This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

E*Trade Chief Denies Bankruptcy Rumors

E*Trade Financial (ETFC - Get Report) CEO Mitch Caplan on Wednesday "categorically" denied that the online brokerage firm was headed for bankruptcy, during an interview with CNBC.

E*Trade shares lost more than half their value on Monday after a Citigroup analyst suggested there could be a run on the company's bank. The speculation came after the New York-based brokerage firm announced late Friday that it will take further writedowns on its collateralized debt obligations, or CDOs, and second-lien securities portfolio.

Caplan said that the writedowns and negative news coming from E*Trade did not make the company more vulnerable to a buyout. Observers had renewed speculation that the online brokerage firm could be ripe for a takeover as a result of the writedowns and fears of bankruptcy.

"There's so many people that are interested in our franchise," Caplan said during the CNBC interview. "I think it does not make us any more or less vulnerable for a takeout."

Still, Caplan did not rule out the possibility of a sale.

Caplan's remarks to CNBC came after the CEO canceled a scheduled presentation slated for earlier in the day at a major investor conference, raising speculation about a possible sale or management change at the beleaguered firm.

E*Trade, which provides online banking, brokerage and lending to retail and institutional customers, joined the likes of Countrywide Financial (CFC) and Washington Mutual (WM - Get Report) and other smaller lenders hit hard by the housing downturn and mortgage deterioration, particularly as the secondary market for mortgages ground to a halt. The stock is down more than 80% this year.

Market chatter earlier this year had TD Ameritrade (AMTD - Get Report) and E*Trade discussing a possible merger.

Shares closed up 54 cents, or 10.8%, to $5.54 on Wednesday.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMTD $36.99 0.00%
ETFC $27.85 0.00%
WM $53.40 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs