Elayne Boosler: Charles Schwab Greedy
on Tuesday, March 28, 2017Elayne Boosler Money Quote saying Charles Schwab took investment money labeled as “safe” to invest in risky mortgages, lost it and paid investors only a dime on the dollar. Elayne Boosler said:
“Schwab took the money entrusted to it by people willing to accept very little, to protect their savings, and used it to buy high-risk junk mortgages to enrich itself on the back end. We weren’t greedy. Charles Schwab was” — Elayne Boosler
Elayne Boosler seems to be criticizing investment firm Charles Schwab for misusing customers’ savings that were entrusted to the company. She argues that Schwab took the money from customers who were content with modest returns in exchange for protection of their savings.
However, Schwab invested these funds recklessly by using them to purchase high-risk mortgage-backed securities, prioritizing profits for itself rather than maintaining the safety of customers’ money as expected.
Boosler implies Schwab’s greed and risky bets caused harm, while customers had reasonable expectations that their savings would remain secure. Overall, her remarks portray Schwab’s actions as a betrayal of customers’ trust for unjust enrichment.