E-Trade

Coordinates: 40°45′36″N 73°58′52″W / 40.760°N 73.981°W / 40.760; -73.981
Source: Wikipedia, the free encyclopedia.
This article is about the financial services company. For electronic trading, see
Trade Street
.
E-Trade Financial Corporation
Morgan Stanley
Websiteetrade.com
E-Trade Financial Center, San Francisco

E-Trade Financial Corporation (stylized as E*TRADE), a subsidiary of

interest income on margin balances, commissions for order execution, payment for order flow
, and management services.

History

E-Trade logo from February 3, 2008 to December 31, 2021.

In 1982,

Compuserve. In 1994, its revenues neared $11 million, up from $850,000 in 1992.[2]

By June 30, 1996, the company had 73,000 accounts and processed 8,000 daily trades, with quarterly revenue of $15 million.[3]

On August 16, 1996, the company became a public company via an initial public offering.[4]

In 2000, the company acquired Telebanc.[5][6][7]

In May 2001, the company acquired Web Street Securities for $45 million in stock.[8][9]

In January 2004, Toronto-Dominion Bank held talks to merge its TD Waterhouse discount brokerage with E-Trade, but the two sides still needed to agree on control of the merged entity.[10] TD Waterhouse instead merged with Ameritrade to form TD Ameritrade.[11] After the merger, E-Trade continued talks to merge with TD Ameritrade, but the two sides could not agree on price and governance rights.[12]

2001 MetroCard advertisement for DLJdirect (later known as Harrisdirect prior to acquisition by E-Trade)

In August 2005, the company acquired Harrisdirect (known under previous owners as DLJdirect and CSFBdirect) from Bank of Montreal. Two months later, E-Trade acquired Brown & Company (aka BrownCo) from JPMorgan Chase for $1.6 billion in cash.[13]

In July 2007, E-Trade Australia, which was a separately operated company owned by 6% of the company, was purchased by

ANZ Bank for $432 million.[14]

E-Trade suffered losses in the

subprime mortgages, collateralized debt obligations (CDOs) and second lien loans, as well as 12.5% senior unsecured notes and 84,687,686 shares of common stock (equal to 19.99% of the then-currently outstanding shares). This resulted in a net $2.2 billion reduction in assets on the company's balance sheet. Citadel received a seat on the board of directors of the company and Mitch Caplan resigned as CEO.[16][17]

In November 2007, the company revoked the brand name license from SBI E-Trade Securities in Japan.[18]

In March 2008, E-Trade named Donald Layton, formerly JPMorgan Chase vice chairman, its new CEO. Layton had joined E-Trade's board of directors in November 2007, at the same time as the Citadel LLC deal.[19][20]

In September 2008, the company sold its Canadian division to Scotiabank for CA$444 million.[21][22]

In December 2009, Robert Druskin, a former chief operating officer of Citigroup, was named interim CEO and chairman.[23]

On March 22, 2010, Steven Freiberg was named CEO. Freiberg was the former co-CEO of Citigroup's global consumer group and the former head of its credit card unit.[24]

On January 17, 2013, Paul T. Idzik was appointed CEO. Idzik had previously been group chief executive of DTZ and also served ten years at Barclays bank.[25]

On September 12, 2016, E-Trade acquired OptionsHouse for $725 million, and later that month, Karl A. Roessner, E-Trade's general counsel since 2009, was appointed CEO.[26]

On October 19, 2017, E*TRADE acquired RIA custodial services company Trust Company of America.[27]

On August 14, 2019, Michael Pizzi was appointed CEO.[28]

On December 9, 2019, E-Trade acquired student loan benefits provider Gradifi.[29][30]

In October 2020, the company was acquired by Morgan Stanley.[31][32] E-Trade offers services to people who can and want to invest but do not have sufficient assets to outsource their wealth management. E-Trade has over five million clients with total assets of US$360 billion. Morgan Stanley hopes this will attract new clients who will eventually be able to take Morgan Stanley's services any further; it will gain better access to electronic trading platforms.[33]

