No fund freeze at E*Trade Financial

Shares of E*Trade Financial, which had fallen by up to 22% in intraday trading on rumors the online broker and bank was freezing customer funds, bounced back somewhat after the fears proved unfounded. The company’s stock finished down about 2% near the close of trading after rumors that its lines of credit were not being renewed were proven false.
“We understand from the company that all repos lines that have come up for renewal to date have been renewed at the same financial terms,” said analyst Richard Repetto at Sandler O’Neill. A spokesman in E*Trade’s investor relations division confirmed the lines of credit were renewed. “Our channel checks indicate that customers are able to transfer money,” Mr. Repetto said.