Dry-Volume-2189 t1_jdoavb3 wrote on March 25, 2023 at 10:21 PM

Schwab disclosed that they are currently experiencing MASSIVE new money inflows, in excess of 2B per day of new money... and has been for over a month.

So, all that money running away from small and mid-size banks has to go somewhere. I guess a substantial amount of it is running over to Schwab and investing through them.

How do you think all these new investment customers will affect Schwab's bottom line and earnings in Q1? Anyone else see a huge earnings beat coming?

mrnotadvice OP t1_jdobugo wrote on March 25, 2023 at 10:29 PM

In terms of direct revenues not much. However, remember every clearing firm can loan out and borrow against customers securities. With 7 trillion in customer assets even an inflow of 100b wouldn’t initially move earnings. The way I look at it is that Schwab just saved a shit ton in marketing and has tons of new clients to sell the rest of their products too. Down the road it should produce gains.