View source for E-Trade

{{Short description|American financial services company}}
{{About|the financial services company|electronic trading|Electronic trading platform|East Trade Street in Charlotte, North Carolina|Trade Street}}
{{Infobox company
| name = E*TRADE from Morgan Stanley
| logo = ETrade Logo.svg
| logo_caption = Logo since January 1, 2022
| logo_size = 250px
| type = [[Subsidiary]]
| traded_as = {{NASDAQ was|ETFC}}
| founders = {{ubl|[[William A. Porter]]|[[Bernard A. Newcomb]]}}
| industry = [[Financial services]]
| founded = {{Start date and age|1982}}, in [[Palo Alto, California]], U.S.
| hq_location = [[Arlington County, Virginia|Arlington]], [[Virginia]], U.S.<ref>{{Cite web|url=https://about.etrade.com/contact-us|title=Contact Us &#124; E*TRADE|website=about.etrade.com|accessdate=30 December 2022}}</ref>
| key_people = [[Rodger Lawson]] ([[chairman]])<br />Mike Pizzi ([[CEO]])
| services = {{ubl|[[Stockbroker]]|[[Electronic trading platform]]}}
| parent = [[Morgan Stanley]] [[Compass Pathways]]
| website = {{URL|etrade.com}}
}}
[[File:Etrade financial center market st san francisco.jpg|thumb|E-Trade Financial Center, San Francisco]]
'''E*TRADE'''<ref>{{Cite web | url=https://us.etrade.com/home | title=E*TRADE}}</ref> is an investment [[brokerage]] and [[electronic trading platform]] that operates as a subsidary of [[Morgan Stanley]].
==History==
{{expand-section|date=June 2024}}
[[File:ETrade.svg|right|thumb|250px|E-Trade logo from February 3, 2008 to December 31, 2021.]]
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.<ref>{{Cite news | url=https://www.computerworld.com/article/1718072/sidebar-a-brief-history-of-etrade.html | title=Sidebar: A Brief History of ETrade | work=[[Computerworld]] | date=September 27, 2004}}</ref>
On August 16, 1996, the company became a [[public company]] via an [[initial public offering]].<ref>{{cite news | url=https://www.cnet.com/news/etrade-hits-wall-street/ |title=E*Trade hits Wall Street | work=[[CNET]] | date=August 16, 1996}}</ref> 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]].<ref>{{cite news | url=https://nypost.com/2020/10/02/morgan-stanley-officially-closes-all-stock-etrade-takeover-deal/ | title=Morgan Stanley officially closes all-stock E*Trade takeover deal |first=Noah |last=Manskar | work=[[New York Post]] |date=October 2, 2020}}</ref><ref>{{cite news |last1=Hoffman |first1=Liz | title=Morgan Stanley to Buy Eaton Vance for $7 Billion |url=https://www.wsj.com/articles/morgan-stanley-to-buy-eaton-vance-in-deal-valued-at-7-billion-11602159806 |work=[[The Wall Street Journal]] | date=October 8, 2020 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.nytimes.com/2020/02/20/business/morgan-stanley-etrade.html | title=Morgan Stanley to Buy E-Trade | first1=Michael J. | last1=de la Merced | first2=Kate | last2=Kelly | first3=Emily | last3=Flitter | work=[[The New York Times]] | date=February 20, 2020 | url-access=limited}}</ref>
