E*Trade Raising $1.2B to Fill Capital Hole

Separately, the company said delinquencies for its home equity portfolio -- its most troubled loan portfolio -- fell 11% from March 31 to May 31. Total delinquent loans in its residential mortgage portfolio rose 9% during the same two months.

On the brokerage side, E*Trade's so-called daily average revenue trades for May rose 3.9% from the month before and 34% from a year earlier to 239,439 trades. Second quarter daily trading was "on track" to be approximately 15% higher than the first quarter, it said.

E*Trade said that revenue for April and May totaled $448 million, with "commissions, fees and other revenue" totaling $165 million. Operating expenses for the first two months of the quarter totaled $192 million.

The company expects to take a quarterly loan loss provision in the range of $375 million to $450 million, with charge offs estimated between $375 million and $400 million.

Its Tier-1 capital and risk-based capital ratios were 6.07% and 12.75%, respectively, at May 31.

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