Raymond James Financial (RJF) said on Thursday it plans to convert into a commercial bank, following similar moves by Goldman Sachs Group and MS , but the regional dealer said the conversion will have little impact on the way it does business. In a statement on Thursday, the company said it will apply to become a bank holding company, regulated by the Federal Reserve, a move it said it had contemplated "for several years." Morgan Stanley and Goldman Sachs -- the last two independent major U.S. investment banks -- received approval on Sunday to convert into bank holding companies. "It's an unfortunate misperception that Goldman Sachs, Morgan Stanley and now Raymond James are fundamentally changing their business models," said Chief Executive Thomas James in the statement. "In fact, these changes are more form than substance in that regard." http://www.reuters.com/article/marketsNews/idINN2553579920080925?rpc=44 September 25, 2008: 05:38 PM EST Raymond James Financial Inc. (RJF) will continue with its plans to convert Raymond James Bank from a thrift to a commercial bank, but executives pointed out the plan isn't a reaction to similar moves by New York investment banks Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS). "It's an unfortunate misperception that Goldman Sachs, Morgan Stanley and now Raymond James are fundamentally changing their business models," said Chief Executive Thomas A. James. "In fact, these changes are more form than substance in that regard." The midsize retail brokerage, noting that it has been considering the change for several years, said its board has been concerned about the limits associated with its bank's thrift status. The change would permit a higher proportion of corporate lending, which historically is more profitable and has less interest rate risk. As the parent of Raymond James Bank, Raymond James Financial will apply to become a bank holding company. The change was expected to occur next summer, though it is possible the plan could move faster in the current environment. "One thing that has not changed in these turbulent times is that Raymond James' commitment to remaining independent is still the right thing for our associates, financial advisors and their clients, and RJF shareholders - no matter the firm's holding company status or its supervisory authority," James said. He repeatedly has emphasized the firm's conservative approach to the use of debt. Some analysts have suggested that boutique investment banks, such as Raymond James, resemble in some ways the businesses that Goldman and Morgan Stanley had 25 years ago, when they were much smaller private partnerships. The focus was advising on mergers and acquisitions and stocks and bond underwriting. Only later did the larger investment banks begin to rely on prime-brokerage services to hedge funds and proprietary trading to power their earnings. For the most part, the smaller firms don't participate in these higher margin but more volatile businesses, says David Trone, head of commercial and investment-banking research at Fox-Pitt Kelton Cochran Caronia Waller, a closely held investment bank. The result is less explosive profitability but cleaner balance sheets. http://money.cnn.com/news/newsfeeds/articles/djf500/200809251738DOWJONESDJONLINE000921_FORTUNE5.htm