The big banks' wealth management units had a terrific year in 2013. Money in fee accounts ballooned as the S&P 500 rose nearly 30%. Profits ballooned, too.
It was all over the news this month as earnings reports came out, and that transparency is a good thing. So is winning.
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But let's be real. I read those new stories and think, "Problem."
For one thing, wirehouse advisers have to wonder how clients are reacting. I can almost hear the complaints: "I'm happy your division's results are so good. But they're coming at my expense. How does your performance compare against the index anyway?"
Even worse, you have to wonder what competitors are extracting from the public chatter. Whether they read something in the newspaper that could be used against you.
I can see Radio Joe sitting across the Street, breathing through his mouth, reading those earnings disclosures with cash-register eyes. He notices your budget cuts and thinks, "Time to ramp up the dinners. Maybe I should spring for those Superbowl tickets after all."
Wealth management is an adviser-eat-adviser world.
As a broker and, later, a registered investment adviser, I was always looking for ways to trounce the competition. News flow was one way to root out vulnerabilities. Who missed their earnings? Whose bond rating was cut? Who's suffering from personnel defections?
Time to go for the jugular.
Now, there are so many more ways to gather competitive insights. Compliance departments aren't the only ones monitoring tweets or the goofy pictures that surface on Facebook. Do you know the people you compete against by name? I bet they know you.
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The New York Times describes my novels as “money porn,” “a red-hot franchise,” and “glittery thrillers about fiscal malfeasance.” Through fiction I explore the dark side of money and the motivations of those who have it, want more, and will steamroll anybody who gets in their way.