Is TD Ameritrade setting the stage to buy E-Trade?

E-Trade Financial Corp. shares surged late Wednesday after media reports fed speculation that rival online broker TD Ameritrade Holding Corp. could make a bid for the company.
AUG 17, 2011
E-Trade Financial Corp. shares surged late Wednesday after media reports fed speculation that rival online broker TD Ameritrade Holding Corp. could make a bid for the company. Shares of New York-based E-Trade jumped 9 percent to their highest close in a month, tacking on 14 cents to $1.69. Shares had been only modestly higher before reports surfaced that TD Ameritrade CEO Fred Tomczyk said at a conference he would consider a deal with E-Trade. In after hours trading, E-Trade shares added another 2 cents to $1.71, while TD Ameritrade shares slipped 17 cents to $21.09. Kim Hillyer, a spokesperson for TD Ameritrade, confirmed that Tomczyk said he would entertain a deal with E-Trade when asked about that company specifically during a conference, but that his response reflected the company's general view toward M&A. "If there is an opportunity in the marketplace, whether it would be with that firm or another firm, we would consider it if it made sense strategically," Hillyer said. TD Ameritrade has made 10 acquisitions since 2001. The most recent deal closed in June, when the Omaha, Neb.-based firm bought thinkorswim Group Inc. for $606 million. A representative of E-Trade was not immediately available for comment. Earlier Wednesday, E-Trade reported lackluster trading activity for October, but indicated that activity has improved this year overall. E-Trade said daily trading volume fell 22 percent last month compared with October 2008. Volume was down 5 percent from September. The company said daily average revenue trades fell to 194,662, compared with 248,817 in October 2008 and 205,526 in September 2009. But daily average revenue trades were up 9 percent through the first 10 months of this year compared with the same period a year earlier. Total customer assets rose nearly 20 percent to $142.9 billion last month compared with the same month a year ago, reflecting the sharp rebound stock prices have recorded since bottoming out in March. But customer assets last month were down nearly 4 percent from September. E-Trade had more than 2.7 million total brokerage accounts at the end of October, up 6 percent from a year ago, and essentially flat compared with September. Total accounts, which include stock plan and banking accounts as well as brokerage accounts, stood at more than 4.5 million at the end of October, up 2.2 percent from a year ago, and flat from September.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.