Panic Sets In For E*Trade (ETFC) Shareholders

E*Trade (ETFC) is off as much as 50% in early trading and has dropped below $4. The stock has a 52-week high of over $26.

According to The Associated Press "Citi Investment Research analyst Prashant A. Bhatia cut his rating on the stock to "Sell" from "Hold" and lowered his price target to $7.50 from $13. Bhatia said there's a 15 percent chance that E-Trade will declare bankruptcy and said management may be forced to sell loans and securities at significant discounts."

Douglas A. McIntyre