Thread regarding Charles Schwab Corp. layoffs

TD Ameritrade integration.

What is the sentiment on if Schwab will be able to finish the Ameritrade integration by 2023? Are things on track?

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Post ID: @OP+1e4VQJcQ

30 replies (most recent on top)

Blue here. Senior Milk Man. I milk 'em with my hands. Beat out all milking machines.

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Post ID: @dkpk+1e4VQJcQ

OP, No way CD1 will complete on schedule. Blue side will milk it for all its worth. No accountability or penalties for missing dates.

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Post ID: @duzv+1e4VQJcQ

The answer to the question > if Schwab will be able to finish the Ameritrade integration by 2023? Are things on track?

Not even close. No one on Schwab side understands TD Ameritrade and there is a mass exodus of key talent.

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Post ID: @adlk+1e4VQJcQ

Wonder if good old Chuck will still be alive to read the HBR case study on how this is worst integration that ever occurred. No way integration is happening as originally planned. No one on blue side understood scope nor did they have competency to actually manage an integration of this magnitude. IMO and STS full of talking heads making up dates and constantly moving goal posts. Not to mention all the key green side folks will be gone by spring.

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Post ID: @acdj+1e4VQJcQ

The only "superior blue schwab" system is their "bllsht" system.

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Post ID: @9nwc+1e4VQJcQ

As someone said, it took years to integrate a tiny firm such as OptionsXpress and they botched that as well.

2025 at earliest for some sort of integration.

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Post ID: @7smm+1e4VQJcQ

@4dna+1e4VQJcQ BOS is no spring chicken, but it was in the process of being modernized by components. For instance, TDA has no “blue screen” equivalents anymore, it’s all web app based. Pretty sure BOS also runs on commodity hardware. Schwabs back office runs on a mainframe and they probably pay +$80M per year to lease and operate that hardware. Most brokerages have gone through or are currently making major investments to deprecate their mainframes (Fidelity and Vanguard I know for a fact). TDA decommissioned their last mainframe years ago. Schwab has no such plans.

BOS also handles +3x the trade volume Schwabs back office does today due to TDAs active trader population. So, if you were going to start from somewhere to handle combined volume, BOS was in a much better spot. Way cheaper to scale up too.

BOS had a definite material advantage, but that was overcome by how entrenched the ratchety Schwab mainframe is in everything.

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Post ID: @4dwp+1e4VQJcQ

I don't even know who the CEO of TDA is. Is he a nobody?

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Post ID: @4kim+1e4VQJcQ

Interesting note that the CEO of TD Ameritrade was pushed out and no successor before the Charlie and Co announced merger

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Post ID: @3dsj+1e4VQJcQ

Actually TDA approached Schwab. Granted it would have been all the TDB board members on the TDA board.

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Post ID: @3gwm+1e4VQJcQ

TD BANK (TD) which owned 42% of TD Ameritrade (TDA) approached Schwab.
TD Ameritrade did not approach Schwab. They were rivals.
TD Bank and TD Ameritrade were two separate companies.

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Post ID: @3oot+1e4VQJcQ

Unfortunately - “Daddy” Charlie Schwab will never see the full integration of TDA/ TOS and SCHW in his lifetime.
His dream of buying thinkorswim (never really wanted option express ) will have become a nightmare and Albatross on Charlie and Co.

TDA / SCHW have the worst back office technology of any brokerage firm within its peers .

Amazing with combine assets under management of $5trillion they would not built a brand new modernized back office systems ( Oh the synergies… )

Instead go with a SCHW Blue rackety back office and risk systems that will never fully integrate with TOS because it’s Not built for active trading environment.

This merger was a result of back room meetings between TD bank ( Don’t want to pay capital gain taxes )
And stodgy old Charles Schwab (invested )
The Good news for Blue and Green Team is stay calm and relax .
Just watch how slow the integration will take and better for Blue/ Green associates because they can’t replace you in this technology labor shortage ..

And when Charlie Schwab passes away it will take forever on new decisions to be made .

Don't Worry Be Happy

Blue / Green have another 8-10 years before change so enjoy family time and take nice vacations and enjoy life !!

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Post ID: @3wvu+1e4VQJcQ

None of the presentation anyone will see will ever admit we wont make the target of 2023 until that target passes. As for keeping 2 management systems doesn’t limit the amount of work that needs to be done. The few surviving TDA systems still have to integrate with all the superior Blue systems.

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Post ID: @3ikp+1e4VQJcQ

It was TDA that approached Schwab several times to buy it. That was before and after trade commissions were dropped to $0.00. This is in the filings around the acquisition.

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Post ID: @2ntt+1e4VQJcQ

Interesting. I'm not close to the conversion work and only know what I've heard on presentations, that things are on track. We did get another year. Initially it was to be done Fall of 2022. .
I know they still plan on keeping two order management systems post conversion too so that limits the integration work there which will help.

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Post ID: @2wch+1e4VQJcQ

Yeah this is totally a failure of the ancient, risk-averse white male leadership. Honestly I think Chuck wanted to buy TDA before he dies, and just told his minions to do it. No one above director level thought about how terrible Schwab is at integrations - tiny Options Express took 8 years, and they have sidelined the extensive integration talent from TDA in favor of - the people who did Options Express. :-(

My mistake, big 5 tech is: TOS, next-Gen OMS, quote plant, Thinkpipes (aka TOS for advisors) and iRebal. VEO is being taken in parts where needed. It’s still a massive lift in terms of dev work and only ~500 people on all those teams to do it…

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Post ID: @2jfq+1e4VQJcQ

Schwab probably also needs ngoms and quote plant to handle the new volumes. Regarding leaving chunks of TDA systems up ( and the data centers and people around) , that would hurt their ability to meet the savings target they promised investors.

