E-Trade CEO Steps Down, Company Announces $2.5 Billion Infusion

Mitchell H. Caplan, CEO of E-Trade Financial Corp., has stepped down from his role at a time when the company has announced a $2.5 billion cash infusion from affiliates of Citadel Investment.

Effective immediately, E-Trade President and COO R. Jarrett Lilien will take the seat as acting CEO, while Caplan serves as an adviser on transition matters through the end of the year. The company is planning to conduct an extensive search for Caplan's permanent successor, candidates for which will include Lilien and external possibilities.

What's more, Donald H. Layton, who has served as a special advisor to the company's board, will become company chairman, succeeding George A. Hayter who will remain a director. 

Meanwhile, the infusion includes an immediate funding of about $2.4 billion.  The remaining $150 million is expected to fund by January 15, and the investment fortifies the comapny's balance sheet, allowing the company to focus on its core retial business, and provides additional capital to manage credit risk.