E*Trade drama continues

After Citigroup issued a report suggesting that bankruptcy court was a legitimate option for E*Trade, most people assumed the pioneering online brokerage was searching for a deal. The issue is: with whom? Most of the rumors have centered on TD Ameritrade. But Charles Schwab has also been mentioned. Business Week Online suggests that TD Ameritrade, given its affiliation with Toronto-Dominion Bank, may be in a better position to separate the banking from the brokerage assets. Valuations of the banking side is a bit iffy at the moment, due to the credit crunch; the bank's announcement that its asset-backed portfolio had tanked started this drama. All agree that there is significant value, perhaps $10 a share to the brokerage business. Stay tuned.  

For more:
- here's the Business Week Online article

Related articles:
- Favorable trends for E*Trade
- Sell-side analysts regaining their stature?

Read more on: E*Trade l Citigroup

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