===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]].<ref>{{Cite news |last=Robinson |first=Gwen |title=Subprime mortgage fears batter E-Trade | url=https://www.ft.com/content/19f09087-c74a-3215-9058-d7fec2324c2a |work=[[Financial Times]]  | date=November 12, 2007 | url-access=subscription}}</ref><ref>{{cite press release | url=https://www.sec.gov/Archives/edgar/data/1015780/000095010307002929/dp07754_ex9901.htm | title=E*TRADE Financial Announces $2.5 Billion Investment Led by Citadel |publisher=E-Trade Financial |via=[[U.S. Securities and Exchange Commission]] |date=November 29, 2007}}</ref><ref>{{cite news |url=https://www.chicagotribune.com/news/ct-xpm-2007-11-30-0711291062-story.html |title=Citadel boosts E-Trade stake with $2.5 billion investment |first=Becky |last=Yerak |work=[[Chicago Tribune]] |date=November 30, 2007}}</ref>
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.<ref>{{cite news |url=https://jp.reuters.com/article/idUSWNAS3265/ |title=E*Trade Chairman Layton adds CEO post | first=Joseph A. | last=Giannone | work=[[Reuters]] | date=March 2, 2008}}</ref><ref>{{Cite news | url=https://www.marketwatch.com/story/e-trade-names-layton-as-ceo-shares-rise-on-deal-speculation | title=E-Trade names Donald Layton as chief executive | first=John | last=Spence | work=[[MarketWatch]] | date=March 3, 2008}}</ref><ref>{{Cite news | url=https://www.wsj.com/articles/SB120450598417206517 | title=E*Trade, With Layton as CEO, Might Be Angling for a Sale | first=Susanne | last=Craig | work=[[The Wall Street Journal]] | date=March 3, 2008 | url-access=subscription}}</ref>
In December 2009, Robert Druskin, a former chief operating officer of [[Citigroup]], was named interim CEO and chairman.<ref>{{cite news |url=https://www.sandiegouniontribune.com/sdut-e-trade-names-director-as-chairman-interim-ceo-2009dec21-story.html |title=E-Trade names director as chairman, interim CEO |agency=[[Associated Press]] |newspaper=[[San Diego Union Tribune]] |date=December 21, 2009}}</ref>
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.<ref>{{cite news | url=https://money.cnn.com/2010/03/22/news/companies/etrade_appoints_ceo/ | title=ETrade names former Citigroup exec as CEO | first=Blake | last=Ellis | work=[[CNN]] | date=March 22, 2010}}</ref><ref>{{Cite news | url=https://www.wsj.com/articles/DJFHYW0020100322e63m00006 | title=E*Trade Hires Steven Freiberg As New CEO | work=[[The Wall Street Journal]] | date=March 22, 2010 | url-access=subscription}}</ref>
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.<ref>{{cite press release |url=https://www.businesswire.com/news/home/20130117006395/en/E*TRADE-Financial-Appoints-Paul-T.-Idzik-Chief |title=E*TRADE Financial Appoints Paul T. Idzik Chief Executive Officer |publisher=E-Trade Financial |via=[[Business Wire]] |date=January 17, 2013}}</ref>
In September 2016, Karl A. Roessner, E-Trade's general counsel since 2009, was appointed CEO.<ref name=optionshouse/>
On August 14, 2019, Michael Pizzi was appointed CEO.<ref>{{cite news | url=https://www.businessinsider.com/power-moves-of-the-week-etrade-riteaid-2019-8 | title=Here are the latest executive power moves that help explain everything that's going on at E*Trade, Rite Aid, and Yum! Brands | first=Christian | last=Wylonis | work=[[Business Insider]] | date=August 19, 2019}}</ref>
===Acquisitions and divestitures===
{| class="wikitable sortable"
|-
! scope="col" | Date
! scope="col" | Acquisition / Divestiture
! scope="col" | Company
! scope="col" class="unsortable" | Ref(s).
