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Charles Schwab expects branch closures and job cuts when its TD Ameritrade deal goes through. Here's a look at exactly where the 2 brokerage giants have the most overlap.

td schwab map thumb 2x1 td schwab map thumb 2x1
Schwab expects to save around $1.8 billion to $2 billion with the acquisition, some of which will come from getting rid of overlapping roles.
Ruobing Su/Business Insider

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  • In the largest securities-brokerage deal on record, Charles Schwab is expected to close on its $26 billion acquisition of one-time rival TD Ameritrade during the second half of this year.
  • The firms' executives have said they are set to combine branches, though it's not yet clear where the changes will take effect.
  • Business Insider has mapped out each firm's US branches to illustrate regions where the two firms' branches overlap. Scroll down for an interactive version of both US branch networks. 
  • Visit BI Prime for more wealth management stories.

The Charles Schwab-TD Ameritrade tie-up is set to shatter records for its size, remake the brokerage and custodian industries, and usher in a wave of branch closures and job cuts.

Schwab had already announced plans to cut 600 jobs, or 3% of its workforce, last year amid what its finance chief called a "more challenging environment." That was before the TD Ameritrade deal came to light, but after Schwab announced a $1.8 billion acquisition of USAA's brokerage business also set to close in 2020. 

The roughly $26 billion deal for TD Ameritrade, which is the largest securities-brokerage deal on record, according to Dealogic data, is expected to close during the second half of 2020. The firms' executives have said they are set to combine branches, though it's not yet clear where the changes will take effect.

Business Insider has mapped out each of the two firms' 600-plus branches, utilizing their official lists of branch locations, to illustrate regions where the two firms' branches overlap. Schwab's network is around double that of TD Ameritrade's. 

"There are some elements like branch consolidations and real estate decisions that we expect will be decided and achieved relatively quickly," Peter Crawford, Schwab's chief finance officer, said on a call with analysts in November to discuss the deal.

Schwab expects to save around $1.8 billion to $2 billion with the acquisition, some of which will come from getting rid of overlapping roles, the firm and TD Ameritrade said in a joint statement about the acquisition. 

Charles Schwab execs also gave a 4-1/2-hour business update this week. One slide from COO Joe Martinetto laid out where Schwab will find savings — and flagged "geographic footprint rationalization" and "workforce overlap."

The two firms disclosed in filings in late January that the Department of Justice's antitrust division had requested more information about the deal, which they called customary and will now extend the DoJ's review period. 

TD Ameritrade and Schwab have significant overlap in states like California, where Schwab is headquartered, and in Texas, where the firms said they will take their new combined headquarters.

Meanwhile there are some states where TD Ameritrade has a presence, like in West Virginia, where Schwab does not; and in Wyoming, South Dakota, and Puerto Rico, Charles Schwab has branches, where TD Ameritrade does not.

 

 

 

Read more: Charles Schwab on Charles Schwab: The founder explains why the firm just axed commissions as broker wars reach a fever pitch

Read more: Charles Schwab's $26 billion deal for TD Ameritrade is an aggressive play for size that was set in motion before brokers started slashing commissions

SEE ALSO: Charles Schwab execs explained why the firm is now having to make 'distasteful' cash offers to investors just to compete in the cut-throat brokerage industry

SEE ALSO: Meet the Schwab exec in charge of carrying out a $26 billion TD Ameritrade deal that's an aggressive play for size and cost-cuts

More: Charles Schwab TD Ameritrade Wealth management BI Prime
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