E-Trade Explained

E*TRADE from Morgan Stanley
Type:Subsidiary
Traded As:NASDAQ:
Industry:Financial services
Founded:
Palo Alto, California, U.S.
Hq Location:Arlington, Virginia, U.S.[1]
Key People:Rodger Lawson, Chairman
Mike Pizzi, CEO
Parent:Morgan Stanley

E*TRADE from Morgan Stanley,[2] a subsidiary of Morgan Stanley, offers an electronic trading platform to trade financial assets.

History

In 1982, physicist William A. Porter and Bernard A. Newcomb founded TradePlus in Palo Alto, California, with $15,000 in capital. In 1983, it launched its first trade via a Compuserve network. In 1992, Porter and Newcomb founded E-Trade and made electronic trading available to individual investors.[3]

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

In October 2020, the company was acquired by Morgan Stanley.[5] [6] [7]

Management history

In November 2007, Mitch Caplan resigned as CEO and Citadel LLC received a seat on the board of directors of the company after Citadel invested $2.5 billion in the company to bolster its finances after it suffered losses due to the bursting of the 2000s United States housing bubble.[8] [9] [10]

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.[11] [12] [13]

In December 2009, Robert Druskin, a former chief operating officer of Citigroup, was named interim CEO and chairman.[14]

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.[15] [16]

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.[17]

In September 2016, Karl A. Roessner, E-Trade's general counsel since 2009, was appointed CEO.

On August 14, 2019, Michael Pizzi was appointed CEO.[18]

Acquisitions and divestitures

DateAcquisition / DivestitureCompanyRef(s).
AcquisitionTelebanc[19] [20] [21]
AcquisitionWeb Street Securities[22] [23] [24]
AcquisitionHarrisdirect[25] [26] [27]
AcquisitionBrown & Company[28] [29] [30]
DivestureAustralian division[31] [32] [33] [34]
DivestitureCanadian division[35] [36]
AcquisitionOptionsHouse[37] [38] [39]
AcquisitionTrust Company of America[40]
AcquisitionGradifi[41] [42]

See also

Notes and References

  1. Web site: Contact Us | E*TRADE. about.etrade.com. 30 December 2022.
  2. Web site: E*TRADE.
  3. News: Sidebar: A Brief History of ETrade . . September 27, 2004.
  4. News: E*Trade hits Wall Street . . August 16, 1996.
  5. News: Morgan Stanley officially closes all-stock E*Trade takeover deal . Noah . Manskar . . October 2, 2020.
  6. News: Hoffman . Liz . Morgan Stanley to Buy Eaton Vance for $7 Billion . . October 8, 2020 . subscription.
  7. News: Morgan Stanley to Buy E-Trade . Michael J. . de la Merced . Kate . Kelly . Emily . Flitter . . February 20, 2020 . limited.
  8. News: Robinson . Gwen . Subprime mortgage fears batter E-Trade . . November 12, 2007 . subscription.
  9. E*TRADE Financial Announces $2.5 Billion Investment Led by Citadel . E-Trade Financial . . November 29, 2007.
  10. News: Citadel boosts E-Trade stake with $2.5 billion investment . Becky . Yerak . . November 30, 2007.
  11. News: E*Trade Chairman Layton adds CEO post . Joseph A. . Giannone . . March 2, 2008.
  12. News: E-Trade names Donald Layton as chief executive . John . Spence . . March 3, 2008.
  13. News: E*Trade, With Layton as CEO, Might Be Angling for a Sale . Susanne . Craig . . March 3, 2008 . subscription.
  14. News: E-Trade names director as chairman, interim CEO . . . December 21, 2009.
  15. News: ETrade names former Citigroup exec as CEO . Blake . Ellis . . March 22, 2010.
  16. News: E*Trade Hires Steven Freiberg As New CEO . . March 22, 2010 . subscription.
  17. E*TRADE Financial Appoints Paul T. Idzik Chief Executive Officer . E-Trade Financial . . January 17, 2013.
  18. News: Here are the latest executive power moves that help explain everything that's going on at E*Trade, Rite Aid, and Yum! Brands . Christian . Wylonis . . August 19, 2019.
  19. News: E*Trade Group Wins Approval To Acquire Telebanc Financial . Rebecca . Buckman . . January 12, 2000 . subscription.
  20. News: For E-Trade, Courtship Ends Short of Marriage . Jerry . Knight . . January 26, 2004.
  21. News: ETrade to buy Telebanc Financial . . . June 1, 1999.
  22. News: E-Trade acquires Web Street . . May 21, 2001 . subscription.
  23. News: E-Trade to Buy Web Street for $45 Million . . . May 21, 2001 . subscription.
  24. News: E-TRADE TO BUY RIVAL BROKERAGE WEB STREET . . May 22, 2001 . subscription.
  25. News: E-Trade to Acquire Rival Brokerage Harrisdirect . . August 9, 2005 . subscription.
  26. News: E-Trade agrees to buy rival HarrisDirect . . . August 8, 2005.
  27. News: E-Trade buys online brokerage for $700 million . Juan Carlos . Perez . . August 8, 2005.
  28. News: E-Trade to acquire BrownCo for $1.6B . American City Business Journals. September 30, 2005 . subscription.
  29. News: E*Trade to Buy BrownCo From J.P. Morgan for $1.6 Billion . Vikas . Bajaj . . September 29, 2005 . limited.
  30. News: E-Trade to Acquire BrownCo for $1.6 Billion . . September 30, 2005 . subscription.
  31. News: ANZ Bank clears final hurdle in bid to acquire ETrade Australia . Rebecca . Thurlow . . May 16, 2007.
  32. News: ANZ gets controlling stake in E*Trade Australia . Denny . Thomas . . August 9, 2007.
  33. News: ANZ Increases Offer to Acquire ETrade Australia . Rebecca . Thurlow . . April 24, 2007 . subscription.
  34. News: ANZ Banking Group to re-name E*TRADE Australia . Sarah . Thompson . Anthony . Macdonald . Joyce . Moullakis . . April 25, 2016 . subscription.
  35. Scotiabank Completes Acquisition of E*TRADE Canada . . September 22, 2008.
  36. News: Scotiabank buys E*Trade Canada . . July 14, 2008.
  37. E*TRADE Financial Corporation Announces Leadership Transition with Close of OptionsHouse Transaction . E-Trade Financial . . September 12, 2016.
  38. News: ETrade agrees to acquire OptionsHouse parent for $725 million . Tonya . Garcia . . July 25, 2016.
  39. News: E*Trade, OptionsHouse Merge Platforms . Theresa W. . Carey . . September 2, 2017 . subscription.
  40. E*TRADE Announces Close of Trust Company of America (TCA) Transaction . . April 9, 2018.
  41. E*TRADE Bolsters Corporate Services Capabilities Through Purchase of Pioneering Student Loan Benefit Provider Gradifi . E-Trade Financial . . December 9, 2019.
  42. News: E*Trade buys student loan provider Gradifi for $30 million . Steve . Orlofsky . . December 9, 2019.

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