WASHINGTON - In its U.S. Trust Corp. deal, Charles Schwab Corp. is likely to be creating the first financial holding company under terms of the Gramm-Leach-Bliley Act of 1999.

In planning to buy U.S. Trust, the king of discount brokerages has decided to form a financial holding company subject to oversight by the Federal Reserve Board - a step most nonbank financial firms have avoided.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.