eTrade 2002 Annual Report Download - page 29

Table of Contents
Index to Financial Statements
The following table sets forth information regarding the weighted average interest rates and the highest and average month end balances of our
borrowings (dollars in thousands):
Category Ending Balance Weighted
Average Rate
(1)
Maximum Amount At
Month-End Yearly Weighted Average Balance Yearly Weighted
Average Rate
At or for the year ended December 31, 2002:
Advances from the FHLB $ 1,310,300 1.89 % $ 1,490,300 $ 970,226 5.87 %
Securities sold under agreement to repurchase
and other short-term borrowings
$ 5,911,861 1.04 % $ 6,623,010 $ 3,835,442 3.91 %
At or for the year ended December 31, 2001:
Advances from the FHLB $ 906,300 2.72 % $ 1,737,000 $ 1,223,724 6.32 %
Securities sold under agreement to repurchase
and other short-term borrowings
$ 3,264,140 1.89 % $ 4,162,231 $ 3,180,272 5.94 %
At or for the year ended September 30, 2000:
Advances from the FHLB $ 1,637,000 6.60 % $ 2,074,500 $ 1,225,783 6.17 %
Securities sold under agreement to repurchase
and other short-term borrowings
$ 1,894,000 6.71 % $ 2,173,410 $ 1,471,435 6.39 %
(1) Average excludes cost of hedging.
GLOBAL AND INSTITUTIONAL
Our Global and Institutional business segment is comprised principally of international subsidiaries which offer online retail brokerage services
to foreign investors and financial services to institutional investors.
Products and Services .E*TRADE, alone or with its partners, offers branded retail brokerage websites in Australia, Canada, Denmark,
Germany, Hong Kong, Korea, Sweden, Japan and the United Kingdom. In addition, we have institutional offices in seven countries with trading
capabilities in 38 markets.
Our global retail subsidiaries offer a variety of products and services including online stock and options trading in local markets, as well as
comprehensive market information provided by Reuters and local news vendors. Trading in U.S. equity markets is currently available in
Sweden, Germany, Hong Kong and Denmark. In some cases, affiliates offer mutual funds, access to IPOs and banking capabilities.
In March 2003, we entered into an agreement to sell our German subsidiary. The transaction is subject to approval by our Board of Directors.
The transaction is also subject to German regulatory approval. After the transaction is complete, we plan to continue servicing the German
market place through a broker arrangement between the purchaser and our subsidiary in the United Kingdom.
We provide institutional customers with online retail brokerage and financial services, as well as direct access to international exchanges and
basket trading through a web-based platform. The platform also offers our institutional customers real-time, online access to statements and
electronic settlement capabilities.
A significant part of our institutional business includes providing our customers worldwide access to independent research. Our customers
select research data they consider germane and use it to assist themselves in reaching trading decisions. Clients use the commissions that they
generate in trading securities to pay for the research services. We use our proprietary system to track the commissions a client has generated
and the corresponding research credits awarded.
Clearing .We self-clear our U.S. institutional equity transactions. With the exception of institutional operations in Japan, Hong Kong,
Singapore and Thailand, we outsource the clearing of transactions to third parties around the world.
2003. EDGAR Online, Inc.