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Post ID: @1nnz+1e4VQJcQ

Every public company you work for is at risk of being acquired. Doesn’t matter how long they’ve been around or their reputation. No one realistically saw TD being acquired by Schwab. But if Schwab botches this integration, it could be an acquisition target. If client and associate attrition spirals out of control, it could destroy a good bit of shareholder value, making it a target for a larger firm or a private equity firm that could buy it up and sell it off in pieces. It’s also possible they will have to admit failure and abandon the integration. Nothing is technically off the table until clearing conversion actually happens. But promising TOS for everyone and backing down from that would be near sui-idal.

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Post ID: @1xlg+1e4VQJcQ

@1vdx+1e4VQJcQ It’s like trying to swap out the engine of a car while it’s barreling down the interstate at 90mph. So much for managing risk.

Oh, and did anyone else notice Google Cloud had a global outage during Tims last CTO Forum on moving to Google Cloud? Magnifique 🤌

https://status.cloud.google.com/incidents/6PM5mNd43NbMqjCZ5REh

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Post ID: @1lzh+1e4VQJcQ

I didn't think Veo was part of the "big five"? Thinkpipes si, Veo no.

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Post ID: @1eoq+1e4VQJcQ

Realistically, the only piece of true technology Schwab wanted from TD was TOS…I don’t think they give two s_its about the advisors - their view towards them is more of competitors than the TD mode treating them as partners. Problem is, if Schwab can’t accomplish the task of integrating TOS, they are going to be left with a plethora of undesirable alternatives. Those include a much longer integration timetable, keeping TD open indefinitely to strictly traders, or ki----g off TOS and forcing everyone in to the Schwab trade platform (which the consensus is a piece of junk). But a 24 month timetable seems highly optimistic without a significant infusion of resources.

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Post ID: @1pyz+1e4VQJcQ

Or are the executives failing us? Lots of requirements, no support, inadequate staffing.

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Post ID: @1nwt+1e4VQJcQ

As a poster said in another thread, is it really us that is failing the executives? I would think we would be able to walk and chew gum at the same time. We should be able to modernize and get in the cloud while integrating the two platforms, they both buy and sell stocks. Don’t try to over complicate this.

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Post ID: @1vdx+1e4VQJcQ

@xmq+1e4VQJcQ
Definitely TOS was a huge part of the reason they acquired TDA. Schwab realized they were a decade of R&D behind, and they wanted to ki-l payment for order flow (which they have backtracked from now… hmm… $$$). And don’t forget Thinkpipes and VEO to keep the advisors happy, plus our order Mgmt platform as well to handle that crazy combined volume. But plugging all that modern tech into the cr---y mainframe was a big mistake, and as they get on to plans and testing and even more knowledgeable people leave, it’s gonna be a mess.

Also they are planning to lay off a bunch of TDA people after CD1 (which, there are four of those, so probably Oct 2023) and everyone knows it, so they will leave sooner.

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Post ID: @ogt+1e4VQJcQ

$26Bn for TOS? I doubt it. It was a bonus after accounts and assets.

Imagine having to explain to a current Blue client they can’t use TOS though. Probably as bad as having to explain to a Green client they have to use the Schwab mobile app now. Yikes. The more they give up in features and functionality, the higher account attrition will be post CD1.

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Post ID: @xmq+1e4VQJcQ

No thinkorswim for Blue clients? That is whole ball of wax right there. StreetSmart Edge is just junk. The only reason we acquired TDA was for thinkorswim. Think about it.

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Post ID: @cgo+1e4VQJcQ

Integration is a total sh-t show. They pulled that date out of… a dark place. Things I have seen recently indicate that Blue (Schwab) users won’t get access to thinkorswim at conversion. They keep shrinking the scope (because date and budget are fixed) and also finding things they didn’t consider. :-o Supposedly final tech plans, actually built out in JIRA, are due by end of year. Hopefully they will see then just how effed they are…

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Post ID: @hlh+1e4VQJcQ

I don’t think there’s any way that’s going to happen unless Schwab decides to make major cuts to the customer experience for current TDA clients or target technology. How could it? Schwab leadership set an end date at deal announcement with no understanding of the technical complexity involved, surviving systems, or a complete understanding of TDAs current offering or platform features.

Nobody in leadership wants to be the first person to say “This isn’t going to happen, it’s not realistic.” So we’re stuck in a high stakes game of chicken until the day before were scheduled to convert accounts when someone finally admits the truth. Until then, we’re stuck in a death march heading towards inevitable failure. Once we reach that point, it’s going to be cut-throat finger pointing and blame games.

It’s difficult to get anything accomplished around here and it’s only complicated by the fact turnover is now well over 10% for the year and morale seems to be at an all-time low. People who can do better elsewhere, are. As if we don’t have enough going on, people like Tim H think it’s a great time to undertake major architectural initiatives like moving to “the cloud”. There’s no focus or consistent direction.

This place is a raging dumpster fire and will be for the foreseeable future. I wouldn’t bet a single penny on it.

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Post ID: @xqt+1e4VQJcQ

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