E*Trade flogs US insto business
(11 January 2008 – USA) Online broker E*Trade is selling its institutional sales unit in the US in the wake of a negative report from a credit ratings agency which saw its share price plummet.
The report suggested that the business unit required more funds to stay afloat.
E*Trade said, however, that the reason for divesting the business was that it did not align with its core retail business and had not met financial expectations set forth by the company.
It had been expected that the company would retain its US unit despite saying it planned to divest its global institutional sales business.
E*Trade said it had decided to exit the institutional trading business by closing its remaining institutional trading desk.
In Australia, E*Trade is fully owned by ANZ.
E*Trade said, however, that the reason for divesting the business was that it did not align with its core retail business and had not met financial expectations set forth by the company.
It had been expected that the company would retain its US unit despite saying it planned to divest its global institutional sales business.
E*Trade said it had decided to exit the institutional trading business by closing its remaining institutional trading desk.
In Australia, E*Trade is fully owned by ANZ.
Subscribe