After extensive correspondance with some real live people at E*TRADE, this is the most current action that they've broadcasted re: removal of KRY shares.  If your shares are parked there, be sure to confirm that your account is being left alone.

verbiage received today:

You were previously notified that E*TRADE was removing the below referenced security from your account because it was classified as non-transferable by the Depository Trust Company (DTC). While DTC has deemed the security non-transferable, E*TRADE has elected to suspend the removal process.

You may remove these securities from your account by initiating a worthless securities transaction, whereby you will relinquish such securities to E*TRADE. Otherwise, these securities will remain in your account.