The Bottom Line

E-Trade Financial shares dropped 59 percent yesterday after a Citigroup analyst estimated there is a 15 percent chance that heavy losses from subprime mortgages could force the online brokerage into bankruptcy.

E-Trade Financial shares dropped 59 percent yesterday after a Citigroup analyst estimated there is a 15 percent chance that heavy losses from subprime mortgages could force the online brokerage into bankruptcy. “We take exception to the sensationalism based on unfounded speculation,” E-Trade responded. E-Trade shares are down 84 percent on the year. (Los Angeles Times, free registration required)

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