After almost a year of waiting, E-Trade Financial Corp. withdrew its application to participate in the federal bailout program.
The online brokerage said in a regulatory filing with the Securities and Exchange Commission that it had raised enough money in a recent round of stock sales that it no longer needed the $800 million it had applied for under the Troubled Asset Relief Program.
The company also recently completed a $1.74 billion debt exchange that cut its interest payments in half.
In its filing with the SEC, E*Trade said it was responding to an inquiry from the Office of Thrift Supervision about whether it would join the program, perhaps suggesting concern by the regulator after almost a year had passed without final action on the company's TARP application.
Although the Treasury Department has not released details about how it evaluates TARP applications, it is generally understood that only financially sound institutions are likely to be approved. Institutions unlikely to be approved have typically been quietly warned to withdraw their applications.
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