News, Vision & Voice for the Advisory Community


Charles Schwab Corp. goes back on offense in banking -- promising to pump out discount loans with RIA help -- after rapid Fed rate hikes exposed extreme vulnerability in bank's asset base

After dodging classic rate squeeze, the discount broker will use its 10,000 RIA custody clients to put cash to work as equity loans against client portfolios

Author Lisa Shidler August 8, 2023 at 1:17 AM
no description available
Rick Wurster: When the lending environment improves, we're going to be there.
Brooke Southall and Keith Girard contributed to the editing of this article.

Related Moves

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

Apex nabs Jon Patullo from 'Schwabitrade' to 'raise the bar' and make his new firm's RIA system as 'frictionless' as the old one

The loved and admired TD Ameritrade software chief will bring his playbook -- and possibly Schwab's -- to Apex, which continues to try putting a winning front-end on its old Penson backend, a source says

October 11, 2022 at 12:40 AM

See more related moves



August 8, 2023 — 4:58 PM
Regarding Pledged Asset Lines at Schwab, "The rate on a $2.5 million loan would be 1.9%. Pledged Asset Line amounts begin at $100,000 with a required initial minimum advance of $70,000, according to the website. " Just a clarification. 1.9% is the SPREAD on top of SOFR, not the rate. SOFR is running near 5%+ so rate would be ~7% on PALs. The previous paragraph mentions 'spread' but still probably needs a clarification that the spread of 4.65% is ON TOP OF the SOFR rate. Schwab could not offer loans at 4.65% and 1.9% in terms of a rate as they would not be solvent if did that.

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo