E*Trade Marks Progress on Turnaround Plan

In a press release dated February 11, E*Trade announced that ...

[The company] has signed an Asset Purchase Agreement to sell substantially all of the assets of RAA Wealth Management, LLC (RAA) to PHH Investments, Ltd (PHH). This transaction ... [is] anticipated to be completed within the next 90 days; as a result, the Company expects to generate approximately $80 million in proceeds.

... The Company is actively working to improve capital and liquidity. Management has identified non-core assets with high market demand that will create value for the franchise through the orderly sale of such assets. The Company has also streamlined certain corporate functions to reduce expenses and will allocate these savings, as planned, to growth initiatives for its core retail business.

The albatross around this company's neck, and that of many others, has been subprime lending - and unloading its mortgage receivables on another company, even at a loss, shores up the company's own portfolio and eliminates a drain on its resources. This is an excellent sign that they are actively implementing their turnaround plan, and the stock price has reflected their success.