruiting litigation had seen a rise in activity in the past year after the relative calm which ensued with the advent of the securities industry recruiting protocol several years ago. However, in light of recent events, one can only expect that employment litigation in the securities industry is back for the foreseeable future.

For more information on this subject contact securities attorneys, Michaels, Ward & Rabinovitz, LLP.