CEO Walt Bettinger said, "Right now, some individuals are relying on professional guidance to rebuild their participation in the equity markets, while others remain more comfortable emphasizing low-risk cash and FDIC-insured deposit products. CFO Joe Martinetto added, "Our third quarter revenues were down 19% from the year-earlier period, reflecting the headwinds we've been discussing for some time. Net interest revenue declined 34% year-over-year despite continued growth in client cash balances as further reductions in short-term interest rates lowered investment portfolio yields. Asset management and administration fees were helped by improving asset valuations, but money market fund fee waivers increased to $78 million as anticipated, resulting in a 24% decline." See also, Investment News' "Schwab slapped with SEC warning; YieldPlus settlement may be on the horizon". Schwab is the 8th largest manager of money market funds with over $177 billion in assets (down 10.9% over the past 12 months), according to Money Fund Intelligence XLS. BlackRock, the fifth largest money fund manager, is scheduled to report Q3 earnings on Oct. 20, and Federated Investors, the third largest, is scheduled to release earnings late on Oct. 22.
