E*Trade executive resigns

NEW YORK (Reuters) - E*Trade Financial Corp (ETFC.O: Quote, Profile, Research, Stock Buzz), an online brokerage struggling with heavy mortgage losses, on Wednesday said R. Jarrett Lilien plans to resign as president and chief operating officer, less than three weeks after Donald Layton filled the vacant chief executive post.

Lilien will leave E*Trade effective May 16, the New York-based company said. His departure follows the ouster of Mitchell Caplan as chief executive last November.

Lilien joined E*Trade in August 1999 and became president and COO in March 2003. He became interim chief executive after Caplan's departure and had been a candidate to become permanent chief executive but was passed over. Layton had replaced George Hayter as chairman in November.

E*Trade said Lilien's position will not be filled.

(Reporting by Jonathan Stempel; Editing by Steve Orlofsky)