Breaking Deal With E*Trade Would Cost Morgan Stanley ‘$375 million’


02/25/2020

Morgan Stanley’s E*Trade acquisition could mark the biggest one by a major U.S. bank post the financial crisis of 2007-2009.



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Morgan Stanley has informed that the bank will get “a $375 million breakup fee” in case E*Trade Financial Corp decides to withdraw from the “$13 billion deal for the discount brokerage”.
 
Last week, Morgan Stanley got into a deal for purchasing “E*Trade”, which marks the “biggest acquisition” of a Wall Street based major banks post the “2007-2009 financial crisis”.
 
It has been sometimes that speculations surrounding the merger and acquisition of E*Trade as been circulating, mainly following Charles Schwab Corp’s statement regarding the possible purchase option of TD Ameritrade Holding Corp.
 
In a regulatory filing, Morgan Stanley stated that in case the bank ends the said deal due to “antitrust issue”, E*Trade would be paid an amount of “$525 million”.According to Reuters:
“The bank expects to complete the deal by the fourth quarter, and executives expressed confidence that it would meet regulatory approvals”.
 
 
References:
reuters.com