|-
| {{dts|2000|01}}
| Acquisition
| Telebanc
| <ref>{{Cite news |url=https://www.wsj.com/articles/SB947607385757597003 |title=E*Trade Group Wins Approval To Acquire Telebanc Financial |first=Rebecca |last=Buckman |work=[[The Wall Street Journal]] |date=January 12, 2000 |url-access=subscription}}</ref><ref>{{cite news |url=https://www.washingtonpost.com/archive/business/2004/01/26/for-e-trade-courtship-ends-short-of-marriage/2c4538af-ca0f-4a34-8643-2424f38d744f/ |title=For E-Trade, Courtship Ends Short of Marriage |first=Jerry |last=Knight |newspaper=[[The Washington Post]] |date=January 26, 2004}}</ref><ref>{{cite news |url=https://www.deseret.com/1999/6/1/19448596/etrade-to-buy-telebanc-financial |title=ETrade to buy Telebanc Financial | work=[[Deseret News]] |agency=[[Associated Press]] |date=June 1, 1999}}</ref>
|-
| {{dts|2001|05}}
| Acquisition
| Web Street Securities
| <ref>{{cite news |url=https://www.bizjournals.com/sanfrancisco/stories/2001/05/21/daily1.html |title=E-Trade acquires Web Street |work=[[American City Business Journals]] |date=May 21, 2001 | url-access=subscription}}</ref><ref>{{cite news |url=https://www.latimes.com/archives/la-xpm-2001-may-22-fi-956-story.html |title=E-Trade to Buy Web Street for $45 Million |agency=[[Reuters]] |work=[[Los Angeles Times]] |date=May 21, 2001 | url-access=subscription}}</ref><ref>{{Cite news | url=https://adage.com/article/news/e-trade-buy-rival-brokerage-web-street/29736 | title=E-TRADE TO BUY RIVAL BROKERAGE WEB STREET | work=[[Ad Age]] | date=May 22, 2001 | url-access=subscription}}</ref>
|-
| {{dts|2005|08}}
| Acquisition
| Harrisdirect
| <ref>{{cite news | url=https://www.latimes.com/archives/la-xpm-2005-aug-09-fi-etrade9-story.html | title=E-Trade to Acquire Rival Brokerage Harrisdirect | work=[[Los Angeles Times]] | date=August 9, 2005 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.nbcnews.com/id/wbna8870550 | title=E-Trade agrees to buy rival HarrisDirect | work=[[NBC News]] | agency=[[Associated Press]] | date=August 8, 2005}}</ref><ref>{{Cite news | url=https://www.infoworld.com/article/2672418/e-trade-buys-online-brokerage-for--700-million.html | title=E-Trade buys online brokerage for $700 million | first=Juan Carlos | last=Perez | work=[[InfoWorld]] | date=August 8, 2005}}</ref>
|-
| {{dts|2005|10}}
| Acquisition
| Brown & Company
| <ref>{{cite news| url=https://www.bizjournals.com/sanfrancisco/stories/2005/09/26/daily46.html| title=E-Trade to acquire BrownCo for $1.6B |work=[[American City Business Journals]]| date=September 30, 2005 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.nytimes.com/2005/09/29/business/etrade-to-buy-brownco-from-jp-morgan-for-16-billion.html | title=E*Trade to Buy BrownCo From J.P. Morgan for $1.6 Billion | first=Vikas | last=Bajaj | work=[[The New York Times]] | date=September 29, 2005 | url-access=limited}}</ref><ref>{{Cite news | url=https://www.latimes.com/archives/la-xpm-2005-sep-30-fi-etrade30-story.html | title=E-Trade to Acquire BrownCo for $1.6 Billion | work=[[Los Angeles Times]] | date=September 30, 2005 | url-access=subscription}}</ref>
|-
| {{dts|2007|07}}
| Divesture
| Australian division
| <ref>{{cite news |url=https://www.marketwatch.com/story/anz-bank-clears-final-hurdle-in-bid-to-acquire-etrade-australia |title=ANZ Bank clears final hurdle in bid to acquire ETrade Australia |first=Rebecca |last=Thurlow |work=[[MarketWatch]] |date=May 16, 2007}}</ref><ref>{{Cite news | url=https://www.reuters.com/article/idUSSYA002745/ | title=ANZ gets controlling stake in E*Trade Australia | first=Denny | last=Thomas | work=[[Reuters]] | date=August 9, 2007}}</ref><ref>{{Cite news | url=https://www.wsj.com/articles/SB117735402266079328 | title=ANZ Increases Offer to Acquire ETrade Australia | first=Rebecca | last=Thurlow | work=[[The Wall Street Journal]] | date=April 24, 2007 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.afr.com/street-talk/anz-banking-group-to-rename-etrade-australia-20160425-goe42q | title=ANZ Banking Group to re-name E*TRADE Australia | first1=Sarah | last1=Thompson | first2=Anthony | last2=Macdonald | first3=Joyce | last3=Moullakis | work=[[Australian Financial Review]] | date=April 25, 2016 | url-access=subscription}}</ref>
