rossetti2000

Metrics, Mortgages and Analysts

Cindy. Once again, you have presented facts and have arrived at a logical conclusion: Whether by necessity, or as a result of astounding foresight, Etrade calculated its heavily burdened risk, found a way to rid itself of the risk that it could never manage, and to dampen and leverage the risk that might ultimately provide a reward.

Compared to the likes of Lehman, Bear, Citibank, Bank of America, or Countrywide, Etrade sits on a small acreage of financial real estate, one that it can "till" and one that it can build upon without being overwhelmed by excipient, dilutive market conditions that might continue to destroy its core brokerage business.

Etrade is compact; it is strong, and it is ready. And if I am not mistaken, Etrade also has a 723 million dollar tax write off that it can carry back two years and forward 20 years. If that is the case, Etrade can carry back about 523 million dollars against taxes paid in 2005 and 2006, and Etrade will be left with about a 200 million dollar carry forward (check the Etrade balance sheet posted on the NASDAQ website). This tax credit may be the reason why Donald Layton mentioned that Etrade's bank would be self sufficient going forward. If my thinking is correct, 732 million dollars will provide substantial support for Etrade's turnaround effort.

Once again, thank you kindly, Cindy, and please continue to inform us concerning Etrade's future progress.