March 22 Kenneth Griffin, chief executive of
hedge fund Citadel LLC, will not seek re-election to E*Trade
Financial Corp's board after his fund sold its stake
in the company earlier this month.
Griffin, whose hedge fund bailed out E*Trade in November
2007, had tried for years to convince fellow board members to
sell the company. That campaign ended when Citadel sold its 9.6
percent stake to Citigroup Inc.
Like other discount brokerage firms, E*Trade is struggling
with low trading volumes and rock-bottom interest rates that
impair its ability to generate returns for clients.
Griffin will remain on the board until his term expires on
May 9, E*Trade said in a securities filing on Friday. ()
Citadel invested about $2.6 billion in E*Trade in 2007 when
its shares were trading below $1 and the company was flirting
E*Trade shares have fallen 10 percent since Citadel
announced the sale of its stake on March 13. They closed at
$10.64 on Thursday on the Nasdaq.