|-
| {{dts|2008|09}}
| Divestiture
| Canadian division
| <ref>{{cite press release |url=https://scotiabank.investorroom.com/2008-09-22-Scotiabank-Completes-Acquisition-of-E-TRADE-Canada |title=Scotiabank Completes Acquisition of E*TRADE Canada |publisher=[[Scotiabank]] |date=September 22, 2008}}</ref><ref>{{cite news |url=https://www.cbc.ca/news/business/scotiabank-buys-e-trade-canada-1.696155 |title=Scotiabank buys E*Trade Canada |publisher=[[CBC News]] |date=July 14, 2008}}</ref>
|-
| {{dts|2016|09}}
| Acquisition
| OptionsHouse
| <ref name=optionshouse>{{cite press release |url=https://www.businesswire.com/news/home/20160912005745/en/E*TRADE-Financial-Corporation-Announces-Leadership-Transition-Close |title=E*TRADE Financial Corporation Announces Leadership Transition with Close of OptionsHouse Transaction |publisher=E-Trade Financial |via=[[Business Wire]] |date=September 12, 2016}}</ref><ref>{{Cite news | url=https://www.marketwatch.com/story/etrade-agrees-to-acquire-optionshouse-parent-for-725-million-2016-07-25 | title=ETrade agrees to acquire OptionsHouse parent for $725 million | first=Tonya | last=Garcia | work=[[MarketWatch]] | date=July 25, 2016}}</ref><ref>{{Cite news | url=https://www.barrons.com/articles/e-trade-optionshouse-merge-platforms-1504325466 | title=E*Trade, OptionsHouse Merge Platforms | first=Theresa W. | last=Carey | work=[[Barron's]] | date=September 2, 2017 | url-access=subscription}}</ref>
|-
| {{dts|2018|04}}
| Acquisition
| Trust Company of America
| <ref>{{cite press release |url=https://www.businesswire.com/news/home/20180409005729/en/E*TRADE-Announces-Close-of-Trust-Company-of-America-TCA-Transaction |title=E*TRADE Announces Close of Trust Company of America (TCA) Transaction | publisher=[[Business Wire]] |date=April 9, 2018}}</ref>
|-
| {{dts|2019|12}}
| Acquisition
| Gradifi
| <ref>{{cite press release |url=https://www.businesswire.com/news/home/20191209005442/en/E*TRADE-Bolsters-Corporate-Services-Capabilities-Purchase-Pioneering| title=E*TRADE Bolsters Corporate Services Capabilities Through Purchase of Pioneering Student Loan Benefit Provider Gradifi |publisher=E-Trade Financial |via=[[Business Wire]] |date=December 9, 2019}}</ref><ref>{{cite news |url=https://www.reuters.com/article/us-e-trade-financl-deals-gadifi/etrade-buys-student-loan-provider-gradifi-for-30-million-idUSKBN1YD1H8 |title=E*Trade buys student loan provider Gradifi for $30 million |first=Steve |last=Orlofsky |publisher=[[Reuters]] |date=December 9, 2019}}</ref>
|}
==See also==
{{Portal|New York City|San Francisco Bay Area|Companies}}
* ''[[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.
{{Clear}}
==References==
{{Reflist}}
==External links==
* {{Official website}}
{{Coord|40.760|-73.981|type:landmark_region:US-NY|display=title}}
{{Morgan Stanley}}
{{Online brokerages}}
[[Category:1982 establishments in California]]
[[Category:1996 initial public offerings]]
[[Category:2020 mergers and acquisitions]]
[[Category:American companies established in 1982]]
[[Category:Companies formerly listed on the Nasdaq]]
[[Category:Financial services companies established in 1982]]
[[Category:Online brokerages]]
[[Category:American corporate subsidiaries]]
[[Category:Online financial services companies of the United States]]
[[Category:Morgan Stanley]]
[[Category:Companies based in Arlington County, Virginia]]