Is Schwab In Trouble? | Big Problems At Schwab? (Find Out What's Really Happening)
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- เผยแพร่เมื่อ 5 ก.ย. 2023
- Have money at Schwab/ TD Ameritrade or considering moving your investments into/ out of Schwab? Wondering why their stock price has dropped AGAIN?! Then watch on as we talk about:
💡 Is Schwab in trouble?
💡 Is bankruptcy imminent for Schwab - why or why not?
💡 Should you move your money out of Schwab now?
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SOURCES
www.google.com/finance/
content.schwab.com/web/retail...
content.schwab.com/web/retail...
www.sec.gov/ix?doc=/Archives/...
content.schwab.com/web/retail...
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Would like to hear your opinion on Altria, AT&T and other high yield dividend companies that are not REIT's or Royalities.
Should we TDA (retirement) account holders be concerned? I’d as soon have its “absorption” into Schwab delayed ALAP.
I was an employee of Schwab - right before/after the 911 attack. They are a very solid company and able to withstand massive market disruptions. Most of this is related to banking issues associated with treasury yields. Note- Schwab Bank and the Brokerage are completely separate entities. The cost cutting required to sort this out is made worse because of two other issues: the timing of the planned consolidation wrt TD - and - the exit from the hell-hole that is San Francisco. So all the layoffs and office closures look much worse than it really is because it’s partially driven by streamlining operations and getting out of SF/California. These reductions will make Schwab much stronger in the future as they’ll have the scale to better compete and the efficiencies to deliver superior income. Notwithstanding the market reactions to the interests rates and global strategic problems like wars and BRICS - I think Schwab will do well in its industry segment. With gains in clients and holdings it may well be a buying opportunity.
Thanks for your insights
Thank you for the explanation. We are one of the TD customers. We are going to be merged by year end or early next year. Still have not gotten a letter as to the exact date. We live in the Bay Area. A lot of companies are exitting the Bay Area because it is too expensive to do business here. High taxes and high regulations. They don't get it.
Overall, we are excited to be moving to Schwab and taking advantage of the new services. I know Schwab is a good company.
You just made her point
@@shobavakkalagadda9831 it should be in November for US transferees...
I believe everything was moved to Schwab from TD effective 5 September. I, too, am affected by this transition. Thanks refuztosay for your explanation.
I used to work as a very senior executive at a large brokerage/banking company. In the Top 10. I was with TD going back to 1997 when they were still just TD with no Ameritrade. My accounts were moved from TD to Schwab and I am glad. Not only do I know Schwab quite well, I investigated their numbers and studied all of the data. In my opinion, they will be fine. These problems are not uncommon right now in banking and they will sort it out. I'm sticking around. That said, I also have brokerage accounts with 3 other firms. I never keep more than 25% of my holdings with one company. Diversification prevents Disaster.
What other company besides Fidelity?
Thanks for sharing
I also have my money spread out over 4 brokerages. it's mostly in short term 5.5 percent CD's now. I like fidelity because I think they will actually give you a decent return on univested money using one of their money market funds. I think all the other big brokerages won't give you anything. I have heard some brokerages will give u a decent return on univested money but u need at least 100K in an account. I don't know if they advertise it though.
@@DiamondNestEgg are Tbills bought through the brokerage covered by SIPC insurance or Treasury itself? In case if brokerage goes bankrupt. Thank you
Am a current rep at Schwab now. It's a good job but we fear in being layed off after the next transition season.
I was just transitioned from TDAM to Schwab (yesterday). So far, the conversion has been fine. Then your title scared me a bit -- but it was a good video, and I do NOT plan to exit Schwab. Thanks for the good info!
Me too in not exiting Schwab.
Thanks for the analysis.
my TD account is supposed to move in a month or so. Glad to hear it's working out for you. Did you happen to have any option trades open at the time?
I'm glad the video was educational!
Not me. A couple of cd transactions though. I was told that the accounting offsets might be a good lesson to other reps. It all ended up right on paper in about a week. I miss my local TD office though. @@genxer74
After acquiring TD, this makes perfect sense to cut a lot of duplicate function positions and excess offices.
