Charles R. Schwab

  b. 1937 | American stockbroker

At The Bottom

— 1971

His reputation was destroyed, and his marriage soon followed.

Charles R. Schwab stared at his desk, wondering how everything could have gone so wrong with his life.  The young stockbroker watched helplessly as his first company — a partnership formed with two other men — collapsed, brought down when the partners neglected to register some of their securities with Texas financial regulators.  The state insisted that Schwab and his partners provide refunds (with interest) to everyone in Texas who had purchased their unregistered financial products.  When the company — at Schwab’s insistence — decided to fight the case, the Securities and Exchange Commission stepped in and blocked the brokerage from selling anything to anyone, anywhere in the US.  The partnership soon disintegrated, leaving Schwab more than $100,000 in debt.  His reputation was destroyed, and his marriage soon followed.  At 34, Schwab was a bust.