Morgan Stanley buying E*Trade for $13 billion

National News

FILE – In this Oct. 18, 2011, file photo, the Morgan Stanley logo is displayed on its Times Square building, in New York. Morgan Stanley is buying online brokerage E-Trade in an all-stock deal valued at about $13 billion. In the all-stock deal announced Thursday, Feb. 20, 2020, E*Trade shareholders will receive 1.0432 Morgan Stanley shares for each share they own. (AP Photo/Mark Lennihan, File)

(CBS News)– 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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