Charles Schwab CEO defends business as shares tank after earnings

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In a Thursday interview with CNBC’s Jim Cramer, Charles Schwab CEO Walt Bettinger pushed back against negative sentiment on Wall Street about his company.

In a Thursday interview with CNBC's Jim Cramer, Charles Schwab CEO Walt Bettinger pushed back against negative sentiment on Wall Street about his company.

Schwab saw shares decline this week after certain metrics in its banking business fell short of expectations during the recent quarter.CEO Walt Bettinger pushed back against negative sentiment on Wall Street about his company, which saw shares plummet this week after certain metrics in its banking business fell short of expectations during the recent quarter.But Bettinger suggested that cash shorting is not a significant issue.

According to Bettinger, there is"confusion" about when customers use Schwab as a fiduciary and when they use Schwab to make"self-directed" investments. As an investment advisor, Bettinger said Schwab ensures that their clients' cash goes into a high-yielding money market fund. But when money management is"self-directed," investments are"completely up to the client," he said.

 

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