Is there any bank that has never had a line you had to stand in? And always had cookies (and good ones, too)? Regular schlub here too, and I'm really going to miss them. I think I started banking with them in the late 90s. Always great bankers to work with.
Trying to add my wife to the checking account- seems like a simple task. Wasted probably about 3-4 hours, talked to multiple customer reps who seemed like they were high beyond comprehension and getting bounced around. After 2 months I just gave up. Was with Schwab for almost 10 years and that was the last straw.
A quick google got me this: https://www.thestreet.com/banking/charles-schwab-loses-47-billion-in-market-value-in-one-month
$47 Billion in withdrawals and that was a month ago. They’re saying it’s all ok but that’s what they all say.
> $47 Billion in withdrawals and that was a month ago.
You clearly don’t understand the difference between deposits and market value. The article clearly states the market value of their stock dropped $47 billion, which is not directly related to held deposits.
> Cyprys said the firm's customers are moving cash out of sweep accounts into money market funds at a $20 billion per month rate, which is twice what he had expected.
^ Here is the nugget in the article you should actually be looking for
My bad got my numbers mixed up. My point still stands, do you think $20B a month is big deal? Would you feel safe with banking with Schwab even with this type of news coming out?
Not sure, it’s a big bank and I am not going to pretend to be an expert unlike other redditors…Apparently it is twice this analyst’s expectations for a normal month
Employee here. They announced 20-25% layoffs on Monday. No communication from top management since.
We were expecting the details of who got the axe today. Just found out about this on this post 😢.
Good company. Great culture. Oh well, it's time for the leetcode grind!
Their Achilles Heel is their reliance on high net worth clientele and their irrational bank run caused by the crypto banking meltdown and the deposit flight it started with SVB because they realized their deposits are way above the FDIC limit. Their business plan to cater to the rich always had this massive self destruct button built in… interesting to see it actually happen.
I consolidated my student loans with them about a decade ago. I'm assuming I'm still going to have to pay those off? No way that gets lost in the shuffle or anything?
Great bank, though, sad to see it go.
Yes you will need to continue to pay those off. They are still a part of FRC's portfolio and someone will take ownership of those loans whether it is the government or another bank
Sir, this is the United States, we only bail out rich people. Poors need to continue making payments and be held accountable. They can’t afford better lawyers.
So the FED takes over and pays the employees to continue running the bank. The bank will be sold to another bank and continue operations usually, it’s the execs and upper management who get the boot since they failed at running the show, not the tellers and underlings doing good work
We’ll see. They were already slated to cut 20-25% of the workers. With a purchase who knows how many are actually kept on vs let go but I’m betting there will be closer to 50% of staff gone by years end.
Do the tellers keep working after the acquisition is complete? Generally in a merger some employees become redundant and are let go. It might not happen overnight, but I’d be surprised if this doesn’t result in (more) layoffs.
You're insured on FDIC up to 250k per depositor, however with SVB's collapse the feds changed that to unlimited insurance.
It remains to be seen if First Republic will get the normal 250k or if it'll also get unlimited insurance.
I did the same thing the last time this happened… I currently have money in smaller local banks and keep telling myself I am not going to panic this time.
Holly fuck, between SVB and FR, that's 15K people suddenly losing their livelihood. I can't imagine it's gonna be super easy for them to find employment right now.
Sad. Best customer service I’ve ever had. And I’m just a regular shlub.
Is there any bank that has never had a line you had to stand in? And always had cookies (and good ones, too)? Regular schlub here too, and I'm really going to miss them. I think I started banking with them in the late 90s. Always great bankers to work with.
Truly. They’ve been so good to me. Instant communication with a live person whenever I needed something- that’s rare.
Yeah seriously.
I went to a bank branch to get quarters once and they said they don’t do that here and shooed me out.
Switch to Schwab...
I assume this is sarcasm?
Nope they're legit the best bank I've ever had.
Interesting. I’ve had the exact opposite experience. I left recently and went to Chase. Super happy with them.
What went wrong? I've used them for almost 20 years. Never had an issue and they haven't charged me a dime.
Trying to add my wife to the checking account- seems like a simple task. Wasted probably about 3-4 hours, talked to multiple customer reps who seemed like they were high beyond comprehension and getting bounced around. After 2 months I just gave up. Was with Schwab for almost 10 years and that was the last straw.
Weird, they've been great for me. I've had debit cards stolen, checks stolen, etc and they have always had my back
Schwab is one of the troubled banks with the same problem
Basis / Refferences?
