Schwab is planning to "rely more on partners" to "house customers’ deposits," says the CEO:
What are the ramifications of this decision? How will this affect customers who have a Schwab Investor Checking and/or Schwab Brokerage Account? How does this affect customer privacy and data security? Will this make Schwab similar to other brokerage CMAs that rely on "Program Banks" to house customer deposits?Going forward, Schwab is planning to rely more on off-balance sheet arrangements to house customers’ deposits, Chief Executive Officer Walt Bettinger said on a conference call with analysts. By relying on partners like Toronto-Dominion Bank, such deals would allow Schwab to more efficiently use capital, he said. ... With the off-balance sheet arrangements, customers would still open a bank account with Schwab but their money would actually reside with a third-party bank.
Statistics: Posted by zero_coupon — Sun Jul 28, 2024 3:35 am — Replies 0 — Views 54