Markets

Charles Schwab News: SCHW Stock Pops on Possible USAA Deal

Charles Schwab (NYSE:) is discussing the possibility of acquiring the United Services Automobile Association (USAA), a financial services business that could prove to be a substantial boost.

Charles Schwab News

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San Francisco-based investment management firm Charles Schwab is considering for about $2 billion, which would expand the firm’s place as a financial advice business. Such a move has the potential of bringing in about $100 billion worth of assets to the firm from the closely-held USAA.

The deal could be ironed out and carried to fruition as soon as the current month, according to people familiar with the matter. Such an agreement would mark a continuation of Charles Schwab’s March decision to roll out a new subscription model that would reel in more clients in the wealth management space–it would do so by making such advice more affordable when compared to the traditional way of charging a percentage of the assets.

The California-based firm also has its hand in the spaces of banking and custodial services, which has helped it attain a market value of roughly $55 billion, per the Wall Street Journal. Meanwhile, USAA offers insurance in the fields of homes, life and automotive.

USAA also operates as an online banking and investment services.

SCHW stock is up about 0.4% on Monday afternoon following the news.

The post appeared first on InvestorPlace.

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