The WSJ and Barron's have some good articles on the Schwab Bank situation. Actually, as many others do, I keep most of my liquid funds in money market accounts at Schwab and other brokerage houses. The articles point out that since interest rates have increased people are moving their liquid funds from bank accounts into money market funds, as I have. That is a large part of the problem for Schwab and other banks. Also, as most of us realize, by April 18, 2023 bank accounts will be hit with withdrawals to pay taxes.
My Schwab broker is OK. I am not faulting him although I chuckled when he told me he was calling all his clients on his own. Until about a year ago I had never heard from anyone at Schwab as I had just kept a small account there. When I deposited a substantial sum this guy called me out of the blue. We had a nice conversation during which I explained I had other brokerage accounts. He aggressively urged me to transfer those accounts into Schwab (he would make a lot more money of course). When I told him no, I remember Lehman Brothers and others and did not want to put all my eggs into one basket he was not happy.
For now I am fine with keeping securities with Schwab and have no plans to close my account.
__________________
"No one is more hated than he who speaks the truth." Plato
“To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine
|