E*TRADE FINANCIAL Corporation (NASDAQ: ETFC) has announced its intent to participate in the Treasury’s TARP bailout funding program. The online brokerage firm confirmed that it filed an application to receive $800 million of funding.
E*TRADE said that the application is being reviewed by the Office ofThrift Supervision, the company’s primary regulator. CEO Donald Laytonsaid that the company remains optimistic that it will receive approvalof the application and expects to make an announcement this month.
No other statements and no other data were included by the firm.With another week left until the time expires, we have yet to see whichof the second- and third-tier financial companies will be approved forfunding and we have yet to see how much of the amounts applied for willactually be approved by Uncle Sam.
E*TRADE has a market cap of roughly $1 billion, and we have maintainedmany times in our weekly publication that not all of the financial asbestos has been removed fromthe books. But we also believe that this company will emerge as awinner down the road. The question is whether or not the company doesthis on its own or if a competitor takes it over. You can sign up to our open email distribution list to hear additional comments regarding E*TRADE, other special situations, newsletter previews, IPO’s, mergers, and more.
Jon C. Ogg
November 7, 2008