E-Trade & EY: Match Made in Financial Heaven?

It has just been announced [1] that Internet securities broker E-Trade [2] and Ernst & Young [3] will partner to form a new venture handling financial advisory services.

Each company will put up $25 million for the new company, which has not yet been named. It is expected to become operational by the end of 2000.

E-Trade's interest in the partnership rests with delivering its customers more financial planning services than it currently offers online. By teaming with EY, E-Trade now can refer its customers to the Big 5 firm for additional opportunities.

E-Trade will employ an online, virtual-environment interface developed by EY so that customers can determine their needs.