It’s the largest acquisition for the bank since the financial crisis.
And it’s just the latest consolidation for the retail brokerage industry.
Morgan Stanley will reportedly pay around $58 per share for E*Trade.
E*Trade has 5.2 million client accounts and around $360 billion of retail client assets. Morgan Stanley has 3 million client accounts and $2.7 trillion of client assets, according to the release.
The deal is expected to close in the fourth quarter of 2020.
In the past year, Morgan Stanley is up 34%. E*Trade is down nearly 7%.
So, what does this acquisition mean for the big bank?
"Analysts will be diving into the books of E*Trade and some may be looking to see if a higher bid may come from someone else. Who knows? What I suspect is that the stock price of MS will likely trade in a relatively tight range. To me, the big risk will be the broad market. A serious decline in the broad market in H1 could hit MS and ETFC," noted Real Money contributor Bruce Kamich.
Over on TheStreet Live, Cramer talked about how E*Trade put out the white flag.
Watch the full video for more.