See also

References

  1. ^ "Contact Us | E*TRADE". about.etrade.com. Retrieved 30 December 2022.
  2. ^ "History of E*Trade Financial Corporation". Funding Universe.
  3. ^ "E*Trade Financial Corporation Prospectus". E*Trade Financial. August 16, 1996.
  4. ^ "E*Trade hits Wall Street". CNET. August 16, 1996.
  5. ^ Buckman, Rebecca (January 12, 2000). "E*Trade Group Wins Approval To Acquire Telebanc Financial". The Wall Street Journal.
  6. ^ Knight, Jerry (January 26, 2004). "For E-Trade, Courtship Ends Short of Marriage". The Washington Post.
  7. ^ "ETrade to buy Telebanc Financial". Deseret News. Associated Press. Jun 1, 1999.
  8. ^ "E-Trade acquires Web Street". American City Business Journals. May 21, 2001.
  9. ^ "E-Trade to Buy Web Street for $45 Million". Los Angeles Times. Reuters. May 21, 2001.
  10. ^ Valdmanis, Thor (January 14, 2004). "TD Waterhouse, E-Trade talk merger". USA Today.
  11. ^ Austen, Ian (June 23, 2005). "TD Waterhouse USA Is Sold to Ameritrade". The New York Times.
  12. ^ Goldstein, Steve (August 22, 2007). "E-Trade and TD Ameritrade have discussed merger". MarketWatch.
  13. ^ "E-Trade to acquire BrownCo for $1.6B". American City Business Journals. September 30, 2005.
  14. ^ Thurlow, Rebecca (May 16, 2007). "ANZ Bank clears final hurdle in bid to acquire ETrade Australia". MarketWatch.
  15. ^ Robinson, Gwen (2007-11-12). "Subprime mortgage fears batter E-Trade". Financial Times. Retrieved 30 December 2022.
  16. ^ "E*TRADE Financial Announces $2.5 Billion Investment Led by Citadel" (Press release). E-Trade Financial. November 29, 2007 – via U.S. Securities and Exchange Commission.
  17. ^ Yerak, Becky (November 30, 2007). "Citadel boosts E-Trade stake with $2.5 billion investment". Chicago Tribune.
  18. ^ "E*TRADE Financial and SBI E*TRADE Announce Termination of Branding Agreement in Japan" (Press release). E-Trade Financial. November 9, 2007 – via Business Wire.
  19. ^ "E*TRADE Financial Appoints Chairman Donald H. Layton Chief Executive Officer" (Press release). E-Trade Financial. March 3, 2008 – via Business Wire.
  20. ^ "E*Trade Chairman Layton adds CEO post". Reuters. March 2, 2008.
  21. ^ "Scotiabank Completes Acquisition of E*TRADE Canada" (Press release). Scotiabank. September 22, 2008.
  22. ^ "Scotiabank buys E*Trade Canada". CBC News. July 14, 2008.
  23. San Diego Union Tribune. Associated Press
    . December 21, 2009.
  24. ^ "E*TRADE Financial Appoints Steven Freiberg Chief Executive Officer" (Press release). E-Trade Financial. March 22, 2010 – via Business Wire.
  25. ^ "E*TRADE Financial Appoints Paul T. Idzik Chief Executive Officer" (Press release). E-Trade Financial. January 17, 2013 – via Business Wire.
  26. ^ "E*TRADE Financial Corporation Announces Leadership Transition with Close of OptionsHouse Transaction" (Press release). E-Trade Financial. September 12, 2016 – via Business Wire.
  27. ^ "E*TRADE Financial Corporation Announces Third Quarter 2017 Results" (Press release). E-Trade Financial. October 19, 2017 – via Business Wire.
  28. ^ "E*TRADE Announces the Appointment of COO Mike Pizzi to CEO". MarketWatch (Press release). August 14, 2019. Archived from the original on 2020-02-21. Retrieved 2020-01-22.
  29. ^ "E*TRADE Bolsters Corporate Services Capabilities Through Purchase of Pioneering Student Loan Benefit Provider Gradifi" (Press release). E-Trade Financial. December 9, 2019 – via Business Wire.
  30. ^ Orlofsky, Steve (December 9, 2019). "E*Trade buys student loan provider Gradifi for $30 million". Reuters.
  31. ^ Manskar, Noah (October 2, 2020). "Morgan Stanley officially closes all-stock E*Trade takeover deal". New York Post.
  32. ^ Hoffman, Liz (8 October 2020). "Morgan Stanley to Buy Eaton Vance for $7 Billion". The Wall Street Journal.
  33. ^ "Morgan Stanley to Buy E-Trade". The New York Times. 20 February 2020. Retrieved March 26, 2020.

External links

40°45′36″N 73°58′52″W / 40.760°N 73.981°W / 40.760; -73.981

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