(Reuters) - 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. (link.reuters.com/fag86t)
Citadel invested about $2.6 billion in E*Trade in 2007 when its shares were trading below $1 and the company was flirting with bankruptcy.
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.
Reporting by Tanya Agrawal in Bangalore; Editing by Saumyadeb Chakrabarty