CHARLES SCHWAB CORPORATION

CHARLES SCHWAB CORPORATION

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Company Overview
Charles Schwab Corporation (Charles Schwab) is a US-based company engaged in the provision of securities brokerage, wealth management, investment and other financial related services. The company was established as Charles Schwab and Co., Inc. by Charles R. Schwab in 1973 and has its headquarters located in San Francisco, California. Its shares are publicly traded on the Nasdaq National Market under the ticker symbol SCHW.
Charles Schwab offers a wide range of products and services such as certificate of deposits, money market accounts, college savings accounts, mutual funds, exchange traded funds, annuities, bond trading, margin loans retirement services and mortgages. The company serves its products and services to major clients including domestic and international individual investors, independent investment managers, institutions, savers and borrowers, companies broker-dealers and 401(k) plan sponsors.
Charles Schwab is considered as one of the nation’s largest financial services company and one of the world’s largest discount brokers. Its subsidiaries include Charles Schwab & Co., Inc, which provides equity compensation plan services and other financial and retirement services to corporations and executives; and Charles Schwab Bank, which engages in the provision of deposit and lending products and services.
Business Summary
Investment Bank / Security House
Description and history
The Company, through its subsidiaries, provides securities brokerage, banking, and related financial services to individual and institutional investors primarily in the United States, the United Kingdom, and Hong Kong.

HISTORY

The Company was incorporated in 1986 headquartered in San Francisco, California.

Charles Schwab & Co. Inc., one of the Company’s subsidiaries which was incorporated in 1971 and entered the discount brokerage business in 1974, is a securities broker-dealer with 236 domestic branch offices in 43 states, as well as a branch in the Commonwealth of Puerto Rico. U.S. Trust Corporation that was acquired in 2000 and is located in New York City, New York, is a wealth management firm that through its subsidiaries also provides fiduciary services and private banking services with 37 offices in 15 states. Charles Schwab Bank, N.A. (Schwab Bank), is a retail bank located in Reno, Nevada that commenced operations in April 2003.

The Company provides various asset management accounts; individual retirement accounts; retirement plans for small to large businesses; 529 college savings accounts; separately managed accounts; designated brokerage accounts; equity incentive plan accounts; and margin loans, as well as access to fixed income securities, and equity and debt offerings. The company also offers first mortgages, home equity lines of credit, pledged-asset loans, certificates of deposit, demand deposit accounts, high-yield investor checking accounts linked to brokerage accounts, and credit cards. In addition, it provides third-party mutual funds, including no-load mutual funds; proprietary mutual funds; and mutual fund trading and clearing services to broker-dealers.

In October 2003, U.S. Trust acquired State Street Corporation’s Private Asset Management group, a provider of wealth management services to clients in the New England area, for $365 million.

In January 2004, the Company completed its acquisition of SoundView Technology Group, Inc. (SoundView) for approximately $340 million, or $289 million net of SoundView’s cash and cash equivalents acquired.

On November 19, 2006, the Company entered into a definitive agreement with Bank of America Corporation (Bank of America) pursuant to which Bank of America will acquire all of the outstanding common stock of U.S. Trust Corporation (USTC, and with its subsidiaries collectively referred to as U.S. Trust), a subsidiary which provides wealth management services. The transaction is expected to close early in the third quarter of 2007.

On December 22, 2006, the Company announced an agreement to acquire The 401(k) Company from Nationwide Financial Services, Inc. for $115 million in cash. The transaction is expected to close in March 2007, subject to customary closing conditions.

MAIN PRODUCTS

Brokerage

Various asset management accounts including some with check-writing features, individual retirement accounts, Keogh accounts, 529 college savings accounts, margin loans, and access to fixed income securities, and equity and debt offerings;

Banking

First mortgages, home equity lines of credit, pledged-asset mortgages, certificates of deposit, demand deposit accounts, private banking accounts, and credit cards; and

Mutual funds

Third-party mutual funds through Mutual Fund Marketplace(R), including no-load mutual funds through the Mutual Fund OneSource(R) service, proprietary mutual funds from two fund families – SchwabFunds(R) and Excelsior(R) Funds, and mutual fund trading and clearing services to broker-dealers.

The Company’s common stock is listed on The Nasdaq Stock Market under the ticker symbol SCHW

Established as Charles Schwab and Co., Inc. by Charles R. Schwab

Business Line
Engaged in the provision of securities brokerage, wealth management, investment and other financial related services
Subsidiary
1-800 FLOWERS.COM, INC. via its funds
Advisor
N/A
IPO date
9/1987
US SIC Code
6159
Company Address
Montgomery Street, 101

City province or state postal code
94104, SAN FRANCISCO, CA
Phone: 1 (415) 627 70 00
Fax: 1 (415) 636 59 70
Country address: UNITED STATES OF AMERICA
Website url: www.schwab.com