Morgan Keegan: Fixes Show It Has a Future with Regions

By Davis, Paul | American Banker, March 22, 2010 | Go to article overview

Morgan Keegan: Fixes Show It Has a Future with Regions


Davis, Paul, American Banker


Byline: Paul Davis

Senior managers at Morgan Keegan & Co. argue that their restructuring moves last week are a break with the past - and a sign that the securities unit still has a future with its parent company, Regions Financial Corp.

Morgan Keegan combined its fixed-income and equities businesses into a single investment banking division, undoing a model that had lasted for more than 40 years. In doing so, they said investment banking would become a bigger part of the business mix as the Memphis firm seeks to move beyond litigation tied to its mutual fund operations, revenue declines and other lingering issues.

Speculation has persisted that Regions, which is trying to overcome credit quality and other problems unrelated to Morgan Keegan's, might sell the problematic securities unit.

But Robert Baird, a longtime Morgan Keegan executive who was named president of the investment banking division, said Regions was actively involved in the changes, though affording the independent-minded unit some autonomy.

"Regions has confidence in our team," Baird said in an interview.

Morgan Keegan's executive committee got "the encouragement and blessing" of Regions' senior management, including that of O.B. Grayson Hall, who is to become chief executive of the Birmingham, Ala., company next week, Baird said. "We have been allowed to operate in a way that we feel works best for all parties," he said.

Analysts have long wondered whether Morgan Keegan could thrive under Regions' ownership, which began nine years ago. Such concerns intensified in 2006, when C. Dowd Ritter became Regions' CEO and again in 2008 when Morgan Keegan CEO G. Douglas Edwards abruptly resigned.

Analysts such as Christopher Marinac at FIG Partners LLC have suggested that Regions could divest the unit if it needs to gain capital to leave the Troubled Asset Relief Program. All the while, Ritter and now Hall have touted the unit's prospects for helping Regions rebound.

"We continue to gain confidence in our ability to grow our business at Morgan Keegan and to deliver consistent and improving profitability," Hall said in January.

The parent and subsidiary have managed to coexist despite a rocky operating environment Regions lost $1.03 billion in 2009 due largely to rising credit costs. Morgan Keegan earned $90 million last year, but its revenue fell 4%, with declines in most business segments. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Morgan Keegan: Fixes Show It Has a Future with Regions
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.