NEW YORK Nov 19 E*Trade Financial Corp
said on Tuesday that it has received approval from regulators to
divert capital from its bank subsidiary to use for broader
The approval, disclosed in a regulatory filing, is the
second this year and signals progress in the discount brokerage
company's gradual recovery from its life-threatening issuance of
faulty mortgages during the financial crisis. However, the
amount being sent from the bank is lower than E*Trade had
The New York-based company said regulators and its board
approved allowing E*Trade Bank to send its parent a dividend of
$75 million this quarter. It also said that it intends to seek
approval for continuing quarterly distributions from the bank
"over the near term, up to the level of the bank's net income
from the prior quarter."
E*Trade in September deployed $100 million of bank capital
to its parent, saying at the time it hoped to continue
distributing the same amount every quarter "over the near term."
A bank spokesman did not immediately respond to a request to
comment on the change in the dividend amount.
Shares of E*Trade were down 10 cents to $17.52 in early