Episode 130

full
Published on:

7th Apr 2023

Charles Schwab Goes out for McDonalds and Gets Verified

$47 billion. That's the amount of market capitalization Charles Schwab has had wiped out in just one month. The stock fell 33% between Feb. 28 and March 31. At the end of February, Charles Schwab's shares were trading at around $77.92. A month later, the price fell to $52.38. This is Charles Schwab's worst month since the October 1987 stock market crash, known as Black Monday. That day, the Dow Jones index lost 508 points, a decline of 22.6% and the largest daily decline in a stock market index at the time. Only the drop by 76% of the Icelandic stock market in 2008 would exceed this record.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.


They discuss Federal Reserve data, showing that depositors have removed another $126 billion from U.S. banks during the week ending March 22. The biggest 25 banks lost $90 billion on a seasonally adjusted basis. Smaller banks, which suffered massive withdrawals the previous week as regulators seized regional lenders Silicon Valley Bank and Signature Bank, were able to stabilize their outflows.


Chris and Saied look at a story from Forbes, indicating that more than 136,000 people lost their jobs in major layoffs at U.S. companies over the fiscal quarter ending this week, more than the prior two quarters combined, as tech and manufacturing layoffs, led by Amazon, Google, Meta and Microsoft, surged.


They also offer some thoughts on new housing market data, showing that existing home sales dropped in 12 of the last 13 months and existing home prices peaked last June. The surge of home prices during the height of the pandemic and the jump in mortgage rates since the Federal Reserve began raising interest rates last March dampened home demand.


Join Chris and Saied for this fascinating and informative conversation.


Enjoy!


What You’ll Learn in this Show:

  • Why cash remains king in this economy.
  • How consumers can guage buy or sell opportunities.
  • Why McDonald’s is closing its U.S. corporate offices as it lays off hundreds of workers.
  • Why there's been mostly silence from the National Bureau of Economic Research.
  • And so much more...


Resources:

"Depositors yank another $126 billion from US banks" (article from Yahoo! Finance)

"Charles Schwab Loses $47 Billion in Market Value in One Month" (article from TheStreet)

"136,000 laid off in major US job cuts this quarter - more than prior two quarters combined” (Forbes via Instagram)

"McDonald's temporarily shuts US offices, prepares layoff notices, Wall Street Journal reports" (article from Reuters)

"US Housing Market in Trouble: Moody's Predicts Home Prices Will Fall in 2023 and 2024" (article from TheStreet)

"Instagram sold 44,000,000 blue checks in one day at $15 a check" (DJ Key via Instagram)

"McDonald’s closes corporate offices as it lays off hundreds of workers" (article from CNBC)

Next Episode All Episodes Previous Episode

Listen for free

Show artwork for The Higher Standard

About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your hosts; Chris Naghibi and Saied Omar here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

About your host

Profile picture for Christopher Naghibi

Christopher Naghibi

Christopher M. Naghibi is the host and founder of The Higher Standard podcast — a rapidly growing media platform delivering unfiltered financial literacy, real-world entrepreneurship lessons and economic commentary for the modern era.

After nearly two decades in banking, including his most recent role as Executive Vice President and Chief Operating Officer of First Foundation Bank (NYSE: FFWM), Christopher stepped away from corporate life to build a brand rooted in truth, transparency, and modern money insights. While at First Foundation, he had executive oversight of credit, product development, depository services, retail banking, loan servicing, and commercial operations. His leadership helped scale the bank’s presence in multiple national markets from $0 to over $13 billion.

Christopher is a licensed attorney, real estate broker, and general building contractor (Class B), and he brings a rare blend of legal, operational and real estate expertise to everything he does. His early career spanned diverse lending platforms, including multifamily, commercial, private banking, and middle market lending — holding key roles at Impac Commercial Capital Corporation, U.S. Financial Services & Residential Realty, and First Fidelity Funding.

In addition to his media work, Christopher is the CEO of Black Crown Inc. and Black Crown Law APC, which oversee his private holdings and legal affairs.

He holds a Juris Doctorate from Trinity Law School, an MBA from American Heritage University, and two bachelor degrees. He is also a graduate of the Yale School of Management’s Global Executive Leadership Program.

A published author and sought-after speaker (unless it’s his son’s birthday), Christopher continues to advocate for financial empowerment. He’s worked pro bono with families in need, helped craft affordable housing programs through Habitat for Humanity, and was a founding board member of She Built This City — helping spark interest in construction and trades for women of all ages.