| 22 March 2010

After a long search that was frought with temporary replacements and false starts, E*TRADE Financial has finally found its new CEO. Steven Freiberg, a 30-year career man at Citigroup (C), will take over the reigns of the online broker on April 1. No foolin'.

Mr. Freiberg, 53, most recently served as a "Co-CEO" of Citi's consumer business, overseeing product lines that extended around the globe and accounted for 50 percent of the company's business, according to a company release.

It has long been speculated that E*TRADE, which has fallen on tough times due primarily to the collapse in its mortgage and banking business, was a prime candidate for a takeover. TD Ameritrade (AMTD) was often rumored to be a potential acquirer, given their strong cash position. But ultimately E*TRADE's financial troubles were too much for TD Ameritrade's CEO, Fred Tomczyk, to stomach.

Given the new CEO hire we can't help but wonder if E*TRADE will once again focus on running as an independent rather than simply position itself for a potential sale. According to the Wall Street Journal, who interviewed Mr. Freiberg, "a sale of the company is 'one way to enhance value,' but his primary goal is to bolster E*Trade's business."

In separate news, the company's Board of Directors authorized a 1-for-10 reverse stock split. The split is subject to shareholder approval at the firm's annual shareholder meeting on May 13th.