BofA Merrill Lynch analyst Michael Carrier remarked on the CNBC report that Charles Schwab (SCHW) and TD Ameritrade (AMTD) are in merger discussions, stating that "this is not the most likely expected combination" but he believes such a deal could make strategic sense. The bank relationship with TD (TD) creates some complications, there could be some dis-synergies and a bit of a tougher regulatory approval process, all of which would likely make the deal less accretive for Schwab than other potential deals, Carrier contends. He also said he expects most firms in the sector, including E-Trade (ETFC), to be in merger discussions and sees activity to be active in the sector in the near-term, benefiting the online broker stocks in general.