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Schwab Rating On This Site.

Ally6770
  |     |   4,310 posts since 2010

Did anyone click on the B+ health rating on Schwab? Look at capitalization. I have never seen that grade on this site in the past that I can remember.

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JeffinEasternFL
  |     |   744 posts since 2020
Capitalization an F, from this the following : "Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. Charles Schwab Bank has $407.9 billion in assets with $17.61 billion in equity, resulting in a capitalization level of 4.32%, which is poor." On a note besides, deposit growth has been an "A" level, as they attempt to get that balance correct again in regulators eyes anyway
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Ally6770
  |     |   4,310 posts since 2010
I realize this and I just thought that maybe many people do not click on the letter grade and may not be aware of this. Ken gives us a lot of information.

I don't remember seeing an F before and I have used this site since the 1990's when this site was called bankdeals.com. But, I usually only look at places that I have money in or plan to put money or out of curiosity. I looked at this one out of curiosity. I don't want to have any more income this year because of IRMAA. I can't even do a Roth conversion this year most likely. Interest rates have been great for those savers that like CD's, reward checking accounts, and high interest rates on savings accounts.
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choice1
  |     |   372 posts since 2023
Nothing as bad as having higher interest rates leading to more income (exempt or otherwise from taxes). How could I’ve planned differently? What a nice dilemma. Oh well (that’s not the Wells), could dump some $ into …(fill in the blank) with the current poster child being First Republic Bank. Stay safe!
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JeffinEasternFL
  |     |   744 posts since 2020
Far rrr out!
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Ltssharon
  |     |   472 posts since 2020
here is a current CEO of Schwab addressing this point:
https://www.aboutschwab.com/walt-bettinger-on-financial-stability

while I didn't really understand him, maybe you would. Enjoy and hope this helps
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1
John19
  |     |   397 posts since 2022
That's a scary looking "F". I wonder which bank will be the next to fall.
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Time
  |     |   2 posts since 2022
Check out HSBC’s deposit growth, an F. I really have been studying the health ratings before doing business with any bank or CU.
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NFO
  |     |   66 posts since 2022
It's also almost a year old. Pretty sure SVP's health rating was golden up to the day they imploded. Not sure if any of that is really worth very much.

Here's are some more recent articles on Schwab...
 
https://www.marketwatch.com/story/charles-schwab-calls-itself-a-safe-port-in-a-storm-as-it-took-in-b...

Of particular interest is the insider activity mentioned at the bottom: 

"A number of Schwab’s executives and directors have put their money behind the company’s comments, as they have bought a total of nearly $7 million worth of shares over the past week."

https://www.marketwatch.com/story/charles-schwab-ceo-and-other-insiders-scoop-up-nearly-5-million-in...

"Chief Executive Walter Bettinger led the way, purchasing 50,000 shares of Schwab SCHW, -2.54% at a weighted average price of $59.31, according to a filing with the Securities and Exchange Commission from late Tuesday. He paid a total price of $2.97 million."
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jack12
  |     |   307 posts since 2021
I don't have an account at Schwab but I would not be afraid of them- just as I am not afraid of fidelity

If you are afraid of either perhaps you should have all your assets in junk silver coins and underground bunkers
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