t's official. Charles Schwab
and US Trust
have completed their merger, creating a financial behemoth with client assets exceeding $900 billion. US Trust will keep its name and its New York City headquarters.
Beginning June 15, Schwab clients and prospects who want investment management, trust and private banking services will be referred to US Trust through the AdvisorSource
program. Conversely, US Trust clients who want to use Schwab's services will be automatically elevated to Schwab Retail's Signature Services
, the firm's high-end offering.
"I can see how some members of AdvisorSource will be confused," says Richard Bregman
, president of MJB Asset Management
. "AdvisorSource is supposed to refer clients to independent advisors, but US Trust is part of Schwab. Also, I might wonder how the US Trust advisors are able to join locations that are currently closed to new advisors. But I think Schwab is doing the smart thing to maximize synergy."
The merger was made possible by the 1999 Financial Services Reform Act, which gives increased flexibility for securities firms, banks and insurers to combine. US Trust CEO Marshall Schwartz
and COO Jeffrey Maurer
will join the Schwab board of directors; Charles Schwab
and co-CEO David Pottruck
will join the US Trust board.
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