Lower profits turn happy talk on its head

By KRIS HUNDLEY

© St. Petersburg Times, published April 23, 2001

What a difference a few weeks makes.

In February, as the stock market tumbled, Larry Silver, spokesman for Raymond James Financial Inc., was still whistling a happy tune.

Though he conceded that trading volume had slowed "a little bit" at the St. Petersburg brokerage company, Silver said, "It seems to me that everything is pretty robust around here."

In mid-March, Silver said the financial services company was being deluged by former do-it-yourself traders asking for help.

"Ten or 12 months ago, they started trickling in. Today, it's a tidal surge," he said. "They tell us, 'We've lost our money. What can you do?' "

Those hordes of new customers must not have been buying.

While Silver was touting Raymond James' good health, the company's trading volume was slowing dramatically, its fee-based business was generating fewer dollars, its institutional banking business was withering and interest from margin borrowing dried up. In short, the robust went bust.

Last week, the numbers betrayed the happy talk. Raymond James said its profits fell 41 percent during the quarter ended March 31.

This time it was chief executive Tom James who put the spin on the bad news, deftly putting responsibility on the larger economy.

"A falling tide lowers all ships," he said.

© 2006 • All Rights Reserved • Tampa Bay Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111

Contact the Times | Privacy Policy
Standard of Accuracy | Terms, Conditions & Copyright