8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES AND EXCHANGE ACT OF 1934

Date of report: August 16, 2007

(Date of earliest event reported)

E*TRADE FINANCIAL CORPORATION

(Exact name of registrant as specified in charter)

Delaware	1-11921	94-2844166
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

135 East 57th Street

New York, New York 10022

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (646) 521-4300

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))

TABLE OF CONTENTS

Item 7.01 Regulation FD Disclosure.	3
Item 9.01 Financial Statements and Exhibits.	3
SIGNATURES	4
INDEX TO EXHIBITS	5
EXHIBIT 99.1
EXHIBIT 99.2

2

Item 7.01 Regulation FD Disclosure.

E*TRADE Financial Corporation is issuing today the information contained in Exhibit 99.1 furnished herewith and incorporated by reference in this item 7.01.

The information appearing in this Item 7.01 and in Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.

Item 9.01 Financial Statements and Exhibits.

(d) EXHIBITS

Number	Description
99.1	Supplemental Information.
99.2	Press Release dated August 16, 2007.

3

SIGNATURES

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, hereunto duly authorized.

	E*TRADE FINANCIAL CORPORATION
Dated: August 16, 2007	By:	/s/ Arlen W. Gelbard
		Arlen W. Gelbard Chief Administrative Officer and General Counsel

4

EXHIBIT INDEX

Exhibit No.	Description
99.1	Supplemental Information.
99.2	Press Release dated August 16, 2007.

5

EX-99.1

®

®

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

August 16, 2007

(All data as of 6/30/07)

Supplemental Portfolio Disclosure

Exhibit 99.1

2

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

©

E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains certain projections or other forward-

looking statements regarding future events or the future

performance of the company. Various factors, including risks and

uncertainties referred to in the 10Ks, 10Qs and other reports

E*TRADE FINANCIAL Corporation periodically files with the SEC,

could cause our actual results to differ materially from those

indicated by our projections or other forward-looking statements.

No statement is a guarantee of out future performance and we

disclaim any duty to update any data contained herein or any

forward-looking statements.  Data contained herein are unaudited.

This presentation also contains disclosure of non-GAAP financial

measures. A reconciliation of these financial measures to the most

directly comparable GAAP financial measure can be found on the

investor relations site at www.etrade.com

3

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Given the recent volatility in the US residential real estate market,

we have received requests for additional information on the

mortgage loans and investment securities on our balance sheet as

of June 30, 2007

Specifically, we have been asked to disclose FICO and LTV

distributions on our first and second lien portfolios. Inquiries

have also been made relating to the distribution of asset classes

and bond ratings of our investment securities portfolio, and the

funding sources for our balance sheet

Introduction

4

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Executive Summary

Our conservative approach to credit and funds management is demonstrated by the following key

points

First Lien Portfolio

As of June 30, 2007, the portfolio had an unpaid principal balance of $15.7B and $270MM, or

1.72% in total delinquent loans

$15.7B portfolio is supported by high FICO, low LTV and private mortgage insurance

All loans with an 80% or higher LTV are protected by private mortgage insurance

Home Equity Portfolio

As of June 30, 2007, the portfolio had an unpaid principal balance of $12.4B and $279MM, or

2.25% in total delinquent loans

$9.2B, or 74%, of portfolio is to borrowers with FICO of 700 and

higher

$6.0B, or 48%, of portfolio has CLTV of 80% or lower

Investment Securities

$12.7B, or 99% of mortgage-backed securities are rated AAA

$1.8B, or nearly 100% of municipal, stocks, or corporate portfolio are rated AA or better

$2.5B, or 81%, of the Asset-backed portfolio is rated A or higher

Non-rated and below investment grade securities are $89MM, or 2.9% of portfolio

5

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Balance

Sheet

Funding

Sources

Consistent and growing base of retail customer cash

Thrift

charter

provides

access

to

FHLB

-

$10B

of

additional

borrowing

capacity

$250MM of available senior secured revolving credit facility

$432MM of Free Cash(1)

No material changes to date with respect to wholesale funding availability, pricing or

margin, including repurchase agreements

Executive Summary continued

6

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Q2 2007

Ending Period Interest-earning Assets

$58.7B

Average Net Interest Spread: 271 bps

Loans

$38. 6B

Securities

$17.6B

Avg. Rating: AA (92% AA-AAA)

Consumer: $2.8B

(Includes marine, RV)

