Monday, November 26, 2007

E*Trade and TD Ameritrade hooking up?

This rumor sent ETFC up 25% on Friday. It has since given back 10%. I think this is a very real possibility and that's why I bought the stock in the thick of it's mortgage problems. TD Ameritrade had been eyeing E*Trade for years now. The brokerage business scales incredibly well so being able to spread costs over an increased asset base will make the combined company more profitable. It's still unclear however, if TD Ameritrade wants everything or just the brokerage assets.

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