eTrade 2009 Annual Report Download - page 2

E*TRADE FINANCIAL CORPORATION
FORM 10-K ANNUAL REPORT
For the Year Ended December 31, 2009
TABLE OF CONTENTS
PART I
Forward-Looking Statements ............................................................ 1
Item 1. Business ...................................................................... 1
Overview ................................................................. 1
Strategy ................................................................... 1
Recapitalization Transactions ................................................. 2
Dispositions and Exit Activities ................................................ 2
Products and Services ........................................................ 2
Customer Service ........................................................... 4
Technology ................................................................ 4
Competition ............................................................... 4
Performance Measurement .................................................... 5
Regulation ................................................................ 5
Item 1A. Risk Factors .................................................................. 7
Item 1B. Unresolved Staff Comments ..................................................... 16
Item 2. Properties .................................................................... 17
Item 3. Legal Proceedings .............................................................. 17
Item 4. Submission of Matters to a Vote of Security Holders ................................. 20
PART II
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer
Purchases of Equity Securities ................................................... 21
Item 6. Selected Consolidated Financial Data ............................................. 23
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations .................................................................... 25
Overview ................................................................. 25
Earnings Overview .......................................................... 30
Segment Results Review ..................................................... 45
Balance Sheet Overview ..................................................... 50
Liquidity and Capital Resources ............................................... 55
Risk Management ........................................................... 60
Concentrations of Credit Risk ................................................. 63
Summary of Critical Accounting Policies and Estimates ............................ 74
Required Statistical Disclosure by Bank Holding Companies ......................... 82
Glossary of Terms .......................................................... 88
Item 7A. Quantitative and Qualitative Disclosures about Market Risk ......................... 92
Item 8. Financial Statements and Supplementary Data ..................................... 94
Management Report on Internal Control Over Financial Reporting .................... 94
Reports of Independent Registered Public Accounting Firm .......................... 95
Consolidated Statement of Loss .................................................. 97
Consolidated Balance Sheet ...................................................... 98
Consolidated Statement of Comprehensive Loss .................................... 99
Consolidated Statement of Shareholders' Equity .................................... 100
Consolidated Statement of Cash Flows ............................................ 102
Notes to Consolidated Financial Statements ........................................ 104
Note 1—Organization, Basis of Presentation and Summary of Significant Accounting
Policies ................................................................... 104
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