Like many businesses, they will just set up two new chief diversity officers to deal with regulators...ackk. Another 400k thrown to the wind.
I went FROM Schwab to TD because TD website was 20X better than Schwab's. Then Schwab decides to move my TD to Schwab so I opened a new account at a different brokerage and moved all but ONE stock there. When Schwab moved the one stock at TD they created a NEW account under my existing account... Instead of moving directly into my existing account then I HAD to move the stock -- what a massive PITA. Schwab created 5X the required work & frustration to do a simple stock transfer. NO EFFICENCY at Schwab! P.S. I am an independent and do NOT use any of the "brokerage services" other than straight buy, sell & funding the account -- Their ideas do not match mine.
Schwab is also a PITA because you can’t buy stocks directly from the money market fund. You have to sell some of the money market shares, and then your cash is available the next business day to buy stocks. So you might miss a temporary dip. Whatever cash you don’t use earns only the pitiful cash rate. Not so at Fidelity, and another brokerage I have through a work related plan. @@donnamoss9650
I love the TD platform but not Schwab. It does not show a list of pre or post bids. Nor does their chart show them before or after the close. Thanks for your informative and insightful Videos.
I wish they would have left TD alone, I loved the layout and ease of use of TD Ameritrade. I don't care for Schwab's look and layout for trading stocks....
I am a long time Schwab customer. Thanks for this information. Another thing is that to save 500 million they will be closing many branches across the Country. I find these branches don't do much and are counter productive anyway. I've always had better dealings with the phone represenatives from around the Country. They seem to be happier and take their jobs much more seriously than people at the branches do. ......I too wonder how Schwab money market and mutual investment funds would be effected in a case of bankruptcy. Maybe a future video could delve into those things. Thanks again!
You’re welcome and here you go: Is Your Money Safe If Schwab, Fidelity or Vanguard Fail | SIPC Protection
th-cam.com/video/kY5BswpUlf4/w-d-xo.html
@@DiamondNestEgg, are Tbills bought through the brokerage covered by SIPC insurance or Treasury itself? In case if brokerage goes bankrupt. Thank you
@@d.c.237T-Bills are guaranteed or backed by the US government, SPIC has a website that tells you what securities are covered and how they cover your accounts.
Thanks for the video. I’m a Schwab customer since 1980s and Fidelity since early 1990s. Fidelity is a private company, hence no public filings (8-k etc) that reveal their financial health. How would we know whether Fidelity is doing well or not? Could they be in trouble and no knows about it? That’s why I diversify between these two companies. A black swan event could impact one or the other (cyber attack, etc.). Don’t want to suffer the risk of having 100% of my financial assets being inaccessible for an indeterminate amount of time.
I have been a Schwab client for almost 30 yrs. The information you've provided has increased my interest in monitoring what's going on. Thank you!
Thanks for the heads up! Yes, please keep us informed about Schwab. I’ve been with them since the 80’s, and been very satisfied for the most part.
I've been a big Schwab customer since the 1990s and really like their customer service. We have bank accounts for my wife and I there, plus my LLC account, and half of our total retirement accounts. I'd prefer to stay.
How do we not know if this isn't happening at all banks?
Thank you again for your thorough due diligence, sound judgement, and excellent communication skills at reporting the information. A lot of people and organizations could learn a lot from you; like, How It Should Be Done.
Thank you SO much Jennifer! I had no idea…I’ve transferred a bulk of our funds there this year🤦♀️ I will continue to follow you and will greatly appreciate your updates!
Same problem at a lot of financials. Schwab will ride it out and be Ok.
Thank you -- we found this organized, articulate, easy to understand & balanced. We look forward to seeing your newer continuation. Sorry if name icon comes up 2x. Some sort of computer glitch we don't know how to fix.
You are great at what you do, thank you for posting!
Thanks for this video. I have subscribed as I am one of the TD Ameritrade customers involved. Will follow you closely.
Yes, I would like to have ongoing updates about the situation at Schwab's. Thanks so much for what you do for us, Jennifer!
If Schwab goes bankrupt what happens to funds in their mutual funds like SWVXX?
