rl

Schwab Interested in E*Trade: Is E*Trade Interested in Schwab?

agreed, the cc is positive on all fronts except for that Layton likes to raise more capital cushion for the bank and may dilute existing shares.

here's a post that i summarized the CC in yahoo message board to reduce the reading if anybody cares:
messages.finance.yahoo...

the language used in the cc referring to OTS capital request is also not negative and here's my post for that:
messages.finance.yahoo...

Layton said: "We are looking at a significant range of alternatives to generate capital, large and small..... to replenish the bank's capital cushion, we will need to pursue financing alternatives, including equity issuances through public or private transactions as well as asset sales or other special transactions." the statement fully explains the intention to pursue "significant range of alternatives to generate capital" and i think dilution is still a last resort type of action. of course, we'll just have to trust ETFC to make best judgments pending on market condition. the only concern i have is that "all 19 stressed tested banks" will also be raising capital and that may cause some credit shortage.

It is my believe that Layton believes and did gave a positive report but the market's reaction afterward is what really twisted the reality. people looked for the worst and presume the worst as they tried to justify the market reaction which was largely manipulation in my opinion. i also believe that this may be the reason that the “surprised” Layton wrote the letter to etfc customer/shareholders to help explain the company's position (posted on e*trade).

The Online Brokerage Wars: E*Trade Offers Compelling Risk/Reward

so maria,

what's your projection on etfc in the near term to 2 years?

Schwab, E*Trade: Monthly Activity Comparison and the Industry Average

alexi,

all i'm saying is that by percentage, more of etfc's customer is activly trading where the schwab clients are reluctant to invest actively. april just happen to be a month that magnifies the differences and i'm thinking etfc would certainly profit better if it does have a more profitable client base. etfc has attracted active traders where as schwab has many clients who buys mutual funds.

Schwab, E*Trade: Monthly Activity Comparison and the Industry Average

forget about etfc returning to the upper twenty dollar range, how soon do you think etfc will take over schw's dominance? this article indicates that there are 2 very distinctive trader style in the 2 companies' clients and schw's clients don't nearly trade as much as etfc's. not to mention schw has how much more clients compares to etfc.....