Charles Schwab Corp (NYSE:SCHW) said it will likely enter prediction markets, even as CFTC Chairman Mike Selig took fire from both parties Thursday over the sector he oversees.
The split screen captured Wall Street’s awkward embrace of a product class Washington still can’t agree on.
Schwab Draws A Line At Gambling
“At some point, we will likely have prediction markets,” President and CEO Rick Wurster said on the company’s first-quarter earnings call Thursday.
Wurster drew a sharp distinction between wagers tied to financial events and contracts covering sports, politics and pop culture.
“It’s not at the top of our clients’ list,” he said. “And if you look at the stats on the success of gamblers, they’re not strong and people generally lose money.”
Schwab oversees $11.8 trillion in client assets. A move into the space would mark the biggest traditional-finance endorsement yet of a product category still finding its …
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