Morgan Stanley CEO James Gorman told CNBC the origins of the deal date back to 2002.
"I called [E-Trade] back then when I was at Merrill [Lynch] because I was intrigued by that fact that there was always going to be segments of clients who only want to do electronically and digitally. It was always buy verses build."
After 2002, Gorman said he called E-Trade again in 2007 and had "pretty extensive negotiations" with the brokerage firm. In the end, the two companies could not get past Morgan Stanley's home equity loans portfolio. "You've got to have a clear strategic vision and I never worry about strategy from envy," Gorman said about quickly pulling the deal together. "You've got to be very opportunistic, you've got to move and move quickly." "When you make your mind up you've got to be aggressive to get the job done and that's what we did."
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