Shares of E-Trade gain after report on help (AP)
Wed, 10 Jun 2009 17:03:15 Etc/GM
E-Trade stock gained 7 cents, or nearly 5 percent, to $1.60 in afternoon trading.
The Wall Street Journal reported in its Wednesday edition that the brokerage was working with hedge fund firm Citadel Investment Group to "shore up its financial position." Terms of the deal weren't known.
The report cited unnamed sources familiar with the situation.
On Tuesday, E-Trade announced that Citadel Chief Executive Kenneth Griffin joined its board of directors and would serve as a member of the company's finance risk oversight committee.
E-Trade said in late April that the Office of Thrift Supervision had asked it to raise capital quickly after the brokerage reported a larger-than-expected first-quarter loss and boosted its reserves for bad loans. The money could help E-Trade reduce its debt and buffer itself further from loan losses.
source: http://biz.yahoo.com/ap/090610/us_etrade_mover.html?.v=1