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Raymond James CEO Paul Reilly on the firm’s acquisition of Morgan Keegan and the challenges for investors in this market.
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I have -- glove -- like you -- Wall Street might have some investors are running scared as the big banks face increasing regulatory pressure.
But Raymond James calls themselves the premier alternative to Wall Street and their stock is up more than a 150.
-- -- over the past ten years.
Yeah we now -- a Fox Business exclusive is Paul Riley is the CEO of Raymond James.
Financial you had an interesting few months certainly Raymond James -- before it told look this -- -- -- You know grow the business organically that you just -- Morgan Keegan you made a big move there -- -- -- James why why that decision.
Both Sheryl mobile reasons first the two firms are great cultural fit that both were founded by a founder family business we think the same.
We also tend to recruit and look at acquisitions only do them in down markets because that's when the pricing this -- so.
But what about for your business and for many of the big banks as well in the regulatory environment has changed I mean -- -- it's getting more difficult.
Is it manager -- disadvantage.
To you.
-- little of both -- would prefer not so much regulation but we believe and increasing capital ratios less leverage and more transparency.
We've always operated high.
Capital ratios and as Morgan Keegan so coming together we're still way above.
Kind of all the regulatory capital guidelines for been proposed.
You know residents should be -- wall street journal of -- -- talking about the fact that a lot of the retail investors and asked two thirds of your client base.
Have actually been moving money into bonds and out of equities.
Ratio makes ten billion dollars -- -- side.
Which is pretty alarming it's surprising considering the rally that we've been saying how is that affecting Raymond -- Well we've done well -- -- our revenues were up we -- monthly stats they were up 6% you know vs the prior month.
So we do see investors coming back end but I call on -- in -- holding patterns are not sure the economy it's.
Mike Wednesday I was planning that look Cordelia and I wanted to -- body and mind waiting for the storm to pass first OK and I think that's their attitude they wanna -- a little clearer first.
This fiction on the number six brokerage I mean -- now really getting up there I mean do you see the company growing I mean you're still consider regional name right -- but.
Do you see the company growing becoming something -- a lot of cash on hand right now you could bottom or brokerages and does this isn't just -- -- we wanna get through this immigration then go back to growing organically -- We have a good size and a good -- to compete but there are few zeros difference between us -- the and the big bank -- -- but that's fine we like competing in the space for an.
What are your clients telling you right now you know we we we talk so much about the investor what they're thinking and feeling what are they doing.
What are they telling you that they want you to do with their money what are the goals like.
Well they want us to help protect their money I think the people are investing more not to lose -- one income.
Because they've seen their income especially an interest in others diminish.
But -- still investing defensively so and we always say this massive retail investors for all individuals all have different goals so that's why we like the point financial planning model.
Do you see a big disconnect between the institutional clients you have -- -- retail clients.
Well no I think there -- investing some -- I just think the institutional clients tend to be more sophisticated -- Often the retail clients who were fear we want to have a balanced portfolio because -- not they're usually wait to get in and sometimes get out on the scare when they need to hold what is sure.
And market outlook right now.
We think that through the elections were kind of in this holding pattern in this range and until there's clear leadership on how we're gonna solve the problems I think the equity markets are gonna be a little range bound for awhile.
Range bound OK that wasn't a major down which is probably at least spreads for those your clients out there watching right now have a -- -- -- insulin in the Washington down here well I grain mountains and -- It's gonna have some downs out of ten our help car right net savvy on the show -- part of the CEO of Raymond James Financial thank you for being here thank you --
