Please ensure Javascript is enabled for purposes of website accessibility

A First Look at Fresno State’s Quarterback Battle

2 days ago

Israeli Columnist Alleges Ethnic Cleansing Plan in Gaza

2 days ago

Tesla to Roll out Bay Area Robotaxis With Safety Drivers, Report Says

2 days ago

Thailand and Cambodia Exchange Heavy Artillery Fire as Border Battle Expands

2 days ago

California Cannot Require Background Checks to Buy Ammunition, US Appeals Court Rules

3 days ago

TikTok Will Go Dark in US Without Chinese Approval of Sale Deal, Lutnick Says

3 days ago

Fresno County Authorities Still Searching for Missing Mother and Infant

3 days ago
Charles Schwab Buys TD Ameritrade in Brokerage Blockbuster
gvw_ap_news
By Associated Press
Published 6 years ago on
November 25, 2019

Share

NEW YORK — Charles Schwab is buying rival TD Ameritrade in a $26 billion stock swap, a blockbuster agreement accelerated by massive disruption in the online brokerage industry.
Competitive pressure has already forced brokerages to make it free for customers to trade U.S. stocks online, and Schwab’s buyout combines two of the biggest players in the industry.

“With this transaction, we will capitalize on the unique opportunity to build a firm with the soul of a challenger and the resources of a large financial services institution that will be uniquely positioned to serve the investment, trading and wealth management needs of investors across every phase of their financial journeys.” — Schwab CEO Walt Bettinger
The tie-up creates a company so big, however, that it may draw sharp scrutiny from antitrust regulators. The combined company would have more than $5 trillion in client assets under management.
“With this transaction, we will capitalize on the unique opportunity to build a firm with the soul of a challenger and the resources of a large financial services institution that will be uniquely positioned to serve the investment, trading and wealth management needs of investors across every phase of their financial journeys,” Schwab CEO Walt Bettinger said in a prepared statement.
TD Ameritrade stockholders would receive 1.0837 Schwab shares for each TD Ameritrade share they own.
The transaction gives Schwab about 12 million client accounts, $1.3 trillion in client assets and approximately $5 billion in annual revenue. The combined company is expected to control 24 million client accounts.
By itself, Schwab may control close to half the market for acting as a custodian for money managed by registered investment advisers, for example, while TD Ameritrade may control about 15% to 20%, according to Kyle Voigt, an analyst with Keefe, Bruyette & Woods.
The rewards for passing regulatory muster would be lucrative: A combined company “makes strong strategic sense,” would be able to cut costs and could bump up Schwab’s earnings per share by more than 25% over the long term, Voigt said.
The deal could also herald more mergers across the industry.
Photo of the NYSE in New York
FILE – In this Nov. 20, 2018 file photo, a U.S. flag flies outside New York Stock Exchange. Stocks fell in early trading on Wall Street Thursday, Nov. 21, 2019, as investors worry that the U.S. and China will fail to make a trade deal before the year is over. (AP Photo/Mary Altaffer, File )

All Major Brokerages Have Followed Suit, but Fees Had Been Falling for Years

Schwab sent shockwaves through the industry less than two months ago when it said it would do away with commissions for online trading of U.S. stocks and exchange-traded funds, fees that have long fueled the industry.
All major brokerages have followed suit, but fees had been falling for years.
Beyond players like Schwab, TD Ameritrade, Fidelity and E-Trade Financial, apps like robinhood.com out of Palo Alto, California, have also entered the fray to help customers get invested in the market.
That has increased the pressure on San Francisco’s Schwab Corp. and TD Ameritrade Holding Corp., of Omaha, Nebraska, the biggest publicly traded brokerages. Schwab had $3.85 trillion in total client assets at the start of the month, while TD Ameritrade had $1.3 trillion at the end of September.
The deal is expected to close in the second half of next year. It’s anticipated to take 18 to 36 months to integrate the two businesses once the transaction is complete. The corporate headquarters of the combined company will eventually relocate to Schwab’s new campus in Westlake, Texas.
The Toronto-Dominion Bank, which currently holds approximately 43% of TD Ameritrade’s stock, will have an ownership position of approximately 13% in the combined company, with other TD Ameritrade stockholders and existing Schwab stockholders holding approximately 18% and 69%, respectively.
TD Ameritrade suspended its search for a CEO, naming Chief Financial Officer Stephen Boyle as interim CEO. The current CEO, Tim Hockey, announced in July that he would be stepping down early next year.
Trading in shares of both companies was muted before the opening bell after wild swings last week when CNBC first reported that the companies were pursuing a deal.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Israel Announces Daily Pauses in Gaza Fighting as Aid Airdrops Begin

