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.
"In the second quarter, people may have been disappointed that we were a couple of billion dollars less than they anticipated. But you're talking about a $9.4 trillion base, a record base in assets," he said."And June was a wonderful month to buy into the market, a lot of our clients did. So their cash went down a little bit more than anticipated because they bought stocks.
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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