Anybody buying? I just toe dipped into JPM but not brave enough for SCHW
Any opinion? CFO says they have plenty of liquidity
Charles Schwab Says It Has Access to 'Significant' Liquidity; Reports Decline in Total February Client Assets
9:59 AM ET, 03/13/2023 - MT Newswires
09:59 AM EDT, 03/13/2023 (MT Newswires) -- Charles Schwab (SCHW) on Monday assured investors that it has access to "significant" liquidity with "very little chance" it would need to sell its held-to-maturity securities prior to maturity.
Chief Financial Officer Peter Crawford said the company's business continues to perform "exceptionally well" and expects year-over-year growth of about 10% in Q1 revenue.
More than 80% of the company's total bank deposits fall within the Federal Deposit Insurance Corp. limits, Crawford said, adding that cash outflows in February were about $5 billion lower than in January and March.
Total client assets were $7.38 trillion as of the end of February, down 4% from a year earlier and represents a sequential decline of 1%, the company said.
Charles Schwab shares were down more than 15% in early trading.
Barrons
https://www.barrons.com/articles/charles-schwab-stock-price-bank-selloff-4bb1ae5f?mod=md_stockoverview_news&mod=article_inline"Last year, Schwab generated more than $10 billion of net interest revenue, which represented about half its total annual revenue, according to the company’s fourth-quarter earnings report. That revenue is the difference between the interest Schwab earns on bonds and loans and the interest it pays out to its funding sources, which are primarily uninvested client cash balances. Schwab’s net interest revenue looks increasingly at risk as interest rates rise."
Comments
Hold on for ride
Maybe dca down
It is up to 50
I'm somewhat nervous about taking this position, because this is not an industry I've followed (even though I've had some BAC for years).
Everything in the financial industry has been tarnished. I considered adding to my AXP position (down about 10% in the last month) but don't really see this as a big buying opportunity (yet).
CNBC has had some interesting guests through the day. Brad Gerstner of Altimeter Capital for one.
The world of big banks seems much more complicated than the banking issues most of us have encountered in our lives. So their "governance/regulation" is pretty complex.
Like many other "large" issues in our economy, there are often no easy answers.
David
Looked like a good bet at the time. Large growing regional bank. Headquartered in Charlotte NC. Conservatively run. Diversified investments. Hard to believe it could fall that much in a single day.
I think Buffett also getting out his checkbook adding BAC soon
You noted: From where does this information arrive??? Have you an article link?
Thank you.
Could be fake news... Saw webull chat content yesterday but could not confirm
Twitter feed has same - was posted 2016
Short king investor Michael Burry think crisis may resolve quickly
https://www.cnbc.com/2023/03/14/ron-baron-bought-charles-schwab-shares-during-mondays-double-digit-sell-off.html?__source=iosappshare|com.apple.UIKit.activity.CopyToPasteboard
Sharks in fester bloody water
Interesting lack of conviction for a guy who has a leveraged fund that is 50% TSLA