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Charles Schwab Corporation

American multinational financial services company

The Charles Schwab Corporation, founded in 1971, offers a wide range of financial services to retail and institutional clients. With over 380 branches in the US and UK, it ranks tenth among the largest banks in the US. As of December 31, 2023, it had $8.5 trillion in client assets and millions of active accounts. Headquartered in Westlake, Texas, it was founded in San Francisco, California.

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Timeline

1963
Launch of Investment Indicator newsletter
In 1963, Charles R. Schwab and two partners started the Investment Indicator newsletter, which gained 3,000 subscribers paying $84 annually.
1971
Charles Schwab Corporation Founded
Charles Schwab Corporation, a prominent investment management and financial services company, was established in 1971. It has been a key player in revolutionizing the brokerage industry by focusing on innovation and customer satisfaction.
1971-04
Charles Schwab founded as First Commander Corporation
In April 1971, Charles Schwab founded the firm as First Commander Corporation in California for traditional brokerage services and to publish the Schwab investment newsletter.
1971-11
Purchase of stock from Commander Industries
In November 1971, Charles Schwab and four others acquired all the stock from Commander Industries, Inc.
1972
Charles Schwab purchases stock from Commander Industries
In 1972, Charles Schwab and four others bought all the stock from Commander Industries, Inc., marking a significant ownership change.
1973
Service over Sales Model Introduced by Charles Schwab Corporation
In 1973, Charles Schwab Corporation introduced a new compensation model for brokers, tying their pay to client service rather than total sales. This innovative approach aimed to align brokers' interests with those of their clients.
1975-05-01
Deregulation of brokerage commissions
On May 1, 1975, the deregulation of brokerage commissions took place, leading to Chuck Schwab emerging as the de facto leader of a revolution in the investor community.
1979
Schwab's Big Bet on Computer Mainframe
In 1979, Charles Schwab took a significant risk by investing half a million dollars in a computer mainframe. This move allowed the company to process double the transactions with higher accuracy and lower costs for clients, establishing Schwab as the first brokerage firm to bring such automation in-house.
1980
Attempted Initial Public Offering (IPO) of Charles Schwab Corporation
In 1980, Charles Schwab, the largest discounter in the country, attempted to take his company public to fund further growth. However, the offering was called off due to problems caused by a new computer system conversion. This setback made raising capital more difficult for the company.
1981
Bank of America's Offer to Buy Schwab's Ownership
In 1981, Bank of America offered Charles Schwab $53 million in stock to purchase his 37 percent ownership stake in the company. Schwab sold his shares but continued to serve as the president of a semi-autonomous unit within the organization.
1982
Introduction of 24/7 order entry service
In 1982, Schwab became the first to offer 24/7 order entry and quote service, expanding globally with the opening of its Hong Kong office.
1983
Acquisition of Charles Schwab by BankAmerica
In 1983, Charles Schwab arranged for San Francisco's BankAmerica Corporation to acquire his company for $55 million in BankAmerica stock. This acquisition provided needed capital but also subjected the company to banking regulations, limiting its ability to offer new investment options.
1984
Introduction of Mutual Fund Marketplace
In 1984, Charles Schwab introduced the Mutual Fund Marketplace with an initial investment of $5 million. This platform allowed customers to invest in 250 separate mutual funds and easily switch between them using Schwab as the bookkeeper.
1985
Growth of Charles Schwab Corporation
By 1985, Charles Schwab had 90 branches and 1.2 million customers, generating $202 million in revenue. Despite being larger than its discount competitors, it was still smaller than the leading retail brokerages. The company also offered personal computer software for investors.
1988
Schwab's 1988 earnings plummeted 70 percent
In 1988, despite cost-cutting efforts, Schwab's earnings plummeted by 70 percent to $7.4 million, reflecting the challenges faced by the company after the stock market crash.
1995
Schwab Emerges as Largest Discount Broker
By 1995, Charles Schwab had become the largest discount broker, boasting significant revenue of $1.4 billion and managing $200 billion in total assets, marking a period of substantial growth and success for the company.
1996-04-22
Charles Schwab's Future
