Newspaper article THE JOURNAL RECORD

Schwab Says He's 'Tickled Pink' to Be Free of Bankamerica Corp

Newspaper article THE JOURNAL RECORD

Schwab Says He's 'Tickled Pink' to Be Free of Bankamerica Corp

Article excerpt

SAN FRANCISCO (AP) - Charles Schwab says he's ``tickled pink'' to regain control of the nation's largest discount stock brokerage and be free of limitations it had as a unit of BankAmerica Corp.

Schwab said Monday an investor group he heads will pay BankAmerica $280 million to buy back Charles Schwab & Co., and that he would hold a 40 percent to 50 percent stake.

Schwab, who sold the brokerage to BankAmerica in 1983 for $53 million in stock, said the buyout would involve $175 million in cash and $105 million in notes. He said he provided about $8 million.

BankAmerica, meanwile, followed the Schwab announcement by saying it will sell a British mortgage company for $37 million and cut more jobs.

With 1.6 million customers and $1.5 billion in assets, Schwab & Co. is the nation's largest discount stock brokerage. A discount brokerage offers fewer services and lower commission costs than a full-service brokerage.

Schwab told a news conference that by breaking with BankAmerica, Schwab & Co. would be freed from federal laws prohibiting subsidiaries of bank holding companies from offering certain products and services.

Among new services Schwab & Co. plans are tax-free municipal bonds, real estate investments and new mutual funds.

``In the last four years we've spent a lot of time with lawyers,'' he said. …

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