London (CNN Business)A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. Since the financial crisis, Wall Street banks haven’t been too keen on massive acquisitions. That changed this week. Morgan Stanley’s $13 billion purchase of online broker E*Trade, announced Thursday, is a huge play that shows how serious the investment bank is about catering to everyday customers. With Morgan Stanley moving to prioritize wealth management, a more reliable source of income than the investment banking and trading operations that made its name, the play makes sense. But whether it will justify the massive price tag — Morgan Stanley is ponying up a premium of more than 30% — is an open question. E*Trade shares finished Thursday up nearly 22%, while Morgan Stanley’s stock closed 4.6% lower. Read More What Morgan Stanley gains: E*Trade has more than 5.2 million investing clients and over $360 billion in assets. That will bring lots of diversity to the bank’s wealth management unit, which currently has 3 million clients and $2.7 trillion in assets, my CNN Business colleague Paul R. La Monica reports. The companies said that once the deal is… Read full this story
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