8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 22, 2008

E*TRADE Financial Corporation

(Exact name of Registrant as Specified in its Charter)

Delaware	1-11921	94-2844166
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

135 East 57th Street, New York, New York 10022

(Address of Principal Executive Offices and Zip Code)

(646) 521-4300

(Registrant’s Telephone Number, including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 22, 2008, the Company posted historical financial statements to the investor relations section of its website that re-present the Company’s historical financial results for the quarterly periods ended 2008, 2007 and 2006 to reflect the Canadian brokerage business and lending business as discontinued operations. A copy of these financial statements is attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information furnished shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or incorporated by reference into any filing thereunder or under the Securities Act of 1933 unless expressly set forth by specific reference in such filing.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99.1   Re-presented Historical Financial Statements

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: July 22, 2008
	E*TRADE FINANCIAL CORPORATION
	By:	/s/ Russell S. Elmer
		Russell S. Elmer
		General Counsel

EX-99.1

Average Enterprise Balance Sheet Data			Jun-08							Mar-08							Dec-07
($ in thousands)	Average Balance		Operating Interest Inc./Exp.		Average Yield/Cost			Average Balance		Operating Interest Inc./Exp.		Average Yield/Cost			Average Balance		Operating Interest Inc./Exp.		Average Yield/Cost
Enterprise interest-earning assets:
Loans, net(1)	$	28,225,411	$	402,103		5.70	%	$	29,925,013	$	451,574		6.04	%	$	31,911,892	$	508,925		6.38	%
Margin receivables		6,809,407		75,382		4.45	%		6,683,969		90,937		5.47	%		7,426,723		124,722		6.66	%
Mortgage-backed and related available-for-sale securities		8,643,520		98,587		4.56	%		9,281,381		110,072		4.74	%		11,820,948		150,820		5.10	%
Available-for-sale investment securities		132,572		2,148		6.48	%		169,848		2,835		6.67	%		3,262,363		54,235		6.65	%
Trading securities		528,495		9,151		6.93	%		572,817		10,708		7.48	%		91,437		2,012		8.80	%
Cash and cash equivalents(2)		2,367,936		17,777		3.02	%		1,468,776		13,833		3.79	%		726,675		8,574		4.68	%
Stock borrow and other		908,847		16,527		7.31	%		793,450		15,640		7.93	%		1,053,475		18,034		6.79	%
Total average interest-earning assets	$	47,616,188	$	621,675		5.23	%	$	48,895,254	$	695,599		5.70	%	$	56,293,513	$	867,322		6.15	%
Enterprise interest-bearing liabilities:
Retail deposits	$	26,077,330	$	137,527		2.12	%	$	25,383,594	$	171,535		2.72	%	$	26,759,763	$	202,717		3.01	%
Brokered certificates of deposit		1,132,630		14,184		5.04	%		1,229,811		15,169		4.96	%		738,659		9,369		5.03	%
Customer payables		4,561,706		7,949		0.70	%		4,348,906		9,910		0.92	%		5,340,382		14,999		1.11	%
Repurchase agreements and other borrowings		7,474,092		68,630		3.63	%		7,980,130		94,934		4.71	%		10,776,229		143,089		5.20	%
FHLB advances		4,629,974		51,609		4.41	%		5,974,084		70,802		4.69	%		8,433,904		107,259		4.98	%
Stock loan and other		1,143,405		3,254		1.14	%		1,679,887		10,640		2.55	%		1,601,877		12,321		3.05	%
Total average interest-bearing liabilities	$	45,019,137	$	283,153		2.51	%	$	46,596,412	$	372,990		3.20	%	$	53,650,814	$	489,754		3.59	%
Enterprise net interest spread(3)			$	338,522		2.72	%			$	322,609		2.50	%			$	377,568		2.56	%
Reconciliation from Enterprise Net Interest Income to Consolidated Net Operating Interest Income

Average Enterprise Balance Sheet Data			Sep-07							Jun-07							Mar-07
($ in thousands)	Average Balance		Operating Interest Inc./Exp.		Average Yield/Cost			Average Balance		Operating Interest Inc./Exp.		Average Yield/Cost			Average Balance		Operating Interest Inc./Exp.		Average Yield/Cost
Enterprise interest-earning assets:
Loans, net(1)	$	32,445,828	$	528,193		6.51	%	$	31,037,971	$	497,517		6.41	%	$	28,093,409	$	451,399		6.43	%
Margin receivables		7,348,376		133,791		7.22	%		6,772,898		123,317		7.30	%		6,573,401		120,319		7.42	%
Mortgage-backed and related available-for-sale securities		12,811,113		169,603		5.30	%		13,027,383		172,501		5.30	%		12,040,109		157,967		5.25	%
Available-for-sale investment securities		4,667,136		77,187		6.62	%		4,200,636		68,616		6.53	%		3,651,560		59,860		6.56	%
Trading securities		118,195		3,052		10.33	%		114,135		3,174		11.12	%		119,779		3,269		10.92	%
Cash and cash equivalents(2)		591,227		6,260		4.20	%		643,415		8,375		5.22	%		915,343		11,182		4.95	%
Stock borrow and other		1,042,589		19,849		7.55	%		983,382		18,411		7.51	%		756,882		12,968		6.95	%
Total average interest-earning assets	$	59,024,464	$	937,935		6.35	%	$	56,779,820	$	891,911		6.28	%	$	52,150,483	$	816,964		6.28	%
Enterprise interest-bearing liabilities:
Retail deposits	$	27,764,658	$	216,426		3.09	%	$	26,778,743	$	200,081		3.00	%	$	24,696,611	$	177,329		2.91	%
Brokered certificates of deposit		418,123		5,154		4.89	%		424,645		5,220		4.93	%		466,559		5,659		4.92	%
Customer payables		5,764,590		17,893		1.23	%		6,004,238		17,890		1.19	%		5,723,207		16,708		1.18	%
Repurchase agreements and other borrowings		12,582,907		165,925		5.16	%		13,558,998		175,337		5.12	%		12,137,872		159,031		5.24	%
FHLB advances		8,650,546		115,531		5.23	%		6,151,086		78,800		5.07	%		4,996,389		62,852		5.03	%
Stock loan and other		1,048,037		6,517		2.47	%		1,194,006		8,381		2.82	%		1,349,305		12,515		3.76	%
Total average interest-bearing liabilities	$	56,228,861	$	527,446		3.70	%	$	54,111,716	$	485,709		3.57	%	$	49,369,943	$	434,094		3.54	%
Enterprise net interest spread(3)			$	410,489		2.65	%			$	406,202		2.71	%			$	382,870		2.74	%
Reconciliation from Enterprise Net Interest Income to Consolidated Net Operating Interest Income

