Charles R. Schwab, founder, chairman, and CEO of Charles Schwab Corp., responded publicly on July 7 to rumors about a possible sale of the company by saying in a prepared statement that “we have no interest in selling the company,” and pledged that “we remain firmly committed to our independence.” There had been speculation that HSBC Holdings, the international banking giant, was considering a purchase of Schwab.
The discount broker business has been in some turmoil lately, exemplified best by Ameritrade’s deal on June 22 to buy TD Waterhouse USA.
Mr. Schwab has sold his company before–in 1983, to Bank of America. He bought it back in early 1987, and took it public later that year.
In the first quarter of this year, Schwab Corp. reported profits of $145 million on revenue of $1.05 billion, compared to 2004′s first quarter net income of $161 million on $1.10 billion in revenue. Schwab share price had a rollercoaster day on July 7 that included a halt in trading in the afternoon. By the end of the day, the stock rose $0.70, more than 5%, to $12.68.
Schwab’s second quarter results are due to be released the week of July 18.