E*Trade Financial did emerge out of the fourth quarter being shaken but not stirred. The fourth quarter was full of challenges for E*Trade including soft trading in the stcok market, strategic decision to remain indpedent, the stock price reaching a bottom at $7.42 on December 19, and allocation for loan loss provisions did provide additional challenges to an organization plagued with many challenges over the last five years. E*Trade did report a net loss of $6 million or $0.02 loss per share in the fourth quarter of 2011 in comparison to net profit of $71 million or 24 earnings per share or net loss of $24 million or $0.11 per share a year earlier. The net loss in the fourth quarter was after two profitable quarters gave E*Trade an income of $157 million in 2011. E*Trade did return to full year profitability for the first times in five years.
E*Trade did feel the impact of retail investors staying away from the market as trading soften in the fourth quarter as a drain on earnings. Loan loss allocations did increase $67 million dollars with additional market value write-downs and legal settlement charges were another $30 million in additional charges for the fourth quarter. E*Trade earnings report did put a finality to a quarter where a strategic review was concluded, and the company did announce that type results of the strategic review did provide insight for the company to going forward as independent.