- Billionaire Charles Schwab’s net worth has fallen by about $3 billion since March 8.
- Shares of Charles Schwab plummeted after the Silicon Valley Bank collapsed.
- Investors are worried because Charles Schwab has large unrealized losses on its fixed income assets.
Billionaire Charles Schwab’s fortune took a heavy hit after the stock of the company he founded with the same name plummeted amid the banking crisis.
Shares of savings and loan holding company Charles Schwab Co closed 11.6% lower at $51.91 on Monday, down nearly 38% so far this year.
as a founder Schwab Much of his fortune is tied to a 6% stake in the company, and the billionaire has taken $2.9 billion out of his fortune since March 8, when the Silicon Valley Bank (SVB) situation began to unravel. I’ve seen it lost. Bloomberg.
The 183rd richest person in the world, the 85-year-old tycoon is now worth nearly $10 billion after losing 26% of his fortune so far this year. Bloomberg Billionaires Index.
Schwab’s loss as of March 14 means that his fortune has declined the most of any U.S. billionaire so far this year. He leads the loss behind Indian billionaires Gautam Adani and Mukesh Ambani. US short selling attack About Adani’s business empire.
Investors worry about huge unrealized bank losses
Since the SVB crash, investors have become increasingly concerned about the huge unrealized losses banks have in their bond portfolios.
Charles Schwab Corp, best known for its discount brokerage business, banking and loan services.
posted by the bank Combined unrealized losses of approximately $28 billion As of December 31, across the held-to-maturity and available-for-sale bond portfolios: 10-K filings per yearThis is because investors fear that Charles Schwab Corp could follow in the footsteps of SVB if forced to sell its bonds at a loss.
Charles Schwab Corp even tried to ease investor fears. statement on Monday, It says it has enough liquidity to weather the volatility.
CEO Peter Crawford said in a statement that the company has approximately $100 billion in cash flow and more than $300 billion in additional capacity from the Federal Home Loan Bank and other short-term facilities. It said it had access to “substantial liquidity.”
“Given the significant access to other sources of liquidity, it is highly unlikely that we will need to sell before maturity,” Crawford added.
In addition, more than 80% of bank deposits are covered by the Federal Deposit Insurance Corporation insurance limits. — This is $250,000 By Depositor, By Insured Bank, By Account Ownership Category — he added.
Company added to statement on monday At the end of February, it had $7.38 trillion in customer assets and 1.7 million bank accounts.
Shares of Charles Schwab rallied 3.4% in after-hours trading on Monday.
Charles Schwab Corp did not immediately respond to an Insider’s request for comment sent outside of normal business hours.
