At the Bell

E*Trade Bank shows big gain

in deposits

* E*Trade Bank added $1 billion in net new deposits in the quarter ended Dec. 30. It expanded its deposits by 119% during the year.

E*Trade Group is the only online broker in the upper echelon of its industry with no branch network. That has put it under considerable scrutiny from Wall Street as investors realize that bricks and mortar are still an important lure for attracting assets.

E*Trade maintains that there is a growing class of investors willing to forgo branches to get better rates and lower fees.

Fund Democracy targeting SEC

* Fund Democracy LLC, an organization for mutual fund shareholders, hopes to use the power of the Internet to advance its positions.

Mercer Bullard, founder of Fund Democracy, published an article last week on TheStreet.com, an online financial information service that lets readers link directly to the Securities and Exchange Commission to file comments. A format letter has been created that readers can also use to send to the SEC.

The advocacy group is taking its cue from the huge success experienced by readers of other online news services. They wrote messages in support of the SEC’s recent rules preventing companies from disclosing information to analysts that was not also made public.

Fund Democracy’s top issue for this year: requiring funds to disclose holdings more than twice a year, the current requirement.

FASB report urges valuation revisions

* The Financial Accounting Standards Board says traditional accounting concepts for determining the value of financial instruments need to be modified.

In a special report, the FASB called for carrying virtually all instruments at “fair value” and recognizing gains and losses in fair value in the income statement of the quarter in which they occur.

The report also calls for changes in the way components of financial assets are recognized, expansion of disclosure and the elimination of special accounting for instruments used in hedging.

The board, based in Norwalk, Conn., invites comments before June 30.

State Street’s CEO now also chairman

* David A. Spina, the 57-year-old president and CEO of State Street Corp., has taken over as chairman of the Boston financial services company.

Mr. Spina, who has been with State Street since returning from Vietnam in 1969, replaces Marshall Carter, 60, who retired Jan. 1.

In a statement, Mr. Spina said he plans “to expand our reach overseas and to capitalize on the company’s leadership position in e-business.”

Legg Mason buying money manager

* Legg Mason Inc. of Baltimore announced last week that it would buy Barrett Associates Inc. of New York.

Barrett will become the fourth company that Legg has bought as part of its efforts to count wealthy investors among its clients. Barrett oversees $2 billion in portfolios of rich individuals and some institutions.

John D. Barrett, chairman and chief executive, will remain in those posts.

Kinetics adding non-Internet funds

* Kinetics Asset Management Inc. filed prospectuses last week with the Securities and Exchange Commission for the low-tech Kinetics Energy Fund and the Kinetics Money Market Fund.

The two funds mark a departure in strategy for the company. Kinetics, based in New York, is best known for its various Internet funds.

Alliance Growth gets new managers

* Jane Mack Gould and Alan E. Levi have replaced Tyler Smith at the helm of the $6 billion Alliance Growth Fund. All are senior vice presidents with Alliance Capital Management Holding of New York. Mr. Smith will continue to manage subadvised and separate accounts for Alliance.