Avg. FICO: 733

Annualized

Charge-offs: 85 bps

Mortgage: $28.1B

Avg. FICO:

735

DTI:

35

CLTV:

73

Annualized

Charge-offs: 22 bps

Margin: $7.4B

MBS: $12.7B

(Agency: Freddie,

Fannie, Ginnie)

99% AAA

Avg. Rating: AAA

ABS: $3.0B

52% AA-AAA

97% BBB or better

Avg. Rating A

1st Lien (1-4 family): $15.7B

Avg. FICO:

738

DTI:

35

CLTV:

68

Annualized Charge-offs: 1bp

2nd Lien (HEIL & HELOC): $12.4B

Avg. FICO:

731

DTI:

36

CLTV:

80

Annualized Charge-offs: 48bps

CDO: $0.6B

50% AA-AAA

Avg. Rating: A

Residential Mortgage

1st & 2nd Lien: $2.3B

Avg. Rating: A

Corp/Muni/Pfd: $1.8B

Avg. Rating: AA

Interest-Earning Assets Composition

NOTE:    Loan balances are shown based on UPB, and securities are shown at amortized cost basis.  Numbers may not add due to rounding.

7

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

First Lien Mortgage Loan Distribution by FICO and LTV

FICO

13

0.1%

1

0.0%

0

0.0%

8

0.1%

4

0.0%

<620

522

3.3%

33

0.2%

18

0.1%

281

1.8%

190

1.2%

659-620

968

6.2%

29

0.2%

30

0.2%

565

3.6%

344

2.2%

679-660

10,447

66.7%

115

0.7%

105

0.7%

5,938

37.9%

4,289

27.4%

>=720

261

1.7%

41

0.3%

42

0.3%

>90%

1,593

10.2%

30

0.2%

986

6.3%

536

3.4%

699-680

LTV

719-700

Total

<70%

770

4.9%

6,133

39.1

70% -

80%

1,275

8.1%

9,053

57.8%

80% -

90%

37

0.2%

220

1.4%

Total

2,124

13.5%

15,667

100.0%

* Averages based upon 2006 engagement  trends

(Unpaid principal

balances, $ in MM )

$15.7B portfolio is supported by high FICO, low LTV and private mortgage

insurance

$481MM of loans with an 80% or higher LTV are protected by private mortgage

insurance

8

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Home Equity Loan Distribution by FICO and LTV

(Unpaid principal

balances, $ in MM )

$9.2B, or 74%, of portfolio to borrowers with FICO of 700 and higher

$6.0B, or 48%, of portfolio with CLTV of 80% or lower

FICO

20

0.1%

0

0.0%

2

0.0%

4

0.0%

14

0.1%

<620

646

5.2%

137

1.1%

248

2.0%

125

1.0%

136

1.1%

659-620

834

6.8%

224

1.8%

313

2.6%

131

1.1%

166

1.3%

679-660

7,281

58.6%

1,316

10.6%

1,976

15.9%

1,258

10.1%

2,731

22.0%

>=720

2,550

20.5%

399

3.2%

474

3.8%

>90%

1,682

13.6%

627

5.2%

303

2.4%

353

2.8%

699-680

CLTV

719-700

Total

<70%

446

3.6%

3,846

30.9%

70% -

80%

353

2.8%

2,174

17.4%

80% -

90%

677

5.5%

3,843

31.2%

Total

1,950

15.7%

12,413

100.0%

9

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

We look first to the credit quality of a borrower, as indicated by FICO

and similar measures, for repayment of a loan.  Should a loan

become delinquent, realized future losses will be dependent on a

number

of

factors

including,

but

not

limited

to,

cure

rates

(2)

,

local real

estate dynamics and resulting current loan to value (LTV)

The traditional method, as shown on previous pages, categorizes the

entire loan balance at the highest dollar loan-to-value

The Principal at Risk (PAR) method is an internal approach that we

believe more appropriately depicts the unpaid principal balance by

tranching it against the supporting collateral value at time of

origination

The following example demonstrates how a $45,000 home equity loan

classified under the traditional method at a 95% CLTV can be

tranched to several PAR LTV thresholds under the PAR method

Principal at Risk (PAR) Method vs. Traditional

Method

10

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Loan Distribution Principal at Risk (PAR) Method 

Example

>90% LTV

80%-90% LTV

70%-80% LTV

<70% LTV

FICO

($ in thousands)

