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Morgan Stanley Buys E*Trade (ETFS) for $13B in an All-Stock Deal

Summary:
Morgan Stanley’s acquisition of E*Trade has caused a stir in the global investment community. E*Trade has been a leading online broker that has produced stellar results for the greater part of a decade.E*Trade financial group has been reported by sources to have about 0 Billion in assets. The deal which is estimated to be worth about billion is Morgan Stanley’s largest since the last financial crisis in 2008.This will give the financial giant about 5 million new clients 4,000 of which are corporate. Sources report that 0 billion worth of stock will also exchange hands. Michael Pizzi who is the CEO is also expected to stay on as CEO. The entire management structure will stay in place as well. This also includes the retail fronts and all brand infrastructure as well.Morgan

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Morgan Stanley’s acquisition of E*Trade has caused a stir in the global investment community. E*Trade has been a leading online broker that has produced stellar results for the greater part of a decade.

E*Trade financial group has been reported by sources to have about $360 Billion in assets. The deal which is estimated to be worth about $13 billion is Morgan Stanley’s largest since the last financial crisis in 2008.

This will give the financial giant about 5 million new clients 4,000 of which are corporate. Sources report that $530 billion worth of stock will also exchange hands. Michael Pizzi who is the CEO is also expected to stay on as CEO. The entire management structure will stay in place as well. This also includes the retail fronts and all brand infrastructure as well.

Morgan Stanley’s E*Trade Acquisition Could Help the Crypto World

The cryptospace could stand to gain from the acquisition. Last year, E*Trade had indicated that it will offer to trade in digital currencies. It intended to offer Bitcoin and Ethereum for starters. Morgan Stanley had indicated that it intended to offer Bitcoin futures in 2018.

This presents an unprecedented opportunity for Morgan Stanley to offer cryptocurrency trading products in a “mom n pop” style.

Already, the bulk of the traders on E*Trade’s platform are in this category. The acquisition gives Morgan Stanley an inroad into the investment portfolios of everyday people. This also shows the general trend. Investment firms are looking to expand their customer bases. It changes how new clients are using financial products. Online trading seems to be catching on as far as trading is concerned.

New Trends are Emerging for Online Brokers

Online trading brokers are filling a forgotten niche. The cost-savings made on online trading are also transferred to the clients. Many of these clients also have debt issues. Online trading offers a smart way for such types to build their portfolios.

This trend could also speed up the adoption of cryptocurrencies. Many of Morgan Stanley’s former human resources are already venturing into the crypto space. Jefferey Wang the former head of derivatives has joined Shenzhen-based Amber Group. The former head of Global Crimes Noah Perlman has been tapped by Gemini. He is covering compliance for the top cryptocurrency firm.

The acquisition also spills over into the general broker wars. Technology has leveled most of the advantages that brokers had early in the 21st century. Brokers now have to provide incentives to their customers. All customers are important today. The global marketplace has become more competitive.

This has created a rush for flexible approaches to finance and investment. Morgan Stanley’s acquisition has also created an opening for the financial giant in online trading.

As it stands, with everything being performed on the go, the acquisition could offer investors the chance of a lifetime. While the E*Trade’s brand remains, Morgan Stanley’s expertise comes to play in ways we can never imagine.

This could be the pot of gold at the end of the rainbow that others missed. At the time of filing this report, Morgan Stanley’s (MS) shares stood at $53.75. This is a 4.55% drop since the last trading session of the markets. E*Trade (ETFS) share prices stood at $54.73. This is a 21.8% rise in prices since the last trading session.

Business, Deals, News
Christopher Hamman
Author: Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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