E*Trade is expected to debut its eAdvisor advice
product to a limited number of clients this month. The
product is the result of a joint effort with Ernst &
Young. E&Y will provide its personal financial
consultants for the high touch end of the alliance.
The service was initially planned for late last year,
but that date was the victim of technical difficulties
and the economic slowdown, according to the Wall
* * *
What's in a title? A lot it seems. E*Trade Group may
be unintentionally taking the passive route to payroll
downsizing by deflating titles, suggests the Wall
Street Journal. The paper reports that 16 acquisitions
have left the firm with too many high-level titles.
The eBroker now has roughly 85 vice presidents and
directors and 300 business managers, down from around
170 and 600 before the deflation.
* * *
Prudential Securities is set to close a deal to
acquire New York-based brokerage house Gruntal & Co.,
reports the New York Post. The paper reports a price
tag in the $60 million to $70 million range. Gruntal
was last in play a year ago, but went off the market
after talks with Questor Management Company broke
down. Chase's Beacon Group is the advisor for Gruntal.
* * *
AIG will cut staff after it acquires American General.
The 1,500 job cuts will be spread over the next 12 to
18 months. The combined firms now employ 85,000.
* * *
Value funds continue to perform best through August,
according to Standard & Poor's. Telecommunications
services and technology funds showed the sharpest
declines in August. The average US equity fund dropped
15.4 percent compared to a 13.5 drop in the S&P 500
index and a 26.9 percent plunge in the Nasdaq.
* * *
Deutsche Asset Management (DeAM) hired Steven L.
Bossi, and Lance B. Babbit as directors in its Fund of
Funds team reporting to Ray Nolte. It also promoted
Mustafa A. Jama and John J. Gallagher, Jr. to director
in the group. Bossi had been president of AI
International, while Babbit joins DeAM from Banc of
Americas Securities in San Francisco where he was vice
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