Regulatory Requirements (Tables)

12 Months Ended

Dec. 31, 2019

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Schedule Of Subsidiary Compliance With Regulatory Capital Requirements

The following table presents a summary of the minimum net capital requirements and excess capital for the Company’s broker-dealer and FCM subsidiaries (dollars in millions):



	Required Net Capital		Net Capital		Excess Net Capital
December 31, 2019:
E*TRADE Securities⁽¹⁾	$	223	$	1,251	$	1,028
E*TRADE Futures	3		28		25
Total⁽²⁾	$	226	$	1,279	$	1,053

December 31, 2018:
E*TRADE Securities	$	209	$	1,294	$	1,085
E*TRADE Futures	1		26		25
International broker-dealer	—		18		18
Total	$	210	$	1,338	$	1,128


(1)	E*TRADE Securities paid dividends of $910 million to the parent company during the year ended December 31, 2019.

(2)

The Company's international broker-dealer de-registered and entered into voluntary liquidation in May 2019. The international broker-dealer was not subject to minimum net capital requirements at December 31, 2019.

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

E*TRADE Financial, E*TRADE Bank and E*TRADE Savings Bank were categorized as "well capitalized" under the regulatory framework for prompt corrective action for the periods presented in the following table (dollars in millions):



	December 31, 2019										December 31, 2018
	Actual				Well Capitalized Minimum Capital				Excess Capital		Actual				Well Capitalized Minimum Capital				Excess Capital
	Amount		Ratio		Amount		Ratio		Amount		Amount		Ratio		Amount		Ratio		Amount
E*TRADE Financial⁽¹⁾
Tier 1 leverage	$	4,035	6.9	%	$	2,922	5.0	%	$	1,113	$	4,097	6.6	%	$	3,101	5.0	%	$	996
Common Equity Tier 1	$	3,346	31.5	%	$	692	6.5	%	$	2,654	$	3,408	31.1	%	$	713	6.5	%	$	2,695
Tier 1 risk-based	$	4,035	37.9	%	$	852	8.0	%	$	3,183	$	4,097	37.3	%	$	877	8.0	%	$	3,220
Total risk-based	$	4,060	38.2	%	$	1,064	10.0	%	$	2,996	$	4,143	37.8	%	$	1,097	10.0	%	$	3,046
E*TRADE Bank⁽¹⁾⁽²⁾
Tier 1 leverage	$	3,240	7.2	%	$	2,253	5.0	%	$	987	$	3,484	7.1	%	$	2,461	5.0	%	$	1,023
Common Equity Tier 1	$	3,240	36.5	%	$	577	6.5	%	$	2,663	$	3,484	34.9	%	$	650	6.5	%	$	2,834
Tier 1 risk-based	$	3,240	36.5	%	$	710	8.0	%	$	2,530	$	3,484	34.9	%	$	800	8.0	%	$	2,684
Total risk-based	$	3,257	36.7	%	$	888	10.0	%	$	2,369	$	3,521	35.2	%	$	999	10.0	%	$	2,522
E*TRADE Savings Bank⁽¹⁾
Tier 1 leverage	$	1,480	40.7	%	$	182	5.0	%	$	1,298	$	1,456	26.6	%	$	273	5.0	%	$	1,183
Common Equity Tier 1	$	1,480	224.7	%	$	43	6.5	%	$	1,437	$	1,456	169.4	%	$	56	6.5	%	$	1,400
Tier 1 risk-based	$	1,480	224.7	%	$	53	8.0	%	$	1,427	$	1,456	169.4	%	$	69	8.0	%	$	1,387
Total risk-based	$	1,480	224.7	%	$	66	10.0	%	$	1,414	$	1,456	169.4	%	$	86	10.0	%	$	1,370

(1)

Basel III includes a capital conservation buffer that limits a banking organization’s ability to make capital distributions and discretionary bonus payments to executive officers if a banking organization fails to maintain a Common Equity Tier 1 capital conservation buffer of more than 2.5%, on a fully phased-in basis, of total risk-weighted assets above each of the following minimum risk-based capital ratio requirements: Common Equity Tier 1 capital (4.5%), Tier 1 risk-based capital (6.0%), and Total risk-based capital (8.0%). This requirement was effective beginning on January 1, 2016, and became fully phased-in on January 1, 2019.

(2)

E*TRADE Bank paid dividends of $835 million to the parent company during the year ended December 31, 2019.