Updated with stock price moves, Bove quote on bank selloff
NEW YORK (
was among the winners of the financial sector Monday following the online broker's decision to cut commissions and eliminate some fees.
said late Friday it would start charging $9.99 or less per stock or option trade, eliminating its $12.99 commission tier. High-volume customers will continue to pay $7.99 per trade.
E*Trade also said it's eliminating annual IRA account fees and a per share commission previously tacked onto market trades larger than 2,000 shares. In the second quarter, it plans to get rid of all account service fees, the company said.
E*Trade is the latest to slash its account fees, following
move on Jan. 19 to cut online equity trades to $8.95.
E*Trade shares were up 2.7% to $1.50. Among other online brokers, rival
lost 0.4% to $16.90, and Charles Schwab dipped 1.4% to $17.82.
Monday's other major financial sector headline is commercial lender
decision to appoint ex-
chief John Thain to the role of chairman and chief executive.
, who was the architect of Merrill's sale to
Bank of America
in the fall of 2008 before leaving soon after the merger, will take up the post immediately, replacing Peter Tobin, who was serving as interim CEO.
CIT Group, which entered bankruptcy in late 2009 and re-emerged on Dec. 10, gave back early gains and was down 0.7% to $30.55.
was unchanged after the company said it has retained Cappello Capital to explore strategic alternatives.
Last month, shares of Hanmi surged following a report in a South Korea newspaper that said
Woori America Bank
was considering taking a 51% majority stake in the Korean holding company.
Lately, shares of Hanmi Financial were trading flat at $1.73.
Other bank stocks were trading lower Monday. Rochdale Securities analyst Dick Bove said that reasons for the selloff include the sovereign debt crisis, as well as legislation in Washington that is aimed at breaking up the big banks.
"The fear driving this market at the moment is similar to the fears of February 2009," Bove wrote in a research note. "That proved to be a wonderful buying opportunity."
Bank of America lost 3.2% to $14.52,
was down 3% to $26.60,
slipped 1.9% to $151.27, and
fell 1.4% to $37.75.
had traded higher earlier in the session but were lately down 1.6% and 2.1% to $3.17 and $26.69, respectively.
In earnings news,
Nasdaq OMX Group
said it had fourth-quarter adjusted earnings of 46 cents a share, which was a penny better than the Thomson Reuters average estimate. Revenue was down more than 8% from a year ago to $369 million, although that beat the consensus target of $364.6 million.
Still, Nasdaq OMX shares were slipping 3.4% to $18.16.
-- Written by Robert Holmes in Boston
Check out all of Monday's high-volume, under-$5 stocks at the Dollar Store
Follow Robert Holmes on
and become a fan of TheStreet.com on