Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Friday, November 30, 2007

Hedge Fund Invests in E*Trade

One of the surprising big losers in the mortgage crisis is E*Trade, the discount brokerage whose savings and loan affiliate used its deposits to invest in mortgages.  Yesterday hedge fund Citidal Investment Group announced it would invest $2.55 billion in E*Trade, which, along with its current holdings, will bring its stock holdings to close to 20%.  Mitch Caplan, the E*Trade CEO who instituted the mortgage strategy, is out.  The Wall St. Journal today has a detailed account of the negotiations that led to Citidel's investment.  WSJ, Why Citadel Pounced On Wounded E*Trade.

http://lawprofessors.typepad.com/securities/2007/11/hedge-fund-inve.html

News Stories | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef00e54f9223938833

Listed below are links to weblogs that reference Hedge Fund Invests in E*Trade:

Comments

Post a comment