What impact, if any, has their move of nearly $190B of MBS from available to sell to hold to maturity affecting their liquidity issues? They have now locked in almost 190B at an average rate of 1.75% most of which won’t mature for a decade when the 10 year treasuring currently sitting at 4%+?
I would be more worried as a Schwab employee than a customer.
Or owned their stock
Very informative. Thank you. Perhaps you could address this question: How secure are FDIC guarantees when the Federal Government has, foolishly, run up over $31 trillion in debt? It appears to me that the most potentially unstable financial "institution" is the Federal Government itself. Yes, it has the ability to levy onerous taxes, but how far can it go in that direction without incurring unacceptable reactions by citizens?
Thanks - I'm one of the TD Ameritrade transferees and glad to have found this video.
Thanks so much for this video! I'm a TD Ameritrade customer of 20 years who was just transitioned over to Charles Schwab last week. Please keep us updated about Schwab going forward.
Really helpful video! And, yes please do keep us regularly informed about Schwab.
Thanks for your reasoned analysis. Backed up with facts and details for clarity. None of that "Chicken Little the sky is falling" BS, for views. Subscribed.
FYI. It took FIVE attempts to wire money out of TD yesterday. The first attempt they just ignored. Then our signatures weren't right. Then they misspelled my name. Then the Fed comms were down. It was obvious they were blocking the exits.
TDA forced me to sell a call short. FORCED. They cost that close $3000 and took my money. No option to do anything different!!!!! Schwab you owe me $3000+!!!!!!
These issues could happen to Fidelity as well . They just have to make adjustments. This isn’t a Silicon Valley issue . They will rebound and adjust . No need to panic .
Well said about panicking.
no these issue do happen to fidelity but they r privately own and operate so they dont need to report it at all, so by time u hear about it, it already too late
@@yia01I never thought of the part of them being private and not having to report. Really good point. Scary stuff
Schwab has a brokerage and a bank, which are 2 separate entities.. The troubles are on the bank side, not the brokerage. Fidelity doesn't have a bank just a brokerage, so completely different companies.
Silicon Valley Bank was a Democrat money-laundering operation.
I just got pushed over to Schwab. Logged in yesterday. Working all right. They ere very helpful. Weird part is they had all my old contact stuff from 10yrs ago. My case may not be typical.
Yes, I did enjoy the video on Schwab. Please keep us up to date on the current situation with Schwab.
Great video! I'm definitely interested in continued updates about Schwab.
Thanks for the update Jennifer.
Thank you for your enlightening videos! Could you consider sometime discussing whether it is feasible to change one’s stock from street name with the brokerage, to “direct registration” with the company, or even to certificate form ? - as a way to protect one’s ownership of the stock if the brokerage goes under?
Certificate form can be a real pain, and I have some experience. I am just today mailing in the last of my paper certificates to be added to my online account at a major blue chip company. Even that account has its disadvantages, as you get a random daily price if you order them to buy or sell anything. I have almost everything at Schwab. My dad, rest his soul, always kept paper certificates because he didn’t trust brokers. His motto was “Buy a good stock and live a long time”. But you need a safe place to keep certificates, and my bank stopped offering safe deposit boxes a while ago. (Even those are not absolutely safe.). And, if you want to sell, you have to deliver the certificates somewhere and likely pay a substantial commission. I’m trusting the SIPC to make me whole, eventually, if anything bad happens at Schwab, though I don’t lie awake at night worrying about that. Feeling nostalgic parting with these certificates, though, as they are kind of pretty!
Great topic!
Good idea
My limited understanding is you don't lose your stock if a brokerage goes bankrupt. You own the stock regardless.
You have such a reasoned approach. I wish I had found you six months ago, before erring horribly in response to the more fear-mongering types. You have a new fan.Thanks!
Great video. Even if Schwab were to go bust, account owners would still own the securities within their accounts. However the accounts might be frozen for some time while a new brokerage custodian is appointed.
