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

To: IFLY_Trader who wrote (6888)	6/5/1999 3:12:00 PM
From: Spytrdr	Read Replies (1) \| Respond to of 13953

A nice perspective on the Telebanc acquisition, read on the Yahoo Board: "ETRADE THE NEW CITIGROUP ONLINE by: argentine3000 69582 of 69628 EGRP has very ambitious plans. There is a new business model for the banking, brokerage, insurance and other financial services industry. Apparently the model followed by ETRADE is that of a “ Citigroup-Online” With the purchase of TBFC they have escalated the progression of challenge and growth. I could possibly agree that TBFC was closer to becoming a $ 12 billion company than ETRADE from becoming a $ 100 billion company, but you can't forget that a month ago Schwab was worth $ 60 billion, and it is just twice as big as ETRADE. There was a critical mass that TBFC needed in this fast-paced environment that would have been difficult for TBFC to achieve, before having to give in to the pressure of the larger banks. It would not surprise me that the new takeover targets will be the insurance and mortgage online industries. I do not think that Merryll Lynch or Citigroup will be able to shed the dead weight of excessive branches before the squeeze in the margins becomes real. In the process of consolidation, higher market value and timing will be the key factors to be the winner. You have to only compare SCH and MER to see it clearly. The market is forcing the establishment to fire themselves if they want to survive. When you are making $ 4 million a year, where are you going to find an employer who will value your services at that price ?. They have to re-invent Wall Street as we know it. There will be a lot of resistance from the sales forces and the old management. They will bring a lot of advisors to re-validate their model to their shareholders and partners like Van Kasper's. ETRADE is the Henry Ford of the new online world in the financial industry, as Henry Ford said, the most difficult thing is to “ break the resistance for change “. ETRADE has acquired critical mass nationally and has a model that is scalable internationally. It has a very young and aggressive management and overnight it has become a bank with 1.5 million accounts on line. I wonder what the market value of a bank is with 1.5 million accounts online alone. Think for a moment, it is about 20 times Telebanc and 60 times NetB@nk. Wells Fargo Bank has 990,000 accounts online only, its market capitalization is $ 65 billion and it has just increased monthly checking fees."