Industry Slowdown Prompts Big Merger of Discount Brokerages

Scottrade customers may be seeing changes to the discount brokerage services they receive,such as higher fees,by the end of September 2017,as TD Ameritrade,America's largest discount brokerage by trade volume,purchases the privately held Scottrade Financial Services for four billion dollars.In turn,TD Bank,Toronto Dominion Bank's US subsidiary,will then buy Scottrade Bank for 1.3 billion.
TD Bank owns nearly 42% of TD Ameritrade.*
Although based in St.Louis today,Scottrade derives its name from the fact that it was founded in Scottsdale,Arizona.Founder and CEO Rodger Riney,who suffers from multiple myeloma blood cancer,will become a member of the TD Ameritrade board post-merger.Mr.Riney has become a familiar face to Americans by appearing in several TV adverts for his company.*
The deal is expected to realise cost savings of about 450 million dollars annually for TD Ameritrade,and more than 300 million in additional longer-term opportunities.As a result of the merger,TDA will grow to 600 retail branches,but intends to slim down to about 450.*
The discount brokerage business has been hurt by intense competition and the trend of switching to passive investing rather than the day trading model,making organic growth more difficult.*
TD Ameritrade Holding Corp (AMTD)

NCAA Basketball Championship:Eyeballs May Have Strayed

After The Fray's charming acoustic guitar and drum national anthem,the NCAA Championship basketball game was trending downhill,though with some blips of excitement.The Kentucky Wildcats seized control early and made it clear they likely wouldn't relinquish it to the Kansas Jayhawks.The game started too late to begin with-9:23 Eastern.Despite a football style crowd of 70,000 screamers in the New Orleans Superdome,the air was gradually being let out of the broadcast balloon.
Sponsors of the CBS telecast included SABMiller PLC;Capital One Financial;AT&T;Chrysler;General Motors;Daimler Benz;Liberty Mutual;Nissan Motor Company Ltd.;Coca-Cola;and TD Ameritrade.The initial audience was no doubt of exceptional size,but one can see how it may have trailed off considerably before too long,depriving these firms of many of their highly desired eyeballs.
Kansas made a late run,but number one-ranked Kentucky won 67-59 for the team's eighth national championship.