$45

$0

$0

$0

720

Traditional

Method

$5

$10

$10

$20

720

PAR

Method

$50K

First

Lien

$45K

Second

Lien

$100K

Borrower Equity

50K

60K

70K

80K

90K

95K

Value of

Property at

Origination

11

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This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

First Lien Loan Distribution –

PAR Method

FICO

13

0.1%

0

0.0%

1

0.0%

1

0.0%

11

0.1%

<620

522

3.3%

3

0.0%

5

0.0%

34

0.2%

480

3.1%

659-620

968

6.2%

2

0.0%

5

0.0%

65

0.4%

896

5.7%

679-660

10,447

66.7%

9

0.1%

21

0.1%

632

4.0%

9,785

62.5%

>=720

22

0.1%

4

0.0%

4

0.0%

>90%

1,593

10.2%

7

0.0%

109

0.7%

1,473

9.4%

699-680

PAR

LTV

719-700

Total

<70%

1,973

12.6%

14,618

93.3%

70% -

80%

140

0.9%

981

6.3%

80% -

90%

7

0.0%

46

0.3%

Total

2,124

13.5%

15,667

100.0%

(Unpaid principal

balances, $ in MM )

$15.7B portfolio is well supported by high FICO, low LTV, and private mortgage insurance

$68MM of exposure greater than 80% of property value is protected by private mortgage

insurance (Note that a total of $481MM of loans with an 80% or higher LTV under the

traditional method are protected by private mortgage insurance)

12

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Home Equity Loan Distribution –

PAR Method

* Averages based upon 2006 engagement  trends

(Unpaid principal

balances, $ in MM )

•

$8.5B, or 68%, of portfolio has a CLTV of 80% or below

•

Of the

$3.9B

in

loans

with

CLTV

above

80%,

$2.7B

is

to

borrowers

with

FICO

of

700 or higher

FICO

20

0.1%

0

0.0%

1

0.0%

1

0.0%

18

0.1%

<620

646

5.2%

52

0.4%

203

1.6%

133

1.1%

258

2.1%

659-620

834

6.8%

86

0.7%

272

2.2%

158

1.3%

318

2.6%

679-660

7,281

58.6%

474

3.8%

1,530

12.3%

1,180

9.5%

4,097

33.0%

>=720

930

7.5%

145

1.2%

173

1.4%

>90%

1,682

13.6%

483

3.9%

359

2.9%

695

5.6%

699-680

PAR

CLTV

719-700

Total

<70%

854

6.8%

6,240

50.2%

70% -

80%

407

3.3%

2,238

18.1%

80% -

90%

516

4.2%

3,005

24.2%

Total

1,950

15.7%

12,413

100.0%

13

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

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First Lien Delinquent Loan Distribution –

PAR

Method (Includes non-performing loans and special mention loans)

FICO

1

0.4%

0*

0.0%

0*

0.0%

0

0.0%

1

0.4%

<620

34

12.6%

1*

0.4%

0*

0.0%

3

1.1%

30

11.2%

659-620

46

17.0%

0*

0.0%

1*

0.4%

3

1.1%

42

15.5%

679-660

104

38.5%

0*

0.0%

1*

0.4%

8

3.0%

95

35.1%

>=720

1*

0.4%

0*

0.0%

0*

0.0%

>90%

48

17.8%

0*

0.0%

4

1.5%

44

16.3%

699-680

PAR

LTV

719-700

Total

<70%

33

12.2%

245

90.7%

70% -

80%

3

1.1%

21

7.8%

80% -

90%

1*

0.4%

3*

1.1%

Total

37

13.7%

270

100.0%

* Averages based upon 2006 engagement  trends

(Unpaid principal

balances, $ in MM )

* Balances in excess of 80% LTV are covered by Private Mortgage Insurance

98.5% of delinquent balances are mitigated by PAR LTV of 80% or lower

14

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2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Home Equity Delinquent Loan Distribution –

PAR

Method (Includes non-performing loans and special mention loans)

* Averages based upon 2006 engagement  trends

(Unpaid principal

balances, $ in MM )

