Morgan Stanley Is Purchasing E * Trade, Betting on Littler Consumers

Morgan Stanley Is Purchasing E * Trade, Betting on Littler Consumers

Morgan Stanley is purchasing E Trade Financial Corp. in a $13 billion deal that will improve the storied financial investment bank and firmly stake its future on managing money for routine individuals.

The all-stock takeover, revealed Thursday, will combine a Wall Street firm in the late innings of a decadelong turn-around with a discount rate broker built on the backs of dot-com day traders.