Citadel comes to the defense of E*Trade


By Pete Gallo

There is often a thin line between prudence in preserving wealth and the act of throwing more money at a bad investment out of engulfing denial. Only hindsight will show which is the case regarding a June decision by Ken Griffin's Citadel Investment Group to deepen its financial exposure to embattled online retail brokerage firm E*Trade Financial.

Citadel is a long-term investor and the largest shareholder in E*Trade, a company whose stock price fell from $3.70 one year ago to a low of roughly 60 cents late in the first quarter of this year. The good news