FAST FIVE: "Project Eagle": Morgan Stanley Buys E-Trade For $13 Billion, One-Upping 'The Vampire Squid' With Pivot To Retail
ETrade CEO Michael Pizzi, will join Morgan Stanley to run its new e-brokerage division.
We'll take on Fidelity,” Mr Gorman, now in his 10th year as CEO, said in an interview.
“This isn't about legacy-building; it's about getting [Morgan Stanley] ready for prime time.” Nicknamed “Project Eagle”, Gorman said he's been eyeing buying E-Trade since 2002.
It's the biggest takeover by a major Wall Street firm since the shotgun weddings arranged by the federal government during the apex of the crisis. The takeover, code-named Project Eagle, is the largest deal by a major Wall Street player since the crisis, when regulators arranged hasty marriages in a bid to shore up the financial system.
Mr Gorman said he has been eyeing E*Trade since 2002, when he was an executive at Merrill Lynch.