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    How Investors May Respond To Charles Schwab (SCHW) Balancing Linqto Litigation And US$2.6 Billion Note Issuance

    Simply Wall St·08/12/2026 22:32:38
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    • In August 2026, Linqto stated it is pursuing litigation against Forge Global and The Charles Schwab Corporation over an alleged broken trustee commitment tied to Linqto’s bankruptcy exit, while Schwab also completed two fixed-to-floating senior subordinated unsecured note offerings maturing in 2032 and 2037 totaling US$2.60 billion.
    • Linqto emphasized that customer-linked securities in the liquidating trust remain safe and have grown in value, even as Schwab raises fresh funding in the bond market to support its broader business.
    • We’ll now examine how Schwab’s fresh US$2.60 billion in fixed-to-floating notes and the Linqto legal dispute affect its investment narrative.

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    Charles Schwab Investment Narrative Recap

    To own Charles Schwab, you likely need to believe its diversified broker, wealth, and banking model can keep attracting assets despite fee pressure and digital-first competitors. The Linqto lawsuit introduces headline and legal risk, but based on what is known so far, it does not appear to alter Schwab’s most important near term driver: sustaining client activity and asset growth while managing funding costs.

    The recent US$2.60 billion fixed to floating note issuance is most relevant here, because it speaks directly to Schwab’s funding profile and balance sheet flexibility. For investors focused on catalysts such as steady earnings growth and capital returns, this fresh bond funding sits alongside ongoing buybacks and dividends as part of how Schwab finances and supports its broader business ambitions.

    Yet behind Schwab’s recent momentum, investors should still pay close attention to the unresolved litigation with Linqto and what it may signal about...

    Read the full narrative on Charles Schwab (it's free!)

    Charles Schwab's narrative projects $32.3 billion revenue and $12.9 billion earnings by 2029. This requires 9.1% yearly revenue growth and about a $3.9 billion earnings increase from $9.0 billion today.

    Uncover how Charles Schwab's forecasts yield a $116.16 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    SCHW 1-Year Stock Price Chart
    SCHW 1-Year Stock Price Chart

    Some of the most optimistic analysts were recently assuming Schwab could lift revenue toward about US$37.3 billion and earnings to roughly US$14.7 billion, yet this Linqto dispute and heavier balance sheet use show how quickly the risk picture can shift, so you should compare these bullish expectations with your own view on how legal, technology and balance sheet driven income risks might evolve over time.

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    The Verdict Is Yours

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.