E*TRADE Reports Q3 Loss, More To Come

E*TRADE FINANCIAL Corp. reported a third quarter write down of $450 million in its $3 billion ABS portfolio, including approximately $50 million of 'AAA' rated asset-backed CDOs that were downgraded to below investment grade. The affected securities were predominantly ABS CDO and second-lien securities. The company also said that it expects further write downs in the fourth quarter, exceeding the company's previous expectations. However, actual securities-related losses will depend on future market developments, including the potential for future downgrades by rating agencies, E*Trade said. Management said that it will not provide earnings expectations for the remainder of the year.