Schwab insiders have been selling. How about fidelity?
Yeh, Schwab 10K discussing the AFS issues they are facing. They also seem to be a lot different company than in 2008.
The Company continued its diligent approach to balance sheet management in 2022, maintaining appropriate capital and
liquidity to support client activity and returning excess capital to stockholders. As market rates rose from near-zero levels at the
beginning of the year, clients allocated a growing portion of their assets to higher yielding cash and fixed income alternatives.
Total balance sheet assets decreased 17% year-over-year to $551.8 billion at December 31, 2022 as a result of these client cash
allocation decisions and unrealized losses on AFS securities, both resulting primarily from higher market interest rates. To
facilitate these client cash movements, we took steps to enhance our liquidity by limiting new portfolio investments to help build
available cash and utilizing short-term funding sources including FHLB advances and retail certificates of deposit.
But at least they are attempting to stop the Mark to Market bleed by moving assets to Held to Maturity. Arranging deck chairs on the Titanic? Not sure...
Return on average common stockholders’ equity grew to 18% in 2022 from 11% in 2021, while return on tangible common
equity (1) (ROTCE) increased to 42% in 2022 compared with 22% in 2021. The increases in both return on average common
stockholders’ equity and ROTCE were due primarily to lower stockholders’ equity and growth in net income. Stockholders’
equity declined in 2022 primarily due to a significant decrease in AOCI, as higher market interest rates resulted in larger
unrealized losses on our AFS investment securities portfolio. In January and November 2022, the Company transferred
$108.8 billion and $79.8 billion, respectively, of investment securities from the AFS category to the held to maturity (HTM)
category (see Capital Management and Item 8 – Note 6)
It is certainly clear they feelin' the heat.....
The Company continued its diligent approach to balance sheet management in 2022, maintaining appropriate capital and
liquidity to support client activity and returning excess capital to stockholders. As market rates rose from near-zero levels at the
beginning of the year, clients allocated a growing portion of their assets to higher yielding cash and fixed income alternatives.
Total balance sheet assets decreased 17% year-over-year to $551.8 billion at December 31, 2022 as a result of these client cash
allocation decisions and unrealized losses on AFS securities, both resulting primarily from higher market interest rates. To
facilitate these client cash movements, we took steps to enhance our liquidity by limiting new portfolio investments to help build
available cash and utilizing short-term funding sources including FHLB advances and retail certificates of deposit.
and Yikes?? And this is probably a wide spread issue...