Interesting report on the TDAmeritrade – Schwab combo

Posted By on December 22, 2019

Schwab-TDAIf you’ve been investing for a few years now, you know mergers and acquisitions in the banking and financial services business is nothing new. We’ve personally experienced a few brokerage firms in our day and still remorse losing the early trading platform of  Datek, and to a lessor amount Waterhouse, to TDAmeritrade. Now that Schwab is the acquiring company … one wonders just what technology will be disappearing?

Charles Schwab to Buy TD Ameritrade for $26 Billion
Toronto-Dominion Bank will hold a roughly 13% stake in Schwab after stock-swap deal, and TD Ameritrade’s other shareholders about 18% – November 25, 2019

WSJ link

Barron’s noted that individuals investors and the employees for each of the brokerage firms aren’t the only ones sitting on pins and needles as to what might happen. There are “150 fintech firm through API integrations” (compared to the 80 with Schwab) that are wondering what will happen to the TD Ameritrade Veo Open Access platform?

While there’s no guarantee, it’s logical that the combined company could eventually select one platform over the other, and there’s speculation that, if this happens, Veo would be the one to go, prompting FOMO among a number of tech firms.

“It will be tough for fintech firms, absolutely,” Scott Huff, an advisor and founder of Yourefolio, an estate planning tool, tells the publication.

Schwab declined to respond to speculation, according to Financial Planning. A Schwab spokeswoman did not immediately respond to a Barron’s request for comment.

LINK

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