I've thought of ETFC below $4 as preposterous. When E-Trade's stock fell below 3 in the recent swoon, yoikes. Now that ETFC is above 5, there are questions galore. Does the company deserve the benefit of the doubt? Should ETFC climb back into the 20s now that the Fed is slashing rates?
Or, as Richard Shinnick writes, E-Trade's crisis has almost nothing to do with the brokerage arm (which has its fervent loyalists) and almost everything to do with loans. Shinnick breaks down the basic numbers and provides a stark contrast to the ETFC bulls who haven't delved very deeply into the murky waters of subprime sludge.
Even with this, the overriding question is, who will eventually take over E-Trade?
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