eTrade 2009 Annual Report Download - page 175

the three months ended September 30, 2009 as well as to the quarterly trend of earnings. Therefore, the Company
determined that an amendment of its previously filed Form 10-Q for the quarterly period ended September 30,
2009 was not necessary.
In the third quarter of 2009, the increase in net loss was due principally to an early extinguishment of debt
that resulted in a non-cash loss of $772.9 million (pre-tax loss of $968.3 million). The loss from continuing
operations for the third and fourth quarter of 2008 was due primarily to the $517.8 million and $512.9 million in
provision for loan losses, respectively. Additionally, the Company incurred losses of $153.8 million, net of
hedges, on its preferred stock in Fannie Mae and Freddie Mac during the third quarter of 2008.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
Not applicable.
ITEM 9A. CONTROLS AND PROCEDURES
(a) Our Interim Chief Executive Officer and our Chief Financial Officer, after evaluating the effectiveness
of the Company’s “disclosure controls and procedures” (as defined in the Securities Exchange Act of
1934 (“Exchange Act”) Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this
annual report, have concluded that our disclosure controls and procedures are effective based on their
evaluation of these controls and procedures required by paragraph (b) of Exchange Act Rules 13a-15 or
15d-15.
(b) Our Interim Chief Executive Officer and our Chief Financial Officer have evaluated the changes to the
Company’s internal control over financial reporting that occurred during our last fiscal quarter ended
December 31, 2009, as required by paragraph (d) of Exchange Act Rules 13a-15 and 15d-15, and have
concluded that there were no such changes that materially affected, or are reasonably likely to
materially affect, the Company’s internal control over financial reporting. The Management Report on
Internal Control Over Financial Reporting and the Reports of Independent Registered Public
Accounting Firm are included in Item 8. Financial Statements and Supplementary Data.
ITEM 9B. OTHER INFORMATION
Not applicable.
PART III
Certain portions of the Company’s Proxy Statement for its 2009 Annual Meeting of Shareholders, which,
when filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, will be incorporated by
reference in this Annual Report on Form 10-K pursuant to General Instruction G(3) of Form 10-K, provide the
information required under Part III (Items 10, 11, 12, 13 and 14).
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) The following documents are filed as part of this report:
Consolidated Financial Statements and Financial Statement Schedules
Consolidated Financial Statement Schedules have been omitted because the required information is not
applicable, not material or is provided in the consolidated financial statements or notes thereto.
172