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Oisín's snippets: Charles Schwab brand goes up on Omaha's TD Ameritrade stadium, home of college baseball world series • Interactive Brokers lands an RIA custody insider, Charlie Latimer, to climb the custodian ladder

The TDA brand lives on until the techies figure out how to make two systems into one, but change is in the air in Omaha, while Interactive Brokers gets a leg up in the custody business with a new hire.

Monday, December 27, 2021 – 9:58 PM by Oisin Breen
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TDA is out at the college baseball world series stadium; Schwab's is in until at least 2029.

The corporate takeover is only complete when the stadium in the vanquished firm's hometown bears the name of the company swallowing it whole -- or something like that.

Jonathan Craig
Jonathan Craig: Today’s announcement signifies our continued commitment to the people of Omaha.

Charles Schwab Corp.'s brand will replace TD Ameritrade's (TDA) atop the home stadium of the college baseball world series in Omaha, Neb., where TDA is headquartered and played a large role as a corporate sponsor.

“Today’s announcement signifies our continued commitment to the people of Omaha," says Schwab managing director for investor Services and marketing, Jonathan Craig, in a release.

The 24,000 seat TD Ameritrade Park Omaha will be rebranded the Charles Schwab Field Omaha, effective early 2022 -- ahead of much of the rest of the rebranding that is synched to the integration of the two companies sometime in 2023. See: TD Bank basks in the glow of Schwab's $100 million TD Ameritrade marketing spend as it hires 350 advisors and launches competing robo using same branding

The College World Series has a contract to play there through 2035. The field is also home to the Creighton University Bluejays baseball team.

The Big Ten Conference also will hold its championship baseball tournament there through 2022. The field turned a profit of $5.6 million in its first year of operation, easily covering its debt payments, according to the Omaha World Herald. 

Schwab, headquartered in Westlake, Texas, currently has nearly 2,200 employees in Omaha, down slightly from 2.300 it reportedly listed at the time of the deal, with plans for additional growth.

Charles Schwab Corp., the parent of  banking, electronic trading and wealth management advisory service divisions to retail and institutional clients, has about 33,000 staff, including many of the 10,000 it inherited from TDA.

The Schwab presence is expected to remain steady in Omaha based on a few clauses of its agreement to buy the company.

Fine print

A condition of the stockholder voting agreement Schwab Corp. forged with TD Ameritrade’s billionaire founder, Joe Ricketts, and wife, Marlene, was to  maintain a presence in Omaha, according to a Dec. 2019 schedule 13D filed with the Securities and Exchange Commission (SEC).

The clause requires Schwab to be "committed in good faith to seek to maintain... a level of employment in the state of Nebraska comparable to TD Ameritrade’s level of employment in Nebraska" for two years from the date of the merger’s close.

Joe Ricketts, TD Ameritrade
TD Ameritrade Founder Joe Ricketts wants to preserve jobs in Omaha, Neb. 

Charles R. Schwab founder (1971) and chairman, still owned about 10% of the company in 2018 but he continuously cashes out. Ricketts founded Ameritrade in 1975.

Schwab agreed to acquire rival brokerage giant TDA in Nov. 2019. It closed the acquisition in Oct. 2020, stating that it expected the firms' integration to take up to 36 months to complete. See: Charles Schwab Corp. is crash-hiring TD Ameritrade Institutional staff-- amid wild growth-- to quell RIA service howls, but cautions to hold off custody switch to Schwab to avoid repapering.

When the merger deal was struck, the two firms administered a combined $5 trillion. Today this sum stands at more than $8 trillion. As a result of the merger, Schwab holds exclusive naming rights to the home of the Men's College World Series through 2029.

The newly titled field became the home of the college world series when the park opened in 2011.


Latimer lands at IBKR as new RIA whisperer

Charlie Latimer just landed at Interactive Brokers (IBKR) as the broker-dealer and RIA custodian's new RIA sales chief.

Charles Latimer
Charlie Latimer: Understanding what different custodians offer, I genuinely feel we are positioned in the right place.

The former Schwab, TD Ameritrade, Private Advisor Group and E*Trade Advisor Services RIA advisory marketing executive, announced in a Dec. 21 LinkedIn post his move to IBKR in Greenwich, Conn.

He will report directly to CEO Milan Galik, and chairman Thomas Peterffy. See: Interactive Brokers, the Mouse that roared, fires shot across the bows of Schwab, Fidelity, TD and Pershing over RIA custody: 'The market will catch up to our vision'.

Latimer spent almost five years at TDA as vice president for institutional sales, and three at Schwab Advisor Services as a business development officer focused on selling Schwab's custody service to RIAs.

He left E*Trade in August, after just over two years at the firm and as it was being absorbed by Morgan Stanley. The RIA custody unit has since been tossed over to Axos. See: Axos Financial gets E*Trade RIA custody unit at $220-million discount from discount broker's 2018 price -- all but assuring it'll be accretive by 2023, its maverick CEO says

Now, as senior institutional sales representative for IBKR, Latimer intends to put the knowledge he picked up at rivals to talk up his new employer, he says.

"Having worked at several competitors in my career and understanding what different custodians offer, I genuinely feel we are positioned in the right place at the right time, bringing a breath of fresh air and much needed choice to RIAs," he writes. See: Small RIA custodian launches dream crypto trading and custody-- cheap, broad and on one screen-- but will supply drive profitable demand?

"RIAs will be amazed (as was I) to find everything they need in one place, without custody fees, competing business units, or AUM minimums," he adds. See: Defying merger doubters, Schwab adds staggering $1.1 trillion RIA assets. Today's trickle of RIA defections may yet build to tsunami size over next three years, rivals say.

 


Related Moves

Robinhood gets 'brilliant' upper manager -- and a spare CEO -- by nabbing TD Ameritrade's ex-thinkorswim top exec, hopefully to throw a lifesaver to Robinhood's sinking stock

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January 6, 2022 – 10:33 PM

Goldman Sachs nabs TD Ameritrade's Darla Sipolt for RIA custody; Kate Healy, Jim Dario and Peter Dorsey are among 1,000 staffers cut by Schwab post TD merger

Included in the wholesale reduction of the Omaha, Neb.-based broker's redundant talent, about 40% of TD Ameritrade's marketing staff also got word today they have no future with their San Francisco-based owner

October 27, 2020 – 1:20 AM

Mark Tibergien sets up Ben Harrison to challenge Schwabitrade with a $150 million cut to Pershing's minimum and millions more to develop Veo-busting technology

The CEO suite hand-off in Jersey City pulls a trigger on a plan to bypass Fidelity's and eventually Schwab's custody units by luring disaffected RIAs.

March 11, 2020 – 7:58 AM

Walt Bettinger axes current and former Schwab retail chiefs, Terri Kallsen and Andy Gill; funnels responsibilities to Jonathan Craig, for now

The Schwab CEO is 'restructuring,' which includes cutting the Chairman's Club program that sent 200 top performers to Hawaii on a free junket

July 24, 2019 – 12:53 AM

See more related moves

Mentioned in this article:

TD Ameritrade
Asset Custodian
Top Executive: Tom Nally




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