To the Editor:
As a retail investor foisted onto the Schwab website from TD Ameritrade, I found the Schwab site far less user friendly than TD’s (“Charles Schwab Has Had a Terrible Year. The Surprising Reason the Brokerage King Won’t Be Dethroned,” Cover Story, Oct. 18). However, my main complaint is that Schwab breaks down each of my three accounts into four lists: fixed income, securities, exchange-traded funds, and mutual funds. This results in 16 discreet lists of my holdings, and that makes my portfolio much harder to manage. The TD website provided a comprehensive list of all three accounts into one—and this is critical—fully functional format. I have requested this change to 15 customer agents and counting, and almost all upon further discussion agree that what I’m asking is a good suggestion and have passed it up the chain.
Peter Dodge
St. Augustine, Fla.
To the Editor:
Interesting article on the difficulties of some financial advisors. However, I suspect the main reason that Charles Schwab is so dominant is because of its overwhelming success with retail investors. Schwab’s platforms blow the competition away. Its staff actually can solve problems and answer questions appropriately. Responsive, polite, informed, and motivated.
John Reilly
On Barrons.com
Nonprofit Motivation?
To the Editor:
Nice article following a complex web (“The Making of a Mortgage Giant. How a Nonprofit Leader Opened the Door to a Massive Loophole,” Oct. 20). It would be nice to know just how much Faith Bautista was enriched through all of this work for “nonprofits.” When compensation becomes extraordinary, it raises the question of the true motivation of the people holding leadership positions in those organizations. Does it involve helping others, or is it really about helping themselves?
Stephen Johnson
On Barrons.com
The Case for Spinoffs
To the Editor:
Regarding “Big-Name Stock Spinoffs Are Going Mainstream. Here’s Why.” (The Economy, Oct. 18): In addition to the tax-free nature of these transactions to both the parent corporation and the recipient shareholders, this restructuring permits the spun-off company to make its own managerial decisions without having to go up a corporate ladder for time-delayed approvals. Further, these companies’ managers would probably have their interests closely aligned with shareholders through substantial stock ownership and stock options. Spinoffs, on average, have outperformed the market, including several associated with John Malone’s Liberty Media. One outstanding performer has been Chipotle Mexican Grill, which was spun off by McDonald’s in January 2006. Its compounded rate of return has been 28% a year, which has handily outperformed McDonald’s return of 15% a year over the past 17 years.
David I. Kass
College Park, Md.
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