| 21 December 2009

We've known since September that E*TRADE (ETFC) was on the hunt for a new leader and that Current CEO, Donald Layton, was out. Given the deadline they set (end of this year), the consistent focus on restructuring, and the swirl of rumors about the company's possible sale, it comes as no surprise to us that an interim CEO was chosen to keep the ship righted while Layton continues to serve as an adviser. 

In an announcement on the company's Web site this morning the company anointed Robert Druskin as Layton's replacement and the firm's temporary new leader. Layton was brought in, specifically, to shore up the firms balance sheet and save the company from collapse. He'll officially take over January 1.

A recently as September the firm came under scrutiny from the Office of Thrift Supervision and was told to shore up its banking units further still. As a result the company sold $150 million in stock in order to add $100 million to the firm's balance sheet.

A Forbes profile lists Druskin as a Director at E*TRADE and also a Director at Affiliated Computer Services (ACS), a $5.8 billion Dallas firm specializing in business process outsourcing and information technology services to commercial and government agencies in the U.S.  For one year, ending in December 2007, Druskin served as Chief Operating Officer at Citigroup. Prior to that he held various positions at Citigroup.

A swirl of rumors engulfed E*TRADE in November from places as varied as Motley Fool, SeekingAlpha and Investment News that TD Ameritrade (AMTD) was angling to buy the firm. Though some feel that Druskin has the chops to run a firm like E*TRADE, we believe planting him in the position of "interim" CEO will do more to help keep the buyout rumors afloat. If the Directors really felt he was the guy to lead a new E*TRADE out of the muck, then why not make it a permanent placement?