Morgan Keegan
Morgan Keegan advisors compare Raymond James to other recruiting optionsPosted by RJ and Makay on Jan 17, 2012 |
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Raymond James Financial Inc. announced yesterday that it would acquire Morgan Keegan brokerage from Regions Financial Corp. for $930 million. As part of the deal, Morgan Keegan will pay a $250 million divided to Regions, bringing the total transaction to $1.8 billion. The acquisition will create one of the largest wealth management and investment banking firms away from Wall Street.
During the bidding war for Morgan Keegan between Raymond James and Stifel Financial, Stifel’s potential offer to buy the brokerage would have contained a much larger retention payment pool for Morgan Keegan employees, an inside source said Thursday. Raymond James executives noted that Morgan Keegan already had a $200 million retention plan in place and chose to purchase it as part of closing the deal.
Regions Financial Corp.’s Morgan Keegan investment-banking division has settled with the SEC and other state and federal regulators for $200 million. Morgan Keegan neither admitted nor denied regulators' charges that the firm had defrauded investors by inflating the value of subprime securities held in several bond mutual funds.