Hi, question. I am reassured that in the doomsday scenario, any individual stocks we own would just get a new custodian (as you said). So Nvidia, Coke, etc. But what would happen to our Schwab etfs, like SCHD and SCHG? Would they be forcibly liquidated (at current market price) and we would have no choice but to accept the cash, and would that in turn be considered a taxable event (capital gains) if it happened in our regular Schwab brokerage account?
Omg !
Thanks & noted on the this comment thread!
Please keep me informed!! Thank you
I am a SCHD holder and would love any updates. Thanks for the great videos!
Hello! We definitely want to be kept informed about Schwab. My entire funds are employed there. I have laddered accounts there based on what was learned from you. Thank you.
Noted & you're welcome!
Great info. Please do give us more data on the financial condition of Schwab & Fidelity. Thank you!
I’ve had my IRAs at Schwab for years. I’ve always had great experience with their customer service. Wish all the employees the best. That said I do wish Schwab offered a better interest rate on their cash sweep. Also wish purchasing fractional shares was more robust. But all in all have been happy with Schwab. Thanks for the video and insight.
Glad you enjoyed the vid & thanks for sharing your experience with them
I have the same problem with Schwab, I just buy SWVXX (their money market fund, yielding about 5.37% 7-day yield). I wish they allow it to be setup as a sweep account. But no, you have to do the transfer in and out manually each time for the settled cash.
I'm thinking layoffs will be mostly Ameritrade employees, being they were bought out
Thanks for this very helpful report. Please do continue to post updates!
New to your channel and a SCHWAB account holder. Thank you for your research and this video. Nice work.
I enjoy your content. And please do an update on Schwab's status
Thank you. That was very informative. I have both a Schwab Banking & brokerage account. I only leave enough to pay a couple months bills in my checking account and my ready cash in a couple of Schwabs money market accounts. Please keep us updated with what’s going on at Schwab.
Thanks for sharing & will do!
Hi,
I have T BILL with Schwab, should i transfer ro other broker account or just keep it there?
It’s my understanding that your broker account is not in their balance sheet, therefore those assets should be ok
My IRA also moved to Schwab yesterday, where I already have a trading account.
I INTEND TO STAY.
We are new to Schwab; just transitioned our 401K to Schwab retirement a. We’d like to keep informed about their stability going forward.
Been a Schwab client for 10 years, Please keep me informed about their status. Thank you!
Thanks so much, been a Schwab customer for years glad to hear your perspective and would love to hear continued insight.
Operational efficiency is a part of any successful business cycle (especially in times like these). I had someone ask the very same question about Schwab.. Great Video..!
Thanks for the information concerning Schwab. My Schwab CDs that I purchased through Fidelity are FDIC insured.
Thank you very much for your story. I am one of those who just came over from TD Ameritrade. I have a 401(k). To be very honest I am clueless about the whole subject of 401s and investing overall. About two weeks ago I started to see the information about a possible bankruptcy with Charles Schwab. I appreciate your knowledgeable information about the subject and your videos overall. I guess I am going to have to figure out what my next plan of action is going to be. The guy who is handling my transition at Schwab failed to mention any of this, which is a little concerning to me. He was with TD Ameritrade before the acquisition.
Same as me.... In fact, I just transferred my 401K (Rolled Over) to a IRA opened at SCWAB. Now , i'm worried!
401(K)s are under a different umbrella: Is Your 401(K) Safe? Is it SIPC-Protected? Are Your Retirement Accounts Safe?
th-cam.com/video/SAJu0oG6bb0/w-d-xo.html
@@DiamondNestEgg that was actually the first video of yours that I watched even before the latest Schwab video..😉
Even though I have those protections, I don’t want to have to deal with a long drawn out process, if they do go into bankruptcy.. I’m going to have to think about it over the weekend. And if I do make a move, I’m going to have to find you r video on some of the better companies to put my 401(k) savings in..
@@Chiroman527 it’s very frustrating.
Schwab has been good to me. Can’t complain at all. I will be checking out your Schwab videos too! My local TD office is now a Schwab office. I had TD as well but moved everything over to Schwab once I knew about the merger. I love that every time I call Schwab I get someone here in the USA that I can talk to. I’m holding with Schwab! I have other brokerage accounts to and love fidelity as well.
