If you were to extract out the Fiserv accounts, you would wind up seeing the qualified accounts is still flat-to-down a little bit from where they have been. So, as much progress we are making in every other area, specifically when it comes to qualified accounts, we are still not seeing much there.
Howard Chen (Credit Suisse): Can you elaborate a bit on what the company can do, and what you can do to protect net interest margin?
Bill Gerber: Because we control the credit side you always look at that, but we also control the margin rate side and there is risk in margin lending, and we just have to evaluate if the rate comes down, if it comes down even further, whether or not we are going to have our rack rate come down as well.
Richard Repetto (Sandler O''Neill & Partners): In the guidance, why did we not take down expenses by that $13 million or penny or so in the back two quarters?
Bill Gerber: Because we think that during the next six months, we have an opportunity to get some things done that we need to get done before the end of the fiscal year, and so we are willing to mark that money for that purpose. We have essentially substituted the interest savings with building up our own product.
Prashant Bhatia (Citi): On the referrals, what are clients really looking for there, and what are some of the outcomes after those referrals take place?
Joe Moglia: The simplest one that happens most of the time deals with retirement. And then we have the things like Amerivest to be able to help you or TDAX''s Independent life cycle funds that potentially can help you with that.
Prashant Bhatia (Citi): Could you just update us on how many salespeople you have at this point in the branches and where you think that might end the year at?
Joe Moglia: We have approximately 750 and, the sales force would always be an area we would look to expand.
Prashant Bhatia (Citi): Do you think at any point you would think strategically to acquire a regional broker or to go down more that full service path or is that still strategically really not on the table?
Joe Moglia: Strategically it is supposed to be something we always ask ourselves about. As of right now at least, we say that is not the best step at this particular point of time in our development.
Mike Carrier (UBS): On the MMVA side, is either TD or the client either going to be receding less money just given the rates on the short-term end?
Bill Gerber: The rate on the MMVA and the current rate has declined, and so that has been done and it''s fixed where it is now in the forecast. We are not forecasting any further rate cuts there.
Matt Fischer (Deutsche Bank): Given what seems to be a successful or positive performance in the branches, what are you plans to expand that network?
Joe Moglia: If indeed we believe there is an area geographically around the country where we should have representation and we do not, we will put an office there but more than likely we feel good about where we are.
The key for us is the productivity of each individual sales person as well as the productivity of the particular branch. We find that it is more beneficial to expand the branch in an area that we now works and add a handful of sales people there then it is to just put branches up arbitrarily around the country, and we will not hesitate to do that anywhere where we think it makes sense.
Michael Hecht (Banc of America): In terms of the new client wins, what types of firms do you think you are gaining shares from?
Joe Moglia: We have said that our objective and our goal as far as business plan goes is to focus on the mass affluent client in the United States. The typical full commission firm in the United States, while they say they have a retail business or private client business, they really do not. They really have a high net worth business. Our focus is more on mass affluent, and we do tend to get that more mass affluent client.
Michael Hecht (Banc of America): Do you expect broadly consolidation to continue?
Joe Moglia: The answer is yes because during these types of environments, it is a good opportunity to look for other firms that have a specific specialization in a particular product area or has something that that they really can bring to the table that that would enhance our overall strategy away from a big headline deal.
|
More:
