I wonder just how many customers have pulled their assets so far?
Good question, but an even better one would be why are they pulling their money out at all? As long as your accounts are below the insured limits, you're safe. I wonder if this whole thing wasn't just a trick conjured up to make some quick cash on the etrade stock. That one goofy analyst opinion drove the stock down farther than it should go then someone buys up the shares before they bounce back. Those that bought down at 3.50 on Monday are now up over 50%. I'm convinced that 99% of the stuff you read about stocks in the news is designed to manipulate the market.
Still, their mortgage exposure is a bit scary but not "stuff your money in the mattress" kind of scary…
Because even though there shouldn't be a problem, why take a chance? You're not being rewarded for the extra risk. As far as the stock price, stock price is a reflection of market sentiment. What you saw falling to 3.5 could have been an overreaction. The rise to $5 could be because some of that initial panic subsided OR it could just be a dead cat bounce: people think it went down so much it has to rise and hence bought. Only time will tell.
