Bank Morgan Stanley buys E-Trade for $ 13 billion

the American investment Bank Morgan Stanley becoming a financial services company E-Trade for $ 13 billion, the Bank said, reports CNBC.

note that this transaction will be part of the consolidation for the brokerage industry, which last year collectively have reduced trading commissions to zero.

Morgan Stanley will pay 58,74 per share E-Trade in a deal that unites 3.1 trillion dollars of client assets.

Morgan Stanley’s Shares fell 4% after the information about the future transaction, which will be the largest for a U.S. Bank since the financial crisis. Shares of E-Trade jumped more than 24% to $55.9 per share.

“E*TRADE presents an extraordinary opportunity for growth of our business in capital management and a big step forward for our strategy to asset management,” — said in a statement, Chairman and CEO of Morgan Stanley James Gorman.

“in addition, it will continue a decade of transition our company to a more balanced business, emphasizing more durable sources of income,” he said.

the Transaction, which is expected to be closed in the fourth quarter of 2020, followed by purchase of Bank stock TD Ameritrade for 26 billion dollars.