Brokerages Lose Volume
E*TRADE (NASDAQ: ETFC) recently announced that CEO Steven Freiberg is on his way out and chairman Frank Petrilli will be taking over as interim chief executive. The board has formed a committee to oversee the process of searching for a long-term chief executive. Raymond James analysts “believe this was a decision based on finding a different skill set at the CEO position.” The company is searching for a new CEO to focus on strengthening its financial position as it adjusts its business strategy. As individual consumers pull money out of the stock market, this online brokerage has been struggling. E*TRADE’s net income dropped 16% in the second quarter year over year as there was lower trading activity. The company is now trying to focus on managing costs and decreasing risk to strengthen earnings.