Bettinger

Trading stocks for $8, $9, or $10 per trade is "not a path for success for 99.9% of Americans," Mr. Bettinger said, pointing to the underlying logic behind Schwab's shifting focus.

'Talk to Walt': Schwab CEO Dishes on Low Rates, Volatility Brett Philbin 2011

Those include the purchase price and "capital holes that need to be filled under purchase accounting rules," said Walt Bettinger , the San Francisco company's CEO.

Ameritrade to Discuss Pursuit of E*Trade Jenny Strasburg 2011

While Chairman and Founder Charles Schwab is still very much the face of the San Francisco company and the focus of its well-known "talk to Chuck" TV commercials, Mr. Bettinger has accelerated the company's push away from its trading roots to an advisory model.

'Talk to Walt': Schwab CEO Dishes on Low Rates, Volatility Brett Philbin 2011

In an interview, Mr. Bettinger said the "ultra-low rate environment punishes our financial results," but he said a one-percentage-point increase in the federal-funds rate would boost the company's revenue by more than $1 billion a year.

'Talk to Walt': Schwab CEO Dishes on Low Rates, Volatility Brett Philbin 2011

Schwab also handled on average more than double its typical late-summer call volume and website traffic last week, Mr. Bettinger said.

'Talk to Walt': Schwab CEO Dishes on Low Rates, Volatility Brett Philbin 2011

Mr. Bettinger, born in Ohio, has led Schwab for nearly three years, the majority of which he has been spent grappling with rock-bottom interest rates that have cut into the firm's profits.

'Talk to Walt': Schwab CEO Dishes on Low Rates, Volatility Brett Philbin 2011

Mr. Bettinger said Schwab has "no awareness that E*Trade is for sale."

'Talk to Walt': Schwab CEO Dishes on Low Rates, Volatility Brett Philbin 2011

Take a look at some of the work by Caroline Hoxby (Harvard), Thomas Dee (Swarthmore) and Eric Bettinger (CWRU) to get started if you are interested in this area.

Teacher, teach thyself economics, Arnold Kling | EconLog | Library of Economics and Liberty 2009

Clients were calling the company and asking for advice, Schwab Chief Executive Walt Bettinger says, which "validates the evolution of the firm" from a place where investors just trade individual stocks, to one where they can complete banking transactions, trade options and receive investment advice.

'Talk to Walt': Schwab CEO Dishes on Low Rates, Volatility Brett Philbin 2011

Mr. Bettinger, a 15-year Schwab veteran, joined the company after it acquired his firm, Hampton Co., a provider of retirement-plan services, in 1995.

'Talk to Walt': Schwab CEO Dishes on Low Rates, Volatility Brett Philbin 2011