E-Trade

Last updated
E*TRADE from Morgan Stanley
Company type Subsidiary
Nasdaq: ETFC
Industry Financial services
Founded1982;42 years ago (1982)
Palo Alto, California, U.S.
Founders
Headquarters Arlington, Virginia, U.S. [1]
Key people
 Rodger Lawson, Chairman
Mike Pizzi, CEO
Services
Parent Morgan Stanley
Website etrade.com
E-Trade Financial Center, San Francisco Etrade financial center market st san francisco.jpg
E-Trade Financial Center, San Francisco

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

Contents

History

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

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. [18]

On August 14, 2019, Michael Pizzi was appointed CEO. [19]

Acquisitions and divestitures

DateAcquisition / DivestitureCompanyRef(s).
January 2000AcquisitionTelebanc [20] [21] [22]
May 2001AcquisitionWeb Street Securities [23] [24] [25]
August 2005AcquisitionHarrisdirect [26] [27] [28]
October 2005AcquisitionBrown & Company [29] [30] [31]
July 2007DivestureAustralian division [32] [33] [34] [35]
September 2008DivestitureCanadian division [36] [37]
September 2016AcquisitionOptionsHouse [18] [38] [39]
April 2018AcquisitionTrust Company of America [40]
December 2019AcquisitionGradifi [41] [42]

See also

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References

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

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