This opens up the business to more customers who may one day build up more wealth and need Morgan Stanley's force of 15,468 financial advisers to manage their money as lucrative wealth management clients.
That marks a massive reshaping of the Wall Street bank. In 2010, the divisions together contributed just 26% to the bottom line, Morgan Stanley said in a statement about the E-Trade deal. "I don't think financial advisers will view this as a situation where they're competing with an internal channel," Michael Foy, senior director of the wealth management practice at J.D. Power, told Business Insider.
However, E-Trade's RIA segment, overseeing some $20 billion in assets, is tiny by industry standards. And it "wasn't the primary motivator of the transaction," Gorman said on the call earlier with analysts. in an effort to cut costs The Credit Suisse analyst Craig Siegenthaler, for his part, said he was curious about whether Morgan Stanley will "keep an independent RIA platform under its roof which may not mix well with its own employee channel." He added that having the two businesses side-by-side, referring to the new RIA channel and its own force of thousands of advisers, may "add a layer of complexity.
etrade's assets.
How many ppl actually remember the talking baby?