Analyst Warns Of E-Trade Bankruptcy Risk

Law360, New York (November 13, 2007, 12:00 AM EST) -- E-Trade Financial's stock plummeted in value on Monday after an analyst with Citigroup Inc. suggested that fallout from the nationwide subprime mortgage crisis might drive the company into bankruptcy, just a few days after the company announced larger-than-expected write-downs relating to mortgage-backed securities.

The company's stock, however, began to rise again on Tuesday, according to published reports.

The online securities broker told investors in a statement Friday following its third-quarter earnings report that it expected the collapse of the subprime mortgage industry to result in larger-than-expected...
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