| Topic Name: |
Getting into Fidelity |
| Message Name: |
Yeah he is! |
| Date Posted: |
01/23/2006 |
| In Reply To: |
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. |
| Message: |
When a company of over 30,000 employees lets 15 of them go, that is called purging deadwood. Every company I ever worked for did this. Tell them they are laid off, give them severance and sign an agreement that they won't sue and part with them for ever. Sorry if that is you, but the fact is the company is adding people right here in the US every day. That is a fact as of this morning. As for Fidelity causing the dot com plunge or being responsible for people margining themselves to the hilt, again you have a sort of tunnel vision. Margin calls were causing some of the largest down days during this period, every brokerage had people calling day after day, as is required by law. I am not aware of any fines paid by the company, let's have a link and prove it. I see articles and headlines on Morgan Stanley, Prudential, Putnam and their owner Marsh-McClellan, Srong Fund, Pilgrim-Baxter, MFS, just keeps going; all paid big fines that affected their financial results. American Fund paid for giving backdoor payments to their favorite brokers from 12-1b fees. Even Vanguard got hit through some scandel involving Wellington Management. Still don't know what you are talking about except for some midget tossing and so far that investigation centers on specific former employees. Fidelity got Wells notices over 6 months ago and nothing has turned up over those 6 months. So where's the beef to you claims? People read the paper and see none of what you talk about. And you have no part or knowledge of the company's strategy, since you are an office rep.
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