Market Overview

Morgan Stanley To Buy E*Trade For $13B

Share:
Morgan Stanley To Buy E*Trade For $13B

Morgan Stanley (NYSE: MS) is buying E*Trade Financial Corp. (NASDAQ: ETFC) in an all-stock $13 billion deal with the aim to reshape the investment bank.

E*Trade will bring 5 million retail customers and $360 billion in assets and an online bank with cheap deposits that Morgan Stanley can funnel into loans, Morgan Stanley CEO James Gorman in an interview with The Wall Street Journal.

The bank aims to take on Charles Schwab (NYSE: SCHW) and Fidelity.

"Since we created the digital brokerage category nearly 40 years ago, E*TRADE has consistently disrupted the status quo and delivered cutting-edge tools and services to investors, traders, and stock plan administrators," said Mike Pizzi, CEO of E*TRADE. "By joining Morgan Stanley, we will be able to take our combined offering to the next level and deliver an even more comprehensive suite of wealth management capabilities."

Morgan Stanley shares were trading down 3.57% at $54.30 in Thursday's pre-market session. The stock has a 52-week high of $57.57 and a 52-week low of $38.76.

E*Trade shares were trading higher by 6.19% at $47.71 in Thursday’s pre-market session.

Related Links:

'Zero Commissions Now A Reality': Wall Street Reacts To Broker Commission Cuts

The Best Online Stock Trading Brokers

Photo by Thomas Hundt/Wikimedia.

 

Related Articles (ETFC + MS)

View Comments and Join the Discussion!

Posted-In: Fidelity James Gorman Mike PizziM&A News Top Stories Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com