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Citigroup has come up with possible $5 billion in writedowns...

Citigroup has come up with possible $5 billion in writedowns on E*Trade which would more that wipe out E*Trades equity. With that in mind let's look at E*Trade's 10-Q filed on November 9 and see if we can come up with enough problem areas to reach $5 billion. Credit Ratings On Asset Backed Securitiesclick on chart for crisper displayEasily $1.26 billion in asset backed securities is of dubious value. There is also a noticeable distinction right now between AAA and AA. No breakdown is available on that grouping. $1.77 Billion in asset backed securities is rated AA or higher. E*Trade Loan Receivablesclick on chart for crisper displayLoan to Value and FICO analysisclick on chart for crisper displayFICO Scores from myFICOThe above APRs are for 30 year fixed as of 2007-11-12 and are provided to give a practical idea of differences between FICO scores as to credit quality. Portfolio Vintageclick on chart for crisper displayE*Trade ramped up loans at the worst possible time, right as housing peaked and for another year after. Thus I question the loan to value numbers listed earlier. A 5-10% devaluation of those assets (losses would be far bigger in a forced sale), is certainly within the realm of likely. Miscellaneous 10-Q Facts and Figures

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