E-trade/Ameritrade: Pushed

Combining E-Trade and TD Ameritrade is a no-brainer. Crunch the second and third largest online brokers together, and up to a third of total costs could be cut. The net present value of such synergies would be about $5.5bn. That’s a nice figure compared to their combined $16.5bn market value. Moreover, both have been serial acquirers and the discount brokerage business is stagnating. Shareholders rightly welcomed a report that the two are now reconsidering their earlier reluctance to merge. More...