Charles Schwab’s stock fell as much as 23% on Monday — despite it being the biggest daily drop on record assurances From the financial services company that it has a lot of funds.
“We have access to significant liquidity, including an estimated $100 billion in cash flows from cash, portfolio-related cash flows and net new assets over the next twelve months,” Peter Crawford, chief financial officer, said in a statement. Highlighting the monthly activity of the firm.
“Schwab is well positioned to navigate the current environment as we continue to serve clients and build the future of modern wealth management,” the press release said.
Schwab’s reassurance comes after the collapse of Silicon Valley Bank and the closure of Signature Bank of New York (SBNY).
US regulators on Sunday announced that depositors of both lenders would be made whole, along with measures to boost confidence in the banking system.
Mark Cooper, CEO of Solomon Partners, told Yahoo Finance Live on Monday: “I’m glad to see that the Fed jumped in and deposited the safe because these are classic runs on bank issues, without confidence you can see many banks suffer.” Are.”
Despite the stop-gap measures, regional bank stocks were still taking a severe hit. Shares of San Francisco-based First Republic Bank (FRC) plunged more than 60% and have been repeatedly exposed to volatility.
“Here it is just a question of fear. It is a question of a classic run on the bank,” said Solomon, who confirmed that he has the funds at First Republic and will keep them there.
“Usually what we’ve learned from the past is that they don’t end quickly. These tough times don’t end quickly.”
Ines is a Senior Business Reporter for Yahoo Finance. follow him on twitter @ines_ferre
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