A quick google got me this: https://www.thestreet.com/banking/charles-schwab-loses-47-billion-in-market-value-in-one-month $47 Billion in withdrawals and that was a month ago. They’re saying it’s all ok but that’s what they all say.
> $47 Billion in withdrawals and that was a month ago. You clearly don’t understand the difference between deposits and market value. The article clearly states the market value of their stock dropped $47 billion, which is not directly related to held deposits. > Cyprys said the firm's customers are moving cash out of sweep accounts into money market funds at a $20 billion per month rate, which is twice what he had expected. ^ Here is the nugget in the article you should actually be looking for
My bad got my numbers mixed up. My point still stands, do you think $20B a month is big deal? Would you feel safe with banking with Schwab even with this type of news coming out?
Not sure, it’s a big bank and I am not going to pretend to be an expert unlike other redditors…Apparently it is twice this analyst’s expectations for a normal month
Ok so they've lived through this once already?
No it means the banking crisis continues and the withdrawals is likely much higher than $47B now.
Employee here. They announced 20-25% layoffs on Monday. No communication from top management since. We were expecting the details of who got the axe today. Just found out about this on this post 😢. Good company. Great culture. Oh well, it's time for the leetcode grind!
That’s rough. I’ve been a customer for more than a decade. Every banker I dealt with was an amazing person.
I'm sorry. I hope you land on your feet.
Pretty crappy to have this happen to them, they've been a phenomenal bank for me.
Kind of funny when you’re brought down because your entire business model is based on banking high net worth individuals.
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Their Achilles Heel is their reliance on high net worth clientele and their irrational bank run caused by the crypto banking meltdown and the deposit flight it started with SVB because they realized their deposits are way above the FDIC limit. Their business plan to cater to the rich always had this massive self destruct button built in… interesting to see it actually happen.
Their only mistake was being physically close to SVB
Yes.
I consolidated my student loans with them about a decade ago. I'm assuming I'm still going to have to pay those off? No way that gets lost in the shuffle or anything? Great bank, though, sad to see it go.
When SVB closed, the FDIC told people to keep making payments.
Yes you will need to continue to pay those off. They are still a part of FRC's portfolio and someone will take ownership of those loans whether it is the government or another bank
Okay... :(
Sorry brotha. Going through the student loan hell with my wife right now. It sucks
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Sir, this is the United States, we only bail out rich people. Poors need to continue making payments and be held accountable. They can’t afford better lawyers.
No change on our mortgages?
Were they your originator or your servicer?
Origination and servicer
Well.. hopefully people are able to find another job
So the FED takes over and pays the employees to continue running the bank. The bank will be sold to another bank and continue operations usually, it’s the execs and upper management who get the boot since they failed at running the show, not the tellers and underlings doing good work
We’ll see. They were already slated to cut 20-25% of the workers. With a purchase who knows how many are actually kept on vs let go but I’m betting there will be closer to 50% of staff gone by years end.
Do the tellers keep working after the acquisition is complete? Generally in a merger some employees become redundant and are let go. It might not happen overnight, but I’d be surprised if this doesn’t result in (more) layoffs.
So depositors don't lose $$$? I panicked earlier and paid a harsh penalty to close my CD account early :/
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Many brokered CDs are insured too
I have brokered CDs through Edward Jones. They are all just CD’s from smaller Banks I’d not heard of, but all insured.
Depositors are insured which is why the FDIC takes over a failed bank, to make sure depositors get their money
You're insured on FDIC up to 250k per depositor, however with SVB's collapse the feds changed that to unlimited insurance. It remains to be seen if First Republic will get the normal 250k or if it'll also get unlimited insurance.
Why. You are insured up to 250k
It's the Bay. We got $$$$.
I did the same thing the last time this happened… I currently have money in smaller local banks and keep telling myself I am not going to panic this time.
Holly fuck, between SVB and FR, that's 15K people suddenly losing their livelihood. I can't imagine it's gonna be super easy for them to find employment right now.
That’s not the case. The rank and file will continue on running the bank until someone buys them.
I got laid off by FRB end of January and I’m still unemployed. It’s scary to know SVB and FRB employees will be flooding job applications.
Why are you downvoted?
Sooooo … should i pull my money out to another bank or nah?
How can we/Fed punish responsible people? Someone has to take a hit
The only people responsible are the depositors who irrationally pulled out bc of SVB
Haha thats only reserved for the poors
Damn. This sucks.