Is Charles Schwab in trouble ???

[Cliff]

Is anyone else concerned with the chart of our broker, SCHW? The company has lost about a third of its value in the last few days. Is there any way to determine the financial health of different brokers? I'm specifically wondering about Interactive Brokers and Tastyworks (or Tastytrade).

 

[BenTen]

It's a good thing that SCHW is a publicly traded company. I'm sure you can learn more about their overall financial data than companies such as TastyWorks.

 

[Cliff]

Yes, all I need to do is enter the ticker and see how the stock is doing. IBKR is also down, but not by as much. And my bank, USB, is down quite a bit. These are interesting times.

 

[Trader Raider]

I'm specifically wondering about Interactive Brokers and Tastyworks (or Tastytrade).

I can't speak to the financial health of various brokerages, but Tasty, IB, Schwab, and TDA are
listed as SIPC members, which affords some protection of your funds.

SIPC Member List

More about SIPC here.

Best wishes and happy trading.

 

[Cliff]

I can't speak to the financial health of various brokerages, but Tasty, IB, Schwab, and TDA are
listed as SIPC members, which affords some protection of your funds.

SIPC Member List

More about SIPC here.

Best wishes and happy trading.

Thanks, that's good to know.

 

[timing]

Just curious after reading the article below.
Hope it is safe, otherwise, thinkorswim will change owner again.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Charles Schwab (SCHW) - Get Free Report shares edged lower in pre-market trading after the brokerage group, which had been caught in the downdraft of U.S. banking stocks, said it isn't seeking new capital.

CEO Walt Bettinger, who has lead Schwab since the 2008 financial crisis, told Reuters that while there is some mis-match between client assets in its banking division and 'held-to-maturity' assets on its balance sheets, "our clients are not reacting in the manner that the doomsday scenario would indicate.'

Schwab, which has higher unrealized losses in it bond portfolio of around $14.1 billion, also have ample liquidity access, including $100 billion cash on hand, as well as a deposit base that is 82% covered by FDIC insurance.

"Our available for-sale portfolio is short in duration and high in quality, and our held-to-maturity is slightly longer in duration but still short compared to many people, and very high-quality," Bettinger, who said he purchased around 50,000 Schwab shares for his own account on Tuesday, told Reuters.

 

[autoloader]

....as well as a deposit base that is 82% covered by FDIC insurance.

That's very high. I think Silicon Valley Bank was at 16%.

It's extremely unlikely Schwab is in any kind of trouble.

 

[QUIKTDR1]

My understanding is the problem for these in trouble banks is they unhinged their hedges in 2022 not the hedges which if held to maturity are good viable hedges

 

[Cliff]

Here's another guy who thinks the risk of loss is minimal.