NEW YORK – E-Trade Financial expects to post a loss for the quarter as it reworks its balance sheet.
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The online brokerage firm said Tuesday that it is restructuring balance sheet liabilities to eliminate $4.4 billion of its wholesale funding obligations by the end of the quarter. It will take a pre-tax charge of $410 million because of it.
E-Trade Financial Corp. said that the maneuver will improve its balance sheet by removing high-cost funding and put it on a path to normalized earnings.
Shares jumped 7 percent to $27.23 by midday following the announcement. E-Trade's shares are up roughly 16 percent over the past year.