Citadel Investment Group gave a lifeline to troubled discount broker E-Trade Financial on Thursday with a $2.5 billion capital infusion, according to the Associated Press.

E-Trade said the deal would shore up its balance sheet after it was forced to take a write-down recently, due to rising defaults on its mortgage security portfolio. E-Trade CEO Mitchell H. Caplan stepped down and President and Chief Operating Officer R. Jarrett Lilien will become acting CEO until a permanent replacement is found.

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