KFDA - NewsChannel 10 / Amarillo, TX: newschannel10.comAhead of the Bell: E-Trade Financial

Ahead of the Bell: E-Trade Financial

NEW YORK (AP) - E-Trade Financial Corp. withdrew its application to obtain money from the government's $700 billion financial bailout program launched last fall, according to a regulatory filing.

In a filing with the Securities and Exchange Commission late Monday, retail brokerage E-Trade said its recent capital raising and debt exchange programs provided it with the necessary financial support to avoid participating in the program.

New York-based E-Trade withdrew the application on Friday, according to the filing.

The government launched the $700 billion Troubled Asset Relief Program last fall at the peak of the credit crisis. Hundreds of banks participated in the program, some of which have already returned the money.

E-Trade, which filed its application about a year ago to obtain $800 million, had yet to be approved for the program before withdrawing its application.

The company was hurt by souring investments as the credit crisis spiraled late last year. The value of E-Trade's portfolio of mortgage and real estate investments tumbled as the housing market worsened and defaults continued to rise.

Over the past few months, E-Trade completed a debt exchangeto reduce its interest payments and ease its debt burden. The company also issued and sold new common stock to raise capital.

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