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Akasha Diyunuge Economics 1326 Professor Buechner 12/17/19 Charles R. Schwab If you work on Wall Street, or any financial service or investment bank, you must have heard of Charles Schwab Corporation. Necessary, you don't have to work any place, you can be another hard-working blue-collar worker. Founded by Charles R. Schwab in 1971, Charles Schwab Corporation1 is a fully licensed stock brokerage firm and bank. Headquartered in San Francisco, California, it ranked as the 13th largest bank in the United States. According to Schwab, they have 19,800 total employees and $3.94T in total client assets. Charles R. Schwab is the founder and former CEO of Charles Schwab Corporation. According to the Bloomberg Billionaires Index2, Mr. Schwab is ranked 169 with a total net worth of $9.35B. As of December 16, his net worth YTD change is + $1.40B, up 17.6%. On June 5, 2018, Charles R. Schwab's net worth reached $10.7B. I am taking account of the relative value of his net worth of $9.35B; he can buy 7.57M troy ounces of gold and 176M barrels of crude oil. In the world of finance and investments, gold and oil are both two highly valuable commodities. I'm putting into a broader perspective; his net worth is 0.0519% of the GDP of the United States. Many people dream of been millionaires and billionaires; few people have what it takes; fewer people get there. 1 https://www.aboutschwab.com/ 2 https://www.bloomberg.com/billionaires/profiles/charles-r-schwab/

Born on August 29, 1937, to Terrie and Lloyd Schwab, he attended Santa Barbara High school, where he was the captain of the golf team. Charles R. Schwab3 is a graduate of Stanford University in 1959 with a bachelor’s in Economics. He obtained his Masters in Business Administration (MBA) from Stanford Graduate School of Business in 1961. He was a member of the Sigma Nu fraternity, where he held the position of knight. His first shot of fame came in 1963 when he and three other partners started "Investment Indicator4." At its peak, it had 3,000 subscribers, paying $84 for subscription, worth a quarter of a million dollars. The firm incorporated in 1971 to form First Commander Corporation, a subsidiary of Commander Industries, Inc. They offered conventional brokerage services and distributed the Schwab Investment newsletter. Charles R. Schwab, in 1972 Schwab bought all the stock from Commander Industries. The firm changed its name to Charles Schwab & Co., Inc. in 1973 from First Commander5. In 1975, the U.S. Securities and Exchange Commission (SEC) removed restrictions from the securities industry. This allowed companies to charge any amount of fees they want. The time during those days, are like what you see in the movie "Wolf of Wall Street." It was based on the really like of Jordan Belfort, a stockbroker. During the last 1970s, securities were not bought by consumers but instead salesmen or brokers. They would make high profits and commissions by selling risky assets like penny stocks to clueless customers, regardless of the customer's lost money in the transaction.

3 http://www.stockpickssystem.com/charles-r-schwab/ 4 https://en.wikipedia.org/wiki/Charles_R._Schwab 5 https://www.aboutschwab.com/history

Schwab's innovation threatened the securities industry. These new changes came in three radical new policies that changed the game. One, customer charges were cut in half. Two, salesmen or brokers are paid by the hour, unlike commissions on the total sales. Three, Schwab set up toll-free to take calls nationwide and later introduced a 24/7 telephone system. These radical new changes allow customers to place orders anywhere, any time. In his personal life6, Charles R. Schwab was married twice to his first wife, Susan Schwab, and his second wife, Helen O'Neill. With his first wife, Susan, they had three children, Charles Jr. (Sandy), Carrie, and Virginia. They would later divorce, and Charles would then remarry. With his second wife, he had two more children, Michael and Helen. Schwab serves as the chairman of the board of trustees for San Francisco Museum of Modern Art. Charles Schwab and his wife Helen reside in Atherton, California, and are both philanthropists. Charles still plays golf and his a member San Francisco Golf Club and Cypress Point Club. Schwab is dyslexic but was unaware of it until he learned his son also has dyslexia. According to Mayo Clinic, "Dyslexia is a learning disorder that involves difficulty reading due to problems identifying speech sounds and learning how they relate to letters and words." Charles was unaware he had dyslexia until he was age 40. Their foundation aims to build awareness and assistance for children with dyslexia.

Charles Schwab is a member of the republican party, which he contributes heavily. He donates to the National Republican Senatorial Committee and the National Congressional Committee. Schwab gave the amount of $101,700 to the Republican National Committees in

6 http://www.fundinguniverse.com/company-histories/the-charles-schwab-corporation-history/

July 20177. This maximum legal amount was used to cover the legal defense fees of President Donald Trump partially. It was used with the do-nothing Democrats, and the Democratic FBI investigated a possible connection between the Trump Campaign and Kremlin. This would come to be known as the world's biggest witch hunt and known to the press as "Russian Collusion." According to the Washington Post8, Charles Schwab gave $12.5 million to conservative causes and another $2 million to the Trump Campaign. According to Forbes9, Charles Schwab is one at least 20 billionaires who opposed Barack Obama in the 2012 Presidential Election.

Reference 1. Schwab.com. “About Schwab.” Schwab Brokerage, https://www.aboutschwab.com/. 7 https://www.wsj.com/articles/gop-funds-donald-trumps-defense-in-russia-probe-with-helpfrom-a-handful-of-wealthy-people-1506109617 8 https://www.washingtonpost.com/graphics/2018/politics/superpac-donors-2018/ 9 https://www.forbes.com/sites/michelatindera/2019/10/26/at-least-20-billionaires-behind-darkmoney-group-that-opposed-obama/#7ac0604a6c66

2. Bloomberg.com, Bloomberg, https://www.bloomberg.com/billionaires/profiles/charles-r-schwab/. 3. “Charles R Schwab Bio Investment Style, Background, Quotes.” Stock System, http://www.stockpickssystem.com/charles-r-schwab/. 4. “Charles R. Schwab.” Wikipedia, Wikimedia Foundation, 2 Dec. 2019, https://en.wikipedia.org/wiki/Charles_R._Schwab. 5. Schwab.com. “Company History.” Schwab Brokerage, https://www.aboutschwab.com/history. 6. “The Charles Schwab Corporation.” FundingUniverse, http://www.fundinguniverse.com/company-histories/the-charles-schwab-corporationhistory/. 7. Ballhaus, Rebecca. “GOP Funds Donald Trump's Defense in Russia Probe With Help From a Handful of Wealthy People.” The Wall Street Journal, Dow Jones & Company, 22 Sept. 2017, https://www.wsj.com/articles/gop-funds-donald-trumpsdefense-in-russia-probe-with-help-from-a-handful-of-wealthy-people-1506109617. 8. “Meet the Wealthy Donors Pouring Millions into the 2018 Elections.” The Washington Post, WP Company, https://www.washingtonpost.com/graphics/2018/politics/superpac-donors-2018/. 9. Tindera, Michela. “At Least 20 Billionaires Behind 'Dark Money' Group That Opposed Obama.” Forbes, Forbes Magazine, 27 Oct. 2019,

https://www.forbes.com/sites/michelatindera/2019/10/26/at-least-20-billionairesbehind-dark-money-group-that-opposed-obama/#7ac0604a6c66....