JPMorgan Chase & Co has signed a definitive agreement to sell its online deep discount brokerage business, BrownCo, to E*Trade Financial for...

JPMorgan Chase & Co has signed a definitive agreement to sell its online deep discount brokerage business, BrownCo, to E*Trade Financial for a cash price of $1.6 billion, giving it an after-tax gain of approximately $700 million. The sale, which is subject to regulatory approval, is expected to close by the end of this year. Jes Staley, head of JPMorgan Asset & Wealth Management, said: " We have decided that it is in the best long-term interests of our shareholders and BrownCo's customers that we sell the unit to E*Trade Financial, a recognized industry leader in online brokerage, and that our Asset & Wealth Management group focus on its core investment management and wealth advisory activities." BrownCo has approximately 200,000 active accounts, 28,000 daily average revenue trades, $3 billion in margin accounts, $3.4 billion in customer credits and $29 billion in client assets.