Banking, finance, and taxes
TD Ameritrade (AMTD) Eying E*Trade (ETFC) Buy-Out?
Published:
The head of TD Ameritrade (AMTD) today indicated that his firm might have an interest in buying troubled discount broker E*Trade. AMTD might get quite a deal "We like their retail business but we must figure out a way that makes sense for both sets of shareholders," the AMTD told CNBC according to a report at MarketWatch.
Could E*Trade’s brokerage clients be separated from it banking unit? The mortgage-related problems in he company’s banking business are what caused the large write-offs that have taken ETFC’s shares down.
TD Ameritrade currently has a market cap of $11.6 billion to E*Trade’s $2.3 billion. If ETFC could spin-off the brokerage business and merge it into AMTD, it might have a valuable asset to give its shareholders–TD Ameritrade shares. But, it would take a fair amount of financial engineering to set the banking business up on its own. Its value in the market is probably nil.
But, if E*Trade’s troubles continue, moving its shareholders into AMTD stock might be the safest haven the company can find for them.
Douglas A. McIntyre
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
