Why Shares of E*Trade Financial Fell Today

Shares of E*Trade Financial (NASDAQ: ETFC) fell 9.3% on Thursday, a day dominated by headlines about potential consolidation in the discount-brokerage sector. Unfortunately for E*Trade, it was not the target involved in the acquisition rumor, leading to fears that the company could be left behind if its rivals team up.

E*Trade investors ran for the exits on Thursday on reports that Charles Schwab (NYSE: SCHW) and TD Ameritrade Holdings (NASDAQ: AMTD) are in talks to combine. A deal would create a brokerage powerhouse with $5 trillion in combined assets and continue a trend of industry consolidation that's been led by TD Ameritrade and E*Trade.

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Source Fool.com