Etrade Potential Bankruptcy?

[stephenNUTS]

[ QUOTE ]
[ QUOTE ]
That's regarding your positions. Regarding your cash, don't expect the SIPC to "protect" you . If ETRADE is in trouble, who else do you think might be? Do you suppose others like ETRADE have an derivative exposure?

[/ QUOTE ]

What a load of BS.

[/ QUOTE ]

C,mon man
Where on earth do you guys get this crap from?

Your CASH is insured up to $100k per account and stocks INSURED up to $500k.
They are SAFE!!

However...if you still feel uncomfortable...move your account to another BD ...but whether ETrade goes under or not....or the time it takes to ACAT(move your account) to a new broker.....you have to wait to liquidate your securites anyway during that period.

Thats the rules!

But once again ....your CASH/Stocks are safely insured,and this is NOT ENRON....lol

Enron went BR,and their OWN stock price went to ZILCH....this is not the same comparison

Unless however you individually own E-Trade stock...then you MOST DEF. would be exposed to bankruptcy issues from that standpoint.That was the reason for the mass stampede for the doors yesterday and subsequent stock collapse

....but your other positions/holdings/cash have NOTHING to do with ET going bankrupt.

SF [img]/images/graemlins/cool.gif[/img]

[ArturiusX]

Little blog post for those interested:

http://globaleconomicanalysis.blogsp...ankruptcy.html

[ahnuld]

just to clarify for people, pig4bill and SN are right and you should be protected for the most part. If, for some reason, you have a huge cash position over 100k buy something safe. If bankruptcy occurs im pretty sure theyll cover all the cash anyways, even over 100k, but it cant hurt to buy a AAA bond ETF in the mean time.

[stephenNUTS]

[ QUOTE ]
Little blog post for those interested:

http://globaleconomicanalysis.blogsp...ankruptcy.html

[/ QUOTE ]

You gotta love these WS ANALysts:

[ QUOTE ]


[/ QUOTE ] [ QUOTE ]


[/ QUOTE ] He cut his price target to $7.50 from $13, while Banc of America analyst Michael Hecht reduced his target by $1.50 to $10.50, citing diminished earnings visibility. Hecht maintained his "neutral" rating on the stock.

My comment: You have to love this. Citigroup is openly discussing bankruptcy and putting a sell rating on the stock that is now trading under $4. But the price target is $7.50. Meanwhile Banc of America cuts the target to $10.50 while remaining "neutral" on the stock. What planet are these guys on? Bizarro World?

[octaveshift]

[ QUOTE ]
Little blog post for those interested:

http://globaleconomicanalysis.blogsp...ankruptcy.html

[/ QUOTE ]

What a bunch of [censored]. This blogger is working under the assumption that everything the CITI analyst said was correct.

Here's some (sanity?) from Bloomberg:

Nov. 13 (Bloomberg) -- E*Trade Financial Corp., the online brokerage whose shares plunged 59 percent yesterday, is ``highly unlikely'' to declare bankruptcy, BMO Capital Markets said.

E*Trade shares surged the most in six years, adding 61 cents, or 17 percent, to $4.16 as of 9:48 a.m. in New York. The stock has lost 84 percent this year through yesterday, compared with an 18 percent slide for the Standard & Poor's 500 Financials Index.

``Management has stated that the company could absorb $1 billion in writedowns and still maintain well-capitalized status,'' analyst Michael Vinciquerra wrote in a note. ``The company also indicated to us that it is spending a great deal of time looking for ways to cap or lay off its potential losses.''

``Withdrawals would have to be massive for the company to have major issues,'' Vinciquerra wrote. ``A key fact that some people seem to be ignoring is that E*Trade's deposits have actually grown for the last 13 months consecutively.''

The Atlanta-based analyst maintained the ``outperform'' rating he has had on the stock since starting coverage in April. His forecast that the New York-based brokerage will report a profit of 89 cents a share this year may be ``too optimistic based on recent commentary,'' Vinciquerra wrote. He expects profit of $1.46 a share next year.

E*Trade plunged yesterday after the third-largest online brokerage forecast a decline in fourth-quarter earnings and Citi Investment Research analyst Prashant Bhatia said the company may go bankrupt. There's a 15 percent chance the company will seek protection from creditors after management ``put the viability of the franchise at risk,'' Bhatia wrote in a note.

Vinciquerra said the company would probably be acquired before filing for bankruptcy.

``In the event that it proves necessary in a worse-case scenario, we also believe there are buyers that would find E*Trade's entire business highly attractive at a meaningful premium to current levels,'' he wrote.

BMO Capital Markets is a unit of Bank of Montreal, Canada's fourth-largest bank.