Scottrade Risk Report

🛡️ Financial & Liquidity

Scottrade has experienced significant financial changes due to acquisitions and operational events. The company was acquired by TD Ameritrade and TD Bank in a deal valued at $4 billion, a major shift in its financial landscape. This acquisition and the integration process have also led to workforce adjustments impacting operations.

• 🗓 On October 24, 2016, TD Ameritrade acquired Scottrade for $4 billion in a two-step deal with TD Bank, affecting the company's financial planning.
• 🗓 TD Ameritrade completed its acquisition of Scottrade on September 19, 2017, incorporating Scottrade's financial operations into its setup.
• 🗓 TD Bank Group completed the acquisition of Scottrade Bank on September 18, 2017, finalizing the financial integrations.

⚖️ Legal & Regulatory

Scottrade faced legal scrutiny and regulatory issues that impacted its reputation and operations. The most notable legal challenge stemmed from a data breach, affecting millions of customers and prompting regulatory investigations.

• 🗓 A lawsuit against Scottrade was filed due to damage to bankers' reputations on December 6, 2016, highlighting legal risks associated with the company's operations.
• 🗓 Scottrade disclosed a data breach on October 2, 2015, potentially affecting 4.6 million clients, prompting regulatory investigations and reputational damage.

👥 Labor & Workforce

The acquisition by TD Ameritrade led to workforce restructuring, including layoffs as part of operational consolidation. This workforce reduction has been a significant challenge as the company integrates its operations post-acquisition.

• 🗓 TD Ameritrade laid off more workers following its deal with Scottrade on August 21, 2018, indicating restructuring efforts to streamline operations.
• 🗓 TD Ameritrade announced job cuts affecting 84 positions at its Westminster facility in December 2017, following the integration with Scottrade.

🏗️ Operational & Business Continuity

Scottrade's transition under TD Ameritrade has included operational challenges, particularly concerning data security and business integration. The repercussions of data breaches illustrate the potential impact on operational continuity.

• 🗓 Genpact exposed personal information of 20,000 Scottrade customers on April 7, 2017, compromising operational integrity and customer trust.
• 🗓 Scottrade's data breach announced on October 2, 2015, highlighted operational risks in data security, impacting client trust.