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Capital One Jettisons Online Brokerage Accounts in E*Trade Deal

  • Bank to sell 1 million accounts to E*Trade for $170 million
  • Lender says asset sale will probably result in job cuts

Capital One Financial Corp. is selling more than 1 million brokerage accounts to E*Trade Financial Corp. for $170 million as the bank exits the self-directed online investing business.

The accounts include about $18 billion in customer assets, New York-based E*Trade said Thursday in a statement, adding it will pay for the transaction with existing cash. The deal is expected to be “relatively neutral” to earnings this year and add about 6 cents a share in 2019, the online brokerage said.