DON'T MISS

California School Board Resigns After Audit Reveals $180M in Improper Funding

DON'T MISS

NASA Says 20% of Workforce to Depart Space Agency

DON'T MISS

Frustration, Gaza Alarm Drove Macron to Go It Alone on Palestine Recognition

DON'T MISS

Trump Golfs in Scotland as Epstein Questions Persist

DON'T MISS

Visalia Police Arrest Armed Robbery Suspect at Long John Silver’s

DON'T MISS

Grand Rising Brings Sober Day Party Vibes to Fresno

DON'T MISS

Jack McAuliffe, Who Started a Craft Beer Revolution, Dies at 80

DON'T MISS

Fresno Crash Leaves One Dead After Car Submerges in Canal

DON'T MISS

Lemoore Farmers Fed Up With Lack of Representation on Groundwater Agency

UP NEXT

Trump Golfs in Scotland as Epstein Questions Persist

UP NEXT

US Judge Reaffirms Nationwide Injunction Blocking Trump Executive Order on Birthright Citizenship

UP NEXT

White House Will Release $5.5 Billion for Schools, After Surprise Delay

UP NEXT

US States to Get $608 Million From FEMA to Build Migrant Detention Centers

UP NEXT

Trump: Strong Dollar Sounds Good but ‘You Make a Hell of a Lot More’ With a Weaker One

UP NEXT

Trump Says US May Not Have a Negotiated Trade Deal With Canada

UP NEXT

Trump Says There Is a 50-50 Chance of Trade Deal With EU

UP NEXT

Amid Epstein Furor, Ghislaine Maxwell Seeks Relief From US Supreme Court

UP NEXT

US Justice Department Official Meets Epstein Associate Maxwell

UP NEXT

Lara Trump Skips North Carolina US Senate Race, Clears Way for Cooper Versus Whatley

Frustration, Gaza Alarm Drove Macron to Go It Alone on Palestine Recognition

1 day ago

Trump Golfs in Scotland as Epstein Questions Persist

1 day ago

Visalia Police Arrest Armed Robbery Suspect at Long John Silver’s

1 day ago

Grand Rising Brings Sober Day Party Vibes to Fresno

1 day ago

Jack McAuliffe, Who Started a Craft Beer Revolution, Dies at 80

1 day ago

Fresno Crash Leaves One Dead After Car Submerges in Canal

1 day ago

Lemoore Farmers Fed Up With Lack of Representation on Groundwater Agency

1 day ago

‘Jenny from the Block’ Rescued After Camping Out by Calwa ATM

1 day ago

Tulare Officer Injured in Crash While Trying to Save Unresponsive Infant. Child Dies at Hospital

2 days ago

PBS Has a Future by Leaving the Past Behind: Opinion

2 days ago

Israel Announces Daily Pauses in Gaza Fighting as Aid Airdrops Begin

JERUSALEM/GAZA – Israel said on Sunday it would halt military operations for 10 hours a day in parts of Gaza and allow new aid corrido...

1 minute ago

Palestinians carry aid supplies that entered Gaza through Israel, in Beit Lahia in the northern Gaza Strip, July 27, 2025. (Reuters/Dawoud Abu Alkas)
1 minute ago

Israel Announces Daily Pauses in Gaza Fighting as Aid Airdrops Begin

The entire board of Highlands Community Charter in Sacramento stepped down after a state audit found the school improperly received over $180 million and engaged in questionable spending. (Shutter
21 hours ago

California School Board Resigns After Audit Reveals $180M in Improper Funding

The NASA logo is seen at Kennedy Space Center in Cape Canaveral, Florida, U.S., April 16, 2021. (Reuters File)
24 hours ago

NASA Says 20% of Workforce to Depart Space Agency

Egypt's President Abdel Fattah al-Sisi and French President Emmanuel Macron visit a ward for Palestinian patients at El Arish Hospital, close to the border with the Gaza Strip, in Arish, Egypt April 8, 2025. Ludovic Marin/Pool via REUTERS
1 day ago

Frustration, Gaza Alarm Drove Macron to Go It Alone on Palestine Recognition

U.S. President Donald Trump golfs at Trump Turnberry resort in Turnberry, Scotland, Britain, July 26, 2025. (Reuters/Phil Noble)
1 day ago

Trump Golfs in Scotland as Epstein Questions Persist

Noah Robinson, 38, was arrested after allegedly robbing a Visalia Long John Silver’s at knifepoint and attempting to flee through nearby backyards with $110 in stolen cash on Friday, July 25, 2025. (Visalia PD)
1 day ago

Visalia Police Arrest Armed Robbery Suspect at Long John Silver’s

1 day ago

Grand Rising Brings Sober Day Party Vibes to Fresno

Craft Brewer Jack McAuliffe With Jim Koch of Samuel Adams
1 day ago

Jack McAuliffe, Who Started a Craft Beer Revolution, Dies at 80

Help continue the work that gets you the news that matters most.

Search

Send this to a friend