Charles Schwab shares are on pace for the worst percentage drop on record as investors scramble following the FDIC’s closure of Silicon Valley Bank on Friday, which was followed by the emergency backstop by regulators late Sunday.
The stock dropped over 19% midday, the worst shellacking since November 2020, even as Chief Financial Officer Peter Crawford moved to assure customers and investors the firm is on solid footing. Below are excerpts from the release.
HOW SILICON VALLEY BANK GOT BURNED
S&P 500 financial stocks fell over 4% as contagion jitters spread through the sector. Bank stocks including First Republic, KeyBank, Huntington Bancshares and PacWest were all down more than double-digits.
President Biden in a speech on Monday reassured Americans about the safety of the U.S. banking system.
“During the Obama-Biden administration, we put into place tough requirements on banks, like Silicon Valley Bank and Signature Bank, including the Dodd-Frank law, to make sure the crisis we saw in 2008 would not happen again,” Biden said during his brief, five-minute speech.