Replies to post #2043 on E TRADE Financial Corp (ETFC)

[manny t]

THis does not look good:

The Company will also address its expected three year cumulative losses on the home equity portfolio held on the balance sheet of E*TRADE Bank, which the Company previously stated were expected to be at the upper end of a range of approximately $1-1.5 billion. In today's presentation, the Company reports that it is undertaking a fundamental review of its modeling for provision of loan losses because the current credit cycle has continued to worsen and is more severe than previously anticipated. The Company will state that it is likely that its review will generate a 3 year loss expectation somewhat above $1.5B, and the Company will discuss the expectation in more detail when the review is completed in time for Q3 reporting.