Board of Governors of the Federal Reserve System

Washington, DC 20551

August 24, 2018

Tahmineh Maloney, Esq.

General Counsel, E*Trade Bank

E*Trade Financial Corporation

671 N. Glebe Road

Arlington, VA 22203

Dear Ms. Maloney:

This letter is in response to the request by E*Trade Financial

Corporation (“E*Trade”), New York, New York, for an extension oftime to

comply with Part III.a.6 of Appendix B ofthe Board’s Regulation VV (the

“CEO attestation”).1 Pursuant to section 248.20(c) of Regulation VV,

E*Trade would be required to submit a CEO attestation in 2019 with respect

to calendar year 2018 because it reported total consolidated assets in excess

of $50 billion as of December 31, 2017.2 E*Trade has not previously been

required to submit a CEO attestation under the Board’s Regulation VV.

1 12 CFR Part 248, Appendix B, Part III.a.6 (requiring a banking entity that

meets certain eligibility requirements to submit annually a written attestation

from its CEO that it has in place processes to establish, maintain, enforce,

review, test, and modify its compliance program in a manner reasonably

designed to achieve compliance with section 13 ofthe Bank Holding

Company Act and its implementing regulations). By e-mail dated July 19,

2018, E*Trade requested an extension oftime to comply with this regulatory

requirement.

2 Id. See Volcker Rule, Frequently Asked Questions, Response to

Question 7 (describing the timing expectations for a banking entity required

to submit a CEO attestation), available at 

https://www.federalreserve.gov/bankinforeg/volcker-rule/faq.htm#7.

The Board, the Office ofthe Comptroller ofthe Currency, the Federal

Deposit Insurance Corporation, the Securities and Exchange Commission,

www.federalreserve.gov
2

and the Commodity Futures Trading Commission (the “Agencies”)3 recently

proposed amendments to Regulation VV that would amend the CEO

attestation requirement such that, iffinalized, E*Trade would no longer be

required to submit a CEO attestation.4 Acting pursuant to delegated

authority, I have granted E*Trade’s request for an extension oftime to

comply with the CEO attestation requirement.5 This action was taken in

light ofthe proposed amendments to Regulation VV and is based on all the

facts ofrecord, including the information provided in the request by

E*Trade. E*Trade must submit a CEO attestation as required by Appendix

B no later than March 31, 2021. This action should not be construed as 

granting relief from any other conditions or commitments to which E*Trade

may be subject.

3 Board staff has consulted with staffs ofthe other Agencies, and they do

not object to the extension approved herein.

4 See Proposed Revisions to Prohibitions and Restrictions on Proprietary

Trading and Certain Interests in, and Relationships with, Hedge Funds and

Private Equity Funds, 83 Fed. Reg. 33432, 33488-89, 33570 (July 17, 2018).

If finalized as proposed, the CEO attestation requirement would only apply

to banking entities with $10 billion or more in trading assets and liabilities.

E*Trade presently reports $0 in trading assets and liabilities.

5 12 CFR 265.5(a)(2)(i).

Please contact Kevin Tran, ofthe Board’s Division of Supervision and

Regulation, at (202) 452-2309, or Flora Ahn ofthe Board’s Legal Division,

at (202) 452-2317, if you have any questions.

Sincerely yours,

—-

Ann E. Misback

Secretary ofthe Board

cc: Jacqueline Larkin, Senior Manager

Federal Reserve Bank ofRichmond