Out of 33 million trades that Schwab has processed since the beginning of 2001 an average of 50,000 a day for more than 4,000 funds in the Schwab supermarket it has only found 18 questionable instances, said David Pottruck, Schwab CEO. He warned employees that as the companys investigation continues, that number could increase.
"Some might consider 18, 180 or even 1,800 problem trades out of 33 million as a tolerable failure rate in a process combining people and technology," he said. "But in a firm where our ethics and our values are a huge reason why you work here, no failure rate, even 0.0001%, can be tolerated. We must strive for perfection."
Pottruck concluded by saying the companys "moral compass" continues to be "strong" and "to guide" the firm.