E*Trade Financial ( ETFC) sank 26% to an all-time low Tuesday after investors ran from the stock on fears the online broker will have to raise more capital. Ratings agency Egan-Jones said E*Trade is in "dire need" of fresh financial support, according to a note published Monday. "The company is in desperate need of more support which, if it does not receive shortly, might render it unsalvageable," the note said. "Our concern remains about adequate capitalization and unrealistic valuations of the $47 billion in mortgages and loan receivables." The company is also closing its U.S. institutional sales business and will eliminate approximately 30 positions from the firm, according to the company. E*Trade said in September that as part of a plan to focus on the retail business it was restructuring its institutional sales trading business, which was related to its international institutional business. E*Trade shares, already beaten up over the past year by the ongoing credit crisis and deterioration of the housing market, closed Tuesday down 58 cents, or 20.5%, to $2.25. A spokeswoman declined to comment on concerns about E*Trade's capital. In late November, the New York-based online brokerage firm announced a $2.55 billion cash infusion from hedge fund Citadel Investments, which provided much-needed liquidity for the troubled company while it struggled to right the ship as its mortgage business crumbled.