I dont know what the split is between Citigroup and Brokers. All I know is my current broker only does cash management. He mostly works with Corps or PB customers. Just so you know Managed money services for accounts over $1 million are 100 basis points for stock or 75 basis points for mutual funds + trailings and 50 basis points for managed bond porfolio.

What do you think everyone in the world has millions of dollars in there SB account? The average SB account is under $200K. My current broker told me most SB brokers hate doing cash management accounts because SB brokers are limited to 200 customers. They prefer to have 200 large high revenue accounts. And in LA and NYC every broker just wants to work with rich idiots who dont know what to do with there money. Let me tell you there is no shortage of rich trust fund babies, movie stars, sports figures and movie people in LA. If you figure $200K @ 150 basis = same revune as 1 million worth of Cash Management bonds and my account is much larger than that.. I did not get along with first 2 brokers the PB assigned to me because 1 I dont want to be in the market, 2. Dont tell me to diversify my assets and tell me I dont know what I am doing when so far not only am doing fine with real estate but I make 20X what you make( taking about the brokers).

Btw cash management is a joke. There is nothing to do except buy/sell as VRDN and repo loans auto roll every week. Also I dont day trade these bonds at all. So I am sure that is a part of the reason he does not mind doing it for me also. Only time we buy discount notes is when Citigroup has no inventory.

PS what do you think brokers make? $1 million a year? Using your numbers that would mean $4.5K per customers X 200 allowed per broker = $900k a year + what ever else they make from Citigroup. I am sure some brokers make that kinda of money maybe it less than 1/10 of 1%. Most I am willing to bet make $100-200K a year ie they make $500-1000 per client. And using your own numbers my account generates much more than that.

1 more thing if Citigroup did not want to sell cash management bonds they just would not underwrite them. Banks are not allowed to loan money against bonds. Citigroup is in the business of underwriting issues and leanding money. So basically I am buying there bonds which they get paid by the issuer to underwriter and they market up before they sell them to me. I am giving them cash for them which they in turn loan to people at a higher rate than bond issuers pay me. So it works out well for Citigroup otherwise they just would not offer them to private bank customers or underwrite them if they were truely unprofitable like you think.