Thursday, November 29, 2007

ETrade Sells Portfolio for 27 cents on the Dollar

From MarketWatch: CEO leaves as E-Trade gets $2.55 billion from Citadel
The subprime crisis claimed a new scalp Thursday, as E-Trade's CEO Mitch Caplan said he was stepping down as part of a deal that has private equity firm Citadel injecting $2.55 billion into the troubled firm.

Under the deal, Citadel will end up with about a 20% stake in E-Trade after acquiring its $3 billion asset backed securities portfolio for $800 million and making other investments.
That is about 27 cents on the dollar for the ABS portfolio.