[manaboutown]

I received a phone call from my stock bookie at Schwab a couple days ago. He asked me if I was concerned about Schwab Bank, went on to point out about how large it was and so on. He told me he was calling all his clients. Then he asked me if I had any questions. I said not really and told him that I had a general understanding of why SVB was in trouble; it invested long at low interests rates and now was forced to borrow short at higher interest rates. As he seemed nervous I asked him if he was doing damage control. He did not take that question well. After a more or less inconsequential and somewhat strained affable conversation about the weather and such we ended the call.

Then, I got on the internet and discovered Schwab was taking some heat and its stock was down. Turned out Schwab had also gone long on low interest bond investments, was in a pickle to some extent and was assuring folks they had what it took to cover the bases.

Very interesting...

[Plinker]

Originally Posted by manaboutown

I received a phone call from my stock bookie at Schwab a couple days ago. He asked me if I was concerned about Schwab Bank, went on to point out about how large it was and so on. He told me he was calling all his clients. Then he asked me if I had any questions. I said not really and told him that I had a general understanding of why SVB was in trouble; it invested long at low interests rates and now was forced to borrow short at higher interest rates. As he seemed nervous I asked him if he was doing damage control. He did not take that question well. After a more or less inconsequential and somewhat strained affable conversation about the weather and such we ended the call.

Then, I got on the internet and discovered Schwab was taking some heat and its stock was down. Turned out Schwab had also gone long on low interest bond investments, was in a pickle to some extent and was assuring folks they had what it took to cover the bases.

Very interesting...

I believe there are more shoes to drop. I just purchased two, non-callable CD’S from my Vanguard account. I required two in order for each to be under the $250K FDIC limit of coverage.
Why take a chance? I opted for a 3-year term at 5%.
As Ron Popeil said: “Set it and forget it”. Due diligence is required and I do find it disgusting that the perpetrators of poor management often get a free pass.

[spinner1001]

Originally Posted by manaboutown

I received a phone call from my stock bookie at Schwab a couple days ago. He asked me if I was concerned about Schwab Bank, went on to point out about how large it was and so on. He told me he was calling all his clients. Then he asked me if I had any questions. I said not really and told him that I had a general understanding of why SVB was in trouble; it invested long at low interests rates and now was forced to borrow short at higher interest rates. As he seemed nervous I asked him if he was doing damage control. He did not take that question well. After a more or less inconsequential and somewhat strained affable conversation about the weather and such we ended the call.

Then, I got on the internet and discovered Schwab was taking some heat and its stock was down. Turned out Schwab had also gone long on low interest bond investments, was in a pickle to some extent and was assuring folks they had what it took to cover the bases.

Very interesting...

It’s not just Schwab. Senior managers of many financial institutions are having their employees call banking customers — even stronger banks.

[rustyp]

And Bernie Madoff said we are good - no reason to pull out.

[Caymus]

Many politicians have accounts with Schwab and other firms. They will be protected.

[walterray1]

Originally Posted by manaboutown

I received a phone call from my stock bookie at Schwab a couple days ago. He asked me if I was concerned about Schwab Bank, went on to point out about how large it was and so on. He told me he was calling all his clients. Then he asked me if I had any questions. I said not really and told him that I had a general understanding of why SVB was in trouble; it invested long at low interests rates and now was forced to borrow short at higher interest rates. As he seemed nervous I asked him if he was doing damage control. He did not take that question well. After a more or less inconsequential and somewhat strained affable conversation about the weather and such we ended the call.

Then, I got on the internet and discovered Schwab was taking some heat and its stock was down. Turned out Schwab had also gone long on low interest bond investments, was in a pickle to some extent and was assuring folks they had what it took to cover the bases.

Very interesting...

Go to the Schwab website and read their comments from Chuck Schwab and CEO Walt Bettinger about recent events. Then click on Walt Bettinger's extensive interview with CNBC. There should be no and I emphasize no concern with investing with Charles Schwab. You say you are a client and yet you post this. Their stock went down. Not surprising given the overall situation. Why would you post a negative thing against the very place you invest?

