U.S. Trust Agrees to Sell Corporate Trust Business to the Bank of New York

Apr 18, 2001, 01:00 ET from Charles Schwab & Co., Inc.

    SAN FRANCISCO, April 18 /PRNewswire/ -- The Charles Schwab Corporation
 (NYSE:   SCH) announced today that its wholly-owned subsidiary
 U.S. Trust Corporation has agreed to sell its Corporate Trust business to
 The Bank of New York Company, Inc.  The transaction, approved by the boards of
 directors of The Charles Schwab Corporation (CSC) and U.S. Trust Corporation,
 remains subject to regulatory approvals and other customary closing
 conditions.  Terms of the sale, scheduled to close in the second quarter of
 this year, were not disclosed.
     "In charting our future course as an investment and wealth management
 company, we feel that Corporate Trust no longer fits as part of our core
 business," said Jeffrey S. Maurer, chief executive officer of U.S. Trust.
 "Moreover, going forward, Corporate Trust would require a significant
 commitment of capital to maintain its systems.  We believe that Corporate
 Trust's clients will be well served by The Bank of New York, a company with
 the focus and scale to make such investments."
     CSC expects to recognize a pre-tax gain of approximately $220 million as a
 result of the sale, although the specific amount of gain is subject to change
 depending on client retention, sale-related expenses and other matters.  The
 transaction is not expected to have a material effect on CSC's ongoing
 revenues, earnings or cash flows.
     U.S. Trust's Corporate Trust Division provides trust, agency and related
 services to public and private corporations, municipalities and financial
 institutions.  At March 31, 2001, Corporate Trust had $348 billion in assets
 under administration and 113 employees.
     Founded in 1853, U.S. Trust is a wealth management company that provides
 investment management, fiduciary and private banking services.  Headquartered
 in New York City, U.S.  Trust has $91 billion in assets under management as of
 March 31, 2001, and serves affluent individuals, families and institutions
 nationwide through its offices in California, Connecticut, Delaware, Florida,
 New Jersey, North Carolina, Oregon, Pennsylvania, Texas and Washington, D.C.
     The Charles Schwab Corporation, through Charles Schwab & Co., Inc.
 (member SIPC/NYSE), U.S. Trust Corporation, CyberTrader, Inc., and its other
 operating subsidiaries, is one of the nation's largest financial services
 firms, serving investors through branch offices, regional client telephone
 service centers and automated telephonic and online channels. (0001-13215)
 
 

SOURCE Charles Schwab & Co., Inc.
    SAN FRANCISCO, April 18 /PRNewswire/ -- The Charles Schwab Corporation
 (NYSE:   SCH) announced today that its wholly-owned subsidiary
 U.S. Trust Corporation has agreed to sell its Corporate Trust business to
 The Bank of New York Company, Inc.  The transaction, approved by the boards of
 directors of The Charles Schwab Corporation (CSC) and U.S. Trust Corporation,
 remains subject to regulatory approvals and other customary closing
 conditions.  Terms of the sale, scheduled to close in the second quarter of
 this year, were not disclosed.
     "In charting our future course as an investment and wealth management
 company, we feel that Corporate Trust no longer fits as part of our core
 business," said Jeffrey S. Maurer, chief executive officer of U.S. Trust.
 "Moreover, going forward, Corporate Trust would require a significant
 commitment of capital to maintain its systems.  We believe that Corporate
 Trust's clients will be well served by The Bank of New York, a company with
 the focus and scale to make such investments."
     CSC expects to recognize a pre-tax gain of approximately $220 million as a
 result of the sale, although the specific amount of gain is subject to change
 depending on client retention, sale-related expenses and other matters.  The
 transaction is not expected to have a material effect on CSC's ongoing
 revenues, earnings or cash flows.
     U.S. Trust's Corporate Trust Division provides trust, agency and related
 services to public and private corporations, municipalities and financial
 institutions.  At March 31, 2001, Corporate Trust had $348 billion in assets
 under administration and 113 employees.
     Founded in 1853, U.S. Trust is a wealth management company that provides
 investment management, fiduciary and private banking services.  Headquartered
 in New York City, U.S.  Trust has $91 billion in assets under management as of
 March 31, 2001, and serves affluent individuals, families and institutions
 nationwide through its offices in California, Connecticut, Delaware, Florida,
 New Jersey, North Carolina, Oregon, Pennsylvania, Texas and Washington, D.C.
     The Charles Schwab Corporation, through Charles Schwab & Co., Inc.
 (member SIPC/NYSE), U.S. Trust Corporation, CyberTrader, Inc., and its other
 operating subsidiaries, is one of the nation's largest financial services
 firms, serving investors through branch offices, regional client telephone
 service centers and automated telephonic and online channels. (0001-13215)
 
 SOURCE  Charles Schwab & Co., Inc.