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Hedge fund Citadel to sell ETrade stake

ETrade was hit by heavy mortgage losses in 2007.
Richard Drew/AP
ETrade was hit by heavy mortgage losses in 2007.
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ETrade Financial Corp. fell Thursday after the online brokerage said its largest shareholder, Citadel LLC, which twice helped rescue the firm and later pushed it to pursue a sale, is selling its entire 9.6 percent stake in the company, exiting an investment it made at the height of ETrade’s mortgage woes more than five years ago. The large offering will mark Citadel’s first sale of ETrade’s stock since April 2011, when the hedge fund halved its stake in the New York company.