E TRADE Financial Corp (ETFC)

[eastunder]

E*Trade shareholders approve reverse stock split
Thu May 13, 2010 7:12pm

* 1-for-10 reverse split effective in early June

* Online broker stung by mortgage-related loan losses

* Shares worth more than $25 in 2007; now $1.60

NEW YORK, May 13 (Reuters) - Shareholders of E*Trade Financial Corp (ETFC.O) voted on Thursday to authorize a 1-for-10 reverse stock split, the U.S. online brokerage said, deciding to boost the price of shares that were pummeled when the mortgage market cratered.

The company, just now beginning to recover from its painful loan losses, said it expected the reverse split of common stock to become effective early next month.

E*Trade shares closed unchanged at $1.60 on the Nasdaq Thursday. They were worth more than $25 apiece in 2007, before losses in E*Trade Bank's mortgage portfolio set in.

The company proposed the reverse stock split in March. Analysts have said the move could help E*Trade's optics and make its shares appropriate for use by more fund managers. [ID:nN22154578] (Reporting by Jonathan Spicer; Editing by Gary Hill)