(March 5) – “Some Merrill Lynch & Co. executives used to mock the viability of online stock trading. Now, one of the firm’s top executives is poised to run Ameritrade Holding Corp., one of the nation’s largest online brokerage firms,” writes Charles Gasparino in today’s Wall Street Journal.

“Joseph Moglia, a senior vice president in Merrill’s private-client group, is expected to be named chief executive of Ameritrade, according to people close to the matter. The announcement could come as early as Monday.”

“Mr. Moglia didn’t return a telephone call for comment, and Ameritrade spokesman Larry Marchese declined to comment on the matter.”

“Mr. Moglia would take the post vacated in August when Tom Lewis resigned. Since then, Ameritrade’s founder, J. Joe Ricketts, has served as CEO, but he told shareholders at the recent annual meeting that he is looking forward to handing the job over to a permanent chief executive.”

“The move, though, is somewhat ironic given Merrill’s past opposition to online trading. The former head of its brokerage business, John ‘Launny’ Steffens, was once quoted disparaging what he called ‘the do-it-yourself model of investing, centered on Internet trading.’

“Analysts say Mr. Moglia’s appointment could provide a shot in the arm to Ameritrade, based in Omaha, Neb. During the past year, shares of Ameritrade have fallen nearly 60% as investors have sharply reduced their online-trading habits amid the sharp decline in the stock market, particularly the technology-heavy Nasdaq Composite Index.”

“The stock climbed 8.4% Friday, however, after a Wall Street Journal reporter broke the news of Mr. Moglia’s expected move. In 4 p.m. Nasdaq Stock Market trading, Ameritade rose 69 cents to $8.94.”

“Mr. Moglia is a 17-year veteran of Merrill, and he held one of the top positions in the company’s venerable private-client unit, which serves small investors through its army of about 14,000 brokers. In his most recent job, Mr. Moglia was in charge of sales of stock and other investments through the brokerage network, and he is one of a handful of lieutenants to E. Stanley O’Neal, head of the private-client division.”

“The appointment of a Merrill Lynch executive ‘gives Ameritrade credibility,’ according to Amy Butte, a securities-industry analyst for Bear Stearns Cos. Ms. Butte added the move ‘gives Ameritrade validity’ as it attempts to recover from its recent problems.”