The third quarter saw unprecedented losses in financial markets, including the failure of Washington Mutual Inc., the bankruptcy of Lehman Brothers Holdings Inc. and the shotgun wedding of Merrill Lynch & Co. to Bank of America Corp. At the end of September, the Dow Jones industrial average was down 22 percent year over year, and the Standard & Poor’s 500 index had lost 24 percent of its value.

“Investors are experiencing market conditions that are as difficult as I have seen in my career and that test anyone’s resolve and confidence,” Chairman Charles Schwab said in a statement.

Schwab earned $304 million, or 26 cents per share, during the quarter, down from $1.53 billion, or $1.28 per share, during the year-ago period, which included a hefty $1.21 billion gain on the sale of U.S. Trust. Excluding that boost, earnings totaled 27 cents per share in the 2007 period.

Go get the new article and read it… you can thank me later. Here’s the link: Schwab 3Q profit falls, still beats estimates