Yes. Please keep us informed.
I think they are all in trouble. What do you expect. The entire country is in trouble.
We need Trump back to get this economy back on track. Love him or hate him, he had our country humming, not sputtering.
@@cashflow68 Trump had a Federal Reserve with zero interest rates and expanding its balance sheet, pumping $4T of liquidity into the economy. Biden has a Federal Reserve that raised interest rates 500 bp in one year and is removing liquidity from the economy. Big difference.
@@cashflow68No, he benefited off of the previous President. He should take credit for the crappy economy we have now.
@@cashflow68 lol this is the very reason it the way it is. Because of him smh
Thank you for your fantastic videos. I would love to hear more information about Schwab as time goes on. I am reassured after hearing your video, but I remember Lehman brothers and you never know what might happen in the future. Thank you so very much.
Yes please keep us informed concerning Schwab. Your awesome.
Thanks for the great information!
Very informative video, thank you!!
Please continue updates on Schwab. As a long term TD Ameritrade client I didn't have any interest in change. I would have preferred Fidelity but hate to change again so soon. If the outlook doesn't turn around quickly I'll probably make a move. Thanks again for this video, great timing!!
Glad it was helpful
Thank you, Jennifer Lammer, for your detailed discussion on Schwab & Co. I would be interested in any follow-up videos on Charles Schwab. As you know, we are in for some very difficult times at the end of 2023 & 2024. I hope the brokerage firms stay healthy with all the bank failures. I look forward to your future podcasts.
I've been with Schwab for years and with TDAmeritrade for a long time as well. Now they are merging (or whatever the M and A structure is). This news causes me some concern that so much of my investments, both retirement and taxable, are invested with the resulting company. Jenn, do you see this combination being something that can make Schwan's situation better?
@@frankkeel8410 Great and ideal idea.
Thanks for the info you provide on TH-cam. I’ve watched many of your posts and you have helped me make some decisions concerning CD’s, etc. I’m retired and my 401k was with Schwab and is now an IRA. Most of my account is now in three CD’s and cash with a smaller amount in stock. I’m 73. Are the CD’s and cash safe? When you talk about moving your money out of Schwab are you only referring to stock in Schwab itself?
First time listener and now positive side subscriber and follower ! You’ve answered my questions I’ve had recently with Schwabs buying out of TD Ameritrade and have seen the very negative but yet not fully explained problems with Schwab until now ! I am concerned now if they do survive what is the likely hood of a bank bail in that is probably going to happen , because of their bone head decisions that were made over a long term investment decision they can’t get out of ? Plz report on this likely hood of happening !
I’m a long time Schwab customer and your videos have been informative.
Thanks for a nice balanced report on Schwab. Keep it up.
What happens to our individual stocks that were transferred from TDAm should Schwab goes down?
I concur. This aligns with my conclusions about Schwab. They may need to tighten their belt, but so will all the other banks. I would be much more concerned about the banks that have significant exposure to commercial real estate loans. Those are the banks that could potentially face existential losses in the next few years.
Thank you for your detailed discussion on Schwab & Co. I would be interested in any follow-up videos on Charles Schwab. As you know, we are in for some very difficult times at the end of 2023 & 2024.
I've also heard that Schwab holds your auto-roll Treasury Bills for days past when Treasury Direct and Fidelity reinvest your auto-roll treasuries. That is a real negative in terms of your cumulative interest!
They hold it a week longer than Fidelity & TreasuryDirect - one of the reasons we moved a lot of our cash over to Fidelity for Treasury purchases
I expect to move from TD Ameritrade to Schwab early next year. I appreciate your information!
My company sponsored HSA just converted from TD to Schwab this week. Thank you for such a timely video.
Yes, appreciate the information in this video. Please provide any updates you develop.
Yes please continue with Schwab updates. Thank you for the update! I am a TDA customer that just got transferred to Schwab. This video title almost gave me a panic attack. LOL. But, I have calmed down now :)
Glad it was helpful!
Thanks for the great info and bringing clarity to Schwab's condition. Curious though, why are you partial to Fidelity? Is it because you've been using them for over 30 years?
