| Topic Name: |
Getting into Fidelity |
| Message Name: |
No he is not! |
| Date Posted: |
01/22/2006 |
| In Reply To: |
There haven't been layoffs since '02. That affect 5% of the work force. By that time Schwab had dumped 25% of its work force, so the other 95% felt fortunate. Even the unlucky 5% got severance, better than what most in the industry got. Your information is mostly old, the rest is non-fact. If you were 'laid-off' recently, let's face it, you were fired. People have been fired, but this has to do with competantcy, not off-shore moves. |
| Message: |
In Sept 2004 the health and welfare section let approximately 15 people go. It did not make the Boston Globe but is was a restructuring. Since you brought up the 2002 layoff, do you know what was the cause of that? Well, when the market was going hot and heavy in the late 1990's one of Ned Johnson's Prodigies had
an idea. He thought let's attach a mastercard to all brokerage accounts, we will make a fortune. A long story short people would use the credit card as the market went up but when the tech bubble happened in spring of 2000 people who had stock on margin were up to their ears in debt. Many had large postitions of dot.com garbage. When the margin calls came in and the debt on the credit cards collertalize to the margin account, the money was gone. A SR VP stated after he bailed that he did not think Fidelity would survive. Many of the talented people left in the midst of this because they saw what was happening and did not want to be a part of this sort of situtation. Fidelity in 2004 went to number 2 and in 2005 went to number 5 for mutual funds and they have numerous investigations and fines imposed on them for stupid acts such as not maintianing proper account documentation. The largest fine issued against a company for this incident was against Fidelity. This happened in Aug 2004. Your company is not as clean as they want to make themselves out to be, and yes they are in quite desperate straits at this time.
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