Chicago Tribune- Citadel Investment Group is sinking about $2.5 billion into E-Trade Financial Corp., which has been hurt by shaky mortgage investments, largely because it is a fan of the online discount brokerage’s business model.
The Chicago-based hedge fund, one of 40 potential strategic or financial buyers to hold talks with E-Trade, will boost its stake in the New York-based company to 18 percent from 2.5 percent as aresult of the deal, announced Thursday.
“We saw a good business with a troubled balance sheet,” Joe Russell, senior managing director for Citadel, said Thursday. Russell headed the negotiations for Citadel.
Citadel likes the online brokerage platform that E-Trade has built. It has 4.7 million accounts worldwide.
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