Anyone else think Etrade is a good risk/reward play? They got crushed when they decided to get into the banking business & their banking division is a huge drag on their very profitable brokerage. Etrade has currently written off 75% off their projected loan losses & are fairly well capitalized with 2 billion in cash to write off future losses. In their most recent CC Don Layton ( ceo ) said loss provisions had peaked in Q3 2008 & should be less going forward. Etrade is no longer lending & the majority or their loan portfolio will be run off within 5 years. As of today their stock price is $1.22 with a market cap of around 600m. Annual profits from the brokerage is around 700m. IF they can survive the loan losses the stock should pop up to $6-10 when the market begins to price the company based on their brokerage business. Thoughts?