Schwab’s trillion-dollar empire built on low rates is showing cracks

(Image: Getty)

Wed, 29 Mar 2023

By Annie Massa and Edward HarrisonOn the surface, Charles Schwab Corporation being swept up in the worst US banking crisis since 2008 makes little sense.The firm, a half-century mainstay in the brokerage industry, isn’t overexposed to crypto like Silvergate Capital and Signature Bank, nor to startups and venture capital, which felled Silicon Valley Bank (SVB). Fewer than 20% of Schwab’s depositors exceed the Federal Deposit Insurance Corporation (FDIC) US$250,000 (NZ$400,00) insurance cap, compared with about 90% at SVB. And wi...

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