Average Enterprise Balance Sheet Data			Dec-06							Sep-06							Jun-06
($ in thousands)	Average Balance		Operating Interest Inc./Exp.		Average Yield/Cost			Average Balance		OperatingInterest Inc./Exp.		Average Yield/Cost			Average Balance		Operating Interest Inc./Exp.		Average Yield/Cost
Enterprise interest-earning assets:
Loans, net(1)	$	25,752,337	$	415,360		6.45	%	$	22,955,022	$	364,744		6.36	%	$	20,419,936	$	303,499		5.95	%
Margin receivables		6,430,118		119,213		7.36	%		6,485,166		121,085		7.41	%		6,839,327		121,044		7.10	%
Mortgage-backed and related available-for-sale securities		11,815,399		158,435		5.36	%		12,068,052		159,199		5.28	%		11,715,510		147,374		5.03	%
Available-for-sale investment securities		3,248,168		53,669		6.61	%		3,033,789		49,115		6.48	%		2,895,267		45,152		6.24	%
Trading securities		134,143		3,194		9.53	%		114,806		2,600		9.06	%		142,452		2,946		8.27	%
Cash and cash equivalents(2)		786,369		10,056		5.07	%		679,130		8,132		4.75	%		974,271		10,465		4.31	%
Stock borrow and other		846,388		14,234		6.67	%		552,794		10,815		7.76	%		592,875		10,358		7.01	%
Total average interest-earning assets	$	49,012,922	$	774,161		6.31	%	$	45,888,759	$	715,690		6.23	%	$	43,579,638	$	640,838		5.89	%
Enterprise interest-bearing liabilities:
Retail deposits	$	22,612,957	$	159,889		2.81	%	$	20,992,962	$	141,035		2.67	%	$	19,848,322	$	115,062		2.33	%
Brokered certificates of deposit		524,934		6,464		4.89	%		618,681		7,453		4.78	%		577,068		6,696		4.65	%
Customer payables		5,832,936		16,962		1.15	%		5,339,127		15,649		1.16	%		5,986,183		14,663		0.98	%
Repurchase agreements and other borrowings		11,870,171		157,625		5.20	%		11,586,260		150,837		5.09	%		10,580,283		129,103		4.83	%
FHLB advances		4,456,304		56,849		4.99	%		3,583,663		43,950		4.80	%		2,842,198		32,207		4.48	%
Stock loan and other		1,176,498		10,016		3.38	%		1,283,026		11,617		3.59	%		1,133,694		8,487		3.00	%
Total average interest-bearing liabilities	$	46,473,800	$	407,805		3.46	%	$	43,403,719	$	370,541		3.36	%	$	40,967,748	$	306,218		2.98	%
Enterprise net interest spread(3)			$	366,356		2.85	%			$	345,149		2.87	%			$	334,620		2.91	%
Reconciliation from Enterprise Net Interest Income to Consolidated Net Operating Interest Income

Average Enterprise Balance Sheet Data			Mar-06
($ in thousands)	Average Balance		Operating Interest Inc./Exp.		Average Yield/Cost
Enterprise interest-earning assets:
Loans, net(1)	$	19,571,064	$	281,270		5.75	%
Margin receivables		6,371,386		103,198		6.57	%
Mortgage-backed and related available-for-sale securities		10,555,616		125,504		4.76	%
Available-for-sale investment securities		2,357,391		35,190		5.97	%
Trading securities		138,660		2,648		7.64	%
Cash and cash equivalents(2)		1,279,552		13,386		4.24	%
Stock borrow and other		652,473		9,469		5.89	%
Total average interest-earning assets	$	40,926,142	$	570,665		5.59	%
Enterprise interest-bearing liabilities:
Retail deposits	$	18,120,089	$	90,505		2.03	%
Brokered certificates of deposit		420,600		4,113		3.97	%
Customer payables		6,383,907		14,775		0.94	%
Repurchase agreements and other borrowings		9,855,018		111,520		4.53	%
FHLB advances		3,054,111		32,539		4.26	%
Stock loan and other		669,753		4,197		2.54	%
Total average interest-bearing liabilities	$	38,503,478	$	257,649		2.69	%
Enterprise net interest spread(3)			$	313,016		2.90	%
Reconciliation from Enterprise Net Interest Income to Consolidated Net Operating Interest Income

	Three Months Ended
($ in thousands)	Jun-08			Mar-08			Dec-07			Sep-07			Jun-07			Mar-07			Dec-06			Sep-06			Jun-06			Mar-06
Enterprise net interest income	$	338,522		$	322,609		$	377,568		$	410,489		$	406,202		$	382,870		$	366,356		$	345,149		$	334,620		$	313,016
Less:  Taxable equivalent adjustment(4)		(3,205	)		(3,698	)		(7,537	)		(8,523	)		(7,487	)		(7,320	)		(6,353	)		(5,246	)		(4,306	)		(3,392	)
Plus :  Customer cash held by third parties and other(5)		7,447			7,460			8,898			9,476			9,017			9,946			11,205			11,504			10,831			12,131
Consolidated net operating interest income	$	342,764		$	326,371		$	378,929		$	411,442		$	407,732		$	385,496		$	371,208		$	351,407		$	341,145		$	321,755

(1)  Excludes loans to customers on margin.

(2)  Includes segregated cash balances.

(3)  Enterprise net interest spread is the taxable equivalent rate earned on average enterprise interest-earning assets less the rate paid on average enterprise interest-bearing liabilities, excluding corporate interest-earning assets and liabilities, stock conduit and customer cash held by third parties.

(4)  Gross-up for tax-exempt securities and loans.

(5)  Includes interest earned on average customer assets of $3.4 billion, $3.3 billion, $3.8 billion, $4.1 billion, $4.0 billion, $3.9 billion, $3.8 billion, $3.6 billion, $3.4 billion and $3.6 billion for the quarters ended June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively, held by parties outside E*TRADE FINANCIAL, including third party money market funds and sweep deposit accounts at unaffiliated financial institutions. Other consists of net operating interest income earned on average stock conduit assets of $0.01 million, $0.4 million, $2.2 million, $2.7 million, $13.1 million, $26.5 million, $362.4 million and $824.0 million for the quarters ended March 31, 2008, December 31, 2007, June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. There were not any stock conduit assets at June 30, 2008 and September 30

