Supplemental Information

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

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

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

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

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

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

FHLB

$10B

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

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:

CLTV:

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:

CLTV:

Annualized Charge-offs: 1bp

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

Avg. FICO:

731

DTI:

CLTV:

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.

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

0.1%

0.0%

0.1%

0.0%

<620

522

3.3%

0.2%

0.1%

281

1.8%

190

1.2%

659-620

968

6.2%

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%

0.3%

>90%

1,593

10.2%

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%

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

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

0.1%

0.0%

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%

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

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

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

720

Traditional

Method

$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

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

0.1%

0.0%

0.1%

<620

522

3.3%

0.0%

0.2%

480

3.1%

659-620

968

6.2%

0.0%

0.4%

896

5.7%

679-660

10,447

66.7%

0.1%

632

4.0%

9,785

62.5%

>=720

0.1%

0.0%

>90%

1,593

10.2%

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%

0.0%

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)

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

loans

with

CLTV

above

80%,

$2.7B

borrowers

with

FICO

700 or higher

FICO

0.1%

0.0%

0.1%

<620

646

5.2%

0.4%

203

1.6%

133

1.1%

258

2.1%

659-620

834

6.8%

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%

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

First Lien Delinquent Loan Distribution –

PAR

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

FICO

0.4%

0.0%

0.4%

<620

12.6%

0.4%

0.0%

1.1%

11.2%

659-620

17.0%

0.0%

0.4%

1.1%

15.5%

679-660

104

38.5%

0.0%

0.4%

3.0%

35.1%

>=720

0.4%

0.0%

>90%

17.8%

0.0%

1.5%

16.3%

699-680

PAR

LTV

719-700

Total

<70%

12.2%

245

90.7%

70% -

80%

1.1%

7.8%

80% -

90%

0.4%

1.1%

Total

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

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

0.4%

0.0%

0.4%

<620

16.9%

1.8%

6.5%

3.9%

4.7%

659-620

15.4%

2.5%

6.8%

2.9%

3.2%

679-660

29.6%

5.7%

11.7%

5.0%

7.2%

>=720

16.8%

3.2%

3.6%

>90%

19.0%

7.5%

3.6%

4.7%

699-680

PAR

CLTV

719-700

Total

<70%

3.6%

23.8%

70% -

80%

3.6%

19.0%

80% -

90%

7.9%

113

40.4%

Total

18.7%

279

100.0%

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

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

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

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%

1,584

12.0%

Private Label CMO

12,749

100.0%

0.0%

12,748

100.0%

Grand Total

11,164

88.0%

Grand

Total

Non-

Rated

11,164

88.0%

AA or

Higher

BBB

Agency MBS/CMO

($ in thousands, based on book value )

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

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Municipals, Stock and Corporate Breakdown

126

7.1%

0.8%

111

6.2%

Corporate Bonds ($78mm FNMA Note)

1,784

100.0%

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

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

This presentation contains confidential information and may not be disclosed without

E*TRADE FINANCIAL Corporation’s written permission.

Asset-backed Securities Breakdown

1.6%

0.4%

0.1%

0.4%

0.5%

0.2%

Other

100

3.2%

0.3%

1.8%

1.1%

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

2.1%

0.8%

1.0%

Non-

Rated

0.8%

0.3%

0.0%

Below

Inv.

Grade

1,634

52.6%

2.4%

2.6%

225

7.2%

1,243

40.1%

AA or

Higher

1.6%

1.5%

Second Liens

499

16.1%

1.3%

1.5%

293

9.4%

BBB

Prime Residential First Lien Mortgage

568

18.3%

ABS CDO

150

4.8%

Commercial Real Estate & Trust Pfd CDO

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

This presentation contains confidential information and may not be disclosed without

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

This presentation contains confidential information and may not be disclosed without

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