E-Trade Financial Corporation (styled as E * TRADE ) is a financial services company held in Delaware and headquartered in New York City. The company provides services to individuals and institutions that invest online. The company offers an electronic trading platform for the purchase and sale of financial securities including common stock, preferred stock, futures contracts, exchange-traded funds, options, mutual funds, and fixed income investments. It also provides margin loans, online banking, and cash management services.
Video E-Trade
History
In 1982, William A. Porter and Bernard A. Newcomb founded TradePlus in Palo Alto, California, with a capital of $ 15,000. In 1991, Porter and Newcomb founded a new company, E-Trade Securities, Inc., with several hundred thousand dollars of initial capital from TradePlus. E * Trade offers its trading services through America Online and Compuserve. In 1994, revenues were close to $ 11 million, up from $ 850,000 in 1992.
As of June 30, 1996, the company had 73,000 customers and processed 8,000 trades per day, with quarterly revenues of $ 15 million.
On August 16, 1996, the company became a public company through an initial public offering.
In May 2001, the company acquired Web Street Securities, a publicly traded online brokerage firm, for $ 45 million. Web Street has offices in Beverly Hills, Boston, Denver, and San Francisco.
In January 2004, Toronto-Dominion Bank held talks to merge its TD Waterhouse discount brokerage with E * Trade, but neither side was able to reach an agreement on the control of the incorporated entity. TD Waterhouse instead merged with Ameritrade to form TD Ameritrade. After the merger, E * Trade resumed talks to join TD Ameritrade but the two sides could not agree on prices and management rights.
In August 2005, E * Trade Financial acquired Harrisdirect, formerly a Bank of Montreal discount brokerage service. Two months later, E * Trade acquired Brown & amp; The company (aka BrownCo), was previously a discount brokerage service from JPMorgan Chase, for $ 1.6 billion in cash.
Divestment of 2007 subprime portfolio
In July 2007, Etrade Australia, which is a 6% independent operated company by E * Trade Financial, was purchased by Australian ANZ Bank for $ 432 million.
On 29 November 2007, E-Trade announced a transaction in which Citadel LLC invested $ 2.5 billion in cash in exchange for a guaranteed subprime mortgage company, 12.5% ​​senior unsecured and 84,687,686 common shares (equivalent to 19.99% of that amount). shares currently outstanding). The transaction eliminates assets with the largest market risk from the E-Trade balance - a $ 3 billion Asset-Backed Security (ABS) portfolio, including the debt obligations of the Collateral (CDO) ABS and the second bond. This resulted in a net reduction of $ 2.2 billion in assets on the company's balance sheet. Citadel received a seat on the E-Trade Financial Board of Directors and Mitch Caplan resigned as CEO of E-Trade. Although E-Trade management recognizes that the deal is expensive for the company, it eliminates the risks associated with subprime investments and generates a $ 2.5 billion infusion in cash.
Post subprime reorganization
In November 2007, E * Trade revoked the trademark license of SBI E * Trade Securities in Japan.
In March 2008, E * Trade was named Donald Layton, former vice chairman of JPMorgan Chase, as its new CEO. Layton has joined the board of directors of E * Trade in November 2007, at the same time as the Citadel LLC deal.
In July 2008, E * Trade sold the Canadian division to Scotiabank for CAD $ 444 million, as part of a program to stabilize the company.
In December 2009, Robert Druskin, former chief operating officer of Citigroup Inc. appointed as CEO and interim chairman.
On March 22, 2010, Steven Freiberg, former co-CEO of the global consumer group Citigroup and former head of the bank credit card unit, was named as the new CEO of E * Trade while Druskin continued his role as chairman of the board. The company also announced it will seek shareholder approval for the 1st-10th reverse stock split.
On January 17, 2013, Paul T. Idzik was appointed CEO. Idzik had previously been the Group Chief Executive of DTZ and also served for ten years at Barclays bank.
On September 12, 2016, E * Trade acquired the parent company of OptionsHouse for $ 725 million and Karl A. Roessner was appointed CEO.
Maps E-Trade
Current operation
As of December 31, 2017, the company has 3.6 million brokerage accounts and total accounts receivable of $ 9.1 billion. In 2017, the company processes 214,284 daily average daily earnings. In 2017, 63% of net income came from interest income, 19% of net income came from commissions for order execution, 15% came from the cost of order flow and management services, and 3% came from other sources. The company has 30 branches. The company's main office is in Alpharetta, Georgia; Jersey City, New Jersey; Arlington, Virginia; Sandy, Utah; Menlo Park, California; and New York City.
Ads
E * Trade Baby is an integrated ad campaign that appears in online, television, print, and social media.
Baby E * The first trade is Gregory Michael Miller, taken in March 2001.
In January 2008, E * Trade made an advertising debut during Super Bowl featuring a baby talking in front of a web cam that discusses investment and finances with an adult voice. Baby E * Trade is voiced by comedian Pete Holmes. This campaign was created by Tor Myhren, then from Gray Global Group. At first, Myhren doubts if an advertising campaign will work.
The "insufferable brat" returns the following year for the Super Bowl XLVII, along with Facebook pages, updates on Twitter, and videos on YouTube. This is a 30 second "Talking Baby" ad. E * Trade Baby shows the "Save It" initiative that focuses on how much money is at stake in hidden 401 (k) account costs and offers a better approach: "come to E * TRADE, and Save It".
In 2011, the baby was featured in an ad called "Enzo the Tailor", where the baby was paired for a tailor made suit and talked about how the tailor could retire in Tuscany.
By 2013, the company has over 64 million views in total and over 26,000 subscribers on YouTube, over 108,000 Baby Facebook fans and corporate pages, and over 17,000 Twitter followers.
On March 21, 2014, the company announced the end of the baby E * Trade through an advertisement that aired during March Madness.
See also
- Comparison of online brokers
- Ajaxo Inc. v. E * Trade Financial Corp.
- Merrill Lynch, Pierce, Fenner & amp; Smith Inc. v. Manning , the 2016 Supreme Court case involving a naked short sale claim against E-Trade and Merrill Lynch, and others
References
External links
Source of the article : Wikipedia
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