E-Trade

This article is about the financial services company. For electronic trading, see Electronic trading platform. For East Trade Street in Charlotte, North Carolina, see Trade Street.
E*TRADE from Morgan Stanley
Company typeSubsidiary
Nasdaq: ETFC
IndustryFinancial services
Founded1982; 43 years ago (1982), in Palo Alto, California, U.S.
Founders
HeadquartersArlington, Virginia, U.S.[1]
Key people
Rodger Lawson (chairman)
Mike Pizzi (CEO)
Services
ParentMorgan Stanley
Websiteetrade.com
E-Trade Financial Center, San Francisco

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

History

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] 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.[18]

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

Acquisitions and divestitures

Date Acquisition / Divestiture Company Ref(s).
January 2000 Acquisition Telebanc [20][21][22]
May 2001 Acquisition Web Street Securities [23][24][25]
August 2005 Acquisition Harrisdirect [26][27][28]
October 2005 Acquisition Brown & Company [29][30][31]
July 2007 Divesture Australian division [32][33][34][35]
September 2008 Divestiture Canadian division [36][37]
September 2016 Acquisition OptionsHouse [18][38][39]
April 2018 Acquisition Trust Company of America [40]
December 2019 Acquisition Gradifi [41][42]

See also

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. ^ a b "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.

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