Brokers abandon Wall Street

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In April, more than 2800 people registered as brokers left the US securities industry, according to the Financial Industry Regulatory Authority.

The total number of departures so far this year stands at 11,600.

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At the current pace, nearly 35,000 brokers would leave by the end of the year.

The final tally will partly depend on whether the stock market builds on its recent rally, which likely would persuade some brokers to stick around.

Part of this group, meanwhile, is simply being shown the door.

Bank of America Merrill Lynch lost about 2200 more brokers than it recruited in the first quarter, reducing its brokerage headcount to 15,822, down about 14 per cent from the two firms' premerger total of 18,365 brokers in December.

Morgan Stanley, which plans to acquire control of Citigroup's Smith Barney in the next few months, has watched about 1200 of Smith Barney's 12,000 brokers leave since the deal was announced. While some have gone to competitors, others have exited the business.

Officials at several brokerage firms said a spike in defections is to be expected during a recession and that they are generally holding onto brokers who bring in the most commissions.

"We're making excellent progress on the joint venture and are pleased that a very high percentage of retention-eligible financial advisors on both sides have signed on," a Morgan Stanley spokesman said.

"The attrition we've seen is typical of down markets and no particular concern."

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