Best of the week: Charles Schwab’s headache

It’s been a tough year for Charles Schwab stocks. Stocks plunged in March amid the regional banking crisis and remain at depressed levels. A constant concern among investors is the flow of money from clients of Schwab’s low-yielding cash accounts to more attractive options, a practice known as cash sorting. This hurts the business because these cash accounts are a major source of its revenue. Schwab executives have said the cash crunch should ease this year, but Bank of America analysts are skeptical and recently warned woes could spread into 2024.


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