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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Al Serrao who wrote (26681)	6/1/1999 9:00:00 AM
From: Rainy_Day_Woman	Respond to of 50167

ETrade might be a play today... ETrade Is Expected to Announce Stock Deal to Acquire Telebanc By STEVEN LIPIN, REBECCA BUCKMAN and PAUL M. SHERER Staff Reporters of THE WALL STREET JOURNAL ETrade Group Inc., the online brokerage concern, is expected to announce as early as Tuesday an agreement to acquire Telebanc Financial Corp., one of the few online banking companies, in a stock transaction valued at about $1.8 billion, according to people familiar with the situation. The combination is the first of an online broker with an online bank, allowing Telebanc to link up with a fast-growing financial player while giving ETrade a less volatile revenue mix. It gives a big boost to ETrade's long-term goal of becoming an online financial "portal" site, offering all sorts of financial services other than plain-vanilla stock brokerage. ETrade, based in Palo Alto, Calif., already sells mutual funds, for instance, and has a deal with online-mortgage provider E-Loan Inc. that allows ETrade customers to apply for home mortgages online. The move comes as competition in the online-brokerage industry continues to heat up, particularly with the splashy entrance of Wall Street titan Merrill Lynch & Co. Merrill is expected to announce a major push into Internet trading Tuesday, including a new account that allows investors to trade stocks for just $29.95 (see article). Two months ago, ETrade bought ClearStation Inc., an online financial-advisory and discussion service. The Telebanc acquisition, however, would be the first to move E*Trade into an entirely new type of financial service.