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Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2600  
Subject: Re: Discount Brokers Gone Wild Date: 12/2/2006 2:17 AM
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Discount Brokers Gone Wild
By Rick Aristotle Munarriz (TMFBreakerRick)
November 20, 2006

If you're an online discount broker, you love to see frenetic trading. Buying and selling is sweet music. However, what happens when it's the brokers who are doing the wheeling and dealing?

This morning found Charles Schwab (Nasdaq: SCHW) and Ameritrade (Nasdaq: AMTD) on opposite ends of the exchanging process. Schwab agreed to sell its wealth management subsidiary to Bank of America (NYSE: BAC) in an all-cash deal for $3.3 billion. ...
- TMFTwitty | Date: 11/20/06 3:25 PM | Number: 2572

In my opinion Charles is making a mistake selling the "Wealth Management" Business. Doesn't Charles know that all of the assets are with the Wealth Management customers. If the Wealth Management customers of Schwab are sold to Bank of America, B of A will eventually capture the trading business of those customers too.

No problem, of course, Charles can buy the Business and the customers back in 2010 for $6.6 billion.

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