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Raymond James Goes Commercial, To Offer Bank Services

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By RICHARD MULLINS

The Tampa Tribune

Published: September 26, 2008

St. Petersburg-based financial services giant Raymond James Financial said Thursday that it will become a broad-line commercial bank, a move that should position it to compete more aggressively for new customers and help it become more of a recognized financial brand.

For customers, the move would add Raymond James to a long list of highly competitive banks, such as Wachovia and Bank of America, that offer everything from checking and CDs to commercial loans and lines of credit.

For Raymond James, the move could have immense importance for its roughly 10,000 U.S. employees, including 4,000 in the Bay area.

Raymond James now makes most of its revenue from stock brokerage activities generated by its 4,900 financial planners in all 50 states.

As a commercial bank, Raymond James could take deposits and gain the ability to borrow money from the Federal Reserve - putting the company on more solid financial footing.

Those are among the reasons why investment bank giants Goldman Sachs and Morgan Stanley announced recently that they are shifting from investment bank to commercial bank status.

In a statement released Thursday, Raymond James said: "We're not in an emergency situation or trying to quickly secure funding; instead, we're simply moving forward with our plan, while, of course, paying attention to the market environment."

If all goes as planned, the transition should be completed by summer 2009, the company said.

Reporter Richard Mullins can be reached at (813) 259-7919.

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