(Neb)-Schwab Buying TD Ameritrade, Triggers Worries Over Omaha Jobs
OMAHA, Neb. (AP) - Low-cost stock broker Charles Schwab is buying its primary online rival, Omaha-based TD Ameritrade for $26 billion, a blockbuster deal accelerated by massive disruption in the online brokerage industry.
Governor Pete Ricketts, whose father founded TD Ameritrade and who was its COO before being elected governor, says word of the sale "creates significant uncertainty" for thousands of Nebraskans who have worked for TD Ameritrade for years.
Ricketts says he's anxious to see what the decision means for the people of Nebraska, adding that he'll try to persuade Schwab to maintain a presence in Omaha and will point out how the state's competitive cost of doing business and strong workforce can help the broker succeed in Omaha.
Losing TD Ameritrade is potentially a major blow for Nebraska's largest city. Another major employer, Conagra Brands, moved its headquarters out of the city in 2016 - although it still has sizeable operations in Omaha.
There's a good chance federal regulators won't allow the sale as currently set up to go forward because the resulting company would be too big with more than $5-trillion dollars in client assets. There are already anti-trust concerns because of the size of the 2 companies.
Kyle Voigt, an analyst with Keefe, Bruyette & Woods, says Schwab may control close to half the market of being a custodian for money managed by registered investment advisers while TD Ameritrade may control about 15% to 20%,
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