E*Trade Going Down the Toilet?

by Florida's #1 Mortgage Planner on November 12, 2007

On rumors (at least for now) that E*Trade is heading for bankruptcy and its downgrade from Fitch, its shares fell apart, dropping more than 50% today.  So, the final nail is likely in the coffin as they lost so much "value" they likely cannot avoid BK now.

Couple this wonderful news today with that of it being the target of an informal SEC investigation, and doom is too pretty a word for the picture of E*Trade’s future.

E*Trade’s President and COO says they can absorb over $1B in losses, but with Citi estimating the losses at $5B, where does that leave them?  Sounds like this guy took lessons from Mozilo.

So, if you have money in an E*Trade account, you may want to remove it yesterday.

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