Financial services company E*Trade Financial specializes in stock trading, and in online transactions in particular. After a prominent analyst with Citigroup suggested E*Trade might be headed for bankruptcy in November of 2007, the company's stock tumbled 60 percent.
After the bankruptcy concerns came to light, hedge fund firm Citadel Investment Group spent $800 million on a $3 billion portfolio of troubled E*Trade securities relating to mortgages. Also part of the deal was a $1.6 million loan to E*Trade and almost 85 million shares of E*Trade stock to Citadel. CEO Mitchell Caplan stepped down the day the deal was announced.
Those who don't closely follow the world of finance are likely more familiar with E*Trade's "talking baby trader" commercials than the company's late-2007 financial woes; the commercials debuted during the 2008 Super Bowl and show how easy working with E*Trade is by featuring a wise-talking infant buying stocks from his high chair.
Fast Facts:
- Founded: 1982
- Origin: Palo Alto, CA
- Headquarters: New York, NY
- CEO: Donald H. Layton (March 2008)
- NASDAQ ticker: ETFC
- Slogan: "Be E*traordinary"
- TD Waterhouse nearly merged with E*Trade in 2003
- E*Trade stock dropped 83% total in 2007
E*Trade Baby Quotes:
- "A lot of people are like, 'Aren't you too young to invest in the markets?' And, you know,
A: Dont worry about it...I mean, I just look young. You don't know how old I am. And B: I use E*Trade." - "Me and the boys were talkin' about what to do with all this extra coin, and I was like, 'I'm rentin' a clown." ...and, uh, I really underestimated the creepiness."
- "If I can do it, you can...do...(spits up). Woah..."
