Acquisition of a Nevada bank by San Francisco-based Charles Schwab Corp. has been approved by the Federal Reserve, the central bank announced Tuesday – part of a step by the Schwab company to establish a single fiduciary-oriented bank in the Las Vegas market, according to a Fed notice.
In a release, the Fed said it had approved the application by Schwab – as a savings and loan holding company – to acquire Charles Schwab Trust Bank, Henderson, Nev., a de novo state savings bank (treated as a savings association, the Fed noted).
Schwab, according to the Fed notice about the acquisition approval, is the 15th largest insured depository organization in the country, with consolidated assets of approximately $243.3 billion. “Charles Schwab controls two insured depository institutions, Charles Schwab Bank and Charles Schwab Signature Bank (formerly Nordstrom Bank, acquired last year), both of Henderson, Nevada, with approximately $165.3 billion in consolidated deposits, which represent approximately 1.3 percent of the total amount of deposits of insured depository institutions in the United States,” the Fed notice states.
Also according to the Fed notice, Schwab proposes (as a result of the acquisition) to establish Charles Schwab Trust Bank as a de novo state-chartered savings bank to consolidate the firm’s trust services and related activities into a single fiduciary-oriented bank. The trust bank would acquire certain trust assets and assume certain liabilities from the acquired Charles Schwab Bank.
The new trust savings bank would be based in the Las Vegas, Nev., banking market, the Fed notice stated, “which would expand the operations of Charles Schwab in the market and increase its ability to offer products and services to customers in that market.”