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For sub-$500k accounts, Schwab is sweeping RIA client cash into its bank, pumping up corporate profits

Unlike the robo, RIAs can manually direct funds to money market funds which makes this change less controversial

Author Lisa Shidler March 19, 2015 at 5:51 PM
no description available
Joe Martinetto: Schwab Advisor Services' RIAs will drive about $8 billion of incremental growth to the balance sheet of the bank in 2015.

Tim Welsh


Sophie Schmitt


Joe Martinetto



March 19, 2015 — 7:12 PM

Just as any true fiduciary would… Er, wait a minute, they’re not a fiduciary. So they can put profits ahead of clients who think they’re looking out for them.

Grant Barger

Grant Barger

March 19, 2015 — 8:03 PM

The term “Idle Money” has been an oxymoron since Sandy Weill broke Glass-Steagall when Citi acquired Salomon. Net Interest Margin is the only game they play… But I’m sure Chuck will share the revenue with “clients” once the fed hikes the rate a quarter point…

Another fine article… thanks for your vigilance.



March 19, 2015 — 10:59 PM

E*TRADE ESDA program accommodates $1,250,000 in cash FDIC insured by using seven banks for its cash sweeps.

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Nexus Strategy
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Top Executive: Timothy D. Welsh

Aite Group
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Top Executive: Frank Rizza

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