eTrade 2006 Annual Report Download - page 4

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ITEM 1. BUSINESS
OVERVIEW
E*TRADE Financial Corporation is a global financial services company, offering a wide range of financial
solutions to retail and institutional customers under the brand “E*TRADE Financial.” We strive to create a
differentiated financial services franchise by leveraging technology to deliver a compelling combination of
product, service and price to the value-driven mass affluent customer. Information on our website is not a part of
this report.
Our corporate offices are located at 135 East 57th Street, New York, New York 10022. We were
incorporated in California in 1982 and reincorporated in Delaware in July 1996. We have approximately 4,100
employees. We operate directly and through numerous subsidiaries many of which are overseen by governmental
and self-regulatory organizations. Our most significant subsidiaries are described below:
• E*TRADE Bank is a Federally chartered savings bank that provides lending products to retail customers
nationwide and deposit accounts insured by the Federal Deposit Insurance Corporation (“FDIC”);
• E*TRADE Capital Markets, LLC is a registered broker-dealer, specialist, market-making firm and also
acts as agent for our institutional customers;
• E*TRADE Clearing LLC is the clearing firm for our brokerage subsidiaries. Its main purpose is to
transfer securities from one party to another; and
• E*TRADE Securities LLC is a registered broker-dealer and provider of brokerage services to both retail
and institutional customers.
A complete list of our subsidiaries can be found in Exhibit 21.1.
We offer, either alone or with our partners, branded retail websites in the United States, Canada, Denmark,
Finland, France, Germany, Hong Kong, Iceland, Italy, Sweden, the United Arab Emirates and the United
Kingdom. We provide a branded educational website in China, but do not offer retail services through that
website. We have licensed the E*TRADE name to companies that operate in Australia, Japan and Korea.
We primarily provide services through our website at www.etrade.com. We also provide services through
our network of customer service representatives, relationship managers and investment advisors. We provide
these services over the phone or in person through our 24 E*TRADE Financial Centers.
PRODUCTS AND SERVICES
We offer a wide range of products and services to our customers to assist them with their financial needs.
Our primary retail products and services consist of:
• Investing and trading—includes automated order placement and execution of market and limit equity,
futures, options, exchange-traded funds, mutual funds and bond orders. We also offer quick transfer,
wireless account access, extended hours trading, quotes, research and advanced planning tools;
• Banking—includes checking, savings, sweep, money market and certificates of deposit (“CD”) products
that offer online bill pay, quick transfer, unlimited ATM transactions on eligible accounts and wireless
account access; and
• Lending—includes mortgage, home equity, margin and credit card products that offer online loan status
and quick transfer.
Institutional products include market making, execution services and direct market access.
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