Charles Schwab shares head for worst day ever, drop 20% as fears of banking crisis deepen
Charles Schwab shares slid on Monday as worries about the state of regional banks deepened in light of the recent collapse of tech-focused Silicon Valley Bank and crypto-related Signature Bank.
The Westlake, Texas-based financial company dropped as much as 23.3% during Monday’s trading. The stock was last down 20.3% on the day. It would be Schwab’s worst one-day sell-off ever if the decline is worse than the 19% it suffered in April 2000.
The sharp pullback came even as Schwab reassured shareholders and customers that it isn’t seeing significant outflows amid the overall panic over the banking system. Schwab noted that more than 80% of its total bank deposits fall within the insurance limits of the Federal Deposit Insurance Corporation, adding it has “access to significant liquidity” and its business is continues to “perform exceptionally well.”
“Our financial performance continues to be strong,” the company said in a statement Monday. “Schwab is well-positioned to navigate the current environment as we continue to serve clients and build the future of modern wealth management. And we applaud the efforts of our regulators to support depositors during this critical time, helping to bolster confidence across the American banking system.”
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