Schwab exit from market expected
The retail stockbroking industry learnt yesterday that it may lose another two market players.
The Australian arm of US broker Charles Schwab is expected to announce its departure today after failing to secure a profitable share in the domestic online market. eCorp, Kerry Packer's Internet investment vehicle, retired from the 50-50 joint venture last week after the broker contributed $12.9 million to eCorp's total operating loss of $32 million in the past financial year.
Credit Suisse First Boston (CSFB) staff were informed yesterday that CSFB Private, which holds a 49 per cent stake, will review its participation in CSFB. The end result may see it selling its stake to either former directors and staff who own the rest of the business or to a rival broker. Last week CSFB New Zealand retail operations were closed.
Earlier this week Merrill Lynch confirmed it was winding back its retail operations to service wealthy individual investors only.
Sydney Morning Herald Online 07/12/2001