Seeking Alpha

Online brokers boosted by thought of higher rates

  • Also having a big day in response to higher rates are the online brokers whose money market operations stand to benefit from interest rates which don't require a magnifying glass to see.
  • Take Schwab's (SCHW +4.6%) Q3 results: $180M in money market fee waivers vs. $136M a year ago, and against total quarterly net income of $290M. Even a small rise in short rates will provide a big boost to the bottom line.
  • E*Trade (ETFC +3.7%), TD Ameritrade (AMTD +2.8%).
  • Earlier: Banks and insurers welcome higher rates.
Comments (4)
  • Gary Jakacky
    , contributor
    Comments (2507) | Send Message
    Higher rates will help the BOTTOM LINE of a lot of retirees and virtuous savers as well. How about THAT for a stimulus?
    8 Nov 2013, 02:11 PM Reply Like
  • al roman
    , contributor
    Comments (5525) | Send Message
    All Smiles,Gar.
    9 Nov 2013, 07:04 AM Reply Like
  • al roman
    , contributor
    Comments (5525) | Send Message
    Learn about what is best for you,go to a credit union and preserve your capital through your own long observations and you'll probably find the most secure investments are the most boring.Investment is about maintaining a net 30 rating,the grey hairs do come.
    9 Nov 2013, 02:22 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11108) | Send Message
    Gee, when did capitalism re-appear and money actually provided benefit when you invest it? I guess the Federal ?Reserve needs QE 4 and 5 to kill off people profiting from having cash. The Federal Reserve should sing, "All your notes belong to me." If you don't use them / give them back by spending them they'll water them down to being worthless by issuing more from the Alice and Wonderland fantasy black hole they are now coming from.
    9 Nov 2013, 02:06 PM Reply Like
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