eTrade 2000 Annual Report Download - page 31

to regulation by the SEC and by self-regulatory organizations, such as the NASDR and the securities exchanges of which each is a
member.
Similarly, E*TRADE and ETFC, as savings and loan holding companies, and the Bank, as a federally chartered savings bank, are
subject to extensive regulation, supervision and examination by the OTS, and in the case of the Bank, the FDIC. Such regulation
covers all aspects of the banking business, including lending practices, safeguarding deposits, capital structure, record keeping, and
conduct and qualifications of personnel.
The SEC, NASDR, OTS and various other regulatory agencies have stringent rules with respect to the maintenance of specific levels
of net capital by securities broker-dealers and regulatory capital by banks. For example, our broker-dealer entities are subject to Rule
15c3-1 under the Securities Exchange Act of 1934 (the “Exchange Act”) which is designed to measure the general financial condition
and liquidity of a broker-dealer. Net
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capital is the net worth of a broker or dealer (assets minus liabilities), less deductions for certain types of assets. If a firm fails to
maintain the required net capital it may be subject to suspension or revocation of registration by the SEC and suspension or expulsion
by the NASDR, and could ultimately lead to the firm’ s liquidation.
Similarly, banks, such as the Bank, are subject to various regulatory capital requirements administered by the federal banking agencies.
Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by
regulators that, if undertaken, could have a direct material effect on a bank’ s operations and financial statements. For more information
about capital requirement and other risks relating to the regulation of our business, see “Item 8. Consolidated Financial Statements and
Supplementary Data” and all risks disclosed in “Item 7. Risk factors—Risks Relating to the Regulation of Our Business.”
ASSOCIATES
At September 30, 2000, we had 3,778 associates. None of our associates are subject to collective bargaining agreements or represented
by a union. We consider our relations with our associates to be good. See “Item 7. Risk factors—Our inability to retain and hire skilled
personnel and senior management could seriously harm our business.”
EXECUTIVE OFFICERS OF THE REGISTRANT
In addition to the chief executive officer who is also a director of the Company, the following executive officers are not directors and
serve at the discretion of the board of directors:
Name A
ge
Position
Jerry D. Gramaglia 4
5
President and Chief Operating Officer
Leonard C. Purkis 5
2
Chief Financial Officer
Judy Balint 4
7
Chief International Officer
Thomas A. Bevilacqua 4
4
Chief Strategic Investment Officer
Mitchell H. Caplan 4
3
Chief Banking Officer
Connie M. Dotson 5
1
Chief Service Quality Officer
Amy J. Errett 4
2
Chief Asset Gathering Officer
Pamela S. Kramer 4
0
Chief Strategy and Content Development Officer
Joshua Levine 4
6
Chief Technology Officer
R. Jarrett Lilien 3
8
Chief Brokerage Officer
Dennis L. Lundien 5
9
Chief Internal Audit and Privacy Officer
2002. EDGAR Online, Inc.