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UBScape May Cost Piper Jaffray $75 Million

Piper Jaffray brokers lured to other investment firms following the announced sale of its retail brokerage unit to UBS may cost their former employer a $75 million bonus, according to Dow Jones Newswires.

Piper Jaffray brokers lured to other investment firms following the announced sale of its retail brokerage unit to UBS may cost their former employer a $75 million bonus, according to Dow Jones Newswires. At the time of the sale in April, UBS said it would pay the Minneapolis-based investment bank a $75 million bonus, on top of the $500 million for the 90 branches, if 90% of the brokers would stay, with the amount dropping as the percentage of brokers remaining declined. The deal provided that Piper would get nothing if the number fellow below 80% a month after client transfers are completed, expected some time this quarter. As of June 30, about 10%, or 81 of 817 stockbrokers, have left. At this point, according to DJN, analysts say it is “unrealistic” for Piper Jaffray to expect to receive the full amount.

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