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Charles Schwab gets Fed approval for de novo bank

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Charles Schwab gets Fed approval for de novo bank

The Federal Reserve System has approved Charles Schwab Corp.'s application to acquire Henderson, Nev.-based Charles Schwab Trust Bank.

Charles Schwab's proposal entails the formation and acquisition of Charles Schwab Trust Bank as a de novo state-chartered savings bank in order to expand its banking operations in Las Vegas market. The firm plans to consolidate its trust services and related activities into a single fiduciary-oriented bank. Charles Schwab Trust Bank would acquire certain trust assets and assume certain liabilities from Charles Schwab Bank.

The regulator said the approval is specifically conditioned on compliance by Charles Schwab with all the conditions, including required regulatory approvals, and on the commitments made to the Fed in connection with the application.

In December 2017, the FDIC approved Charles Schwab Trust Bank's deposit insurance application. And then the state of Nevada approved Charles Schwab Trust Bank's charter application around the same time.