Why Shares of Charles Schwab Got Crushed in March
Shares of the massive brokerage and multinational financial services firm Charles Schwab (NYSE: SCHW) plummeted by nearly 33% between Feb. 28 and March 31, according to data provided by S&P Global Market Intelligence.
Schwab has been reeling, like many stocks in the banking sector, after three U.S. banks collapsed in March and Credit Suisse was forced into an acquisition by regulators.
The big reason that all of these banks failed is that they had lots of uninsured deposits, experienced massive deposit outflows, and then had to sell large chunks of their underwater bond portfolios that have been crushed by rising interest rates.
Source Fool.com
