Morgan Stanley Closes Acquisition of E*TRADE

Morgan Stanley (NYSE: MS) announced today that it has completed the acquisition of E*TRADE Financial Corporation (E*TRADE) in an all-stock transaction. E*TRADE common stockholders are entitled to receive 1.0432 Morgan Stanley common shares for each E*TRADE common share.

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"The addition of E*TRADE positions us as an industry leader in Wealth Management across all channels and segments, and significantly increases the scale and breadth of our Wealth Management franchise, which now oversees $3.3 trillion in assets," said James P. Gorman, Chairman and Chief Executive Officer of Morgan Stanley. "E*TRADE has built a best-in-class, direct-to-consumer digital channel and a strong brand over the past 38 years. The addition of their premier offering will provide enhanced capabilities to all our clients and Financial Advisors.”

Michael Pizzi, CEO of E*TRADE, joins Morgan Stanley and will lead E*TRADE’s direct-to-consumer, digital self-directed business that will operate under the E*TRADE brand, and will co-lead the equity administration business. He also joins the Morgan Stanley Operating and Management Committees.

In addition, today Shelley Leibowitz, one of E*TRADE’s independent directors, has joined the Morgan Stanley Board of Directors. “Ms. Leibowitz brings a wealth of financial technology and management expertise. We welcome her to the Board and look forward to working with her,” said Ray Wilkins, Chair of the Board’s Nominating and Governance Committee.

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