Consolidated Income Statement Quarterly History Q106-Q208
($ in thousands)	Mar-06			Jun-06			Sep-06			Dec-06			Mar-07			Jun-07			Sep-07			Dec-07			Mar-08			Jun-08			2006			2007			YTD 2008
Revenue:
Operating interest income	$	589,663		$	654,622		$	725,023		$	781,003		$	820,934		$	894,451		$	938,979		$	868,691		$	699,591		$	626,074		$	2,750,311		$	3,523,055		$	1,325,665
Operating interest expense		(267,908	)		(313,477	)		(373,616	)		(409,795	)		(435,438	)		(486,719	)		(527,537	)		(489,762	)		(373,220	)		(283,310	)		(1,364,796	)		(1,939,456	)		(656,530	)
Net operating interest income		321,755			341,145			351,407			371,208			385,496			407,732			411,442			378,929			326,371			342,764			1,385,515			1,583,599			669,135
Commission		168,389			159,803			127,413			141,471			151,804			162,682			180,622			168,534			122,255			122,235			597,076			663,642			244,490
Fees and service charges		53,069			53,090			53,983			59,735			54,055			59,379			57,838			59,295			54,941			50,962			219,877			230,567			105,903
Principal transactions		30,692			31,590			22,680			25,174			29,632			27,377			20,734			24,437			20,490			18,392			110,136			102,180			38,882
Gain (loss) on loans and securities, net		2,559			8,823			4,171			5,647			11,598			636			(201,130	)		(2,276,578	)		(8,567	)		(15,707	)		21,200			(2,465,474	)		(24,274	)
Other revenue		7,678			9,134			8,522			9,508			9,598			11,050			12,614			13,950			13,604			13,691			34,842			47,212			27,295
Total non-interest income (expense)		262,387			262,440			216,769			241,535			256,687			261,124			70,678			(2,010,362	)		202,723			189,573			983,131			(1,421,873	)		392,296
Total net revenue		584,142			603,585			568,176			612,743			642,183			668,856			482,120			(1,631,433	)		529,094			532,337			2,368,646			161,726			1,061,431
Provision for loan losses		10,197			10,270			12,547			11,956			21,186			30,045			186,536			402,311			233,871			319,121			44,970			640,078			552,992
Operating expenses:
Compensation and benefits		106,311			115,486			100,680			106,467			114,732			110,652			110,092			99,309			123,128			96,082			428,944			434,785			219,210
Clearing and servicing		61,701			62,461			60,157			60,024			63,547			70,093			74,809			61,750			44,885			46,122			244,343			270,199			91,007
Advertising and market development		30,392			27,409			20,811			27,404			42,044			32,897			25,190			38,544			57,448			42,737			106,016			138,675			100,185
Communications		29,691			26,026			23,721			23,550			24,019			23,655			25,254			25,419			25,094			24,500			102,988			98,347			49,594
Professional services		26,293			21,589			19,077			23,181			23,062			22,589			19,252			34,290			23,645			25,749			90,140			99,193			49,394
Depreciation and amortization		18,096			18,190			17,885			17,020			18,861			19,566			21,618			23,153			21,653			20,385			71,191			83,198			42,038
Occupancy and equipment		18,389			18,158			19,766			20,566			21,435			20,791			21,143			21,820			20,498			21,698			76,879			85,189			42,196
Amortization of other intangibles		11,318			11,972			12,087			10,829			10,268			10,187			10,485			9,532			10,910			9,135			46,206			40,472			20,045
Impairment of goodwill		-			-			-			-			-			-			-			101,208			-			-			-			101,208			-
Facility restructuring and other exit activities		(505	)		2,878			15,212			5,279			192			(2,114	)		5,037			24,068			10,566			12,433			22,864			27,183			22,999
Other		27,828			29,328			43,038			29,596			30,604			71,506			42,599			50,675			16,506			19,702			129,790			195,384			36,208
Total operating expenses		329,514			333,497			332,434			323,916			348,764			379,822			355,479			489,768			354,333			318,543			1,319,361			1,573,833			672,876
Income (loss) before other income (expense), income taxes and discontinued operations		244,431			259,818			223,195			276,871			272,233			258,989			(59,895	)		(2,523,512	)		(59,110	)		(105,327	)		1,004,315			(2,052,185	)		(164,437	)
Income (loss) before other income (expense), income taxes and discontinued operations, excluding restructuring		243,926			262,696			238,407			282,150			272,425			256,875			(54,858	)		(2,499,444	)		(48,544	)		(92,894	)		1,027,179			(2,025,002	)		(141,438	)
% to revenue		41.8	%		43.0	%		39.3	%		45.2	%		42.4	%		38.7	%	N.M			N.M.			N.M.			N.M.				42.4	%	N.M.			N.M.
% to revenue excluding restructuring		41.8	%		43.5	%		42.0	%		46.0	%		42.4	%		38.4	%	N.M			N.M.			N.M.			N.M.				43.4	%	N.M.			N.M.
Corporate interest income		1,961			2,188			1,942			2,342			1,705			1,001			1,018			2,031			2,426			1,806			8,433			5,755			4,232
Corporate interest expense		(40,508	)		(36,114	)		(37,964	)		(37,910	)		(37,791	)		(37,866	)		(37,365	)		(59,460	)		(95,241	)		(90,249	)		(152,496	)		(172,482	)		(185,490	)
Gain (loss) on sales of investments, net		17,616			15,290			26,991			10,899			19,756			17,267			(18	)		(1,025	)		502			18			70,796			35,980			520
Gain (loss) on early extinguishment of debt		(135	)		(568	)		-			(476	)		-			31			(37	)		(13	)		(2,851	)		12,935			(1,179	)		(19	)		10,084
Equity in income (loss) of investments and venture funds		(1,007	)		189			2,519			750			8,095			(840	)		(741	)		1,151			4,699			(1,594	)		2,451			7,665			3,105
Total other income (expense)		(22,073	)		(19,015	)		(6,512	)		(24,395	)		(8,235	)		(20,407	)		(37,143	)		(57,316	)		(90,465	)		(77,084	)		(71,995	)		(123,101	)		(167,549	)
Income (loss) before income taxes, discontinued operations and cumulative effect of accounting change		222,358			240,803			216,683			252,476			263,998			238,582			(97,038	)		(2,580,828	)		(149,575	)		(182,411	)		932,320			(2,175,286	)		(331,986	)
Income tax expense (benefit)		78,940			84,754			66,649			75,046			93,504			80,894			(38,206	)		(869,141	)		(56,648	)		(62,968	)		305,389			(732,949	)		(119,616	)
Net income (loss) from continuing operations		143,418			156,049			150,034			177,430			170,494			157,688			(58,832	)		(1,711,687	)		(92,927	)		(119,443	)		626,931			(1,442,337	)		(212,370	)
Gain (loss) from discontinued operations		(947	)		435			3,215			(775	)		(1,084	)		1,441			384			(158	)		1,734			24,884			1,928			583			26,618
Net income (loss)	$	142,471		$	156,484		$	153,249		$	176,655		$	169,410		$	159,129		$	(58,448	)	$	(1,711,845	)	$	(91,193	)	$	(94,559	)	$	628,859		$	(1,441,754	)	$	(185,752	)
Diluted earnings (loss) per share	$	0.33		$	0.36		$	0.35		$	0.40		$	0.39		$	0.37		$	(0.14	)	$	(3.98	)	$	(0.20	)	$	(0.19	)	$	1.44		$	(3.40	)	$	(0.39	)
(1) All periods have been represented for the discontinued operations relating to E*TRADE Professional, Canadian brokerage business and lending business.

