Citadel cuts E*Trade stake to under 10%

E*Trade Financial Corp. said Citadel LLC will sell shares of the online brokerage, cutting its stake to less than 10%, after it sold almost 24 million shares less than two months ago.
MAR 22, 2011
E*Trade Financial Corp. said Citadel LLC will sell shares of the online brokerage, cutting its stake to less than 10%, after it sold almost 24 million shares less than two months ago. Citadel, the hedge-fund operator that injected capital to help E*Trade avoid bankruptcy three years ago, plans to sell 27.5 million shares through Morgan Stanley, according to an E*Trade statement today. E*Trade won't receive any proceeds. The offering is set to close on about April 29. The hedge fund will have an almost 10% ownership stake after the sale, according to Susan Hickey, a spokeswoman for E*Trade. Kenneth Griffin, the founder of Chicago-based Citadel, joined E*Trade's board in June 2009. The money manager sold 170 million shares in April 2009, cutting its stake from 33.2%, and announced another 24 million in February, reducing the stake to less than 20%. Shares of the brokerage fell 2.4% to $16.39 at 5:07 p.m. in New York. E*Trade had risen 5% this year, compared with the 0.5% loss by the NYSE Arca Securities Broker/Dealer Index of 11 companies. E*Trade got a $2.55 billion cash infusion from Citadel in November 2007 to help it weather losses from bad loans and shore up its banking unit. The New York-based company on April 20 posted quarterly earnings and sales that exceeded the average analyst estimate and has posted a profit in three of the last four quarters. --Bloomberg News--

Latest News

Ugly fight between Mariner and advisor grows more foul
Ugly fight between Mariner and advisor grows more foul

It’s a ruthless competition for advisors right now, with buyers promising top dollar to advisors willing to sell.

Wealthtech vendors embed AI agents deeper into advisor workflows
Wealthtech vendors embed AI agents deeper into advisor workflows

Vanilla, SS&C and FinTurk are rolling out a mix of agentic and AI-assisted features aimed at planning gaps, client insights, and manual account monitoring.

Carson, Commonwealth veteran joins estate planning firm Hargrove
Carson, Commonwealth veteran joins estate planning firm Hargrove

David Haughton, formerly of Carson Group and Commonwealth Financial Network, takes on VP of engagement role at Hargrove MSO, a subsidiary of Hargrove Firm.

Advisors face fiduciary blind spot as PEP adoption accelerates
Advisors face fiduciary blind spot as PEP adoption accelerates

Retirement plan clients may not grasp what fiduciary duties they keep when joining a PEP.

OnePoint BFG, Modern Wealth expand Florida presence
OnePoint BFG, Modern Wealth expand Florida presence

OnePoint BFG has added a $400 million team from Northwestern Mutual while Modern Wealth scooped a veteran-led team overseeing nearly $710 million in assets.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income