A securities group sued Charles Schwab & Co.

The Securities Industry Assn. filed suit in Washington against the Schwab discount brokerage firm and the Federal Reserve, charging that the Federal Reserve Board unlawfully permitted Schwab to engage in a securities underwriting. The suit asks the court to enjoin the BankAmerica subsidiary from participating in the offering of Schafer Value Trust, a closed-end investment company. Schwab said the association is trying to prevent the company from offering low-cost investment services, adding: “The suit is totally without merit.”