One of the nation’s premier financial entities has just finalized a gigantic acquisition. Charles Schwab is the largest publicly traded stock brokerage and has now acquired the second-largest in TD Ameritrade after a massive $26 billion merger was agreed upon earlier this morning. The combined company will stand as the undisputed brokerage leader and serve north of 24 million clients. Charles Schwab President and CEO, Walter Bettinger, optimistically noted, “We believe the combination of our two great companies positions us to be competing and winning in the investment services business for the long run — the very long run.”
A deal like this was certainly floating in the air due to the massive amount of recent disruption in the brokerage industry with major brokers turning commission-free in the past few months. This deal also puts significant pressure on competing brokers like E-Trade, whose shares dropped over 11% as a result of the news. Pending regulatory approval, the combination of the two firms is anticipated to take 18 to 36 months after the deal is officially closed.