Morgan Stanley to strike a $13 billion deal with E*Trade
Morgan Stanley said on Thursday that it would buy E*Trade Financial corp in a stock deal amounting around $13 billion. The deal with the discount brokerage has been seen as the biggest acquisition by a Wall Street bank since the financial crisis in 2008.
Chief Executive Officer James Gorman has eyed the discount brokerage sector in a move to expand and insulate the bank during weak trade and investment performances.
"The addition of E*Trade's products and iconic brand will serve as a leap forward for the bank”, Gorman said on a call with analysts.
The deal indicates a more confident regulatory mood under Trump's administration which has been aiding the unleashing of other major takeovers in the financial sector. The administration has also led bigger banks to strike deals that would have otherwise been deemed difficult for Wall Street giants under President Barack Obama's administration.