Author Topic: Charles Schwab brokerage--any problems?  (Read 1194 times)

Offline Woofwoof

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Charles Schwab brokerage--any problems?
« on: September 08, 2023, 07:34:49 PM »
Hello:

I watched a Youtube video about Charles Schwab and that there are eye-catching rumors about them at risk of going under.  Their stock has gone down over the past year.

I know that there is the brokerage side and the bank side. However, I am not sure which side is at risk. I am not savvy enough to distinguish.

Having said all this, they are very different from Silicon Valley Bank.

Would appreciate any enlightenment from this community! Thank you.

Offline sam2015

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Re: Charles Schwab brokerage--any problems?
« Reply #1 on: September 10, 2023, 02:53:22 PM »
Hello:

I watched a Youtube video about Charles Schwab and that there are eye-catching rumors about them at risk of going under.  Their stock has gone down over the past year.

I know that there is the brokerage side and the bank side. However, I am not sure which side is at risk. I am not savvy enough to distinguish.

Having said all this, they are very different from Silicon Valley Bank.

Would appreciate any enlightenment from this community! Thank you.

Without getting into the ridiculousness of making financial decisions based on some random YouTube clip... Let's discuss what might happen if they do 'go under'. What are you nervous about that might happen?

Offline Woofwoof

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Re: Charles Schwab brokerage--any problems?
« Reply #2 on: September 10, 2023, 07:51:18 PM »
There are internet articles that say that their stock is way down and their financial performance has deteriorated. There is a concern that leads people to think that their assets at Schwab may not be safe.

Offline AsherO

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Re: Charles Schwab brokerage--any problems?
« Reply #3 on: September 10, 2023, 07:58:35 PM »
There are internet articles that say that their stock is way down and their financial performance has deteriorated. There is a concern that leads people to think that their assets at Schwab may not be safe.

If you have less than $250k in a Schwab bank checking account, and they go under, within 1 business day those assets will be owned by another bank and your account will continue to function as usual. Has happened with much bigger banks than Schwab.

You have similar SIPC coverage for your Schwab Brokerage account, up to $500k in securities and $250k in case is covered by SIPC.
« Last Edit: September 10, 2023, 08:01:46 PM by AsherO »
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Offline sam2015

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Re: Charles Schwab brokerage--any problems?
« Reply #4 on: September 10, 2023, 11:43:13 PM »
“The first thing to remember is your securities—like stocks, bonds, mutual funds, exchange traded funds, or money market funds—held at Schwab are yours. The SEC's Customer Protection Rule safeguards customer assets at brokerage firms by preventing firms from using customer assets to finance their own proprietary businesses.”

For more info you can read and watch over here:

https://www.schwab.com/legal/account-protection