[ by Melanie Gretchen ] E*Trade Financial took a big step in overhauling its business by terminating Steven Freiberg as CEO, who had completed just 2 years of into his 4-year contract.  Frank Petrilli, the board president will serve as interim CEO, as the firm conducts its search for a permanent replacement. left the firm, which has appointed an interim leader in his place.  After the online brokerage firm hired Goldman Sachs to help sell itself, the firm launched a turnaround effort, under the guidance of board chairman Frank Petrilli. E*Trade has been struggling as individual consumers pull money out of the stock market. Net income for the New York-based company dropped 16% in the most recent quarter ended 6/30 largely because of the lower trade volume.  Unable to find was to increase its revenue streams, E*Trade said it has focused on managing costs and on dialing back its risk. The price of E*Trade shares rose nearly 7% on Thursday trading, an indication that investors support the company's management moves. Mr. Freiberg, 55, who had been at E*Trade's helm for a little more than two years and was receiving annual compensation of $1 million, had spent 30 year at Citigroup prior to joining E*Trade.  He will get an undisclosed severance package.  In his last position at Citi, Mr. Freiberg led the consumer group that handles individual investments, retail banking, and credit cards.   [Dealbook, 8/9/12]