First Franklin

Posted: Fri Sep 14, 2007 1:46 am

Some weeks ago, a topic was posted here "Who's Next?" or something along those lines. I'm a new poster, and I timidly submitted FF as my next bet.

I've gotten a bit more aggressive since then.

Yesterday, FF sent all its AE's the production report (AKA axe list) based on new metrics established retroactive to 6/1. This was deliberately set up to enable them to fire folks for non-performance and skirt the WARN Act IMHO.

Bottom 50% given notices today. Remaining have nearly unattainable #s to achieve.

Got my hands on the whole thing, and it looks GRIM:

Total AE?s nationwide: 526
# who ?made it?: 33 (that?s 6.3%)

Volume nationwide in July down over 22% from June. August, nearly a 62% drop

# of AE?s in the bottom 50th percentile: 256
That leaves 270 AE?s, of which 237 didn?t meet the metrics and are also now on the bubble.

Kinda sounds like Countrywide?s laundry list, eh?

My "tip" was misreported this morning (#s off, my fault), but more have chimed in on Broker Outpost, confirming the branch closings and troubled AE's.

Point in all this - how fair is it for MER/FF to backtrack and develop an underhanded way to fire all these people to avoid paying severance and deny them access to UI? It's just not right.

Posted: Fri Sep 14, 2007 2:03 am

Sounds like grounds for a lawsuit to me. They introduce standards retroactively, without notifying any of you of the requirements, and then try to use failure to meet those to fire people. Certainly unethical. Whether it is illegal probably depends on the state.

If you are AE's, that is probably too high an employee to get relief under WARN act, most likely...unless you were inside account reps that mostly worked the phones.

Posted: Fri Sep 14, 2007 2:09 am

Some or most on salary + commission. Payscale/production standards issued 6wks ago, backdated to 6/1.

I am NOT making this stuff up.

Just to clarify, I do not work there.

Dud? Joined: 24 Jul 2007 Posts: 24 Location: California

rmedecke, how many branches were closed? I seen #'s ranging from 6 to 20+. Also, did the ops people get any severance?

It is apparent that FF jumped from the frying pan into the fire by letting ML buy them. Based on what ML has done over the last few months, they give the impression of being a miser and kinda ruthless company. That's probably why they're so profitable, but it don't seem very tempered. They don't have a very open attitude towards the media either. Kinda like Bill Bellichick.

Posted: Fri Sep 14, 2007 4:59 am

I can't speak to branch layoffs, but I'll bet they had tiered severance packages based on tenure. It's the sales staff getting the big shaft here.

Spend 5 minutes on MER's message board on Yahoo Finance. They HATE First Franklin, think the buy was a mistake, and can't wait to see it go.

It's all just being handled so badly. Throw the employees under the Bus - we're just trying to avoid this stoplight. Shame on you MER.

Dud? Joined: 24 Jul 2007 Posts: 24 Location: California

My biggest concern would be the cobra insurance. Especially if I had health issues and was not only having to find a new job, but possibly a new career... That can take a little time.

Posted: Fri Sep 14, 2007 4:40 pm

Posts today on Merrill Lynch's stockholder message board (on Yahoo) indicate 8 branch offices were closed Tuesday and 1/2 the staff at their corporate office in CA were laid off yesterday.

Flash in the pan Joined: 14 Sep 2007 Posts: 37

how do you know all this information if you do not work there?

Flash in the pan Joined: 07 May 2007 Posts: 37

joepa42 wrote:

how do you know all this information if you do not work there?

you would be surprised at how small the mortgage world actually is.

Posted: Fri Sep 14, 2007 11:22 pm

1) I do my homework, and

2) I used to work there, and

3) No AE is safe leaving their blackberry or laptop unattended in my living room, not even my boyfriend.

;-)