Have been with Schwab for just under 40 years, never had any problems. Thank you for the heads up, though. Will definately keep tuned in for any changes that may warrant a move.
thanks again, keep up good work!
Thank you for this very informative video. Yes, please continue to keep us updated on Schwab.
Many thanks for this video. Also, thanks to those who posted comments. Always learning....
Nice job. Yes, please keep the updates coming.
I like the format. Subscribed
I have a Schwab account and have been happy with it. I particularly like the no fee ATM's for international withdrawals. Someone correct me but if most of my money at Schwab is in stocks and ETF's and the little cash I do have is FDIC backed then ultimately the risk is less? Anyway, I hope they weather this storm as I have been happy with them and their brokerage interface. Thanks for the great info.
I’m a multi-decade Schwab customer and I’ll stay put for now. I also have an account with Fidelity and I wonder if Fidelity might have similar challenges - though less significant? Every financial institution is surely paying much higher interest on money market deposits now compared to early 2022.
Been with Schwab about 40 year, I haven’t decided to move but double checked levels of protection of holding in accounts. Yes all FI have challenges as we all want better rates, Fidelity and Vanguard are privately held and have different folks they answer to IMHO
Thank you for the info.
Thank you for this update. Yes, please keep us advised on Schwab and other brokerage firms.
Could you comment on J.P. Morgan is that a brokerage account like Schwab and fidelity? What are the differences?
I saw this news explained on another YT channel. The rise in interest rates basically forced CS to also recategorize about $180 billion in assets from "available-for-sale" to "held-to-maturity" and the average yield is about 1.75% over 10 years. Otherwise they would have to report the bid/ask spread value on those low yield securities. And they are worth much less than what they were when purchased, in comparison to the newer higher yield securities. Basically they locked in the low yield rate, to avoid the "paper" loss. This is somewhat similar to what happened to SVB, but Schwab is larger and should be able to manage the reduction in liquidity that this recategorization imposes. SVB couldn't. They had lost too much value and liquidity. Good video on the other news that Schwab released. Other brokerages must be experiencing similar difficulty depending on how much low value low interest bonds (the low interest being the only thing the US treasury was offering since until very recently) they hold.
Could you do a video that weighs in on available options in light of a brokerage firm's potential bankruptcy ? a) Do nothing. b) Move everything to a different brokerage firm (and to which firms ?). c) Move some (only whatever not insured). d) Double down and invest more. What would happen to my N number of ABCXYZ shares in my Schwab account when the firm files for bankruptcy ?
I think the days of free trades may be coming to an end. $4.99 per trade should help offset costs and provide some help to the banking side of these firms.
Keep the info coming, Thanks
your videos are informative and easy to understand. Please keep updates re Schwab coming! Thanks!
Thank you for doing this video!
Your vlog is very clear and concise, great!
Good information. They do hold about 70% of my assets, so I will definitely monitor the situation. I was previously considering moving one of my brokerage accounts over to Fidelity to separate some assets. I may look at it again, but I'm not rushing for the door yet.
I have complete faith in Schwab. Been banking with them since 2014 and they've been a fantastic institution. Great video nonetheless!
I have been with Charles Schwab since 1987 because they provided checking. Great company with great employees. I will not be leaving.
Excellent video.Thanks for keeping us informed. Schwab still stands out as one of the best.
Schwab customers I know, including myself, love Schwab. Great customer service. Not going anywhere. It makes sense they would need to close physical locations with the TD merger. They're not that necessary anyway as everything can be completed online.
Good information as I have accounts within Schwab accounts for my retirement funds. I appreciate your clear and concise way of explaining thing by showing numbers and information then explaining how or why the numbers are good or bad for Schwab customers. I will be back to this site, thank you so much
Another great video from my fixed income go to. Thank you!
Thank you for the Schwab update. I would appreciate updates!
Got worried with this video. TDAm moved to Schwab…will give a chance and be watching like a hawk..
Great information, how much money will be safe in our accounts if Schwab goes bankrupt, does sepic cover $500,000. Or does Schwab have additional coverage for there clients? Keep up the great work, thank you.