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E*Trade: Financial Winners and Losers

E*Trade Financial shares rose following the online broker's decision to cut commissions and eliminate some fees.


Updated with stock price moves, Bove quote on bank selloff




) --

E*Trade Financial

(ETFC) - Get Free Report

was among the winners of the financial sector Monday following the online broker's decision to cut commissions and eliminate some fees.

E*Trade Financial

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

Charles Schwab's

(SCHW) - Get Free Report

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

TD Ameritrade

(AMTD) - Get Free Report

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

CIT Group's

(CIT) - Get Free Report

decision to appoint ex-

Merrill Lynch

chief John Thain to the role of chairman and chief executive.

John Thain

, who was the architect of Merrill's sale to

Bank of America

(BAC) - Get Free Report

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.


Hanmi Financial

(HAFC) - Get Free Report

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,

Wells Fargo

(WFC) - Get Free Report

was down 3% to $26.60,

Goldman Sachs

(GS) - Get Free Report

slipped 1.9% to $151.27, and

JPMorgan Chase

(JPM) - Get Free Report

fell 1.4% to $37.75.



(C) - Get Free Report


Morgan Stanley

(MS) - Get Free Report

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


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