The board of directors for E*Trade Financial Corporation announced that Donald Layton will step down as Chairman and CEO at the end of 2009 when his contract expires.

Layton will retain all of his current responsibilities until his contract ends and will work in partnership with a special committee of the board of directors to oversee a search for his successor. E*Trade expects to name a new CEO before the end of the year.

Named Chairman of E*Trade's board in late 2007 after helping the company secure a $2.5 billion capital infusion, Layton shortly thereafter agreed to become CEO through year-end 2009 to oversee development and implementation of the company’s turnaround plan. Under his tenure, E*Trade raised significant amounts of new capital and liquidity, substantially reduced the Company’s balance sheet risk, re-energized the company’s core online brokerage business, recruited key senior executives, and reorganized the management and strategy of the company.

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