In search of new sources of revenue now that it has slashed fees on stock trades, the brokerage giant could use the influx of deposits it will get from acquiring its rival to grow its loan portfolio and add new banking services.
The bank will continue to hold cash in sweep accounts until 2031, although at a lower rate; capital requirements could lead big banks to hold off lending.
The $26 billion all-stock deal has the OK of the boards from both companies; the administration says it will move on privatization without federal backing.
Charles Schwab is buying TD Ameritrade for $26 billion, with a deal expected to be announced Thursday morning, Fox Business reports, citing unidentified people familiar with the situation.
After shaking up the financial services industry last month by eliminating commissions for all online trades, Charles Schwab is setting its sights on building out its lending services.
The move follows similar offers from other major brokerages in the last two weeks, as the wealth management industry races to woo clients with the lowest-priced products possible.
J.D. Power found that customers who have a variety of accounts with an online-only bank are far more satisfied than those with just checking or savings accounts.
The head of Charles Schwab Investment Management is disrupting the asset-management industry by introducing more straightforward ETFs, mutual funds and other investment products.
