Morgan Stanley to receive $375 million termination expense if E*Trade leaves a deal

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Morgan Stanley will get a $375 million breakup expense if E*Trade Financial Corp leaves its $13 billion deal for the discount brokerage, the U.S. bank said on Friday.

On Thursday, Morgan Stanley went into a deal to purchase E*Trade, the greatest obtaining by a significant Wall Street bank since the 2007-2009 financial emergency.

E*Trade has been the subject of M&A speculation for quite a while, particularly after Charles Schwab Corp said it would purchase TD Ameritrade Holding Corp a year ago.

If Morgan Stanley terminates the arrangement because of antitrust issues, E*Trade would get $525 million, Morgan Stanley said in an administrative filing.

The bank hopes to finish the deal by the final quarter, and administrators communicated certainty that it would meet administrative endorsements.

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