JWG

E*Trade: A Bet Worth Making

Steven F: Here's a question that has put me off buying ETFC. Citadel owns a bunch of stock and a whole bunch of senior debt. They effectively control ETFC. So now: is it more advantageous to them that the company recovers, or goes bankrupt? If it goes bankrupt, they lose on their existing stock (goes to zero) but their debt would be swapped for new stock, and they'd end up owning a *higher* percentage of the company. They might make out a lot better that way. Any thoughts?
/jwg

Read This Before Buying E*Trade

Excellent, thank you. Like you I bought a starter position, impressed by the insider "statement" buys. As Soros says, "Invest, then investigate!" Tomorrow I'm outtahere.