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Charles Schwab Corp. files SEC paperwork to make good on Rick Wurster push for investor revolution in mass customization --with 40 basis points of monetization

The Westlake, Texas broker-dealer and custodian of $8.5 trillion of AUA will cannibalize its own products and third-party partners but with eyes on a new value proposition.

Author Brooke Southall April 1, 2022 at 7:01 PM
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Rick Wurst: We’re able to lower the barriers to direct indexing for more investors and advisors.

Brian Murphy

Brian Murphy

April 2, 2022 — 8:27 PM
I call BS on DI. Nobody is asking for direct indexing. It, like most other memes in the industry such as ESG, is being driven by primarily by custodians, mutual fund/ETF managers, etc. It's an easy way to charge fees with little human intervention - based on the assumption that indexing (which worked extraordinarily well when the Fed was printing money) will continue to be well-suited to wealth accumulation going forward. None of these solutions are being asked for by retail, or advisor, clientele. Clientele want performance - period. I want to see my capital grow, after taxes, and that's the holy grail. Whether that is an "indexed" solution or active management is of little concern. It happens to be the case that when money is being continually pumped into the markets due to central bank money printing, indexing can't be beat. But when central bank actions turn course - watch out...and that's where we're at now. Unfortunately the solution that retail investors need is one that goes across platforms, across taxable & held away assets (401k, 403b); across wealth management, credit, lending, housing; and across asset (and liability) types - equities, bonds, digital assets, real estate, etc. None of the traditional players (Schwab, Fidelity, Goldman, etc.) will tackle that problem because they can't monetize it effectively on their closed platforms. Period. End of story.

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Schwab 2,000-layoff aftershocks roil the industry as it's revealed top tech talent -- led by widely regarded veteran Kartik Srinivasan -- were axed, raising questions about future of Schwab innovation

Behind every layoff a human story as pink slip to an 'unbelievable talent' epitomizes company's determination to cut $500 million in expenses.

November 3, 2023 at 3:49 AM

Charles Schwab Corp. discloses imminent, sweeping 'TD Ameritrade' layoffs, indirectly revealed in new SEC filing that reports it will expense severance mostly in 2023 to gain 'incremental' $500 million synergy in 2024 and beyond

The Westlake, Texas, firm had not previously disclosed the cost of terminations -- people and offices -- or that so many of the farewells will happen by Dec. 30

August 22, 2023 at 12:46 AM

Charles 'Chuck Schwab' called James Gorman to protest a two-broker poach, kicking off a hydra-headed legal battle, costing Morgan Stanley millions, so far

The Schwab founder and chairman invoked Charles Schwab Corp.'s zero-tolerance policy against Wall Street -- or RIA -- poaching of talent and AUM from Schwab branches.

March 9, 2023 at 1:23 AM

RIA recap: Bernie Clark promises to 'be there' for coming TDA-Schwab system snafus; Fidelity gets custody win; Vanguard dishes out big tax bill to investors

Schwab RIA chief petitions for 'patience' for coming merger inconveniences but 'repapering' is no culprit; Carrie Pomerantz gets Schwab board seat; Addepar wins $65 billion AUM contract.

November 3, 2022 at 1:59 AM

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