E-Trade hiring Morgan Stanley for strategic review
SAN FRANCISCO (AP) — E-Trade Financial Corp. says it is bringing in Morgan Stanley & Co. to review its strategic opportunities. The move comes days after its largest shareholder demanded the online brokerage let shareholders consider proposals including the hiring of new financial advisers to explore options such as selling the company.
In a Wednesday letter to E-Trade that was disclosed in a regulatory filing, hedge fund Citadel LLC said mismanagement had caused E-Trade to lose money every year since 2006. Citadel demanded E-Trade hold a special shareholder meeting to consider proposals to remove two directors, change how it elects directors and explore strategic alternatives, including a company sale.
E-Trade said Friday that after its review Morgan Stanley will share its findings with a board committee, which will give E-Trade's board a recommendation.