E-Trade Explained

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

E*TRADE[2] is an investment brokerage and electronic trading platform that operates as a subsidary of Morgan Stanley.

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] The company figured prominently in the dot-com boom, as both a way to speculate in internet stocks and an internet stock itself.

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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