Schwab, AOL Form Alliance

Charles Schwab (SCH Quote), the world's largest online broker, has signed a multi-year, global financial services alliance with Internet giant America Online(AOL Quote). The deal calls for Schwab to become AOL's main financial services company and brokerage firm across its redesigned personal finance channels. Terms were not disclosed. .

The Schwab-AOL pact, which will start in the U.S. and expand into select Asian and European markets, will give Schwab access to more than 28 million AOL and CompuServe members, as well as visitors to AOL's Web sites.

The companies will also engage in online and offline marketing and promotional programs, including co-branded initiatives, across a variety of media. Terms of the alliance were not disclosed.

Shares of Schwab were recently down 25 cents to $33.31 on New York Stock Exchange trading, while shares of AOL were up $1.76, or 4%, to $49.51.