Monday, March 24, 2008

WEALTH BEGETS WEALTH.(Brief Article)


Publication: US Banker
Date: Thursday, June 1 2000

It took hardly any time for Charles Schwab Corp. to make a killing on its investment in E-Loan Inc. It paid about $3.70 each for 2.7 million shares of the online lender, at a total cost of $10 million, and by the end of the day, the shares were selling at $9.85. That was a paper profit of about $16.6 million. What's more, Schwab has options to buy another 13.1 million shares. Under the agreement, Schwab would pay only $3.75 a share for an additional 6.5 million shares and $15 each for the remaining 6.6 million shares. But will E-Loan ever make any money? It lost $1.97 a share last

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