My Review Of the Charles Schwab-TD Ameri-Trade Merger

Fridays in 2019 have been defined by jobs reports, especially under President Trump’s Presidency. Why is that? He is not shy of boasting when reports are good AND media is not shy of criticizing or diminishing the economic accomplishments when the job reports are lower than expected. This Friday, the day of economics with Black Friday, I’ve decided to give my two cents.

I don’t usually write about economics but what went down this week between Charles Schwab and TD Ameri-Trade caught my eye and then some. When I saw news of the merger I believed this meant business is going good, especially if mergers are happening! It’s also a great deal for TD Ameritrade , because instead of declaring bankruptcy they will now get a much-needed boost. It also means employees will keep their jobs!

In the 11 years since the recession, this merger is arguably the biggest in the financial sector . If you don’t believe the economy is going well, maybe this merger can wake you up! A 26 BILLION dollar wake-up call at that! We have seen under the Trump economy stock records broken and now it appears that investing could get a big boost with this merger.

In looking at stats, this one reported by the AP is staggering, ‘TD Ameritrade, for example, said last month that it expected its earnings to fall in the current quarter because it dropped commissions. It estimated the revenue hit to be up to $240 million per quarter.’ Now the investors with Ameritrade should be breathing a sigh of relief through Schwab and actually gain a 1.0837/share for every TD Ameri-Trade share they own.

Between the two companies, research shows 24 million client accounts will be shared and because of the name, Schwab, I bet it expands beyond that!

Another reason why I love this merger is it just stuffs in the face of politicians and activists who say down with Wall Street. Doing away with Wall Street isn’t the answer and it doesn’t help the communities that , *checks notes* , Wall Street actually helps! I’m glad amid this merger Schwab is saying goodbye to San Francisco and hello to Texas. It just shoved in the face of taxing liberals that that method just doesn’t work to keep business around . Maybe as big companies move away from cities like NYC and San Fran, people like Bernie Sanders , Elizabeth Warren and of course Bill de Blasio will understand that this country doesn’t want to be taxed up the wazoo!

It also helps that Governor Abbott in Texas assured NO INCOME TAX in the state this past election!

We do need investor confidence again, because that is a pillar of our economic structure. We all invest in one way or another, but to see Wall Street buck the system that wants investing, and economic prosperity gone is a thing of beauty.

I have more thoughts on this on my newest Spreaker podcast!



Hey there! My name is Alex Garrett and I’m a talk radio producer, podcaster and blogger! Find out more @alexnyc1 ! Email

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store