SCHW · CIK 316709
What The Charles Schwab Corporation told the SEC could break it.
Schwab's disclosures cluster on the rate-sensitivity and structure of its banking model. It earns bank deposit account fee revenue from the TD Depository Institutions under the 2023 IDA agreement — revenue presented net of interest paid to clients and sensitive to interest-rate moves and the fixed/floating mix of designated balances. Its liquidity hinges on subsidiaries upstreaming funds: if its broker-dealer or depository-institution units miss regulatory capital or liquidity guidelines, regulators could limit those transfers, constraining Schwab's ability to repay debt and pay dividends. A smaller, low-severity exposure is geographic concentration in California, which held about 16% of client accounts and 41% of the First Mortgage and HELOC portfolios at year-end 2025.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- bank deposit account fee revenue dependent on TD IDA agreement and rate sensitivitymedium
Schwab earns bank deposit account fee revenue from the TD Depository Institutions under the 2023 IDA agreement; this revenue is presented net of interest paid to clients and is sensitive to interest-rate changes and the fixed-/floating-rate composition of designated balances.
“The Company earns bank deposit account fee revenue from the TD Depository Institutions, in accordance with the 2023 IDA agreement. Bank deposit account fee revenue is presented net of interest paid to clients, and other applicable fees, and is affected by changes in interest rates and the composition of balances designated as fixed- and floa”
SEC filing →As of 2026
Liquidity & debt
- regulatory capital/liquidity (LCR) limits on subsidiary dividend upstreamingmedium
If Schwab's broker-dealer or depository-institution subsidiaries fail to meet regulatory capital guidelines or cannot obtain approval to declare dividends, regulators could limit upstreaming of funds to CSC or restrict operations — reducing liquidity and the ability to repay debt and pay dividends.
“if our broker-dealer or depository institution subsidiaries fail to meet regulatory capital guidelines, or if a depository institution subsidiary is unable to obtain regulatory approval, when required, to declare a dividend, regulators could limit the subsidiaries' ability to upstream funds to CSC or limit their operations”
SEC filing →As of 2026
Geographic concentration
- ~16% of client accounts and ~41% of mortgage/HELOC portfolio concentrated in Californialow
Approximately 16% of CS&Co's total client accounts were located in California at year-end 2025, and 41% of the First Mortgage and HELOC portfolios were concentrated in California — geographic concentration in client base and bank-loan collateral.
“At December 31, 2025 and 2024, approximately 16 % of CS&Co's total client accounts were located in California.”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
The Toronto-Dominion Bank (TD Depository Institutions)
“The Company earns bank deposit account fee revenue from the TD Depository Institutions, in accordance with the 2023 IDA agreement.”
Cited →
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