The gist of the deal (from the Reuters article at the top of this
thread):

"Citadel is the clear winner in this transaction," Bank of America
analyst Michael Hecht said in a research note titled "Xmas comes early
for Citadel, shareholders get lump of coal."

Hecht said Citadel's deal gives it a $3 billion asset-backed
securities book for 27 cents on the dollar and $1.75 billion of
secured paper at 12.5 percent -- and 84 million shares of stock "for
nothing."

Hecht said shareholders, in contrast, "suffer (more than) 40 percent
earnings per share dilution and 100 percent tangible equity dilution."

After E*Trade took large losses in its mortgage segment, analysts said
it would have to pursue strategic alternatives, such as the sale of
some assets or a takeover by larger rivals like Charles Schwab Corp
(SCHW.O: Quote, Profile , Research) or TD Ameritrade Holding Corp
(AMTD.O: Quote, Profile , Research).

E*Trade said it considered a tie-up with a peer company but the
Citadel deal appeared best. Analysts were not convinced.