Retail Segment Quarterly History Q106-Q208
($ in thousands)	Mar-06			Jun-06			Sep-06			Dec-06			Mar-07			Jun-07			Sep-07			Dec-07			Mar-08			Jun-08			2006			2007			YTD 2008
Revenue:
Operating interest income	$	313,220		$	366,003		$	390,430		$	424,549		$	445,195		$	487,648		$	525,864		$	497,814		$	416,421		$	404,078		$	1,494,202		$	1,956,521		$	820,499
Operating interest expense		(110,057	)		(140,410	)		(172,711	)		(200,562	)		(222,392	)		(243,111	)		(273,492	)		(254,969	)		(209,378	)		(183,385	)		(623,740	)		(993,964	)		(392,763	)
Net operating interest income		203,163			225,593			217,719			223,987			222,803			244,537			252,372			242,845			207,043			220,693			870,462			962,557			427,736
Commission		130,245			121,884			96,229			110,105			117,302			122,133			135,721			145,060			121,669			122,124			458,463			520,216			243,793
Fees and service charges		49,907			48,655			48,171			55,304			50,058			53,263			56,380			58,981			52,802			50,989			202,037			218,682			103,791
Gain (loss) on loans and securities, net		1,627			1,377			238			173			176			102			(98	)		-			(2	)		18			3,415			180			16
Other revenue		7,817			9,397			8,488			9,654			9,730			11,142			9,810			9,971			9,677			10,284			35,356			40,653			19,961
Total non-interest income		189,596			181,313			153,126			175,236			177,266			186,640			201,813			214,012			184,146			183,415			699,271			779,731			367,561
Total net revenue		392,759			406,906			370,845			399,223			400,069			431,177			454,185			456,857			391,189			404,108			1,569,733			1,742,288			795,297
Operating expenses:
Compensation and benefits		62,214			70,932			67,890			68,880			72,069			72,088			74,379			69,779			84,089			74,503			269,916			288,315			158,592
Clearing and servicing		14,781			17,295			16,527			16,219			17,694			19,372			20,481			19,697			16,604			19,966			64,822			77,244			36,570
Advertising and market development		28,672			25,387			19,421			25,521			40,383			31,353			25,125			38,521			57,436			42,748			99,001			135,382			100,184
Communications		27,308			23,261			20,954			20,702			21,176			20,920			22,471			22,640			23,529			23,264			92,225			87,207			46,793
Professional services		20,986			16,654			10,555			13,547			13,312			14,577			12,817			22,456			14,790			15,423			61,742			63,162			30,213
Depreciation and amortization		13,973			14,023			13,580			13,277			14,336			14,791			15,629			17,410			16,874			16,430			54,853			62,166			33,304
Occupancy and equipment		17,003			16,347			18,262			17,287			18,626			17,924			18,292			20,898			19,415			20,492			68,899			75,740			39,907
Amortization of other intangibles		9,859			9,814			9,913			10,002			9,619			9,536			9,370			9,372			8,777			8,743			39,588			37,897			17,520
Facility restructuring and other exit activities		123			2,818			15,244			5,730			476			(1,456	)		427			6,408			182			5,725			23,915			5,855			5,907
Other		18,481			20,336			32,760			20,030			18,380			29,656			30,849			36,011			26,394			6,438			91,607			114,896			32,832
Total operating expenses		213,400			216,867			225,106			211,195			226,071			228,761			229,840			263,192			268,090			233,732			866,568			947,864			501,822
Segment income	$	179,359		$	190,039		$	145,739		$	188,028		$	173,998		$	202,416		$	224,345		$	193,665		$	123,099		$	170,376		$	703,165		$	794,424		$	293,475
Segment income, excluding restructuring	$	179,482		$	192,857		$	160,983		$	193,758		$	174,474		$	200,960		$	224,772		$	200,073		$	123,281		$	176,101		$	727,080		$	800,279		$	299,382
% to revenue		45.7	%		46.7	%		39.3	%		47.1	%		43.5	%		46.9	%		49.4	%		42.4	%		31.5	%		42.2	%		44.8	%		45.6	%		36.9	%
% to revenue excluding restructuring		45.7	%		47.4	%		43.4	%		48.5	%		43.6	%		46.6	%		49.5	%		43.8	%		31.5	%		43.6	%		46.3	%		45.9	%		37.6	%
(1) All periods have been represented for the discontinued operations relating to E*TRADE Professional, Canadian brokerage business and lending business.

Institutional Segment Quarterly History Q106-Q208
($ in thousands)	Mar-06			Jun-06			Sep-06			Dec-06			Mar-07			Jun-07			Sep-07			Dec-07			Mar-08			Jun-08			2006			2007			YTD 2008
Revenue:
Operating interest income	$	453,199		$	502,824		$	575,866		$	629,813		$	670,831		$	741,305		$	787,253		$	722,274		$	590,384		$	531,841		$	2,161,702		$	2,921,663		$	1,122,225
Operating interest expense		(334,607	)		(387,272	)		(442,178	)		(482,592	)		(508,138	)		(578,110	)		(628,183	)		(586,190	)		(471,056	)		(409,770	)		(1,646,649	)		(2,300,621	)		(880,826	)
Net operating interest income		118,592			115,552			133,688			147,221			162,693			163,195			159,070			136,084			119,328			122,071			515,053			621,042			241,399
Commission		38,144			37,919			31,184			31,366			34,502			40,549			44,901			23,474			586			111			138,613			143,426			697
Fees and service charges		5,435			6,214			6,434			7,283			6,177			8,572			4,045			2,825			4,064			2,451			25,366			21,619			6,515
Principal transactions		30,692			31,590			22,680			25,174			29,632			27,377			20,734			24,437			20,490			18,392			110,136			102,180			38,882
Gain (loss) on loans and securities, net		932			7,446			3,933			5,474			11,422			534			(201,032	)		(2,276,578	)		(8,565	)		(15,725	)		17,785			(2,465,654	)		(24,290	)
Other revenue		87			(22	)		164			16			10			52			2,948			4,083			3,943			3,420			245			7,093			7,363
Total non-interest income (expense)		75,290			83,147			64,395			69,313			81,743			77,084			(128,404	)		(2,221,759	)		20,518			8,649			292,145			(2,191,336	)		29,167
Total net revenue		193,882			198,699			198,083			216,534			244,436			240,279			30,666			(2,085,675	)		139,846			130,720			807,198			(1,570,294	)		270,566
Provision for loan losses		10,197			10,270			12,547			11,956			21,186			30,045			186,536			402,311			233,871			319,121			44,970			640,078			552,992
Operating expenses:
Compensation and benefits		44,097			44,554			32,790			37,587			42,663			38,564			35,713			29,530			39,039			21,579			159,028			146,470			60,618
Clearing and servicing		49,419			47,186			44,382			46,819			48,175			53,321			57,059			44,668			30,222			28,647			187,806			203,223			58,869
Advertising and market development		1,720			2,022			1,390			1,883			1,661			1,544			65			23			12			(11	)		7,015			3,293			1
Communications		2,383			2,765			2,767			2,848			2,843			2,735			2,783			2,779			1,565			1,236			10,763			11,140			2,801
Professional services		5,307			4,935			8,522			9,634			9,750			8,012			6,435			11,834			8,855			10,326			28,398			36,031			19,181
Depreciation and amortization		4,123			4,167			4,305			3,743			4,525			4,775			5,989			5,743			4,779			3,955			16,338			21,032			8,734
Occupancy and equipment		1,386			1,811			1,504			3,279			2,809			2,867			2,851			922			1,083			1,206			7,980			9,449			2,289
Amortization of other intangibles		1,459			2,158			2,174			827			649			651			1,115			160			2,133			392			6,618			2,575			2,525
Impairment of goodwill		-			-			-			-			-			-			-			101,208			-			-			-			101,208			-
Facility restructuring and other exit activities		(628	)		60			(32	)		(451	)		(284	)		(658	)		4,610			17,660			10,384			6,708			(1,051	)		21,328			17,092
Other		9,347			8,992			10,278			9,566			12,224			41,850			11,750			14,664			(9,888	)		13,264			38,183			80,488			3,376
Total operating expenses		118,613			118,650			108,080			115,735			125,015			153,661			128,370			229,191			88,184			87,302			461,078			636,237			175,486
Segment income (loss)	$	65,072		$	69,779		$	77,456		$	88,843		$	98,235		$	56,573		$	(284,240	)	$	(2,717,177	)	$	(182,209	)	$	(275,703	)	$	301,150		$	(2,846,609	)	$	(457,912	)
Segment income (loss), excluding restructuring	$	64,444		$	69,839		$	77,424		$	88,392		$	97,951		$	55,915		$	(279,630	)	$	(2,699,517	)	$	(171,825	)	$	(268,995	)	$	300,099		$	(2,825,281	)	$	(440,820	)
% to revenue		33.6	%		35.1	%		39.1	%		41.0	%		40.2	%		23.5	%	N.M.			N.M.			N.M.			N.M.				37.3	%	N.M.			N.M.
% to revenue excluding restructuring		33.2	%		35.1	%		39.1	%		40.8	%		40.1	%		23.3	%	N.M.			N.M.			N.M.			N.M.				37.2	%	N.M.			N.M.
(1) All periods have been represented for the discontinued operations relating to the Canadian brokerage business.

