Morgan Stanley buying E*Trade for $13 billion
By Aimee Picchi
Morgan Stanley said Thursday that it is buying online brokerage E*Trade for $13 billion, an acquisition that will expand the Wall Street's firm into managing accounts for smaller investors.
E*Trade will bring 5.2 million client accounts with over $360 billion of retail client assets to Morgan Stanley, which caters to wealthier clients. The investment bank's 3 million customers have a combined $2.7 trillion in assets.
Morgan Stanley said E*Trade CEO Mike Pizzi will remain with the company after the acquisition and continue to run the brokerage firm. E*Trade has come under pressure in recent months amid a fee-cutting battle from rivals such as Charles Schwab, which has cut its trading fees to zero. And in November, Schwab and TD Ameritrade announced they would merge, creating a powerhouse rival.
This is a developing story.
First published on February 20, 2020 / 8:20 AM
© 2020 CBS Interactive Inc.. All Rights Reserved.