E-Trade may need more capital as bad loans lead to big losses


As expected, ongoing struggles by E-Trade Financial (ETFC) to manage its loan portfolio did not go over well on Wall Street.

The online broker reported a higher than expected net loss of $232.7 million, or 41 cents a share, largely due to rising delinquencies and charge-offs that compelled it to raise its loan-loss provisions. The loss was higher than the 39 cents per share many analysts were expecting. A year earlier the company reported a net loss of $91 million or 20 cents per share.