E*Trade Financial Corp.

The long-predicted M&A frenzy in the wealth management industry is here. Wall Street stalwart Morgan Stanley agreed to buy discount broker E*Trade in a $13 billion deal announced Thursday. The all-stock deal is the biggest takeover by a giant U.S. bank since the 2008 crisis. Earlier in the week, money manager Franklin Resources Inc. agreed to buy rival Legg Mason Inc. for $4.5 billion in cash. E*Trade shares soared 22% Thursday.

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