Schwab Clears Bear's Path
In a surprising move, Bear Stearns -- long a Wall Street titan in the arcane business of clearing trades -- recently inked a deal with Schwab to clear and execute most of its mutual fund trading, sources say. In recent years, Schwab has become a leader in providing mutual fund clearing services to other investment firms and asset managers.
The outsourcing arrangement means that the hundreds of small brokerages and hedge funds that currently clear stock trades through Bear Stearns now will have their mutual fund buy or sell orders processed by Schwab. The terms of the arrangement are unknown, but it's believed the outsourcing deal is scheduled to last for several years.
The deal, which has been in the works for months, comes nine months after Bear Stearns reached a $250 million settlement with securities regulators over allegations arising from the long-running mutual fund trading scandal. The penalty was one of the largest imposed on a brokerage firm, in an investigation that has collected nearly $4 billion in fines and restitution.In settling with Bear Stearns, officials with the Securities and Exchange Commission
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV