E Trade Financial (ETFC) 8-K E*trade Financial Corporation Announces Strategic Plan to Better Align

®

®

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This presentation presents information as of September 17th, 2007 or as of another date specified herein and may include “forward looking statements”

as defined under the Securities Act and the Securities Exchange Act.

No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

September 17, 2007

Business Update

Exhibit 99.3

2

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

©

E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains certain projections or other forward-looking

statements regarding future events or the future performance of the

company. Various factors, including risks and uncertainties referred to in

the 10Ks, 10Qs, and other reports E*TRADE FINANCIAL Corporation

periodically files with the SEC, could cause our actual results to differ

materially from those indicated by our projections or other forward-looking

statements. No statement is a guarantee of our future performance and we

disclaim any duty to update any data contained herein or any forward-

looking statements.  This presentation contains data as of September 17,

2007 and the company disclaims any duty to update any forward-looking

statements made in this presentation. Data contained herein are unaudited.

This presentation also contains disclosure of non-GAAP financial

measures. A reconciliation of these financial measures to the most directly

comparable GAAP financial measure can be found on the investor relations

site at www.etrade.com.

3

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Agenda

Guidance Update

Enhanced Focus on Retail Opportunity

Loan and Investment Portfolio Update

Strength of the Core Franchise

4

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Strength of the Core Franchise

Sound capital and liquidity position

Consistent and growing base of retail customer cash

Thrift

charter

provides

access

to

FHLB

-

$13B

of

additional

borrowing

capacity

Bank

continues

to

maintain

“Well-Capitalized”

levels

Q406

Q107

Q207

868,770

912,057

978,084

Target Segment Accounts

Recognized by SmartMoney

magazine as the

#1 Premium Broker

(August 2007)

E*TRADE Bank named

“Best of Breed”

by Money

magazine

(August 2007)

5

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Accelerate shift to a retail-driven balance sheet structure

Shift, over time, portfolio composition to 80-85% of assets in whole loans (prime

first lien mortgage) and margin debt, and 80-85% of liabilities in customer

deposits 

Synchronize growth rate of balance sheet to continued growth in retail customer

cash and deposits, margin debt and first lien mortgage

Simplify and streamline business to increase focus on retail

franchise

Exit wholesale mortgage and restructure institutional brokerage operations

Deploy internally generated cash flow against higher return on

equity opportunities

Stock and debt repurchase

Enhanced Focus on Retail Opportunity

6

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

August 31, 2007

Ending Period Interest Earning Assets

$61.1B

Loans

$40.2B

Securities

$18.2B

Avg. Rating: AA (92% AA-AAA)

Consumer: $2.7B

(Includes marine, RV)

Avg. FICO: 733

Mortgage: $29.6B

Avg. FICO:

735

DTI:

36%

CLTV:

73%

Margin: $7.9B

MBS: $12.9B

Agency

Avg. Rating: AAA

ABS: $3.3B

82% A or better

97% BBB or better

Avg. Rating A

1st

Lien

(1-

4

family):

$17.0B

Avg. FICO:

738

DTI:

36%

LTV:

69%

2nd Lien (HEIL & HELOC): $12.6B

Avg. FICO:

731

DTI:

36%

CLTV:

79%

Corp/Muni/Pfd: $2.0B

Avg. Rating: AA

Interest-Earning Assets Composition

NOTE:    Loan balances are shown based on UPB, and securities are shown at amortized cost basis.  Numbers may not add due to rounding.

7

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Consumer Non-performing Loans

0.00%

0.30%

0.60%

0.90%

1.20%

1.50%

E*TRADE

All Savings Institutions

Nonperforming loans declined during the first half of the year, but are expected to increase

during the third and fourth quarter consistent with historical seasonal performance of the

portfolio

No significant change in performance is anticipated

Non-performing loans are loans 90 or more days past due

Source:  OTS Data

8

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

First Lien Non-performing Loans

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

E*TRADE

All Savings Institutions

$17B portfolio is well supported by high FICOs, low LTVs and private mortgage insurance

$69MM of exposure greater than 80% of property value is protected by PMI

Source:  OTS Data

Non-performing loans are loans 90 or more days past due

9

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Second Lien Non-performing Loans

(Home Equity Installment Loans and Lines of Credit)

0.00%

0.20%

0.40%

0.60%

0.80%

E*TRADE

All Savings Institutions

$9.4B, or 75%, of portfolio to borrowers with FICO of 700 and higher

$6.1B, or 48%, of portfolio with CLTV of 80% or lower

Source:  OTS Data

Non-performing loans are loans 90 or more days past due

10

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Second Lien Credit Performance

Borrower’s credit score has become a less accurate indicator of future

defaults 

Following factors indicative of increased defaults: loan-to-value, loan

documentation type, occupancy type, and borrower credit score

Loans with higher loan-to-values have higher default rates and the greatest

impact on estimated future losses

Impact of Factors on Estimated Loan Losses

26%

5%

32%

37%

CLTV

Doc Type

Occupancy Type

Collateral Value

Adjusting the expected

collateral value at the time of

default accounts for 32% of

the increase in expected

losses

11

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Provision Level Assumptions and Adjustments

450-500%

626%

Consumer Loans

100-105%

51%

Second Lien

5-10%

5%

First Lien

Pro-forma Coverage

Under New Guidance at

Year End

June 30, 2007

Allowance for Loan Losses as a % of Non-Performing Loans

12

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Investment Securities Composition (as of August 31, 2007)

3,275

18.0%

65

0.4%

74

0.4%

464

2.6%

887

4.9%

1,785

9.8%

ABS

74

0.4%

-

-

Below

Inv.

Grade

2,046

11.2%

-

-

16

0.1%

2,030

11.2%

Corporate, Municipal and Preferred Stock

18,181

100.0%

65

0.4%

464

2.6%

904

5.0%

16,674

91.7%

Grand Total

12,860

70.7%

Grand

Total

-

Non-

Rated

12,859

70.7%

AA or

Higher

-

BBB

A

MBS

1

0.0%

($ in MM, based on book value)

$16.7B, or 92%, of the Investment Securities portfolio is rated AAA or AA

Over 99% of the Investment Securities portfolio is rated investment grade

13

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Asset-Backed Securities Breakdown (as of August 31, 2007)

48

0.3%

12

0.1%

5

0.0%

11

0.1%

14

0.1%

6

0.0%

Other

99

0.5%

-

9

0.1%

55

0.3%

33

0.2%

2

0.0%

Sub-prime Residential First Lien Mortgage

3,275

18.0%

178

1.0%

257

1.4%

450

2.5%

2,243

12.3%

Total

65

0.4%

-

24

0.1%

29

0.2%

-

Non-

Rated

74

0.4%

59

0.3%

-

1

0.0%

-

Below

Inv.

Grade

1,785

9.8%

59

0.3%

125

0.7%

224

1.2%

1,369

7.5%

AA or

Higher

18

0.1%

42

0.2%

Second Liens

464

2.6%

41

0.2%

47

0.3%

292

1.6%

BBB

A

Prime Residential First Lien Mortgage

582

3.2%

ABS CDO

149

0.8%

Commercial Real Estate & Trust Pfd CDO

67

0.4%

Total

887

4.9%

($ in MM, based on book value)

$2.7B, or 82%, of ABS portfolio is rated A or higher

Non-rated and below investment grade securities are $139MM, or 0.8% of

Investment Securities portfolio

Note: Includes $79MM of securities classified as Trading Securities

14

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined under the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

15

Mortgage Restructuring

Up to 325

Total

17

Institutional Brokerage Restructuring

18

Smaller Balance Sheet

Up to 100

Potential Impairments

175

Provision

Pre-tax Impact/Charge ($ in MM)

Item

Summary of Items Affecting 2007 Outlook

15

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Revised 2007 GAAP Guidance Range

(0.03)

Institutional Brokerage

Restructuring

(0.03)

Smaller Balance Sheet

(0.15)

Potential Impairments

(0.27)

Provision

$1.67

$1.60

$1.53

Previous FY07

Revised FY07

Mortgage Restructuring

$1.10

Mid

$1.15

High

$1.05

(0.02)

Low

$0.75

YTD 2007

Actual

16

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

2007 Revised Guidance

475

146

329

Net Income

$1.10

$0.35

$0.75

GAAP EPS

1,309

1H2007

Actual

Total Net Revenues

Income Statement

($ in MM, except EPS)

2,335

FY2007

Midpoint

1,026

2H2007 

Midpoint

Guidance

381

430

629

475

0

200

400

600

800

2004

2005

2006

2007Midpoint

Net Income

1,483

1,703

2,335

2,420

0

1,500

3,000

2004

2005

2006

2007Midpoint

Net Revenue

17

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Balance Sheet Funding Sources

Consistent and growing base of retail customer cash

Thrift

charter

provides

access

to

FHLB

-

$13B

of

additional

borrowing

capacity

$250MM of undrawn committed senior secured revolving credit facility

$432MM of Free Cash as of June 30, 2007

No material changes to date with respect to wholesale funding availability, pricing or

margin, including repurchase agreements

Funding and Capital Summary

$350

$200

Excess Capital vs. 10% Minimum

11.00%

10.58%

Total Capital to Risk-Weighted Assets

$3,840

$3,625

Risk-Based Capital

$650

$660

Excess Capital vs. 5%

6.00%

6.15%

Tier 1 Capital to Adjusted Total Assets

$3,600

$3,550

Tier 1 Capital, Ending

Projected

Year-End

Q207 Actual

($ in MM)

Capital Position

18

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

Focus resources of the company on driving continued

growth in target segment accounts

Hold balance sheet relatively flat at Q307 levels

Provision $150MM to $200MM along with orderly transition

of balance sheet toward retail assets and liabilities

Potential securities impairments of $50MM to $100M

Redeploy over $500MM of expected free cash flow toward

incremental stock and debt repurchase

Improve ROE and higher earnings quality driven by growth

in retail franchise

General Expectations for 2008

19

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This

presentation

presents

information

as

of

September

17th,

2007

or

as

of

another

date

specified

herein

and

may

include

“forward

looking

statements”

as

defined

under

the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

2007 Exit Run Rate

$432

$32

$100

$300

Embedded

in FY2007 

Guidance

$32

$0

Restructuring

Charges

$132-$232

$300

Total

$0-$50

$50-$100

Securities

Impairment

$100-$150

$150-$200

Provision

Expense

Reduced

Headwind in

2008(E)

Expectation

for 2008

($ in MM)

®

®

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This presentation presents information as of September 17th, 2007 or as of another date specified herein and may include “forward looking statements”

as defined under the Securities Act and the Securities Exchange Act.

No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

September 17, 2007

Q&A

©

2007 E*TRADE FINANCIAL Corp. All rights reserved.

This presentation contains confidential information and may not be disclosed without E*TRADE FINANCIAL Corporation’s written permission.

This presentation presents information as of September 17th, 2007 or as of another date specified herein and may include “forward looking statements”

as defined under the

Securities Act and the Securities Exchange Act. No statement is a guarantee of our future performance and we disclaim any duty to update any forward-looking statements.

®