Bloomber News
MENLO PARK, Calif. - E-Trade Group Inc., the second-biggest online broker, and Ernst & Young LLP, the third-largest accounting and consulting firm, will establish a $50 million venture to offer financial advice to investors.
The two companies said Tuesday they would let E-Trade's 2.6 million clients have online and in-person access to Ernst & Young's 1,000 financial planners for advice on home buying and tax and estate education and retirement planning.
Menlo Park, Calif.-based E-Trade and New York-based Ernst & Young will each contribute an initial $25 million to the as-yet-unnamed joint venture, which may at some point go public, the companies said.
E-Trade will own 50.1% of the new firm, which will develop technology allowing access to Ernst & Young advisers.