$160MM, or 57%, of delinquent balances have a PAR CLTV of over 80%

$135MM, or 48%, of delinquent balances have a FICO of 700 or greater

FICO

1

0.4%

0

0.0%

0

0.0%

0

0.0%

1

0.4%

<620

47

16.9%

5

1.8%

18

6.5%

11

3.9%

13

4.7%

659-620

43

15.4%

7

2.5%

19

6.8%

8

2.9%

9

3.2%

679-660

83

29.6%

16

5.7%

33

11.7%

14

5.0%

20

7.2%

>=720

47

16.8%

9

3.2%

10

3.6%

>90%

53

19.0%

21

7.5%

10

3.6%

13

4.7%

699-680

PAR

CLTV

719-700

Total

<70%

10

3.6%

66

23.8%

70% -

80%

10

3.6%

53

19.0%

80% -

90%

22

7.9%

113

40.4%

Total

52

18.7%

279

100.0%

15

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This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Loan Risk Mitigation Discipline

Geographic diversification with no single MSA greater than 10%

of mortgage loan portfolio

Low leveraged borrowers with average debt-to-income ratio of 35

across mortgage portfolio

No option or negative amortization ARMs

Top Sellers/Originators of mortgage loan portfolio with 74% of

$28.1B in unpaid principal balance from:

Bank of America

JPMorgan

Countrywide

Morgan Stanley

E-Loan

National City

E*TRADE

(3)

UBS

GMAC

Wells Fargo

16

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Risk Mitigation Strategy

Growth sources –

Portfolio growth, if any, will be driven

by prime and super-prime first lien mortgage loans

Mix shift -

Allow home equity and consumer loan

portfolios to decline with pay-offs/prepayments

Credit line management –

Evaluate revolving credit

borrowers, reducing available lines based on leading

indicators

Loan modifications –

Provide rate and term

modifications to qualified borrowers

17

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This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Mortgage-Backed Securities Breakdown

-

-

-

Below

Inv.

Grade

1,585

12.0%

0

0.0%

-

1

0.0%

1,584

12.0%

Private Label CMO

12,749

100.0%

0

0.0%

-

1

0.0%

12,748

100.0%

Grand Total

11,164

88.0%

Grand

Total

-

Non-

Rated

11,164

88.0%

AA or

Higher

-

BBB

A

Agency MBS/CMO

-

($ in thousands, based on book value )

$12.7B or 99%, of portfolio is rated AAA.

18

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E*TRADE FINANCIAL Corporation’s written permission.

Municipals, Stock and Corporate Breakdown

126

7.1%

-

-

-

15

0.8%

111

6.2%

Corporate Bonds ($78mm FNMA Note)

1,784

100.0%

-

-

-

15

0.8%

1,769

99.2%

Grand Total

348

19.5%

473

26.5%

837

46.9%

Grand

Total

-

-

-

Non-

Rated

-

-

-

Below

Inv.

Grade

348

19.5%

473

26.5%

837

46.9%

AA or

Higher

-

-

-

BBB

A

Municipal Bonds

-

Agency Preferred Stock (FNM, FRE)

-

FHLB Stock

-

($ in millions, based on book value )

60.7% of portfolio is rated AAA

99.2% of portfolio is rated AA or higher

19

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E*TRADE FINANCIAL Corporation’s written permission.

Asset-backed Securities Breakdown

51

1.6%

12

0.4%

4

0.1%

12

0.4%

16

0.5%

7

0.2%

Other

100

3.2%

-

9

0.3%

55

1.8%

33

1.1%

2

0.1%

Sub-prime Residential First Lien Mortgage

3,103

100.0%

182

5.8%

214

6.9%

453

14.6%

2,105

67.8%

Grand

Total

65

2.1%

-

23

0.8%

30

1.0%

-

Non-

Rated

24

0.8%

9

0.3%

-

1

0.0%

-

Below

Inv.

Grade

1,634

52.6%

74

2.4%

82

2.6%

225

7.2%

1,243

40.1%

AA or

Higher

51

1.6%

47

1.5%

Second Liens

499

16.1%

41

1.3%

47

1.5%

293

9.4%

BBB

A

Prime Residential First Lien Mortgage

568

18.3%

ABS CDO

150

4.8%

Commercial Real Estate & Trust Pfd CDO

67

2.2%

Grand Total

881

28.4%

($ in thousands, based on book value )

$2.5B, or 81%, of portfolio is rated A or higher

Non-rated and below investment grade securities are $89MM, or 2.9% of portfolio

Note: Includes $82MM of securities classified as Trading Securities

20

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E*TRADE FINANCIAL Corporation’s written permission.

