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San Francisco-based Charles Schwab and Company has retained an investment bank to find buyers for three pieces of its business that cater to institutional trading and research. No price tag has yet been set, but it appears that Schwab is willing to take a huge loss on the sale.
Several chunks of Schwab are being shopped around, primarily institutional research and trade execution services.
One of the pieces to be sold is the trading and research shop SoundView Technology Group, which has only been part of Schwab for a few months. Schwab paid $321 million for SoundView last fall.
Another piece on the block is Schwab Capital Markets, which is a market maker in over 11,000 Nasdaq equities. The three components of Schwab Capital Markets for sale include the broker-dealer business, program trading, and trade execution business.
Also reported on the market is Schwabs Washington-based research office and quantitative research group Chicago Investment Analytics. Sources close to the sale say that Schwab expects to reap $250-400 million for the entire sale.
Read the entire New York Post story here.