by Calculated Risk on 9/17/2007 04:57:00 PM

From the WSJ: E*Trade Warns of Mortgage Fallout (hat tip Mike - he has more specifics)

E*Trade Financial Corp. ... this afternoon warned investors that it has been badly stung by the recent fallout in the mortgage market.

The company says it expects profits to come in 31% below the most recent guidance it had given analysts -- partly due to its exposure to the mortgage business.

The news, weeks ahead of its scheduled third-quarter earnings report, provided Wall Street with a glimpse of what may be in store tomorrow when the country's biggest brokerages, beginning with Lehman Brothers Holdings Inc., start reporting third quarter earnings.

This will be an interesting week. Heck, tomorrow alone will be an interesting day: the Fed meeting, Lehman reports, and the homebuilders index will be released.