E*Trade Financial Corp., the fourth- largest U.S. online brokerage by client assets, dropped the most in the Standard & Poor’s 500 Index today after the board rejected putting the company up for sale.
E*Trade declined 3.6 percent to $9.14 at 11:58 a.m. New York time. Before today, the shares dropped 41 percent in 2011, more than its bigger rivals Charles Schwab Corp. (SCHW) and TD Ameritrade Holding Corp. (AMTD)
The brokerage hired Morgan Stanley in July to explore a sale and then replaced the bank with Goldman Sachs Group Inc. E*Trade, based in New York, initiated the review following a request by Citadel LLC, its biggest shareholder, to address “catastrophic losses” that have driven the shares down 96 percent since 2007. Citadel injected $2.55 billion in cash into E*Trade that year to help the company survive mortgage losses.