E*Trade receives Fed approval to operate E*Trade Clearing as a subsidiary
27 October 2006 | 2016 views | 0
Source: E*Trade Financial
E*TRADE FINANCIAL Corporation (NYSE: ET) today announced it has received approval from the Federal Reserve Board to make E*TRADE Clearing an operating subsidiary of E*TRADE Bank.
"The decision by the Federal Reserve Board paves the way for us to move forward with the final phases of our structural balance sheet integration," said R. Jarrett Lilien, President and COO, E*TRADE FINANCIAL Corporation. "The new structure will provide the company with more efficient capital allocation and lower cost of funding as we leverage brokerage cash to fund balance sheet growth and lower hedging costs to optimize the duration characteristics of brokerage assets and liabilities."
The Company will provide specific future benefits to the business model during its 2007 guidance discussion in December.