E*Trade- Negative Press Search
Eight articles that are negative and would indicate that E*Trade has participated in poor business practices, has been almost liquidated, or has almost gone out of business are detailed below.
I) E*TRADE GOING OUT OF BUSINESS?
- This is an article that appeared in Forbes, which claimed that E*Trade was in a bad financial situation. The article details how the company's shares dropped from $4.68 to $3.91 in trading, which represented a 54.5% drop.
- The article states that a Citi Investment Research analyst claimed that E*Trade could face bankruptcy. The company also warned its investors of larger-than-expected write-downs in its fourth quarter.
II) IS MY MONEY OR BROKER ACCOUNT SAFE IF E-TRADE FAILS AND GOES BANKRUPT?
- This article states that it was a trying time for people who had bought and owned E*Trade stock, since the company's share prices had plummeted by over 90% within the previous year. The article attributes the share plunge to Citigroup's downgrade in November 2007.
- The article states that many account holders and investors were worried about the company's financial situation and some had left and moved their assets to other brokerage firms.
- There were warnings from analysts that E-Trade was in desperate need of more capital infusion to stay in business.
III) How E*TRADE CAME BACK FROM A WIPEOUT
- This article talks of how E*Trade was an enabler of the dotcom financial bubble and a wounded casualty of its collapse.
- The financial crisis is said to have taken E*Trade to the brink of bankruptcy. It took the company almost a decade to recover from nearly going out of business.
- The link to the article can be found here.
IV) E*TRADE IN TROUBLE, HEADED FOR BANKRUPTCY?
- The article states that bad mortgage-related bets was likely to cost E*Trade its solvency.
- It continues to state that National Mortgage News cited a Citigroup analyst who thought that there was a 15% chance of E*Trade filing for Chapter 11 bankruptcy protection.
- The article also quotes a Forbes commentary that speculated that E*Trade could go out of business.
V) ARE E-TRADE ACCOUNTS STILL SAFE?
- This article is in response to an E*Trade customer who was concerned about the financial troubles the company was going through and how this could affect their accounts.
- The article assures customers that there were several safeguards put in place to protect their money if their broker, E*Trade, went bust.
VI) INVESTORS FLEE E*TRADE; WILL DEPOSITORS FOLLOW?
- The article states that E*Trade's stocks dropped due to fears of a run on the bank.
- It continues to say that the company's shares lost over half of their value and that an analyst thought the company could be forced into bankruptcy protection.
- The article refers to the analyst Prashant Bhatia of Citigroup suggesting that E*Trade customers would rush to withdraw their assets and leave the bank with fewer funds to operate.
VII) E*TRADE TO LIQUIDATE ALL PROPRIETARY MUTUAL FUNDS THIS WEEK TO RAISE CAPITAL
- This article states that E*Trade was going to liquidate all proprietary mutual funds to raise capital.
- It continues to say that E*Trade sent a letter to its mutual fund holders stating that the company was planning to liquidate its entire mutual funds portfolio that same week and that all funds were to be cashed out by Friday.
VIII) E*TRADE CHIEF DENIES BANKRUPTCY RUMORS
- This article talks about E*Trade's CEO Mitch Caplan being forced to deny that the company was headed for bankruptcy as he was interviewed on CNBC.
- The article talks of how fears of the company almost going out of business were made worse when the company's shares lost over half their value and after the announcement that further writedowns were on the way.
- The article quotes the CEO as saying that “the writedowns and negative news coming from E*Trade did not make the company more vulnerable to a buyout”.