M&A

Odd couple Morgan Stanley and E*Trade make sense: here’s why

Wall Street banks are looking to diversify beyond investment banking, trading and other traditional revenue streams

Odd couple Morgan Stanley and E*Trade make sense: here’s why
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Morgan Stanley’s deal to buy E*Trade Financial for $13bn is sending more shock waves through the brokerage industry. It is also a sign that Wall Street wants to transform itself into more of a retail investing powerhouse.

Morgan Stanley is a classic Wall Street wirehouse. It makes money off investment banking, trading, equity research, and advisory services for wealthy clients, including $507bn in assets under management for Morgan Stanley Investment Management.

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