Schwab to pay $200 million in bond fund settlement 11:39 am ET 04/20/2010 - MarketWatch Databased News
NEW YORK (MarketWatch) -- Charles Schwab Corp. agreed to pay aggrieved investors in its YieldPlus Fund $200 million to settle a lawsuit, the money manager said Tuesday.
Plaintiffs in the case had been claiming up to $890 million in damages. Schwab would not admit liability under the settlement, which needs final court approval.
The deal nearly wiped out San Francisco-based Schwab's first-quarter net profit, reducing it from the $119 million, or 10 cents a share, reported last week to $14 million, or 1 cent a share. See April 15 article on first-quarter financial results.
I was dumb enough to buy the schwab yield plus fund. They marketed it as an ultra-short term fund. I tried to find out more info on it when it started to go down but I kept on getting conflicting stories by differnt employees but they all ended their story with its still a great yielding investment. I would have gotten out alot sooner if they would have been upfront about it. I have taking bigger losses than this before, but this one hurts the most.
Wow, based on your posts you seem to have made all your major investments in things like yeild plus, fannie mae, etc. You need to hire an investment advisor and stop investing on your own. What a dumbass.
Schwab did the right thing here morally and ethically, the stock price actually went up. Companies that actually fess up and do the right thing by its customers are rewarded in the long run, as opposed to obfuscation and denail of wrong-doing.
Witness TDAmeritrade buying back the fradulently sold Auction Rate securities, stock went up, as opposed to E*Trade who is still fighting its victims and refuses to do the ethically and just thing. Their stock is still being punished, plus all the bad will.
SCHW at least bought some good-will here in this settlement.