E-Trade
Company type | Subsidiary |
---|---|
Nasdaq: ETFC | |
Industry | Financial services |
Founded | 1982Palo Alto, California, U.S. | , in
Founders | |
Headquarters | Arlington, Virginia, U.S.[1] |
Key people | Rodger Lawson (chairman) Mike Pizzi (CEO) |
Services | |
Parent | Morgan Stanley |
Website | etrade |
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.[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
- Ajaxo Inc. v. E*Trade Financial Corp.
- Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning, a 2016 Supreme Court case involving naked short-selling claims against E*TRADE, Merrill Lynch, and others, resolved in the defendant's favor.
References
- ^ "Contact Us | E*TRADE". about.etrade.com. Retrieved 30 December 2022.
- ^ "E*TRADE".
- ^ "Sidebar: A Brief History of ETrade". Computerworld. September 27, 2004.
- ^ "E*Trade hits Wall Street". CNET. August 16, 1996.
- ^ Manskar, Noah (October 2, 2020). "Morgan Stanley officially closes all-stock E*Trade takeover deal". New York Post.
- ^ Hoffman, Liz (October 8, 2020). "Morgan Stanley to Buy Eaton Vance for $7 Billion". The Wall Street Journal.
- ^ de la Merced, Michael J.; Kelly, Kate; Flitter, Emily (February 20, 2020). "Morgan Stanley to Buy E-Trade". The New York Times.
- ^ Robinson, Gwen (November 12, 2007). "Subprime mortgage fears batter E-Trade". Financial Times.
- ^ "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.
- ^ Yerak, Becky (November 30, 2007). "Citadel boosts E-Trade stake with $2.5 billion investment". Chicago Tribune.
- ^ Giannone, Joseph A. (March 2, 2008). "E*Trade Chairman Layton adds CEO post". Reuters.
- ^ Spence, John (March 3, 2008). "E-Trade names Donald Layton as chief executive". MarketWatch.
- ^ Craig, Susanne (March 3, 2008). "E*Trade, With Layton as CEO, Might Be Angling for a Sale". The Wall Street Journal.
- ^ "E-Trade names director as chairman, interim CEO". San Diego Union Tribune. Associated Press. December 21, 2009.
- ^ Ellis, Blake (March 22, 2010). "ETrade names former Citigroup exec as CEO". CNN.
- ^ "E*Trade Hires Steven Freiberg As New CEO". The Wall Street Journal. March 22, 2010.
- ^ "E*TRADE Financial Appoints Paul T. Idzik Chief Executive Officer" (Press release). E-Trade Financial. January 17, 2013 – via Business Wire.
- ^ 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.
- ^ 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.
- ^ Buckman, Rebecca (January 12, 2000). "E*Trade Group Wins Approval To Acquire Telebanc Financial". The Wall Street Journal.
- ^ Knight, Jerry (January 26, 2004). "For E-Trade, Courtship Ends Short of Marriage". The Washington Post.
- ^ "ETrade to buy Telebanc Financial". Deseret News. Associated Press. June 1, 1999.
- ^ "E-Trade acquires Web Street". American City Business Journals. May 21, 2001.
- ^ "E-Trade to Buy Web Street for $45 Million". Los Angeles Times. Reuters. May 21, 2001.
- ^ "E-TRADE TO BUY RIVAL BROKERAGE WEB STREET". Ad Age. May 22, 2001.
- ^ "E-Trade to Acquire Rival Brokerage Harrisdirect". Los Angeles Times. August 9, 2005.
- ^ "E-Trade agrees to buy rival HarrisDirect". NBC News. Associated Press. August 8, 2005.
- ^ Perez, Juan Carlos (August 8, 2005). "E-Trade buys online brokerage for $700 million". InfoWorld.
- ^ "E-Trade to acquire BrownCo for $1.6B". American City Business Journals. September 30, 2005.
- ^ Bajaj, Vikas (September 29, 2005). "E*Trade to Buy BrownCo From J.P. Morgan for $1.6 Billion". The New York Times.
- ^ "E-Trade to Acquire BrownCo for $1.6 Billion". Los Angeles Times. September 30, 2005.
- ^ Thurlow, Rebecca (May 16, 2007). "ANZ Bank clears final hurdle in bid to acquire ETrade Australia". MarketWatch.
- ^ Thomas, Denny (August 9, 2007). "ANZ gets controlling stake in E*Trade Australia". Reuters.
- ^ Thurlow, Rebecca (April 24, 2007). "ANZ Increases Offer to Acquire ETrade Australia". The Wall Street Journal.
- ^ Thompson, Sarah; Macdonald, Anthony; Moullakis, Joyce (April 25, 2016). "ANZ Banking Group to re-name E*TRADE Australia". Australian Financial Review.
- ^ "Scotiabank Completes Acquisition of E*TRADE Canada" (Press release). Scotiabank. September 22, 2008.
- ^ "Scotiabank buys E*Trade Canada". CBC News. July 14, 2008.
- ^ Garcia, Tonya (July 25, 2016). "ETrade agrees to acquire OptionsHouse parent for $725 million". MarketWatch.
- ^ Carey, Theresa W. (September 2, 2017). "E*Trade, OptionsHouse Merge Platforms". Barron's.
- ^ "E*TRADE Announces Close of Trust Company of America (TCA) Transaction" (Press release). Business Wire. April 9, 2018.
- ^ "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.
- ^ Orlofsky, Steve (December 9, 2019). "E*Trade buys student loan provider Gradifi for $30 million". Reuters.