Schwab Bank is the worst blunder any CEO has EVER made at Schwab. Dave Pottruck's purchases were nowhere near as bad as this. At least what he bought had SOME value at the end of the day. Schwab Bank's failure attacks the integrity of Schwab itself, brokerage et al.
First off, the steps to start a bank were started way before Bettinger. Second off, what is wrong with owning a profitable bank that has a minimal amount of bad loans, an amount so small that even in a good real estate market most banks would live to have. Schwab is on top of their A game.