Morgan Stanley is acquiring discount broker E*Trade for $13B


Investment banking giant Morgan Stanley is buying discount broker E*Trade Financial Corporation for $13 billion.

The all-stock deal is set to be announced today, according to a report from The Wall Street Journal. The takeover is said to be the biggest by a giant U.S. bank since the 2008 crisis.

“We’ll take on Schwab. We’ll take on Fidelity,” James Gorman, CEO of Morgan Stanley, told the Journal. “This isn’t about legacy-building; it’s about getting [Morgan Stanley] ready for prime time.”

The Morgan Stanley stock is down by over 4% in the pre-market hours. It remains to be seen how the stock reacts when the market opens.

In November, brokerage giant Charles Schwab agreed to acquire rival TD Ameritrade in an all-stock transaction valued at $26 billion.

Notably, E*Trade is also a crypto-friendly brokerage like TD Ameritrade. E*Trade was said to be preparing to offer trading in bitcoin (BTC) and ether (ETH), but there has been no official announcement in that regard yet.

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.