Morgan Stanley buying E*Trade for $13 billion

By Aimee Picchi

/ MoneyWatch

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.

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First published on February 20, 2020 / 8:20 AM

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