E*Trade Cashing In on NYSE-Archipelago Hookup

Meanwhile, the Archipelago/NYSE merger is proving to be quite a windfall for Goldman Sachs (GS Quote), which is one of the biggest equity investors in the electronic exchange. Goldman and its subsidiaries own 7.3 million shares, or 15% of the electronic exchange's outstanding stock. The value of Goldman's investment has risen by $84 million since the deal was announced.

In recent days, the storied investment bank has come under fire for serving as merger adviser to both Archipelago and the NYSE. Archipelago disclosed recently that it paid a $3.5 million advisory fee to Goldman. Additionally, Goldman owns 21 member seats at the NYSE, whose value has risen by $20 million in value because of the deal.

Langone has indicated that one of the reasons he launched his rival, some might say quixotic, bid for the NYSE is Goldman's dual role as kingmaker and investor in the deal.