Morgan Stanley to acquire E*Trade for $13 bn1 min read . Updated: 20 Feb 2020, 11:27 PM IST
The transaction is Morgan Stanley’s latest move to reinvigorate itself after nearly being crushed by bad investments during the market crash
NEW YORK : US investment bank Morgan Stanley announced on Thursday it will buy online trading pioneer E*Trade in a deal valued at $13 billion.
It would be the largest acquisition by an American bank since the 2008 global financial crisis, and comes as online brokers are competing fiercely for new customers.
The transaction, which requires approval from regulators, is Morgan Stanley’s latest move to reinvigorate itself after nearly being crushed by bad investments during the market crash.
The New York-based financial giant has transformed itself from an institution focused on speculation into a wealth manager for the rich and middle class.
The acquisition of E*Trade allows Morgan Stanley to go a step further and manage the money, savings and assets of small investors.
Founded in California, E*Trade helped revolutionise online trading in the 1980s, opening the door to individual investors to invest on Wall Street, avoiding traditional brokers who demanded high fees and often would not work with small investors.