For sub-$500k accounts, Schwab is sweeping RIA client cash into its bank, pumping up corporate profits
Unlike the robo, RIAs can manually direct funds to money market funds which makes this change less controversial
Mr RIA
Just as any true fiduciary would… Er, wait a minute, they’re not a fiduciary. So they can put profits ahead of clients who think they’re looking out for them.
Grant Barger
The term “Idle Money” has been an oxymoron since Sandy Weill broke Glass-Steagall when Citi acquired Salomon. Net Interest Margin is the only game they play… But I’m sure Chuck will share the revenue with “clients” once the fed hikes the rate a quarter point…
Another fine article… thanks for your vigilance.
Scott
E*TRADE ESDA program accommodates $1,250,000 in cash FDIC insured by using seven banks for its cash sweeps.
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