E-Trade gets $2.5 billion cash infusion, as CEO steps down
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NEW YORK -- E-Trade Financial Corp. said today Mitchell H. Caplan had stepped down as chief executive as the troubled discount brokerage announced a $2.5 billion cash infusion from affiliates of Citadel Investment Group.
The investment includes immediate funding of about $2.4 billion, with the remaining $150 million expected to fund by Jan. 15. E-Trade said the deal shored up its balance sheet, allowing the company to focus on its core retail business, and provided additional capital to manage credit risk.
E-Trade said, effective immediately, director R. Jarrett Lilien will become acting CEO. Caplan will serve as an adviser on transition matters through the end of the year. Lilien has been E-Trade's president and chief operating officer, leading the retail business since 2003.
The company will conduct an executive search for the CEO position, which will include Lilien and external candidates.
First Published November 29, 2007 12:00 pm