Balance Sheet Funding Sources

Retail Deposits and Customer Payables

61% of interest-bearing liabilities

$34B –

84% from customers who also hold an investing account

Average Quarterly Growth in Total Customer Cash and Deposits = $1.6B

(4)

Wholesale Borrowings

39% of interest-bearing liabilities

Thrift charter provides access to FHLB

Currently $7B of Advances –

additional $10B of excess borrowing capacity

$12B in repurchase agreements

Primarily AAA FNMA and GNMA backed transactions

Diversified maturities with a strong group of over 20 counterparties

Not dependent on warehouse lines

Access to the Federal Reserve Discount Window

No material changes to date with respect to wholesale funding availability, pricing or margin, including

repurchase agreements

Corporate Liquidity

$250MM undrawn

committed senior secured revolving credit facility

$432MM in free cash

21

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E*TRADE FINANCIAL Corporation’s written permission.

Endnotes and Glossary of Terms

Endnotes:

(1) Free cash represents cash held at the Company and its non-Bank and non-Brokerage

subsidiaries, less discretionary reserves, plus excess capital at Bank and Brokerage

after application of regulatory capital requirements and the Company’s own regulatory

capital guidelines

(2) Cure rates represent the rate of currently delinquent balances that return to

performing status and/or fully pay off

(3) Includes direct and wholesale originated loans

(4) Average organic quarterly total cash and deposit growth since 12/31/2005

Terms:

ARM –

Adjustable Rate Mortgage

CDO –

Collateralized Debt Obligation

CLTV –

Combined Loan-to-Value

DTI –

Debt-to-income

FHLB –

Federal Home Loan Bank

HELOC –

Home Equity Line of Credit

HEIL –

Home Equity Installment Loan

LTV –

Loan-to-Value

PMI –

Private Mortgage Insurance

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

®

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EX-99.2

EXHIBIT 99.2

E*TRADE FINANCIAL Media Relations Contact

Pam Erickson

E*TRADE FINANCIAL Corporation

617-296-6080

pam.erickson@etrade.com

E*TRADE FINANCIAL Investor Relations Contact

Adam Townsend

E*TRADE FINANCIAL Corporation

703-236-8719

adam.townsend@etrade.com

E*TRADE FINANCIAL CORPORATION ISSUES SUPPLEMENTAL PORTFOLIO DISCLOSURE

New York, August 16, 2007 – E*TRADE FINANCIAL Corporation (NASDAQ: ETFC) released supplemental disclosures today related to the composition and funding sources for its balance sheet. The Company provided a presentation containing additional information to its June 30, 2007 quarterly results, including expanded transparency on the credit quality of its mortgage and securities portfolios. This presentation can be found at https://investor.etrade.com. In addition, the Company stated that it has seen no material changes to date with respect to the availability, pricing or margin on its wholesale funding sources, including repurchase agreements. Management maintains that it does not believe that the current market capitalization accurately reflects the financial strength and performance of the business.

Selected highlights from the presentation include:

• The Company’s $15.7 billion first lien mortgage portfolio is supported by high FICO scores, low Loan-to-Value ratios (LTV) and private mortgage insurance

• All first lien mortgage loans with an 80% or higher LTV are protected by private mortgage insurance

• $9.2 billion, or 74%, of its home equity portfolio is to borrowers with FICO scores of 700 and higher

• $12.6 billion, or 99%, of mortgage-backed securities are rated AAA

• 97% of its Asset-backed Securities portfolio is rated investment grade

• Consistent and growing base of retail customer cash

• $10 billion in excess wholesale borrowing capacity from the Federal Home Loan Bank

About E*TRADE FINANCIAL

The E*TRADE FINANCIAL family of companies provides financial services including trading, investing, banking and lending for retail and institutional customers. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank and lending products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries.

# # #

Important Notice

E*TRADE FINANCIAL, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE FINANCIAL Corporation. The statements contained in this news release that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, changes in market activity, anticipated increases in the rate of new customer acquisition, the conversion of new visitors to the site to customers, the activity of customers and assets held at the institution, seasonality, the development and enhancement of products and services, competitive pressures (including price competition), system failures, economic and political conditions, changes in consumer behavior and the introduction of competing products having technological and/or other advantages. Further information about these risks and uncertainties can be found in the information included in the annual reports previously filed by E*TRADE FINANCIAL Corporation with the SEC on Form 10-K (including information under the caption “Risk Factors”) and quarterly reports on Form 10-Q.

^© 2007 E*TRADE FINANCIAL Corporation. All rights reserved.