Key Performance Metrics(1)(2)	Qtr ended 6/30/08			Qtr ended 3/31/08			Qtr ended 12/31/07			Qtr ended 9/30/07			Qtr ended 6/30/07			Qtr ended 3/31/07			Qtr ended 12/31/06			Qtr ended 9/30/06			Qtr ended 6/30/06			Qtr ended 3/31/06
Corporate Metrics(3)
Operating margin %(4)
Consolidated	N.M.			N.M.			N.M.			N.M.				39	%		42	%		45	%		39	%		43	%		42	%
Retail		42	%		31	%		42	%		49	%		47	%		43	%		47	%		39	%		47	%		46	%
Institutional	N.M.			N.M.			N.M.			N.M.				24	%		40	%		41	%		39	%		35	%		34	%
Employees		3,453			3,565			3,757			3,880			4,027			4,217			4,126			4,180			4,140			3,823
Consultants and other		243			302			305			229			240			266			358			455			565			702
Total headcount		3,696			3,867			4,062			4,109			4,267			4,483			4,484			4,635			4,705			4,525
Revenue per headcount	$	144,031		$	136,823		N.M.			$	117,333		$	156,751		$	143,248		$	136,651		$	122,584		$	128,286		$	129,092
Revenue per compensation and benefits dollar	$	5.54		$	4.30		N.M.			$	4.38		$	6.04		$	5.60		$	5.76		$	5.64		$	5.23		$	5.49
Book value per share	$	4.91		$	5.80		$	6.14		$	9.69		$	10.19		$	10.19		$	9.84		$	9.44		$	9.03		$	8.61
Tangible book value per share	$	0.42		$	0.57		$	0.84		$	3.66		$	4.17		$	4.22		$	3.87		$	3.44		$	3.11		$	2.58
Free cash ($MM)	$	922.4		$	1,061.1		$	860.8		$	503.5		$	431.7		$	464.7		$	525.8		$	580.1		$	650.8		$	650.7
Enterprise net interest spread (basis points)(5)		272			250			256			265			271			274			285			287			291			290
Enterprise interest-earning assets, average ($MM)(6)	$	47,616		$	48,895		$	56,294		$	59,024		$	56,780		$	52,150		$	49,013		$	45,889		$	43,580		$	40,926
Earnings before interest, taxes, depreciation & amortization ("EBITDA") ($MM)
Net income (loss) from continuing operations	$	(119.4	)	$	(92.9	)	$	(1,711.7	)	$	(58.8	)	$	157.7		$	170.5		$	177.4		$	150.0		$	156.0		$	143.4
Tax expense (benefit)		(63.0	)	$	(56.6	)	$	(869.1	)	$	(38.2	)	$	80.9		$	93.5		$	75.0		$	66.6		$	84.8		$	78.9
Depreciation & amortization		29.5			32.6			32.7			32.1			29.8			29.1			27.8			30.0			30.2			29.4
Corporate interest expense		90.2			95.2			59.5			37.4			37.9			37.8			37.9			38.0			36.1			40.5
EBITDA	$	(62.7	)	$	(21.7	)	$	(2,488.6	)	$	(27.5	)	$	306.3		$	330.9		$	318.1		$	284.6		$	307.1		$	292.2
Interest coverage		(0.7	)		(0.2	)		(41.8	)		(0.7	)		8.1			8.8			8.4			7.5			8.5			7.2
Discontinued operations ($MM)
Lending loss, net of tax	$	(4.6	)	$	(1.0	)	$	(8.6	)	$	(5.7	)	$	(2.8	)	$	(4.5	)	N.A.			N.A.			N.A.			N.A.
Canada income, net of tax		5.4			2.7			8.4			6.1			4.2			3.4		N.A.			N.A.			N.A.			N.A.
Canada - benefit of excess tax basis over book basis		24.1			-			-			-			-			-		N.A.			N.A.			N.A.			N.A.
Income from discontinued operations, net of tax	$	24.9		$	1.7		$	(0.2	)	$	0.4		$	1.4		$	(1.1	)	N.A.			N.A.			N.A.			N.A.
Bank earnings before taxes and before credit losses(7)	$	203.9		$	182.7		$	196.9		$	225.0		$	209.6		$	178.4		$	171.8		$	149.7		$	142.0		$	122.2
Retail Metrics(3)
Trading days		64.0			61.0			63.0			62.5			63.0			61.0			62.5			62.5			63.0			62.0
Daily Average Revenue Trades ("DARTs")
US		151,102			155,706			179,298			161,459			141,606			141,238			132,716			116,459			142,621			159,199
International		21,212			24,849			24,626			23,952			19,020			19,931			15,597			13,274			16,579			16,271
DARTS from continuing operations		172,314			180,555			203,924			185,411			160,626			161,169			148,313			129,733			159,200			175,470
DARTS from discontinued operations		-			10,169			10,142			8,974			8,496			8,867			7,313			5,397			6,402			5,689
Total DARTs		172,314			190,724			214,066			194,385			169,122			170,036			155,626			135,130			165,602			181,159
Total trades from continuing operations (MM)		11.0			11.0			12.8			11.6			10.1			9.8			9.3			8.1			10.0			10.9
Total trades from discontinued operations (MM)		-			0.6			0.7			0.5			0.6			0.6			0.4			0.3			0.4			0.3
Total trades (MM)		11.0			11.6			13.5			12.1			10.7			10.4			9.7			8.4			10.4			11.2
Average commission per trade from continuing operations	$	11.07		$	11.05		$	11.29		$	11.71		$	12.07		$	11.93		$	11.88		$	11.87		$	12.15		$	11.97
Average commission per trade from discontinued operations		-			10.83			11.56			11.71			11.30			11.10			11.90			13.85			14.09			15.93
Total average commission per trade	$	11.07		$	11.04		$	11.30		$	11.71		$	12.03		$	11.89		$	11.88		$	11.95		$	12.23		$	12.10
End of period margin debt from continuing operations ($B)	$	7.15		$	6.46		$	6.99		$	7.38		$	7.27		$	6.82		$	6.79		$	6.26		$	6.98		$	6.70
End of period margin debt from discontinued operations ($B)		-			0.24			0.27			0.25			0.25			0.21			0.21			0.16			0.17			0.11
Total end of period margin debt ($B)	$	7.15		$	6.70		$	7.26		$	7.63		$	7.52		$	7.03		$	7.00		$	6.42		$	7.15		$	6.81
Average margin debt from continuing operations ($B)	$	6.86		$	6.73		$	7.51		$	7.45		$	6.89		$	6.70		$	6.54		$	6.50		$	6.85		$	6.52
Average margin debt from discontinued operations ($B)		-			0.26			0.28			0.26			0.24			0.21			0.18			0.16			0.14			0.11
Total average margin debt ($B)	$	6.86		$	6.99		$	7.79		$	7.71		$	7.13		$	6.91		$	6.72		$	6.66		$	6.99		$	6.63
Gross new investing/trading accounts		175,472			175,402			178,523			163,478			187,670			151,775			140,350			134,721			163,133			178,138
Gross new deposit/lending accounts		56,211			119,294			90,338			94,174			103,307			137,569			69,564			57,270			65,733			51,933
Closed accounts		(201,794	)		(216,488	)		(256,322	)		(182,163	)		(193,589	)		(190,016	)		(223,363	)		(153,522	)		(196,274	)		(185,795	)
Net new accounts from continuing operations		29,889			78,208			12,539			75,489			97,388			99,328			(13,449	)		38,469			32,592			44,276
Net new accounts from discontinued operations		-			(16,400	)		(5,504	)		(13,314	)		3,288			19,546			14,289			12,448			8,887			6,380
Net new accounts		29,889			61,808			7,035			62,175			100,676			118,874			840			50,917			41,479			50,656
