E*Trade Still Has Issues

Updated from Thursday, Nov. 29

In announcing E*Trade Financial's(ETFC Quote) $2.55 billion cash infusion from Citadel Investments Group Thursday, Acting CEO Jarret Lilien said the deal "takes concerns off the table."

But while the online broker has addressed one major concern that made its shares plummet a few weeks ago -- after it said it expected writedowns to its $3 billion asset-backed securities portfolio and a Citigroup analyst raised concerns that its bank was in danger of failing -- significant problems remain, particularly the quality of its $12.4 billion home-equity loan portfolio.

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