Probe Knocking Schwab Stock for a Loop

When Eliot Spitzer accused Wall Street analysts of questionable research practices, Charles Schwab Corp. sought to woo investors by setting itself apart from the herd.

However, the San Francisco brokerage has not escaped the New York Attorney General's latest crusade. Schwab revealed Friday in its quarterly filing with the Securities and Exchange Commission that Spitzer and the SEC are investigating allegations of market timing in Excelsior Funds, the fund family operated by its U.S. Trust Corp. unit, and for illegal late trading in Schwab Mutual Fund Marketplace, which sells over 4,000 funds from different providers.