E-Trade (NASDAQ: ETFC) publicly licked its wounds recently lowering its profit forecast by 25% and announcing that it will exit the wholesale mortgage market.  The discount brokers have been long due for some consolidation and many say it was E-Trade’s mortgage end that was holding up a deal with TD-Ameritrade.  Not to confuse the issue, E-Trade participated in almost none of the subprime market, but certainly is feeling the effects of subprime contagion and credit crunch-itis.