An article in Forbes on April 22, 1996, discussed how Charles Schwab has thrived in the bull market but is looking towards the future with a focus on boomer retirements.
1997-05-05
Cyber-Schwab
In May 5, 1997, Forbes discussed how Charles Schwab dominated nearly half of the market as retail brokerage moved online.
1997-12-02
Charles Schwab's CEO Change
On December 2, 1997, the Wall Street Journal reported that Charles Schwab's Pottruck would share the title of CEO with the company's founder.
1998-01-01
David S. Pottruck Becomes President and Co-CEO
On January 1, 1998, David S. Pottruck became president and co-CEO of Charles Schwab Corporation, indicating a potential succession plan for the company founder, Charles Schwab.
1998-05-25
Remaking Schwab
A Business Week article on May 25, 1998, discussed the remaking of Schwab.
1999
Schwab launches after-hours trading
In 1999, Schwab introduced after-hours trading for Nasdaq and select listed stocks, providing clients with extended trading opportunities.
2000
Schwab purchased U.S. Trust for $2.73 billion
In 2000, Schwab acquired U.S. Trust for $2.73 billion.
2001
U.S. Trust subsidiary fined $10 million in bank secrecy law case
In 2001, the U.S. Trust subsidiary was fined $10 million in a bank secrecy law case, with $5 million each to the New York State Banking Department and the Federal Reserve Board.
2002
Introduction of Schwab Equity Ratings®, Schwab Private Client, and Schwab Advisor Network®
In 2002, Charles Schwab introduced Schwab Equity Ratings®, Schwab Private Client (now Schwab Wealth Advisory™), and Schwab Advisor Network® as part of their commitment to advisory solutions, aiming to provide clients with a wide range of advice options free from commission-based conflicts of interest.
2004-07-24
Pottruck removed as CEO, founder reinstated
On July 24, 2004, David S. Pottruck was dismissed as CEO, and the founder was reinstated to the position.
2005
Refocusing on Providing Financial Advice
After realizing the company had 'lost touch with our heritage', Charles Schwab quickly shifted the business focus to providing financial advice to individual investors.
2006-11-20
Schwab announced agreement to sell U.S. Trust to Bank of America for $3.3 billion
On November 20, 2006, Schwab revealed a deal to sell U.S. Trust to Bank of America for $3.3 billion.
2007-04
Acquisition of The 401(k) Company
In April 2007, the Charles Schwab Corporation acquired The 401(k) Company, expanding its portfolio and services.
2011
Launch of Smartphone Trading App
In 2011, Schwab became one of the pioneering brokerages to introduce a smartphone trading app, enabling clients to deposit checks, monitor markets, and execute trades.
2012
Acquisition of OptionsXpress
The acquisition of OptionsXpress in 2012 provided Schwab's active investors and traders with a new brokerage platform offering advanced trading tools, analytics, and education for executing sophisticated strategies.
2013-02
Schwab hires Crispin Porter + Bogusky as lead creative agency
In February 2013, Schwab hired Crispin Porter + Bogusky (CP+B) as its lead creative agency with Havas Worldwide remaining to create ads for ActiveTrader and optionsXpress.
2015-03
CP+B marketing material for Schwab's Intelligent Portfolio service
In March 2015, Adweek reported on marketing material created by CP+B for Schwab's Intelligent Portfolio service.
2016
Introduction of Schwab Intelligent Portfolios Premium®
In 2016, Schwab introduced Schwab Intelligent Portfolios Premium®, a service that combines human financial professionals with algorithmic technology to enhance accessibility to financial and investment planning.
2019
Elimination of online trading commissions by Schwab
In 2019, Charles Schwab completely removed online trading commissions, marking a significant milestone in their efforts to make investing more affordable.
2020-07-01
Acquisition of Wasmer, Schroeder & Company
On July 1, 2020, the Charles Schwab Corporation acquired Wasmer, Schroeder & Company, a significant player in fixed income investment management.
2020-10-06
Acquisition of TD Ameritrade
On October 6, 2020, the Charles Schwab Corporation acquired TD Ameritrade, a major move that reshaped the landscape of the financial services industry.
2021-01-01
Headquarters Move to Westlake, Texas
Effective January 1, 2021, the Charles Schwab Corporation relocated its headquarters from San Francisco, California to Westlake, Texas.
2022-01-14
Charles Schwab All-Time High Stock Price
The all-time high Charles Schwab stock closing price was 92.53 on January 14, 2022.
2023-11-17
Celebrating 50 Years of Innovation
The company is commemorating its 50th anniversary by highlighting its history of innovation and success.
2024-04-11
Charles Schwab Closing Stock Price
The latest closing stock price for Charles Schwab as of April 11, 2024 is 70.62.
End of the Timeline
Charles Schwab Corporation

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