Bancorp International Group Inc (fka BCIT)

[AlanC]

original post by cardnut and it sure looks like Etrade's problems are far from over to me:

E-trade in trouble? Sure looks like it's old business unit sure is.....

http://m.wsj.com/articles/former-e-trade-unit-lays-off-several-employees-including-ceo-1413235284?mobile=y

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October 13, 2014 5:21 PM
Former E*Trade Unit Lays Off Several Employees, Including CEO
G1 Execution Services Was Acquired by Susquehanna International Eight Months Ago

By BRADLEY HOPE
G1 Execution Services LLC laid off several employees, including its CEO, eight months after the company was acquired by Susquehanna International Group LLP, according to people familiar with the matter.
G1 Execution Services CEO Dave Grove was among about a dozen employees laid off by Susquehanna, the people said. Susquehanna closed its acquisition of the unit from E*Trade Financial Corp. for $75 million in February.

“It is always difficult to let go of good people, but when you acquire a business, redundancies can occur,” David Pollard, head of strategic planning at Susquehanna, said in a statement. “As a result of such redundancies, some G1X employees were recently let go. We appreciate their service and wish them well.”
News of the layoffs comes just days after the Securities and Exchange Commission last week levied a $2.5 million fine on E*Trade Securities and E*Trade Capital Markets, which laterchanged its name and became G1 Execution Services, for failing to uphold their “gatekeeper” roles and improper sales of penny stocks during a period from 2007 to 2011.
“Broker-dealers serve an important gatekeeping function that helps prevent microcap fraud by taking measures to ensure that unregistered shares don’t reach the market if the registration rules aren’t being followed,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement, in a statement announcing the fines last week.
Mr. Grove couldn't immediately be reached for comment.
“We are pleased to have resolved this matter with the Commission and from a financial standpoint, this matter was previously reserved for,” a spokesman for E*Trade said in a statement about the SEC fine.
Susquehanna is a private, technology-focused proprietary trading firm based in Bala Cynwyd, Penn., with a specialization in trading equity options and other derivatives. The company also has brokerage and private equity businesses.
Under the terms of the deal with E*Trade, Susquehanna executes and earns commissions on 70% of all E*Trade client orders until 2019.


Stemming from this?? :
http://m.wealthmanagement.com/legal/etrade-units-pay-25-million-settle-sec-charges-over-illegal-sales


Quote:
In 2013, the company disclosed that the Financial Industry Regulatory Authority was investigating whether E*Trade routed customer orders to its internal G1 Execution unit, in violation of best execution rules.

That investigation is still ongoing, FINRA confirmed. (Reporting by Sarah N. Lynch in Washington, D.C. and by Jed Horowitz in New York; Editing by Doina Chiacu and Susan Heavey