This includes proceeds from the sale of 65,000,000 shares issued upon exercise of the underwriters' over-allotment option. When combined with the $65 million raised under its previously disclosed Equity Drawdown Program, the Company has raised more than $600 million of cash common equity this quarter. The net proceeds, after commissions, from equity offerings in the second quarter were approximately $586 million.

"We are very pleased with the results of our common equity offerings, which provide funds to bolster E*TRADE Bank's capital and also to enhance the liquidity of the Parent company," said Donald H. Layton, Chairman and CEO, E*TRADE FINANCIAL Corporation. "Completion of these capital raising transactions is the first and most important step in implementing our capital plan. As we continue to work toward the implementation of the unfinished portion of the capital plan, we believe the growth potential of our online brokerage business will continue to strengthen."

J.P. Morgan Securities Inc. and Sandler O'Neill & Partners, L.P. were joint book-running managers and E*TRADE Securities LLC was co-manager of this public offering.