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 all cash in a customer's account reside at a third-party bank, or will this only apply to balances above a certain threshold? 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. ... 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 4 — Views 328