End of period investing/trading accounts		3,519,378			3,506,506			3,507,655			3,545,816			3,534,252			3,499,986			3,500,842			3,526,587			3,521,186			3,531,795
End of period deposit/lending accounts		875,959			858,942			779,585			728,885			664,960			601,838			501,654			489,358			456,290			413,089
End of period accounts from continuing operations		4,395,337			4,365,448			4,287,240			4,274,701			4,199,212			4,101,824			4,002,496			4,015,945			3,977,476			3,944,884
End of period accounts from discontinued operations		-			412,790			429,190			434,694			448,008			444,720			425,174			410,885			398,437			389,550
End of period total accounts		4,395,337			4,778,238			4,716,430			4,709,395			4,647,220			4,546,544			4,427,670			4,426,830			4,375,913			4,334,434
Account Segmentation Detail(8)
Retail accounts within target segment(9)		935,730			922,139			944,456			972,904			931,472			870,195			832,935		N.A.			N.A.			N.A.
Other retail accounts(10)		2,440,794			2,414,695			2,288,024			2,248,086			2,208,768			2,180,399			2,108,469		N.A.			N.A.			N.A.
Corporate Services accounts		1,018,813			1,028,614			1,054,760			1,053,711			1,058,972			1,051,230			1,061,092		N.A.			N.A.			N.A.
End of period accounts from continuing operations		4,395,337			4,365,448			4,287,240			4,274,701			4,199,212			4,101,824			4,002,496		N.A.			N.A.			N.A.
End of period accounts from discontinued operations		-			412,790			429,190			434,694			448,008			444,720			425,174		N.A.			N.A.			N.A.
End of period total accounts		4,395,337			4,778,238			4,716,430			4,709,395			4,647,220			4,546,544			4,427,670		N.A.			N.A.			N.A.
Net new customers from continuing operations		21,597			43,223			92			25,178			39,252			14,870			(59,822	)		(10,928	)		2,459			(20,969	)
Net new customers from discontinued operations and other (11)		(536,954	)		17,160			4,500			2,243			11,941			22,230			54,939			40,137			8,581			6,298
Total net new customers (11)		(515,357	)		60,383			4,592			27,421			51,193			37,100			(4,883	)		29,209			11,040			(14,671	)
End of period total customers(11)		3,105,300			3,620,657			3,560,274			3,555,682			3,528,261			3,477,068			3,439,968			3,444,851			3,415,642			3,404,602
End of period assets per customer	$	52,172		$	46,508		$	53,361		$	61,320		$	60,323		$	57,659		$	56,659		$	53,632		$	52,741		$	56,403
Consolidated net revenue per customer	$	171		$	146		$	(458	)	$	136		$	190		$	185		$	178		$	165		$	177		$	172
Consolidated segment income (loss) per customer	$	(34	)	$	(16	)	$	(709	)	$	(17	)	$	73		$	78		$	80		$	65		$	76		$	72
Products per customer(12)		2.4			2.1			2.1			2.1			2.1			2.1			2.1			2.1			2.1			2.1
Customer Assets ($B)
Security holdings	$	105.9		$	105.4		$	120.2		$	138.5		$	136.4		$	130.2		$	127.3		$	120.8		$	119.0		$	125.4
Customer payables (cash)(13)		4.4			4.4			4.6			6.0			5.6			5.5			5.6			5.4			5.2			6.6
Customer cash balances held by third parties		3.2			3.3			3.3			4.0			4.1			3.9			3.8			3.9			3.9			3.8
Unexercised Corporate Services customer options (vested)		22.4			24.5			32.1			36.0			34.7			31.0			31.0			29.8			28.4			34.4
Customer assets in investing/trading accounts		135.9			137.6			160.2			184.5			180.8			170.6			167.7			159.9			156.5			170.2
Sweep deposit accounts		9.8			10.0			10.1			11.5			11.0			10.8			10.8			10.4			10.5			10.1
Transaction accounts		13.0			12.5			10.5			12.8			11.7			10.3			8.0			6.8			6.1			5.7
CDs		3.3			3.7			4.2			4.3			4.6			4.7			4.8			4.6			4.0			3.1
Customer assets in deposit accounts		26.1			26.2			24.8			28.6			27.3			25.8			23.6			21.8			20.6			18.9
Customer assets from continuing operations		162.0			163.8			185.0			213.1			208.1			196.4			191.3			181.7			177.1			189.1
Customer assets from discontinued operations		-			4.6			5.0			4.9			4.7			4.1			3.6			3.1			3.0			2.9
Total customer assets	$	162.0		$	168.4		$	190.0		$	218.0		$	212.8		$	200.5		$	194.9		$	184.8		$	180.1		$	192.0
Net new customer assets from continuing operations ($B)(14)	$	1.8		$	0.3		$	(16.4	)	$	1.1		$	1.5		$	2.4		N.A.			N.A.			N.A.			N.A.
Net new customer assets from discontinued operations and other ($B)(14)		(0.9	)		-			(0.1	)		-			0.1			0.5		N.A.			N.A.			N.A.			N.A.
Net new customer assets ($B)(14)	$	0.9		$	0.3		$	(16.5	)	$	1.1		$	1.6		$	2.9		N.A.			N.A.			N.A.			N.A.
Total customer cash and deposits from continuing operations ($B)	$	33.7		$	33.9		$	32.7		$	38.6		$	37.0		$	35.2		$	33.0		$	31.1		$	29.7		$	29.3
Total customer cash and deposits from discontinued operations ($B)		-			1.0			0.9			1.0			0.9			0.8			0.6			0.5			0.4			0.5
Total customer cash and deposits ($B)	$	33.7		$	34.9		$	33.6		$	39.6		$	37.9		$	36.0		$	33.6		$	31.6		$	30.1		$	29.8
Unexercised Corporate Services client options (unvested) ($B)	$	21.5		$	20.2		$	27.5		$	27.2		$	24.8		$	20.5		$	19.8		$	18.7		$	16.5		$	21.8
Institutional
Market Making
Equity shares traded (MM)		36,999			33,503			37,781			46,389			59,988			47,425			41,645			54,472			69,537			90,871
Average revenue capture per 1,000 equity shares	$	0.466		$	0.566		$	0.586		$	0.415		$	0.433		$	0.576		$	0.551		$	0.382		$	0.387		$	0.277
% of Bulletin Board equity shares to total equity shares		88.2	%		87.8	%		85.8	%		88.9	%		91.3	%		89.7	%		87.9	%		92.5	%		92.7	%		94.1	%
Capital Ratios
Tier 1 Capital Ratio(15)		6.73	%		6.78	%		6.22	%		5.88	%		6.15	%		6.24	%		6.07	%		5.80	%		5.85	%		6.03	%
Risk Weighted Capital Ratio(15)		12.24	%		12.36	%		11.37	%		10.55	%		10.58	%		10.48	%		10.55	%		10.61	%		11.01	%		11.21	%
Excess E*TRADE Bank risk-based capital(15)	$	644.0		$	695.3		$	435.1		$	192.6		$	199.0		$	161.9		$	134.2		$	136.4		$	205.6		$	227.6
Loans receivable ($MM)
Average loans receivable	$	28,211		$	29,890		$	31,841		$	32,272		$	30,802		$	27,837		$	25,500		$	22,780		$	20,289		$	19,482
