Schwab sells U.S. Trust, never a good fit

Is this an example of a defeat tempered by financial gains? When Charles Schwab bought U.S. Trust back in 2000 for $2.8 billion, it seemed like a watershed deal. What the discount brokerage needed was a way to tap higher-margin accounts. It needed to go beyond brokerage into sophisticated asset management. Only then would it break the tyranny of the discount model. Well, it's now selling U.S. Trust to Bank of America for $3.3 billion. It will likely be a better fit there; in fact, it will be part of an instant powerhouse. Since Chuck Schwab has come back on board, the firm seems to be embracing its roots. Some will argue the fit was never that good. The synergy was elusive. Schwab's advisor's always thought the move looked like a way to compete with them.  

For more on the deal:
- Here's an update from MarketWatch