Speculation on E*Trade Hurts Stock - New York Times

Speculation on E*Trade Hurts Stock - New York Times: "

The company has $29 billion in customer deposits. About half the deposits are over the $100,000 threshold covered by federal deposit insurance, according to Mr. Bhatia. Customers are more likely to withdraw cash not covered by government insurance. This summer, a run on a English mortgage lender, Northern Rock, was prompted by concerns about the company’s ability to finance itself in the short-term debt market. The run was dissipated after public officials assured customers that the government would back their deposits. In a note to customers on its Web site, E*Trade’s president, R. Jarrett Lilien, assured customers that it had enough capital to meet regulatory requirements and could absorb a write-down of as much as $1 billion and “remain well capitalized.”"