Etrade Potential Bankruptcy?

[ArturiusX]

lol at people thinking they'd lose their stocks if e-trade went heads up.

[stephenNUTS]

[ QUOTE ]
lol at people thinking they'd lose their stocks if e-trade went heads up.

[/ QUOTE ]

Art,
Now you see why I try and keep my responses simple?
[img]/images/graemlins/smirk.gif[/img]

[octaveshift]

Well, I just rolled the dice and got in at 3.60.
I think it's way oversold.

[ahnuld]

might go bankrupt when they have to mark to market on the 15th of november. Apparently they have a 47 billion dollar mortage portfolio and 4.1 billion in equity.

[Jimbo]

[ QUOTE ]
might go bankrupt when they have to mark to market on the 15th of november. Apparently they have a 47 billion dollar mortage portfolio and 4.1 billion in equity.

[/ QUOTE ]

If that were true wouldn't the probability of them going bankrupt be 100% rather than 15%?

Jimbo

PS: I got stopped out of my last effort at E-Trade at what seems now like a miniscule loss of 62 cents per share compared to what it is selling for now.

[ahnuld]

well I think thats the market value of their total loan portfolio. Its not all mortgage loans and not all need to be marked down. But after reading a bit more im not so sure they will avoid bankruptcy. I want to buy them but its such a messy business now and after reading through their annual report its really hard to tell exactly what they make from their brokerage business as a stand alone entity. I think a good trade would be to buy nov 17 puts and dec 22nd calls as the 15th seems to be their do or die date and I doubt that it would be totally reflected in the market, but the nov options are all way too OOTM to trade.

[stephenNUTS]

[ QUOTE ]
might go bankrupt when they have to mark to market on the 15th of november. Apparently they have a 47 billion dollar mortage portfolio and 4.1 billion in equity.

[/ QUOTE ]

Ahnuld,

I was just going to post this about their possible exposure to the sub-prime mess I had heard rumors about last month....its another example of corporate greed...and straying away from their core business ....esp.late in the game IMO
Amazing [img]/images/graemlins/confused.gif[/img]

SF

[etizzle]

[ QUOTE ]
lol at people thinking they'd lose their stocks if e-trade went heads up.

[/ QUOTE ]

is there any chance of losing the cash in there? obv we would still have the stocks

[ahnuld]

no, cash is protected to I believe up to 100k. If you have a huge cash position just buy a bond etf for the time being.

[West]

[ QUOTE ]
no, cash is protected to I believe up to 100k.

[/ QUOTE ]

so how does that process work exactly, the FDIC insurance? anyone here ever have cash in a bank that went bankrupt before?