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Raymond James CEO on Morgan Keegan Acquisition

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    Raymond James CEO Paul Reilly on the firm’s acquisition of Morgan Keegan.

  • Duration 4:32
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I believe bank index is down more than 61%.

Over five years Raymond James Financial is up more than 11% got a blue line over the same period.

So just how -- the company managed to see 96.

Straight quarters of profitability while other Wall Street firms continued to struggle.

They are the anti Wall Street firm Paul Riley is the CEO he is here in a Fox Business exclusive.

96 quarters.

That some kind of incredible financial engineering or it's it's real I mean you're telling me that that's that's just amazing.

By the it's real -- the it's based on a conservative long term approach to our investments in a very diversified business where we have.

For five business as a kind of react differently in cycles were able to consistently be profit.

-- as a brokerage you guys just made a very big acquisition just under a billion dollars for.

Morgan Keegan and for spoke congratulations but how is the absorption going that I think is what has.

Maybe the ratings agencies like S&P and Moody's a little concerned will you be able to retain the top talent.

We believe so first it's unusual for us to acquire something about size we're we're organic grower code by nature.

But it had a unique cultural fit the people are just like us they grew up with Alan Morgan and Tom James actually grew up in the business together -- friends.

The same culture they operate very somewhere and it's very good for the end clients for client focused.

And so we believe it's very in a -- double the vast majority people will join us.

-- we got at a great price we started off this low bidder being thrown out in June and September and finally ended up is some surviving that are so.

What do you think of the ratings agencies who happy just a couple of notches above junk because they're worried that you can't absorb such a big fish.

We're investment grade -- being on watch and we haven't told the story so we did not spend time with them before the announcement and -- -- Monday and Tuesday.

That the top to talk to the talk to -- the top thirteen managers are all joining us so we have our whole management team.

Their whole management team with lots of experience at doing this I think after the story they'll be pretty.

Come -- all -- to talk to the ratings agencies -- yell at the and -- -- -- -- our -- we should talk to him earlier are you capitalize on the public distaste for Wall Street because you are not.

One of those gigantic financials that are doing business all over the world you're very focused on your clients and certainly more locally.

Well you know probably being in the financial capital -- -- saint Petersburg Florida headquartered we don't get caught up.

And a lot of that but you know that Wall Street firms trip -- the clients but our our hold firm grew up as client focused.

And it's -- the center of us in the very very beginning.

What you want to talk about this transactions actually be good for clients the Morgan Keegan financial advisors are going to be on a better technology platform.

With the broader platform be able we'll bring include products of their clients and serve them better so I think this is a win win well well speaking of the retail investor the clientele there.

We we've been seeing some surveys them.

One of them come from Charles Schwab actually just a couple of days ago and in essence they're saying that that the actual retail investor wants the help.

From people like you guys how ever.

People don't want to pay someone to just match the S and -- you know how do you avoid.

Allowing yourself to be seen like that in a -- that's been some of the problem with a lot of brokers out there.

Well I think you have to show clients -- -- value first.

-- -- talk about the retail investor.

The royal a lot of individuals may all have different goals all different needs and where the financial advisor really have values to understand down -- family.

The risk profile there needs -- match their investments of that so it's not just.

Tracking of an index and they should build add value over the long term.

And their investment advice how will you attract talent period we just came from Davos we were talking to -- -- -- you should Bain and company there.

-- of course consulting -- -- and she said you know everybody thinks we come in and clean out the rank she said actually the real desire in high finance is to find the best and the brightest.

So there's almost a run on real talent.

Well you have to attract people -- great things about our -- and Morgan Keegan is we have very little attrition and we just had our.

We call breakfast with the boss -- about 335 you're.

-- -- -- quarter every quarter we have 303540.

Your employees because they like being more than they like working where they are.

So we believe if we have competitive technology in -- and a great environment to work and will be able to attract and retain.

You don't want the Bank of America Merrill Lynch situation where everybody says the Merrill people are unhappy so we'll be watching that thank you so much it's great to have you Paul thank you -- Paul Riley is the CEO of Raymond James good to have you see that.

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