Also in this playlist...
This transcript is automatically generated
-- its quarterly release at a Wachovia a markets again expressing concern about financial stocks but.
Not all are struggling Raymond James Financial posting its second quarter earnings after the bell yesterday.
Topping the consensus analysts' estimate trading and banking profitable up let's find out -- house and the wise.
With company CEO Thomas James Brian Sullivan thanks very much for -- for joining us.
What kind of a quarter was that I mean it's -- we can't figure out the potentials.
What are you seeing Raymond James.
Well Brian good to join you.
What I would tell you is you know we have a little different construct than.
Major banks and major investment banks we -- principal Leon.
The private client business some institutional.
Agency business based on our research.
In both equity and fixed income.
An asset management division.
And a bank and actually.
Our bank has been very rapidly growing and absent any problems with sub prime.
It has actually offset does some of the flatness in.
Private client group in the quarter.
And in the asset management business which was impacted.
Somewhat by the decline in the market during I would imagine having shock people just pull their money out of -- is that a struggling here you know yours you're here -- advisor saying listen.
You know don't sell now stay in the markets is when you want to add your position.
Brian you're absolutely right and of course the natural proclivity of clients is to.
Depart when times are tough but most of the ones that have been through some of these cycles tend to have more perseverance.
And we've had a good deal of success.
On the recruiting front so we've added a lot of financial advisors.
With -- good experience and good books of business to the existing sales force.
So I would tell you today we've been very successful in retaining client accounts and actually adding new assets.
The issue will be of course is this market.
Going to continue to be difficult.
Four protracted period of time in which -- case the private client group would be you think it will be Thomas will be difficult for protracted period of time.
I think that we won't have worked our way through these real estate problems and -- probably mid 2009.
They're going to be some more losses impacting operating earnings at the major banks.
I think investment banks -- pretty much suffered through the majority of -- write downs.
Those of us that are more directly involved with retail clients.
I think -- gonna do OK.
And tell the market turns and when when the market really turns.
I think there were Walt poised to participate in the recovery.
Where -- the money flowing you talk about clients and maybe there's some money flowing in here are you trying to prevent it from flowing out there but when you have it.
You know I saw Merrill Lynch surveyed said that 53% -- money managers were now increasing their cash allocations.
Where is the money going.
I can tell you in our case just the retail clients themselves.
Have very large preponderance.
There are assets in cash -- quote wants.
So there are in our money market funds in our bank deposits.
And in direct deposits -- the broker dealer so.
We're doing quite well in the cash management business.
But most of them are are keeping the preponderance of their assets committed to the equity and fixed income markets.
I think with -- good asset allocation procedures you can actually.
Buffer of the impact.
The current market and you -- only those that have been very focused in financial stocks have been impacted greatly during this period so.
I would tell you in -- last we have a real recession develop.
I think -- pretty good shape now.
And if we can avoid the major pitfalls.
Like things with sub prime or derivative problems in our industry.
I think actually the futures quite bright color contrast it does.
It allows -- it looked like a couple of days ago that maybe things were getting a bit brighter we had the -- has come -- then -- -- came out yesterday.
And everybody and -- and every -- -- or back to the bad news when do we really get through this.
Yeah -- you know Wachovia had a specific problem they've bought golden west right at.
Peak of the market they had a lot of sub prime exposure.
They were laid in X hitting some of those businesses so there's still going to be suffering through write offs I think BankAmerica.
-- good number of the other banks of bank in New York -- Are gonna perform quite well going forward while -- may have.
Negative comparisons for a quarter of two the outlook is very good actually.
Thomas Jane CO -- JJ Thomas we appreciate it good -- getting sick people -- as soon.
My pleasure Brian thank our great guys aren't really -- mixed --
Filter by section