Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Spytrdr who wrote (6936)	6/7/1999 12:11:00 PM
From: ecommerceman	Read Replies (1) \| Respond to of 13953

And here's another noted shill--Gomez Advisors!! News Analysis ETrade: The Internet Broker With Broad Ambition June 1, 1999 by: Chris Musto ETrade's tagline used to read "One day, we'll all invest this way!" Will we all bank this way, too? That's what ETrade is hoping, as it moves to scoop up branchless banking bigwig TeleBanc Financial in a stock transaction valued at $1.8 billion, joining Waterhouse as a leading Internet broker with an affiliated bank. After speaking with officials from ETrade and TeleBanc, we find something inevitable, something new: ETrade and TeleBanc were going to collide or combine. Both cater to branchless customers and have come to see a major market opportunity that extends well beyond their core service offerings. TeleBanc was eyeing brokerage, ETrade was interested in banking; and both coveted products and services that went beyond that. The two even had deals with several of the same players: Yahoo!, Bank One and E-Loan. The increasing overlap of vision, products and assets were making competitors out of the two firms, while each had core strengths the other lacked. Man bites dog. After years of banks buying brokers, a broker is now planning to pay almost $2 billion to buy a bank. Brokers have been taking customer assets away from banks with CMAs and money markets, as well as with investment products that have for years benefited from a bull market. Now, a broker wants to buy the bank itself. The deal underscores the emerging online financial service segmentation. Internet brokerage's leaders are guided by distinct visions and possess unique assets. Examples: Datek caters to Hyper-Active Traders and has built its own ECN, while DLJ has positioned DLJdirect as part of its effort to attract Serious Investors. ETrade's vision is much broader and will take it into areas others may be slow to enter. What about brokers that want to follow ETrade and Waterhouse? Acquisitions may be more difficult with TeleBanc taken. There is only one other public branchless deposit bank, Net.B@nk. (Publicly traded NextCard wants to move in that direction.) CompuBank and First Internet Bank of Indiana (FIBI) are privately-held branchless banks with few customers but with platforms that may enable another Internet broker to ramp up quickly in banking. FIBI has been talking about its interest in a brokerage partner; perhaps another pair will march down the aisle. Chris Musto is the director of financial services for Gomez Advisors.