UPDATE 3-E*Trade pressured to raise capital; reports loss
* Says needs to improve capital position "quickly"
* Q1 loss of 41 cents per share, missing Wall Street view
* Loan loss provision $454 million
* No news on TARP application
* Shares down 25 percent in after-hours trade. (Adds CEO comments, analyst, history)
NEW YORK, April 28 (Reuters) - E*Trade Financial Corp, (ETFC.O: Quote, Profile, Research) a U.S. retail brokerage, said it is facing regulatory pressure to boost capital as it posted its seventh straight quarterly loss, and its shares fell 25 percent in after-hours trade.
The online brokerage, which has suffered significant credit losses in its mortgage lending business, said the Office of Thrift Supervision told the company to "quickly" raise new capital for its bank and reduce the leverage of its holding company.
The company said it may raise capital from public markets, private investors, or both, which would end up creating "significant dilution" for shareholders. Any dilution would be a negative for hedge fund Citadel, its largest debt and equity holder. Continued...
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