Morgan Keegan & Co (Wealth Management)

Walking in Memphis

One of the largest full-service securities brokerage and investment banks in the south, Morgan Keegan (MK) provides underwriting, equity and fixed income research, sales and trading, and private client services such as investment advice and wealth management.  Its wealth management business is divided into two sections: investment planning, which includes asset allocation, asset evaluation, research and investment studies; and financial planning, which includes estate planning, stock option issues, retirement planning, college funding, wealth protection and other business needs.  Morgan Keegan's Private Client group includes financial advisors who offer a range of financial services to individual investors.

Regional success

Morgan Keegan is a subsidiary of Regions Financial Corporation, one of the nation's largest financial services companies and a member of both the Forbes 500 and the Fortune 500 (it ranked No. 280 on the Fortune 500 2009 list).  Regions' operations are mostly based in the South and Midwest, and likewise, Morgan Keegan's roots are in southern soil.  The firm was founded in Memphis in 1969; in the beginning, it had only five employees.  By 1970, it had earned a seat on the New York Stock Exchange, and in 1976, it opened an investment banking division.  It was acquired by Regions Financial in 2001.

Southern charm, nationwide

Though Morgan Keegan considers itself a regional brokerage, it has spent recent years expanding its presence in the Northeast and Midwest.  Morgan Keegan is a leading underwriter for state and local Housing Finance Authorities and in 2007 was ranked No. 4 as an underwriter of single-family bonds by Thomson Financial.

In 2007, as part of its expansion plans, the company opened a branch in St. Louis, Mo., focusing on finance services.  The same year, Morgan Keegan also expanded its offices in New York City.  In June 2007, it acquired Shattuck Hammond, LLC, an independent investment banking and financial advisory firm which services healthcare clients throughout the nation through offices in New York, Chicago, Atlanta and San Francisco.  Already dominant as municipal bond underwriter in the South Central United States (for the past 15 years, it was the top underwriter in the region), Morgan Keegan broke into the top 10 (ranked 10th) in the national rankings by expanding throughout the country.  Currently, Morgan Keegan has 300 offices 19 different states, employing approximately 4,400 employees.  In 2009, MK also opened new offices in Aventura, Florida and Swansea, Ill.

Bonds gone sour

Mutual bonds sold under the brand RMK have plagued the company of late with hundreds of investors aiming to draw blood from the company which allegedly sold bonds to them fraudulently.  The losses have since been traced to the structured finance investments that Morgan Keegan made which included subprime mortgage securities, collateral debt obligations (CDOs) and other complex derivative instruments.  The overexposure to those products had cost investors some $2 billion in losses.  Morgan Keegan failed to make investors aware of the fact that the funds were linked to risky and untested types of structured finance investments including subprime mortgage securities.



Morgan Keegan & Co (Wealth Management)


Morgan Keegan Tower
50 North Front Street
Memphis, TN 38103
Phone: (901) 524-4100
Fax: (901) 524-4197
www.morgankeegan.com

STATS


  • Employer Type: Unknown
  • CEO: John C. Carson Jr.

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