Apple’s cash pile is set to grow even larger by looking after its users’ cash piles too. In partnership with Goldman Sachs, Apple is pushing further into financial services by offering card customers a high yield bank account. There has never been a better reason to get rid of your ugly Samsung (except for maybe that they have been known to explode).

The lowdown

• 🍏 Apple offer 4.15% savings account to Apple device users in further push into finance.

• ✂️ EY will cut 3,000 jobs in the US, a week after abandoning plans to split its business.

• 💸 Regional banks report large deposit outflows last quarter raising funding cost concerns.

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Things may not be as bad as thought at Charles Schwab

The largest broker in the US Charles Schwab has reported a Q1 profit of $1.6 billion ($), which has eased concerns about whether it would be the next SVB.

Schwab adopted a new strategy in 2019 ($). It eliminated trading fees and hoped that the loss of trading fees would be offset by an increase in the number of customers that would keep deposits at the firm. Schwab would then invest client deposits into secure, long-dated bonds and mortgage-backed securities. 

Customers clearly saw similarities with SVB and so deposits fell by $41 billion, or 11%, from the previous quarter. 

The outlook is therefore mixed – profits are healthy, but fewer depositors will mean that funding costs increase. More quarterly swabs will be required to determine the patient’s financial health.

The content we're consuming today

• Forbes: Subway’s Hidden Billions Revealed: How Its Founders Sliced Up A Fortune.

• FT: After the Tupperware party ($).

• Acquired: Short: The Death of Sega.

Off-balance sheet items

• Remember all those VHS tapes that you threw away? Well you could have been sitting on a fortune. Tape collecting is a thing apparently and someone just bought a ‘Rocky’ tape for $27,500 ($).

The bottom line