Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Shakeup May Signal E*Trade's Availability

New chairman could steer struggling brokerage toward buyer

By Jim O'Neill,  Newser User

Posted Mar 3, 2008 10:48 AM CST
Email

(Newser) – E*Trade Financial, stung by mortgage- and mortgage-backed securities market losses, is adding CEO to chairman Donald Layton's duties. The company may be dolling itself up for a possible sale by polishing its tarnished image, the Wall Street Journal reports. Since Layton, 57, became chairman in November, the brokerage has rebounded from a $1.7 billion fourth-quarter loss.

"Their image has been dinged, they've lost some business and now they're faced with having to turn around the company," a trader who recently left E*Trade told Bloomberg. Shares rose slightly on the news but have fallen 13% since November, when Citadel Investment Group pumped $1.75 billion into the near-bankrupt brokerage. Possible purchasers include rivals Ameritrade and Schwab.

E*Trade Financial has named Donald Layton its new CEO.
E*Trade Financial has named Donald Layton its new CEO.   (Getty Images)
E*Trade Financial has names Donald Layton its new CEO in hopes of spurring the firm to better results.
E*Trade Financial has names Donald Layton its new CEO in hopes of spurring the firm to better results.   (Getty Images)
E*Trade Financial has named Donald Layton its new CEO.
E*Trade Financial has named Donald Layton its new CEO.   (Getty Images)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

E*Trade pushes restructuring plan
Associated Press

E*Trade posts $1.7 billion fourth-quarter loss
Associated Press

 
online brokers • Citadel Investment Group • mortgage backed securities • subprime crisis • E*Trade • Donald Layton • TD Ameritrade • Charles Schwab Corp • JPMorgan Chase

More Newser Stories

Day Traders Jump Back Into the Game
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne