E*TRADE Financial Corporation (ETFC) announced in a press release yesterday that the founder and CEO of hedge fund manager Citadel Investment Group, Kenneth C. Griffin, has joined the company’s board of directors. Citadel is currently a top equity and debt holder of E*TRADE’s stock, holding an equity stake worth approximately 1.6% of shares outstanding. In 2007, the hedge fund aided the troubled broker with financing that gave Citadel the right to appoint a member of the company’s board.
In his board role, Mr. Griffin will be a member of E*TRADE’s Finance and Risk Oversight Committee. In a press release, Donald H. Layton, the Chairman and CEO of E*TRADE commented that Mr. Griffin’s “perspective of the capital markets and on managing a sophisticated investment business will complement the wide range of expertise among the current Board members."
Citadel has traditionally been a quant focused hedge fund shop. More recently the firm has been diversifying its business by growing its Citadel Securities division, which is now comprised of investment banking, sales & trading, and market making groups. In addition, Citadel Solutions serves as an administrator for financial institutions. |
