As Silicon Valley Banking boomed and shares of regional banks tumbled earlier this month, investors stepped up scrutiny.
Charles Schwab
—and push the stock down in a spiral. Executives, including founder Chuck Schwab, were quick to act to reassure investors. Shares have rallied again, but at $53 they are down 36% this year and well below their 52-week high of $93.
Wall Street analysts say investors, spooked by liquidity concerns everywhere, overreacted. But there are clear reasons to be cautious about the stock (ticker: SCHW). Rising interest rates and customer cash outflows could have a significant impact on Schwab’s earnings.
