Citadel, Two-Time E*Trade Savior, Calls For Change

Jul 21 2011 | 1:59pm ET

Kenneth Griffin is not a man known for his patience, and his patience with E*Trade Financial Corp. may have finally run out.

Griffin's Citadel Investment Group, which has twice bailed out the troubled online brokerage and is its biggest shareholder, treated the company to a tongue-lashing, calling on E*Trade to put itself up for sale, get rid of two board members and change its staggered board structure.

"Since November of 2007, the board has continually failed to act in the best interest of E*Trade shareholders," Citadel wrote. "Having endured nearly four years of value destruction and lost opportunity, we believe it is time for change."

Calling E*Trade "a phenomenal franchise… squandered," Citadel blamed the company's board for "destroying more than $9 billion in stockholder value" and blasted it for E*Trade's "disastrous foray" into mortgage-backed securities.

E*Trade CEO Steven Freiberg said he was "surprised and disappointed by" Citadel's letter, but that he and the board will be "carefully considering" Citadel's demands.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of