What the Schwab - TD Ameritrade Merger Means for Financial Advisors (with Josh and Michael)

The Compound and Friends

Josh Brown

Business News, News, Investing, Business

4.7 • 2.2K Ratings

🗓️ 26 November 2019

⏱️ 13 minutes

🔗️ Recording | iTunes | RSS

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Summary

Charles Schwab is merging with one of its largest competitors, TD Ameritrade in a $26 billion all-stock deal that should close in the second half of 2020. Michael Batnick and Downtown Josh Brown of Ritholtz Wealth Management discuss what this will mean for the thousands of financial advisors who use one or both of these custodian brokers for their clients' assets. 1-click play or subscribe on your favorite podcast app Subscribe to the mini podcast on iTunes or Spotify Enable our Alexa skill here - "Alexa, play the Compound show!" Talk to us about your portfolio or financial plan here: http://ritholtzwealth.com/ Check out our channel "The Compound" over on YouTube: https://www.youtube.com/thecompoundrwm Obviously nothing on this channel should be considered as personalized financial advice just for you or a solicitation to buy or sell any securities. Please see this 3,000 word terms & conditions disclaimer: https://thereformedbroker.com/terms-and-conditions/ Hosted on Acast. See acast.com/privacy for more information. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hi I'm Josh Brown. We're live from the compound. I'm here with Michael Batnick to talk about
0:05.0	what I consider to be the biggest news in the registered investment advisor space of the year.
0:11.2	Schwab is going to be buying TD Ameritrade for 26 billion dollars in an
0:17.0	all-staffed transaction. We're just going to talk about what we think the impact might be,
0:22.2	what we think drove it.
0:23.4	Stick around.
0:24.0	Let's get into it.
0:25.8	Mike, when you first heard the news, were you like,
0:27.9	oh my God, I can't believe this?
0:29.3	Or were you just like, yeah, that makes sense?
0:32.0	Yeah, I'm the latter.
0:33.5	I think I was too.
0:35.0	I wasn't, oh my God, shock, but I was like, oh my God, this is huge news.
0:38.0	Well, it is huge news.
0:39.7	But when I saw it, I it I was like I get it.
0:44.1	We probably all should have known when Tim Hockey announced he was not going to be the CEO
0:50.4	of TD Ameritrade going forward and what that might have meant for this
0:55.8	particular segment maybe the board and he disagreed on this course of action
1:01.0	of selling the firm I I don't know.
1:04.0	This guy, Judd Mackerel, tweeted, Schwab dropping commissions to cut profits by 6%,
1:09.2	forcing TD's hand to drop theirs, costing them 25% only to buy them is the deal of the year.
1:14.0	Right, so they wrecked the share price of TD Ameritrade and then a month later they put a
	...

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