S&C Senior Chairman Rodge Cohen Talks to “Squawk Box” About Morgan Stanley-E*Trade Deal

February 21, 2020

S&C senior chairman Rodge Cohen appeared on CNBC's “Squawk Box” to talk about Morgan Stanley's acquisition of E*Trade. He discussed how the institutions may approach potential challenges such as cultural issues, and why, despite those challenges, these types of transactions can make sense. “There is an inherent industrial logic to the transaction,” Rodge said. “There is a need for scale, there is a need for consolidation, and nowhere is that need greater than in wealth management.”

Rodge added that he expects to see more consolidation in the financial services sector: “[T]he critical element here, which I think has been largely overlooked, is why scale is so important today. It has always been thought of as a back-office issue, technology and control. Now it's front-office: How do you market services and products, how do you deliver services and products? And that's where scale is so critical.”

Watch the full interview below: