Charles Schwab shares drop 12% even as the firm defends financial position

Charles Schwab shares fell on Monday even as the financial institution defended its portfolio, easing fears of a banking crisis in the aftermath of tech-focused Silicon Valley Bank’s and crypto-related Signature Ban’s collapses.

The Westlake, Texas-based financial company closed the session 11.6% lower after dropping as much as 23.3% earlier. The stock was at one point on track for its worst one-day sell-off ever.

Schwab was taking hits along with other financial firms with massive bond holdings of longer maturities. The fear is that these firms, like Silicon Valley Bank, would need to sell these holdings early at large losses in order to cover deposit withdrawals. But Schwab in its update sought to reiterate that it has plenty of access to liquidity and a low loan-to-deposit ratio.