RealTime IT News

E*Trade Invests in E-Loan

Online broker E*Trade Group Inc. Wednesday said it had expanded its investment in E-Loan Inc., a privately-held Internet mortgage company.

The details of the investment were not released.

E*Trade exercised warrants granted to it last year when it signed a three-year agreement with E-Loan, making the service the brokerage's exclusive multi-lender partner.

Christos Cotsakos, E*Trade's chief executive officer and chairman-elect, said the increased investment was due in part to the enthusiastic response the brokerage has seen since first incorporating E-Loan on its site.

"During the past several months, we've been extremely impressed with the E-Loan management team, its business strategy and the company's suite of financial products and services. This has heightened our desire to further leverage our already strong relationship with E-Loan. . .," he said.

Cotsakos said increasing its stake in E-Loan is E*Trade's latest move to establish itself as a leader in online financial services.

The move comes one day after the brokerage announced plans to launch a new investment bank that would give clients expanded service and allow them to get in on initial public offerings.

We have made updates to our Privacy Policy to reflect the implementation of the General Data Protection Regulation.