Citadel Sells Huge Chunk Of E*Trade

Citadel Investment Group is backing away from troubled online brokerage E*Trade Financial, which it has bailed out twice in recent years.

The Chicago-based hedge fund giant sold 172 million E*Trade shares in a secondary offering today, cutting its nearly 10% stake in the firm by 17%. E*Trade priced the shares at $1.75 apiece.

E*Trade will receive no proceeds from the offering.