Stock Watch: Schwab, Others Invest in E-Loan

E-Loan, Inc. (Nasdaq: EELN) rose 5 9/32 to 9 11/32 Tuesday after the Dublin, California-based online lender announced investments totaling $40 million from Charles Schwab Corp., Abbey National, FT Ventures, Benchmark Capital and Technology Partners.

The institutions are acquiring equity stakes in E-Loan, which said it will use proceeds from the investments for working capital and general corporate purposes. Schwab, Abbey National and FT Ventures contributed $10 million each, and Benchmark Capital and Technology Partners each invested $5 million.

Chief Executive Officer Chris Larsen called the financing "a milestone on our path to profitability," and said it would accelerate the company's plans to penetrate the consumer lending markets.