Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
CITADEL L P
  2. Issuer Name and Ticker or Trading Symbol
E TRADE FINANCIAL CORP [ETFC]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director __X__ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
C/O CITADEL INVESTMENT GROUP L.L.C., 131 S. DEARBORN STREET, 32ND FLOOR
3. Date of Earliest Transaction (Month/Day/Year)
08/19/2009
(Street)

CHICAGO, IL 60603
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock               47,848 D (1)  
Common Stock               289,145 D (2)  
Common Stock               45,454,545 D (3)  
Common Stock               120,377,631 D (4)  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Class A Convertible Debentures due 2019 $ 1.034 08/19/2009   A   1,029,670,000   08/25/2009 08/25/2019 Common Stock 995,812,380 (5) 1,029,670,000 D (4)  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
CITADEL L P
C/O CITADEL INVESTMENT GROUP L.L.C.
131 S. DEARBORN STREET, 32ND FLOOR
CHICAGO, IL 60603
  X   X    
CITADEL INVESTMENT GROUP LLC
131 S. DEARBORN STREET, 32ND FLOOR
CHICAGO, IL 60603
  X   X    
CITADEL EQUITY FUND LTD
C/O CITADEL INVESTMENT GROUP, L.L.C.
131 S. DEARBORN STREET, 32ND FLOOR
CHICAGO, IL 60603
  X   X    
WINGATE CAPITAL LTD
C/O CITADEL INVESTMENT GROUP, L.L.C.
131 S. DEARBORN STREET, 32ND FLOOR
CHICAGO, IL 60603
  X   X    
GRIFFIN KENNETH C
C/O CITADEL INVESTMENT GROUP, L.L.C.
131 S. DEARBORN STREET, 32ND FLOOR
CHICAGO, IL 60603
  X   X    

Signatures

 /s/ John C. Nagel, Authorized Signatory   08/21/2009
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) This security is owned by Citadel Derivatives Trading Ltd.
(2) This security is owned by Citadel Securities LLC.
(3) This security is owned by Wingate Capital Ltd.
(4) This security is owned by Citadel Equity Fund Ltd. ("CEF").
(5) On August 19, 2009, at a special stockholder meeting, the stockholders of the Issuer approved, among other things, (1) an amendment to the Issuer's Certificate of Incorporation increasing the authorized shares of its Common Stock to four billion, and (2) the issuance of the consideration offered to holders of notes in the Debt Exchange. Stockholder approval of these proposals was the remaining condition for the completion of a debt exchange whereby the Issuer tendered for certain non-convertible notes issued by it (the "Debt Exchange"). The Debt Exchange is expected to close on August 25, 2009, at which time approximately $800 million face amount of the non-convertible 12.5% springing lien notes due 2017 and approximately $230 million face amount of the non-convertible 8% senior notes due owned by CEF and previously tendered will be exchanged for a like face amount of Class A Debentures.
 
Remarks:
Each of the Reporting Persons expressly disclaims beneficial ownership of the securities described herein except to the
 extent of such person's pecuniary interest therein. Mr. Griffin serves as a director of the Issuer deputized by the
 Reporting Persons.

A Form 4 is limited to a maximum of ten reporting persons. As a result, this Form 4 is one of two filed today reporting on
 the same securities by the following eleven joint filers: Citadel Limited Partnership, Citadel Investment Group, L.L.C.,
 Citadel Equity Fund Ltd., Wingate Capital Ltd., Kenneth C. Griffin, Citadel Advisors LLC, Citadel Holdings I LP, Citadel
 Holdings II LP, Citadel Securities LLC (f/k/a Citadel Derivatives Group LLC), Citadel Derivatives Trading Ltd. and Citadel
 Investment Group II, L.L.C.

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