News Flash- Schwab CEO Predicts Scandal Will Deepen
June 21, 2004
Charles Schwab CEO David Pottruck said he expects scandals afflicting the financial services industry to continue. "There will continue to be new investigations and new revelations. There are still things to find in this industry," Pottruck told a business conference in New York. While declining to elaborate on his statements, he said the industry still employs questionable practices.
Schwab previously announced that it received subpoenas from New York Attorney General Eliot Spitzer's office and that the SEC was looking into the firm's trading practices, including potential late trading.
There has been talk that the scandal is cooling off. However, many have speculated that mutual fund firms on the West Coast may be the targets in the next wave of prosecutions.