Charles Schwab CEO says firm is seeing significant inflows and that he bought the stock Tuesday
Charles Schwab CEO Walt Bettinger told CNBC his firm is seeing asset inflows in significant numbers.
Bettinger revealed he bought 50,000 shares Tuesday morning for his personal account.
The CEO stressed that his firm doesn’t buy long-duration assets and has a low loan-to-deposit ratio.
The fear is that these firms, like Silicon Valley Bank, would need to sell their bond holdings early at large losses in order to cover deposit withdrawals. But Bettinger stressed his firm doesn’t buy long-duration assets and has a low loan-to-deposit ratio.
“What I’ve heard from the advisors that I spoke with yesterday is great confidence in our firm. … They know how conservative we are. They know we don’t take risks,” Bettinger said. “That’s why we don’t go out a long way in terms of duration, and that’s why we maintain access to liquidity in the way that we do.”
“Our bank is very conservatively managed. If you look into the holdings of the bank, we have about 10% of client deposits outstanding in loans,” Bettinger said.