eTrade 2003 Annual Report Download - page 62

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Table of Contents
Index to Financial Statements
E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1—ORGANIZATION AND BASIS OF PRESENTATION
Organization
On October 1, 2003, E*TRADE Group, Inc., changed its name to E*TRADE Financial Corporation (the “Company,” “Parent” or
“E*TRADE”). The Company is a financial services holding company, whose subsidiaries provide brokerage and banking services. These
subsidiaries include:
Brokerage:
E*TRADE Securities LLC (“E*TRADE Securities”), a registered broker-dealer;
E*TRADE Clearing LLC (“E*TRADE Clearing”), the clearing firm for E*TRADE Securities and others;
Dempsey & Company, LLC (“Dempsey”) and GVR Company, LLC (“GVR”), specialists and market-making firms;
Engelman Securities, Inc. (“Engelman”), a registered broker-dealer and member of the Chicago Stock Exchange;
E*TRADE Professional Trading, LLC, a registered broker-dealer;
E*TRADE Financial Corporate Services, Inc. (“E*TRADE Financial Corporate Services”), formerly E*TRADE Business Solutions
Group, Inc., a provider of stock plan administration and options management tools; and
E*TRADE Securities Limited, incorporated in the U.K., E*TRADE Securities Limited, incorporated in Hong Kong, and E*TRADE
Canada Securities Corp., providers of brokerage services to both retail and institutional customers.
Banking:
E*TRADE Re, LLC, the holding company of ETB Holdings, Inc. and a provider of mortgage reinsurance,
ETB Holdings, Inc. (“ETBH”), formerly E*TRADE Financial Corporation, the holding company of E*TRADE Bank and E*TRADE
Global Asset Management, Inc.:
E*TRADE Bank (the “Bank”), a Federally chartered savings bank that provides deposit accounts insured by the Federal Deposit
Insurance Corporation (“FDIC”) and consumer lending products to customers nationwide and parent company of the following
subsidiaries:
E*TRADE Access, Inc. (“E*TRADE Access”), an independent network of automated teller machines (“ATMs”) in the United
States and Canada;
E*TRADE Mortgage Corporation (“E*TRADE Mortgage”), a direct-to-consumer mortgage loan originator; and
E*TRADE Consumer Finance Corporation (“E*TRADE Consumer Finance”), formerly Ganis Credit Corporation, a recreational
vehicle, marine and other consumer loan originator and servicer; and
E*TRADE Global Asset Management, Inc. (“ETGAM”), a registered broker-dealer and investment advisor that manages asset
portfolios for the Banking and Brokerage Segments.
Basis of Presentation
The Company’s consolidated financial statements include the accounts of the Parent and its majority-owned subsidiaries. Intercompany
accounts and transactions are eliminated in consolidation. Entities in which the Company holds at least a 20% ownership or in which there are
other indicators of significant influence are generally accounted for by the equity method. Entities in which the Company holds less than 20%
ownership and does not have the ability to exercise significant influence are generally carried at cost. Because the Company operates in the
financial services industry, it follows certain accounting guidance used by the brokerage and banking industries.
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