Raymond James Morgan Keegan
| Company type | Public (until 2012) |
|---|---|
| Industry | Financial services |
| Founded | January 1, 1969 in Memphis, Tennessee, United States |
| Founder | Allen B. Morgan Jr., James Keegan, Robert Gooch Jr., Joseph C. Weller |
| Defunct | April 2, 2012 |
| Fate | Acquired by Raymond James Financial |
| Headquarters | Memphis , United States |
Area served | United States (approx. 300 offices in 20 states as of 2012) |
Key people | Allen B. Morgan Jr. (Founder, former Chairman and CEO), Bill Deupree (former President), John C. Carson Jr. (former CEO) |
| Products | Investment and financial advisory services, investment banking, fixed income offerings, asset management |
Number of employees | 3100 (approximate at acquisition) |
| Parent | Raymond James Financial (since 2012) |
| Website | www |
Raymond James Morgan Keegan serves as the provisional designation for the former Morgan Keegan & Co. divisions acquired by Raymond James Financial on April 2, 2012. The merged entities’ subsidiaries specialize in areas such as investment and financial advisory services, investment banking, fixed income offerings, and asset management. The Fixed Income division continues to operate from the original Morgan Keegan headquarters situated in Memphis, Tennessee.
History
Morgan Keegan originated in Memphis in 1969, founded by Allen B. Morgan Jr., James Keegan, Robert Gooch Jr., along with accountant Joseph C. Weller. Allen Morgan previously worked at Courts & Co., James Keegan was an OTC trader at Equitable Securities, and Robert Gooch had experience with Kohlmeyer & Co. Shortly after its establishment, John Stokes joined the firm, coming from Merrill Lynch.
By the conclusion of its inaugural year, the company employed 13 people and had amassed $614,000 in capital. In 1970, Morgan Keegan earned a seat on the New York Stock Exchange. Within three years, it had created a fixed income sector and inaugurated its first branch office. By 1976, the firm had developed an investment banking division.
- The 1980s
Morgan Keegan went public via an initial public offering in 1983. Two years later, its shares were traded on the NYSE under the ticker "MOR," with revenues exceeding $50 million. That same year marked James Keegan’s departure from the company.
Also in 1985, construction was finalized on the Morgan Keegan Tower in downtown Memphis—a 21-story skyscraper ranking as the city’s second tallest building. The tower incorporates four stone griffins salvaged from the former Hotel King Cotton at its location.
William W. "Bill" Deupree Jr., who joined the firm in 1972, assumed the presidency in 1985 and remained in that role until 1996. His industry influence extended to serving as a director of the Securities Industry Association and participating on the NYSE Regional Advisory Board.
Expansion continued in 1988 and 1989 through acquisitions of brokerage firms including Geary & Patterson (Jackson, MS), T.J. Raney & Sons (Arkansas), George M. Wood & Company (Montgomery, AL), and Scharff & Jones (Louisiana).
- The 1990s
By 1991, revenues had climbed to $100 million with stockholders' equity of $50 million; these figures doubled within two years.
Throughout the early 1990s, Morgan Keegan grew by acquiring firms such as Cumberland Securities (Knoxville), Porter, White & Yardley (Birmingham), Capitol Securities Group (Texas), J. Lee Peeler & Co. (North Carolina), and Commonwealth Securities Group (Louisville). In 1995, it purchased Trust Company of Chattanooga—later renamed Morgan Trust Company—and ARM (Athletic Resource Management), a Memphis-based sports agency representing professional athletes from the NBA, NFL, and MLB.
In 1997, acquisitions included underwriting firm Knox, Wall & Co. (Atlanta) and investment management company Weibel, Huffman, Keegan.
- The 2000s
During the late 1990s consolidation phase among regional brokerages, Morgan Keegan was acquired by Regions Financial Corporation for $789 million. Founder Allen Morgan remained Regions’ largest individual shareholder outside institutions and served as vice chairman on its board until his retirement in 2007.
Following the merger in 2001, Morgan Keegan integrated Regions Investment Company operations, expanding its financial advisor count to approximately 900. By 2002, it had purchased two additional NYSE seats—bringing its total to five—with a combined value near $10 million.
After Regions merged with Union Planters Bank in 2004, Morgan Keegan gained over seventy satellite offices within Union Planters branches. In 2005, it acquired Albrecht & Associates to broaden its oil and gas property sales capabilities. In 2007, following Regions’ merger with AmSouth Bank, Morgan Keegan absorbed AmSouth Investment Services; however, subsequent leadership transitions caused employee unrest.
Toward the end of the decade, Morgan Keegan bolstered its investment banking segment by acquiring Shattuck Hammond Partners (June 2007), Burke Capital (December 2008), Revolution Partners—a boutique focusing on middle-market technology firms (2008)—and Spectrum Capital Partners—specialists in strategic acquisitions (June 2009).
In April 2012, Raymond James Financial completed its purchase of Morgan Keegan for $930 million. At that time, Morgan Keegan operated roughly 300 offices across twenty states employing about 3,100 people—of whom approximately 1,050 were based at its Memphis headquarters within the Morgan Keegan Tower.
Management
From 1969 until 2003, Allen Morgan held the positions of chairman and CEO, continuing as chairman until his retirement on December 31, 2007.
Bill Deupree occupied the role of president between 1985 and 1996. After a short period under Stephen P. Laffey's leadership, G. Douglas "Doug" Edwards assumed the presidency.
On February 27, 2008, John C. Carson Jr., who had led fixed income trading since joining the firm in 1994, was appointed as Morgan Keegan's third CEO. R. Patrick Kruczek then took over the presidency.
Following Raymond James Financial's acquisition of Morgan Keegan & Co. on April 2, 2012—creating one of the largest comprehensive wealth management and investment banking entities outside Wall Street—Carson transitioned to the role of president.