Charles Schwab & Co. of San Francisco and TD Waterhouse of New York have reached an agreement with Ameritrade Holding Corp. of Omaha, Neb. and three venture capital firms to form an online investment bank specializing in initial public offerings, the companies announced last week.
The new bank will underwrite, manage and distribute Internet and information technology securities for the three online brokerages. David Pottruck, president and co-CEO of Schwab, said the agreement is designed to provide Schwab's customers and investment managers with greater IPO investment opportunities.
The bank will be operating by early next year, the companies said. The venture capital firms participating in the investment bank are Kleiner Perkins Caufield & Byers, Trident Capital and Benchmark Capital, all of Menlo Park, Calif.