Ending loans receivable, net	$	26,960		$	28,425		$	30,039		$	32,390		$	31,484		$	29,672		$	26,373		$	23,215		$	20,872		$	19,549
One- to Four- Family
Loan performance detail ($MM)
Current	$	12,231		$	14,033		$	15,083		$	16,558		$	15,472		$	13,178		$	10,755		$	8,837		N.A.			N.A.
30-89 days delinquent		368			363			297			250			203			201			135			94		N.A.			N.A.
90-179 days delinquent		192			151			120			62			38			24			19			25		N.A.			N.A.
180+ days delinquent		180			141			61			53			28			23			15		N.A.			N.A.			N.A.
Total delinquent loans		740			655			478			365			269			248			169			119		N.A.			N.A.
Gross loans receivable(16)	$	13,971		$	14,688		$	15,561		$	16,923		$	15,741		$	13,426		$	10,924		$	8,956		N.A.			N.A.
Credit Quality and Reserve Metrics
Special mention loans (30-89 days delinquent) as a % of gross loans receivable		2.63	%		2.47	%		1.91	%		1.47	%		1.29	%		1.50	%		1.23	%		1.04	%	N.A.			N.A.
Nonperforming loans (90+ days delinquent) as a % of gross loans receivable		2.66	%		1.99	%		1.17	%		0.68	%		0.42	%		0.35	%		0.31	%		0.28	%	N.A.			N.A.
Total delinquent loans (30+ days delinquent) as a % of gross loans receivable		5.30	%		4.46	%		3.07	%		2.15	%		1.71	%		1.85	%		1.54	%		1.32	%	N.A.			N.A.
Allowance for loan losses as a % of gross loans receivable		0.37	%		0.28	%		0.12	%		0.06	%		0.02	%		0.02	%		0.07	%		0.07	%	N.A.			N.A.
Allowance for loan losses as a % of nonperforming loans		14.03	%		14.17	%		10.39	%		8.11	%		5.43	%		7.04	%		23.10	%		23.80	%	N.A.			N.A.
Net charge-offs as a % of average loans receivable (annualized)		0.91	%		0.38	%		0.10	%		0.01	%		0.00	%		0.02	%		0.01	%		(0.00	)%	N.A.			N.A.
Provision as a % of average loans receivable (annualized)		1.21	%		0.98	%		0.33	%		0.15	%		0.01	%		(0.13	)%		0.08	%		0.02	%	N.A.			N.A.
Home Equity
Loan performance detail ($MM)
Current	$	10,454		$	11,029		$	11,603		$	12,262		$	12,391		$	12,849		$	11,955		$	10,625		N.A.			N.A.
30-89 days delinquent		282			277			291			253			181			141			101			48		N.A.			N.A.
90-179 days delinquent		250			222			186			117			70			42			21			24		N.A.			N.A.
180+ days delinquent		55			63			44			34			28			21			11		N.A.			N.A.			N.A.
Total delinquent loans		587			562			521			404			279			204			133			72		N.A.			N.A.
Gross loans receivable(16)	$	11,041		$	11,591		$	12,124		$	12,666		$	12,670		$	13,053		$	12,088		$	10,697		N.A.			N.A.
Credit Quality and Reserve Metrics
Special mention loans (30-89 days delinquent) as a % of gross loans receivable		2.56	%		2.39	%		2.41	%		1.99	%		1.42	%		1.08	%		0.83	%		0.45	%	N.A.			N.A.
Nonperforming loans (90+ days delinquent) as a % of gross loans receivable		2.76	%		2.46	%		1.89	%		1.19	%		0.77	%		0.48	%		0.27	%		0.22	%	N.A.			N.A.
Total delinquent loans (30+ days delinquent) as a % of gross loans receivable		5.32	%		4.85	%		4.30	%		3.19	%		2.19	%		1.56	%		1.10	%		0.67	%	N.A.			N.A.
Allowance for loan losses as a % of gross loans receivable		4.95	%		4.23	%		3.79	%		1.38	%		0.40	%		0.31	%		0.26	%		0.29	%	N.A.			N.A.
Allowance for loan losses as a % of nonperforming loans		179.32	%		172.18	%		200.05	%		115.69	%		51.11	%		64.61	%		98.31	%		131.54	%	N.A.			N.A.
Net charge-offs as a % of average loans receivable (annualized)		7.18	%		5.02	%		2.94	%		1.46	%		0.49	%		0.37	%		0.20	%		0.13	%	N.A.			N.A.
Provision as a % of average loans receivable (annualized)		9.14	%		6.09	%		12.11	%		5.45	%		0.78	%		0.67	%		0.22	%		0.21	%	N.A.			N.A.
Consumer and Other
Loan performance detail ($MM)
Current	$	2,553		$	2,682		$	2,830		$	2,985		$	3,133		$	3,242		$	3,396		$	3,601		N.A.			N.A.
30-89 days delinquent		23			23			24			17			12			13			23			25		N.A.			N.A.
90-179 days delinquent		7			6			7			7			3			6			9			6		N.A.			N.A.
180+ days delinquent		1			1			1			1			-			-			-		N.A.			N.A.			N.A.
Total delinquent loans		31			30			32			25			15			19			32			31		N.A.			N.A.
Gross loans receivable(16)	$	2,584		$	2,712		$	2,862		$	3,010		$	3,148		$	3,261		$	3,428		$	3,632		N.A.			N.A.
Credit Quality and Reserve Metrics
Special mention loans (30-89 days delinquent) as a % of gross loans receivable		0.88	%		0.84	%		0.83	%		0.63	%		0.39	%		0.39	%		0.69	%		0.69	%	N.A.			N.A.
Nonperforming loans (90+ days delinquent) as a % of gross loans receivable		0.30	%		0.26	%		0.27	%		0.25	%		0.11	%		0.18	%		0.26	%		0.16	%	N.A.			N.A.
Total delinquent loans (30+ days delinquent) as a % of gross loans receivable		1.18	%		1.11	%		1.10	%		0.88	%		0.50	%		0.57	%		0.95	%		0.85	%	N.A.			N.A.
Allowance for loan losses as a % of gross loans receivable		1.45	%		1.24	%		1.05	%		0.82	%		0.70	%		0.73	%		0.82	%		0.90	%	N.A.			N.A.
Allowance for loan losses as a % of nonperforming loans		482.78	%		471.56	%		396.71	%		332.30	%		630.11	%		400.72	%		316.61	%		567.76	%	N.A.			N.A.
Net charge-offs as a % of average loans receivable (annualized)		2.01	%		1.74	%		1.11	%		0.92	%		0.83	%		1.03	%		0.91	%		0.70	%	N.A.			N.A.
Provision as a % of average loans receivable (annualized)		2.57	%		2.24	%		1.87	%		1.25	%		0.61	%		0.51	%		0.38	%		0.72	%	N.A.			N.A.
Total Loans Receivable
Loan performance detail ($MM)
Current	$	26,238		$	27,744		$	29,516		$	31,805		$	30,996		$	29,269		$	26,106		$	23,063		$	20,764		$	19,430
30-89 days delinquent		673			663			612			520			396			355			259			167			129			142
90-179 days delinquent		449			379			313			186			111			72			49			55			46			41
180+ days delinquent		236			205			106			88			56			44			26		N.A.			N.A.			N.A.
Total delinquent loans		1,358			1,247			1,031			794			563			471			334			222			175			183
Total gross loans receivable (16)	$	27,596		$	28,991		$	30,547		$	32,599		$	31,559		$	29,740		$	26,440		$	23,285		$	20,939		$	19,613
Credit Quality and Reserve Metrics
Special mention loans (30-89 days delinquent) as a % of gross loans receivable		2.44	%		2.29	%		2.00	%		1.60	%		1.25	%		1.19	%		0.98	%		0.72	%		0.62	%		0.72	%
