Thread regarding Charles Schwab Corp. layoffs

The inevitability of layoffs

I'm sending out my resumes but in the meantime I'm wondering if these layoffs are really necessary for CS or if they could have been avoided?

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Post ID: @OP+1nZMXqIl

13 replies (most recent on top)

10 billion dollars in paper loses is the reason we are doing layoffs and not investing further into the business until 2025. You didn’t cause it, but you will be impacted while no other major bank had this same impact.

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Post ID: @2toj+1nZMXqIl

Not having to listen to Straight sho-ter's bloviating is reason enough for 100% remote. Imagine that nearby...

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Post ID: @1fjo+1nZMXqIl

@1ruf+1nZMXqIl

Banks typically don’t hedge HTM bonds because the accounting treatment of the bonds doesn’t reflect market value fluctuations, but the rates hedges do. In other words, if you buy 100bn notional swaps on 100bn of HTM bonds, if the value of the bonds change that doesn’t get reflected in the income statement but the value of the swap does. even if the effects of rate moves are being offset, the swaps PnL will flow to the IS but the bonds won’t.

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Post ID: @1cki+1nZMXqIl

@1chg+1nZMXqIl
I think you are in the wrong industry based on your complaints. You are one of those losers who they promoted because they felt bad you have been here for so long and now you think you are smarter than everyone.

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Post ID: @1zgv+1nZMXqIl

1chg+1nZMXqIl

Are you stupid? As a 57, I work my d1-k off from home. Could I go into the office? Yes. My managers faught for it. Our MD declined it.

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Post ID: @1wfd+1nZMXqIl

They really should’ve made all grade 57 and below come in and clock in. Also cut out Scrum Masters, not needed here.

Between RTO attrition and overtime savings along with saving wasted time mentoring and useless delivery of advice they won’t take will be ~$500M. Save WFH for those 58 FTE that can handle the grind of baselining current situations, closing action items quickly and making decisions without asking 20 people for their opinion.

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Post ID: @1chg+1nZMXqIl

@crp+1nZMXqIl wrote:

"Wait….you’re not just just re-typing things you’ve read online are you? Could you explain how to manage duration risk"

How about hedging? Interest rate swaps?
https://www.wsj.com/articles/few-banks-are-hedging-interest-rate-risk-21ed1947

Few US Banks do it because that costs money (like any "insurance") and affect profits, which consequently reduce bonuses for executive who are more than willing to take a gamble.

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Post ID: @1ruf+1nZMXqIl

@crp+1nZMXqIl

Congratulations, this might be the stupidest post I’ve ever read. If only you were around to tell all those professional treasury staff about bond ladders.

Please explain how a ‘bond ladder’ would insulate bond prices from rate increases?

Wait….you’re not just just re-typing things you’ve read online are you? Could you explain how to manage duration risk?

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Post ID: @1dev+1nZMXqIl

I posted @crp+1nZMXqIl below. Want to clarify one thing. When I said number 1, bought TDA, it was not a knock against TDA. I have worked with many outstanding Green colleagues. I was referencing when you merge with another large firm, there will always be redundancy and ultimately cuts.

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Post ID: @1sgw+1nZMXqIl

TD team members throw away money. They spend like no other.

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Post ID: @1bey+1nZMXqIl

TD is helping their bottom line.

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Post ID: @1soe+1nZMXqIl

The type of stuff that happens in a record economy!

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Post ID: @dfh+1nZMXqIl

Could have been avoided if they didn't do the following things:
[1] Buy TD Ameritrade. [2] Buy all those bonds that have unrealized losses on the books - they should have done a bond ladder.

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Post ID: @crp+1nZMXqIl

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