Fed up of having to explain the catastrophic economic meltdown and credit squeeze, emergency capital infusions, losses, fire sales, near bankruptcy, write-downs, and layoffs that they had nothing to do with to their stunned clients, brokers on Wall Street are leaving big name employers like Wachovia, Merrill Lynch, UBS and joining companies that offer better pay packages or are starting-off on their own.

Although many major US banks and financial institutions failed and were forced to merge due to their exposure to the subprime mortgage market, the wealth management divisions of these institutions did exceedingly well which was in the case of Lehman Brothers who filed for bankruptcy and Merrill Lynch, which was acquired by Bank of America for an all-stock deal worth $50 billion.

In fact, Merrill Lynch's main attraction for Bank of America was its global wealth management division whose nearly 17,000 brokers control nearly $1.5 trillion in client assets and the division has outperformed Merrill's investment banking and money-losing trading businesses this year. The same consideration is said to have prevailed in Wells Fargo's $15-billion deal to buy Wachovia, which includes its AG Edwards brokerage business.

Chief executive of Bank of America, Kenneth Lewis, has commented that the brokers of Merrill Lynch were the ''crown jewels'' of the company, after the merger of Merrill Lynch with Bank of America.

Citigroup's wealth management arm, Smith Barney has lost 500 brokers in the past six months and 10 big brokers who collectively controlled $5 billion of client money, left the firm and went independent.

Merrill Lynch, which has seen a steady stream of brokers leaving, saw four of its top brokers who had been with it since the late 1990's and managed $1 billion, leave last week to set up shop on their own.

Large financial institutions are worried as the brokers who are leaving are top end producers who have been with their respective firms for years and, according to a survey, 83 per cent of the brokers who considered leaving were managing assets of $10 million or more, with 33 per cent managing more than $100 million - the very brokers that these firms wish to retain.

Brokers in the wealth management business have become hot property as they have been providing a steady flow of income to the firms at troubled times even during the liquidity crunch and hence become important to the bottom lines that firms now such as Citigroup, Morgan Stanley, UBS, Bank of America., Merrill Lynch to name a few, are aggressively trying to hold on to them and deter them from joining competition or going independent by offering them a lucrative bonus plan.

JPMorgan Chase, the largest US bank by market value after acquiring Bear Stearns in March, held on to its brokers by agreeing to pay them a maximum bonus of 100 per cent of their annual revenue. Brokers bringing in more than $500,000 got about three quarters of their totals upfront and the rest in stock. those bringing in less than $250,000 in revenue were not entitled to a bonus.

Merrill Lynch, in a desperate attempt to keep its brokers from jumping ship announced a bonus plan on Friday for its 15,500 brokers in the US and a separate plan for those in Asia, Europe and the Middle East.

Merrill Lynch will give its brokers in the US bonuses of of 100 per cent of the annual revenue they bring in, with top brokers who bring in over $1.75 million in fees and commissions will receive an up front loan equivalent to the amount they bring, which the company it pay for them over a seven-year period.

Those brokers who bring in $1 million to $1.75 million will be given a loan of 75 per cent of that amount up front, with the debt being written off over a period of seven years. They also will receive a loan equivalent to a quarter of their fees and commissions which the bank will pay off over three years only if certain growth targets are met.

Brokers who bring in $750,000 to $999,000 will be offered a 50 per cent 7 year loan and the same 25 per cent three year loan based on growth targets, with the size of the upfront loan decreasing further for those managing between $500,000 and $749,000 and still further for those who deliver below $500,000.

Robert McCann, vice chairman and president, Global Wealth Management at Merrill Lynch said, ''In the context of extraordinary change in financial services and a volatile market and economic environment, it is important for clients, shareholders and the future of the combined company to retain top-performing advisers at the two current firms.''

One commentator said that those brokers producing less than $1 million will definitely not be happy but if a broker signs this and leaves, will not only have to give back the money, but he can't take clients with him.

Bank of America's almost 2,000 brokers will be getting a bonus as well, in the form of deferred cash awards payable over three years.

Brokers at Bank of America must stay three years to avail of the full retention bonus. Brokers who bring in $900,000 to $1.99 million will receive a 40 per cent payment, while those that bring $600,000 to $899,000 will get 30 per cent and those who bring between $350,000 and $599,000 would receive a 20 per cent payout.

"This programme is about helping Main Street clients navigate the most volatile markets we've seen in decades," said Keith Banks, president of Bank of America's Global Wealth & Investment Management division.

Rival firms are enticing brokers with huge incentives and in some cases offering 200 per cent of annual fees and commissions.

Some commentators feel that in spite of the bonus packages announced, many from both low and high producing brokers will still leave if lucrative deals are offered by competing firms as Bank of America announced poor earnings earlier this month and many brokers are worried about the backlash from investors for giving bonus to brokers in spite of announcing poor results.

Barclays had also announced a similar package to brokers at Lehman Brothers Holdings Inc. after it acquired portions of the Wall Street firm.

Barclays offered Lehman brokers a retention package of 100 per cent of their trailing 12 months' production in the form of a seven year forgivable loan if they brought in business of at least $1 million a year.

The US Treasury has come down heavily over the fat pay checks and bonuses given to its employees as it come forward to pump $250 billion in the nation's banks, including $25 billion split between Bank of America and Merrill.

Barney Frank, the Chairman of the House Financial Services Committee had said earlier this week that there should be a freeze on Wall Street bonuses.