Nonperforming loans (90+ days delinquent) as a % of gross loans receivable		2.48	%		2.02	%		1.02	%		0.84	%		0.53	%		0.39	%		0.28	%		0.24	%		0.22	%		0.21	%
Total delinquent loans (30+ days delinquent) as a % of gross loans receivable		4.92	%		4.30	%		3.37	%		2.44	%		1.78	%		1.58	%		1.26	%		0.96	%		0.84	%		0.93	%
Allowance for loan losses as a % of gross loans receivable		2.30	%		1.95	%		1.66	%		0.64	%		0.24	%		0.23	%		0.26	%		0.30	%		0.32	%		0.33	%
Allowance for loan losses as a % of nonperforming loans		92.95	%		96.84	%		121.44	%		76.24	%		45.34	%		58.68	%		90.52	%		127.57	%		144.45	%		158.79	%
Net charge-offs as a % of average loans receivable (annualized)		3.53	%		2.36	%		1.30	%		0.66	%		0.29	%		0.30	%		0.22	%		0.17	%		0.15	%		0.18	%
Provision as a % of average loans receivable (annualized)		4.52	%		3.13	%		5.05	%		2.31	%		0.39	%		0.30	%		0.19	%		0.22	%		0.20	%		0.21	%
(1) Amounts and percentages may not calculate due to rounding.
(2) The unaudited information is presented to provide additional disclosure surrounding metrics from discontinued operations to historical periods. Because this information is unaudited and not in its final format, figures included are subject to change.
(3) Data has been reclassified to reflect discontinued operations related to the Canadian brokerage business and lending business.
(4) Operating margin is the percentage of net revenue that results in net income (loss) before other income (expense), income taxes and discontinued operations. The percentage is calculated by dividing our income (loss) before other income (expense),
income taxes and discontinued operations by our total net revenue.
(5) Enterprise net interest spread is the taxable equivalent rate earned on average enterprise interest-earning assets less the rate paid on average enterprise interest-bearing liabilities, excluding corporate interest-earning assets and liabilities, stoc
(6) Enterprise interest-earning assets consists of the primary interest-earning assets of the Company and includes: loans receivable, mortgage-backed and available-for-sale securities, margin loans, stock borrow balances, and cash required to be segregat
that earn interest for the Company.
(7) Bank earnings before taxes and before credit losses represents the pre-tax earnings of E*TRADE Bank Holding Company ("ETBH" or "Bank") before discontinued operations, gain (loss) on securities, net and provision for loan losses.
This metric shows the amount of earnings that the Bank, after accruing for the interest expense on its trust preferred securities, generates each quarter prior to credit related losses, primarily provision and gain (loss) on securities. Management believe
to investors and analysts as it is an indicator of the level of credit related losses the Bank can absorb without causing a decline in E*TRADE Bank's excess risk based capital (a). Below is a reconciliation of Bank earnings before taxes and before credit
income taxes and discontinued operations:
	6/30/08			3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06
Income (loss) before income taxes and discontinued operations		(182,411	)		(149,575	)		(2,580,828	)		(97,038	)		238,582			263,998			252,476			216,683			240,803			222,358
Add back:
Non-bank (income) loss before tax and discontinued operations(b)		51,736			90,285			(125	)		(63,174	)		(53,177	)		(90,746	)		(85,645	)		(65,412	)		(97,508	)		(93,816	)
Provision for loan losses		319,121			233,871			402,311			186,536			30,045			21,186			11,956			12,547			10,270			10,197
(Gain) loss on securities, net(c)		15,422			8,069			2,274,355			198,723			(5,870	)		(16,079	)		(7,030	)		(14,132	)		(11,563	)		(16,516	)
Impairment of goodwill		-			-			101,208			-			-			-			-			-			-			-
Bank earnings before taxes and before credit losses		203,868			182,650			196,921			225,047			209,580			178,359			171,757			149,686			142,002			122,223
(a) Excess risk based capital is the excess capital that E*TRADE Bank has compared to the regulatory minimum well-capitalized threshold.
(b) Non-bank income (loss) represents all of the Company's subsidiaries including Corporate and Brokerage, but excluding the Bank.
(c) Gain (loss) on securities, net is included in the Gain (loss) on loans and securities, net line item on the consolidated statement of income (loss).
(8) Data prior to Q4 2006 is not available.
(9) Target segment accounts are accounts held by customers with over $50,000 in assets and/or generating 30 or more trades per quarter.
(10) Other retail accounts are accounts that (a) were opened less than 90 days prior to the end of the relevant quarter; (b) only include a lending relationship or (c) that otherwise do not meet the definition of a target segment account.
(11) Net new customers from discontinued operations and other consists of customers related to our discontinued operations and the impact of an improvement in our customer identification methodology implemented during the second quarter of 2008. End of pe
(12) Products per customer increased in Q208 due to the impact of customers related to our discontinued operations and an improvement in our customer identification methodology implemented during the second quarter of 2008.
(13) Excludes customer payables (cash) from discontinued operations.
(14) Net new customer assets are total inflows to all new and existing customer accounts less total outflows from all closed and existing customer and closed accounts. Data prior to Q107 is not available. In Q208, net new customer assets from discontinued
(15) Q2 2008 estimate. Quarters beginning in Q107 include the results of E*TRADE Clearing, LLC, which became an operating subsidiary of E*TRADE Bank in Q1 2007.
(16) Includes unpaid principal balances and premiums (discounts).