Morgan Stanley sells ETrade’s custody business in $55 million deal
CEO James Gorman never could muster much enthusiasm for ETrade Advisor Services, which would have been a direct competitor to the bank's 16,000 financial advisers.
After failing to muster much enthusiasm for ETrade Financial Corp.'s small but promising RIA custody business, James Gorman, CEO of Morgan Stanley, decided to unload it, agreeing on Tuesday to sell ETrade Advisor Services for $55 million in cash.
In 2017, ETrade acquired the RIA custody business
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