E-Trade raises $550M in public offering

E-Trade Financial Corp., an online brokerage and bank, said Wednesday it has closed a stock offering after raising gross proceeds of $550 million.

The company, which has been hammered by losses tied to mortgage investments, said the offering included proceeds from the sale of 65 million shares issued when underwriters exercised an overallotment option.

Including $65 million raised under a previously disclosed equity program, E-Trade said it has raised more than $600 million of cash common equity during the second quarter, with net proceeds totaling about $586 million.

JPMorgan Securities Inc. and Sandler O'Neill & Partners were joint book-running managers, and E-Trade Securities was co-manager, of the public offering.

E-Trade shares rose 3 cents, or 2.5 percent, to $1.24 in morning trading.