Charles Schwab is becoming a major part of the economic future of the country's military community.
The finance company pays $ 1.8 billion for the USA Investment Management company, which includes portfolios and broker accounts of around 1
|SCHW||CHARLES SCHWAB||44.07||– 0.21|| -0.47% “We are honored to be entrusted with serving the financial needs of the USAA members. We have long admired USAA's mission to improve the financial security of our country's military officials and women and their families, ”said Walt Bettinger, President and CEO of Schwab in the press release.
Additionally, Schwab is planning to offer roles to a significant number of USA employees to continue serving its members.
The cash deal gives the Schwab scale to the $ 1.9T Investor Services business by adding over 1 million new accounts and approx. $ 90B in client assets. It will also allow the company to offer USAA members exclusive of asset management and brokerage services through a long-term referral agreement.
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Stuart Parker, CEO of the USAA, said in the release that the Schwab agreement is also about promoting the bottom line of the US military. "Our mission is to facilitate the economic security of the military community through highly competitive products."
The agreement is expected to end in 2020.