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Raymond James CEO Paul Reilly on the impact of Dodd-Frank and the challenges investing in the current market.
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Get too high finance now but it's not very often that you get one high financial institution to say something nice about another but Goldman Sachs.
Says that Raymond James is the best in its class Paul Riley is the CEO -- Which is a -- Sized brokerage that also has a wealth management portion of it.
He joins us now in a Fox Business exclusive from saint Petersburg Florida and -- they lucky you've had.
An unbelievable return 97 quarters of profitability.
Paula that's good to see once again as you finally in the last time we spoke with -- you were integrating Morgan Keegan.
Have made that happened but let me just throw this out to you what does -- like right now to round up a financial institution.
Where you're trying to run clients' money clients are scared and they're terrified of the European debt crisis and they're just trying to get over our financial crisis.
Well let's it's a great question I think what you have to reminded investors it's about long term investing.
But we get so driven by headline news -- -- in your show in February you're asking me about where the market was going and I said.
Because elections until things happen as -- -- -- -- -- -- trading -- and and we've got some headline news in Greece and market -- -- up and we have some news that.
Maybe it's not as good -- a drop so I think we have to keep looking long term.
That's all we have to keep reminding investors it's a long term outlook by quote our financial advisors tell our clients.
Well -- -- you've got about 363.
Billion in client assets in May that was up about 29%.
And but nonetheless you see it from April to may -- started to see some retrenchment a little bit where people are pulling back and still getting nervous.
-- what should they be doing right now give us the advice from your seat at the forefront of this entire industry.
Well first it's an individual issues that you know we like the lump retail investors as a person but we look at the private client investor.
It's unique to their situation more so.
We we we don't want them to run to long term bonds chasing yield are taking risk.
That they have to look at a balance in for a lot of people that's getting into dividend paying stocks with some street corner term bonds -- you know.
Each individual investor has to look at the risk.
And what the return requirements are short term and long term -- depend on -- stage of life.
We know what demands they have -- third through retirement so it's about keeping that long term view and not panicking over the short term headline news look.
Talk about what it's like for you to be doing business right now what your stock is up 5% Europe for here.
At its a couple of tough headwinds that I want to focus upon number 115.
That US and international banks were downgraded by Moody's last week.
We've got financial regulations that would -- pull you under that umbrella argue able to continue to.
Make your acquisitions like Morgan Keegan under the new rules and regulations of Dodd-Frank and can you just look at it say okay that's the landscape I can deal with this let me move forward.
I don't think Dodd-Frank essentially change how we do business in fact we've said that a lot of those rules.
Drove people to models like cars which were low leverage.
And high capital and we're an agency -- business we really don't take a lot of proprietary risk it's an agency business so in a way the rules have moved to it that way.
But there's no doubt there's been -- level of regulation reporting.
That has increased cost for the whole industry including -- and I think -- some hands unnecessarily the capital rules and leverage rules and transparency rules.
All good but some of the regulation is just way too detailed I think to really serve clients and our economy.
We other something like 1400.
Sub questions to some of the original hundreds of questions.
I want to quickly get to the nuts and bolts of what you guys are doing your building out with some pretty ambitious plans for and electronic equity trading business.
Now forgive me if I'm comparing apples with oranges but NASDAQ.
All electronic some real problems with FaceBook.
What are you doing to make sure that you don't have those types of situations that there will always be sort of a backstop of a human eyes and a human hand in mind when it comes to trading electronically.
There were not a big electronic trader we use other people system so we just focus on the nuts and bolts of trading our clients putting our orders in.
Making sure -- fulfilled and when you do have issues like and at NASDAQ which we had on FaceBook everyone did he tried to.
Do do your best to make sure you follow the orders make sure there executables that were the systems failed where they'd they are you take care of the client get -- fixed to move on its.
Paul Riley Raymond James CEO again -- RJF up about 5% over the past year.
PE ratio of 101 point 6% -- annual dividend yield great to have you please check in with us again we look to hear how the business is going.
Good talking to you lose any time okay.
