Mar 17, 2023
Schwab Customers Added $16.5 Billion in Tumultuous Week for Banks
(Bloomberg) -- Charles Schwab Corp. said customers added a net $16.5 billion to its funds in the past five trading days amid a turbulent week for US banks.
Those “strong inflows” reflect Schwab’s financial standing and varied base of more than 34 million customers, the Westlake, Texas-based company said Friday in a statement.
Schwab — which runs brokerage, banking and asset-management businesses — is among financial firms whose shares were roiled by a string of US bank failures. The stock has tumbled more than 15% since March 9.
“Charles Schwab remains a safe port in a storm,” the company said in the statement. “We are confident in our approach and in our ability to help clients through all kinds of economic environments.”
Signs of customers seeking safety abound.
This week, Schwab prime money funds had the biggest redemptions in six months, as customers rotated to government and Treasury funds. A company spokesman said Thursday that clients rotated their holdings between the two types of funds.
Read more: Schwab Clients Shift From Prime Funds to Government Portfolios
--With assistance from Silla Brush.
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