Morgan Stanley agrees $13bn deal to acquire ETrade

The huge deal is an attempt by the Wall Street lender to diversify and access high numbers of low-risk digital retail investors

SAN FRANCISCO, CALIFORNIA - FEBRUARY 20: A sign is posted in the exterior of an E*Trade office on February 20, 2020 in San Francisco, California. Morgan Stanley announced plans to buy online
Morgan Stanley has announced plans to buy online discount brokerage ETrade in an estimated $13 billion all-stock deal.
(Image credit: 2020 Getty Images)

Morgan Stanley, the renowned Wall Street investment bank, has turned to digital discount brokerage platform ETrade in a $13 billion all-stock acquisition designed to capture a share of the growing online stock-trading market.

Talks have been ongoing since December for what will be the biggest takeover by any global bank since the 2008 financial crisis, and Morgan Stanley’s second biggest of all time.

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William Gritten

William Gritten is a London-born, New York-based strategist and writer focusing on politics and international affairs.