| ORLANDO, Fla.
ORLANDO, Fla. May 22 Raymond James Financial
will keep its fixed income and private client business in
Memphis, the hometown of its recently purchased Morgan Keegan
brokerage, the company's chairman said on Tuesday.
Tom James, chairman and former president of the St.
Petersburg-based Raymond James said he told the mayor of Memphis
last week that the firm would keep its bond business there. He
said it would also maintain and possibly expand a client support
center - including compliance and operations support - for the
advisory's private client group groups in Memphis. He did not
elaborate on the exact number of people who would remain or be
added in that city.
James also said in an interview at the Raymond James
National Conference for independent advisers in Orlando on
Tuesday, that the company kept many of the Morgan Keegan
employees who worked in the group in Memphis.
There was more overlap between the investment banking and
equity research arms of Morgan Keegan and Raymond James, and
fewer people were retained in Memphis and elsewhere in those
James also indicated that the number of Morgan Keegan
advisers who opted to stay after the brokerage was sold to
Raymond James Financial Inc exceeded internal targets by more
than 20 percent.
Raymond James had expected as much as 84 percent of the
Morgan Keegan advisers it hoped would remain to actually stay
after the April 2 purchase was finalized, James said. About 98
percent - nearly 1,000 - of all advisers at Morgan Keegan signed
on with Raymond James.
James said that while he "can't imagine it will stay that
way" in a year's time, the firm is working to keep the Morgan
Keegan brokers. For example, he said, Raymond James immediately
made its research available to Morgan Keegan advisers and is
offering them access to its various technologies and platforms.
It also let Morgan Keegan advisers have more access to
stocks and bonds underwritten by Raymond James than they could
get on their own, James said.
The company has previously said that holding on to those
experienced advisers is critical to the $1.2 billion merger's
success. Earlier this month Raymond James told analysts adding
Morgan Keegan could boost revenue by $815 million and increase
earnings by $125 million.
The integration of Morgan Keegan into Raymond James is
expected to be complete by next February.