New financial statement policy, effective 6/30, requires an attestation form that legal is still working to draft. New Highly Leveraged Transaction policy implemented with questions that even the authors of the policy cannot answer - and the added bonus of an additional week of underwriting the designation adds. Recent transition of smaller clients to Retail delayed indefinitely. Top RMs leaving in droves and the most experienced non-client facing teammates retiring in two months; likely without being replaced. On a positive note, I did receive what appears to be a riveting book on managing change in the mail.
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Truist recipe for success: merge two companies + allow lesser performing company to eliminate all high performers from the higher performing company + allow the lesser performing company to choose their own outdated systems + allow lesser company to stifle teamwork, productivity and communication by rolling out their siloed and bloated reporting processes = TRUIST!!!
I don’t know about everyone else, but boy do I want to buy that stock!!!
This is not part of the process, I've been through many mergers over the years, and this on is very different. Successful mergers take the best of the best from both institutions and have hands on teams to take the lead on product mapping and pricing to minimize client impact. Getting rid of your best people and ignoring the mass droves of clients and employees leaving will be their downfall to failure.
Speaking as someone who’s gone through a merger, this is just part of the process. Eventually everyone at the new bank will “get” the new way. Too much of that’s not the way we used to do it can be poisonous.
Analysts will start paying attention when this merger from he-l finally starts truly impacting bottom line (an extremely unhappy and toxic workplace doesn't lead to stellar growth and happy customers). They should be much more forward-looking in their analysis of this company and more willing to question the CEO's overly optimistic babbling about how great things are going, but they aren't. For those of us in the know, you better sell that stock before it's too late.
Very astute attention to details
If this wasn’t so true, this would be truly hilarious 🤣
Analysts as a whole are lazy. They look at the numbers in detail and listen to the higher ups in the companies. They won’t peel back the layers unless given reason too. People leaving in mergers does not give them cause for alarm. After the integration is complete, branch closures complete, different story. I expect some of the E14 to jump ship once they receive their stay and completion bonus options. All bets will be off then as some industrious analysts will begin digging especially if the stock stays stagnant or declines. The merger accounting covering the sins will last another 6 to 12 months after that look out. The arrogance factor will take these guys down, it always does.
Given the breadth of what is unfolding, I am amazed that no stock analysts have picked up on the toxic nature of this merger yet. Particularly given that a couple of high profile stock analysts said at announcement time that merger of equals very rarely work. It is really not hard to see the warning signs if you spent one second looking beneath the surface - high performers are leaving in droves (I understand outside recruiters are having a field day), and clients are already complaining about a marked deterioration in service. I just can’t see how the financial impacts are not coming. This makes you wonder how closely stock analysts really look at any company, or if they simply buy into the CEO’s narrative - “these cultures are coming together better than I ever could have imagined”…