E-Trade Financial, the New York-based online brokerage, is to sell nearly all of its RAA Wealth Management assets to PHH Investment, a registered investment advisor based in Texas.

E-Trade said the sale was part of a turnaround plan to improve capital and increase liquidity. It expects to achieve $80 million in proceeds from the sale, which is expected to close in April.

E-Trade acquired RAA Wealth Management in August of 2006 but its stock has fallen 80 per cent over the past year, as its banking business suffered losses from subprime mortgage holdings.

In December it unveiled a turnaround plan to cut costs by $360 million over the coming year, shed problem assets and sell off units not integral to its main brokerage business.

PHH is a Texas-based registered investment advisor specialising in financial planning for airline crew members.