Schwab had a bug on their platform that caused double selling and double buying in client cash accounts. Yes, it is a fucked up disaster. And yes, I'm already talking to lawyers so please none of the "lawyer up" shit, I know what I'm doing.
I'm just here to tell you the story.
This bug caused my 401(k) cash account to be out $180k. See my Sunday post last week if you want details: https://www.reddit.com/r/stocks/comments/loffqz/a_bug_in_schwab_caused_my_retirement_account_to/
Forget about my account though. Look at the comments. This was me posting randomly on /r/stocks and without prompting for it, I got over 60 comments that said the same thing happened to them.
Let's figure this out with some (admittedly imprecise) napkin math:
= $156m per day? in what I'm referring to as "a giant ball of shit"
It still does not appear that the markets have priced this event in, yet. At best, Schwab lost some money. At worst, Schwab is actually bankrupt. I (currently) don't think it's very likely that they're bankrupt, but I do believe the markets are mispricing their stock.
Schwab: If you don't want us speculating about how big this ball of shit is, then come out and say exactly how big it is. And tell us where the "fix it" money is coming from. Not client assets, I hope?
Stay tuned for some more traditional DD in the coming days/weeks.
Feel free to read my last Schwab post before I doubled down: https://www.reddit.com/r/wallstreetbets/comments/lpxqzm/a_short_thesis_on_the_charles_schwab_corporation/
TLDR: I hate the stock, I'm buying puts, and Schwab GIVE ME MY FUCKING money back