Schwab's delay

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Nov 7, 2006 6:15 pm

Anyone want to veture a merger guess?

Nov 7, 2006 6:30 pm

Goldman Sachs.

Nov 7, 2006 6:58 pm

I bet they are selling off their U.S Trust division to a bank. Perhaps to Citibank or B of A? I have read that they have never really gained synergies there, and it may make sense for them to rid themselves of a non-core business and focus on their niche market....

Nov 7, 2006 7:23 pm
blarmston:

I bet they are selling off their U.S Trust division to a bank. Perhaps to Citibank or B of A? I have read that they have never really gained synergies there, and it may make sense for them to rid themselves of a non-core business and focus on their niche market....


That's interesting. I haven't looked at their balance sheet, but it's hard to understand how asset management isn't a real winner for them. You could be right since Chuck's back and the US Trust deal happened (IIRC) while he was gone.

Nov 8, 2006 11:23 am

I remeber reading an article months ago speculating along those lines. In this day of spinning off non-core business units, merging with competitors to imrpvie margins, etc, it makes sense for them to consider that. Schwab is doing a good job of improving their AUM, especially in the RIA channel, and their discount operation is making strides as well. They could sell off US Trust ( for what- 5 Billion or so?) and redeploy those monies to shore up their exisitng core lines, or maybe bid for another discounter (say Scottrade?)...


Ahhhhh. The possibilities are endless....

Nov 8, 2006 3:18 pm

The best scenario would be if schwab sold the online trading to e-trade. Spun  off the RIA business, sold the trust company. The schwab could morph into a clearing house to compete with pershing.

Nov 8, 2006 3:22 pm

An even better scenario would be if they gave me some of that $$$. Then I could put it back into our economy via foolish expenditures and everybody wins!

Nov 8, 2006 8:36 pm

Schwab sucks, I can't imagine who would want to acquire them.