The Market Loves the Idea of a Schwab-TD Ameritrade Merger. Regulators May Not.

Post on November 25, 2019

If Charles Schwab and TD Ameritrade manage to pull off a merger, the combined company would tower over the rest of the brokerage industry.

But while investors appear to love the idea of a deal— CNBC and Fox Business reported on Thursday that the companies are in talks—it may not come off without a hitch: The combined company would have immense industry leverage and a merger could face legal and regulatory roadblocks.

Perhaps the biggest losers in all this are the robo-advisors and free-trading apps. “Robinhood is in a really tough spot,” says Jennifer Butler, director of asset management and brokerage research at consulting firm Corporate Insight.

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