[Priebehouse]

My broker left Wells Fargo because they "encouraged" him to make similar calls in 2007/2008 to shore up their bank reputation. I'll bet your bookie was really nervous about making that call if you have been with him for any legth of time. Call him on his private number after business hours and hopefully he will give you the real scoop. BTW, shortly thereafter, my broker of 20 years and my portfolio left WF.

[msilagy]

People panic and that's good enough reason for assurance from any bank.

[La lamy]

Originally Posted by walterray1

Go to the Schwab website and read their comments from Chuck Schwab and CEO Walt Bettinger about recent events. Then click on Walt Bettinger's extensive interview with CNBC. There should be no and I emphasize no concern with investing with Charles Schwab. You say you are a client and yet you post this. Their stock went down. Not surprising given the overall situation. Why would you post a negative thing against the very place you invest?

Because the OP wants to warn us about the situation he's facing! I'd be more concerned about people who criticizes situations/people they are not attuned to!!!

[ithos]

Originally Posted by walterray1

Go to the Schwab website and read their comments from Chuck Schwab and CEO Walt Bettinger about recent events. Then click on Walt Bettinger's extensive interview with CNBC. There should be no and I emphasize no concern with investing with Charles Schwab. You say you are a client and yet you post this. Their stock went down. Not surprising given the overall situation. Why would you post a negative thing against the very place you invest?

Why wouldn't he? Do you think a post on TOTV is going to start a run of transfers at Schwab? He is a very savvy investor and knows how to protect his investments.

When it comes to investing, ignorance is not bliss. It may be a harbinger of surprises in the banking industry. Considering all the retirees here, many with financial backgrounds, TOTV is an idea place to broach this subject.

[fgaba1949]

I dont think their is any problems with the huge banks as they are SIMPLY too big to FAIL... but what amazes me is IF you really understand the very complex banking System in the US it would shock the average Joe that Janet Yellin and Biden can decide what smaller bank they will cover and which they wont.
I would bet 99 % of the people in the US don't understand the difference between a Large bank Regional bank and a community bank as there is a HUGE difference.

[daniel200]

No, I am not worried. But I don’t use Schwab. The stocks and bonds in your Schwab account are safe …that is yours. If you have less than $250k cash, your money is backed by the FDIC. SIPC insurance provides insurance up to $500k

At Fidelity, if you have more than $250k cash in a money market account, Fidelity will automatically split the cash and deposit it in different banks (like BoA, Citi, JPM etc) so that the entire amount is backed by the FDIC. For example, if you have $490,000 cash, your account would show something like $200k at BoA, $150k at Citi, $140k at JPM. Since the FDIC limit of $250,000 is for each bank account, your entire $490k at Fidelity (well technically elsewhere) is insured. This feature is called Fidelity Cash Management Sweep (you can google it). This only applies to Fidelity Cash Management Accounts and not its brokerage accounts. But you can easily move money between these accounts to maintain FDIC insurance.

Schwab has a similar sweep feature but i do not know how it works.

[Gunny2403]

Too late for me. Bank Account compromised. 4 withdrawals in about an hour. Have a PNC account in Leesburg but the withdrawals taken at two PNC Banks in Georgia. They had a fake Fl. Drivers License, my checking account number and my SS Number. The only Link I can find that had all three is within the Health System in the Villages. Frauds been reported to the Authorities and PNC is investigating. Waiting for the return of my funds. Over $15,000! Lucky I caught it when I did! Could have been worse.

[BlueHeronFan]

For a better understanding of the banking situation do a search of Lynette Zang. She is an expert on what is going on. Backs everything up with documented facts. Her YouTube videos are worth your time. Be forewarned. This is NOT going to end well. Pay special attention on her 3/21/23 video

[dewilson58]

"Anybody concerned about the security of their bank/brokerage accounts?"....................Nope.