| 16 December 2009

E*TRADE rounds out our November swing of brokerage updates with their release today. The company ended the month with 2.7 million brokerage accounts, adding only a net total of 306 new accounts.

Trading activity decline 13% month-over-month and 22% year-over-year. This decrease is consistent with what we've seen from Schwab (SCHW) and TD Ameritrade (AMTD).

The company has other fish to fry, however, as it decided to update analysts and investors on its loan delinquency rates and international business strategy. So-called "special mention" delinquencies (30 to 89 days delinquent) declined 3 percent in November, while total 'at risk' delinquencies (30 to 179 days delinquent) declined 2 percent in November.

But the company is most exposed in its home equity portfolio. Among home equity holdings E*TRADE saw special mention delinquencies decline 8 percent in November, while total "at risk" delinquencies declined by 5 percent.

The company is not abandoning its international strategy, but rather has made it clear that it is undergoing a restructuring. "The Company intends to operationally restructure its cross-border trading line of business to obtain efficiencies and higher margins," said the firm in the release. The firm mentioned its recent exit from Germany and the sale of its Nordic unit to Saxo.

More exits are likely as the company clarified that it is not interested in local market trading any longer (trading non-U.S. securities outside of the U.S.). "This international restructuring is designed to improve profitability in our offshore operations and reinforces that we expect our future growth to come from our U.S. online brokerage franchise," said Donald H. Layton, Chairman and CEO.