Schwab Forges Pact With America Online in Effort to Wall Street Journal (11/01/00) Vol. 104, No. 42 p.C20; Smith, Randall
In a bid to jump-start account growth, Charles Schwab
reports that it has entered into a strategic partnership with
America Online (AOL). Under the deal, AOL customers would have
access to Schwab.com and to Schwab's Web-based investment tools.
AOL struck a similar bargain with Citigroup earlier this year.
Analyst Henry McVey of Morgan Stanley Dean Witter says he likes
the tie-up because of its potential to stimulate account growth
for Schwab, which has slowed down. Joshua Rymer, senior vice
president of brokerage at Schwab said the pact will also benefit
AOL because Schwab will be promoting the company's relationship
with AOL to current and potential Schwab customers.