Schwab Executives Provide Insight into TD Ameritrade Deal and Future of Market

Charles Schwab’s CEO, COO and Head of Adviser Services presented details to analysts on how the TD Ameritrade merger is going and what the future of the market looks like; the presentation revealed the Justice department requested additional details on the merger which the company described as customary; the company has created an integrated management office and said integration costs will run about $1.6bn; while the company provided answers to most questions there are still concerns about how the two companies plan to integrate different, complex technology stacks while not losing many customers; some of their competitors are offering cash incentives to open accounts which Schwab executives do not like but understand they will need to match offers in order to keep customers; “Unfortunately, this approach works,” Bettinger said in prepared remarks according to Business Insider. “And so therefore, organizations like ours, despite finding it a somewhat distasteful approach, recognize that we have to be willing to match these types of things or there’s a certain percentage of clients who will move on.” Business Insider

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