MarketWatch writes "​Schwab shares jump after quarterly results top estimates", which is subtitled, "Costly money market fee waivers drop for first time in at least a year." The article says, "The company benefitted as short-​term interest rates stopped falling recently, relieving pressure on its money market mutual fund business.... Schwab has been hit hard by low short-​term interest rates, which have pressured returns offered by money-​market funds. Rates have got so low that yields on these funds have dropped close to zero. Add in a layer of fees and returns on money market funds risked going negative, a worrying development for an investment product that'​s supposed to be ultra safe. Schwab and other companies that offer money market funds have waived fees to avoid returns going negative. That'​s hit profit in recent quarters. However, second-​quarter results released Friday offered signs of hope on this front. Money market mutual fund fee waivers totaled $​113 million in the period, down from $​125 million in the previous quarter. Waivers had been rising steadily for at least a year. In the second quarter of 2009, fee waivers totaled $​30 million, but jumped to $​78 million in the next quarter and $​110 million in the final three months of 2009. The drop in fee waivers in the most recent quarter suggests this painful trend may have turned."

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