Morgan Stanley to join institutional, brokerage muni desks

Moving forward with promised initiatives (35 of them) for partnerships between its investment bank and brokerage, Morgan Stanley (MS -1.3%) will combine the municipal bond trading desks or its institutional and wealth-management units, reports Bloomberg, citing an internal memo.

"The joint venture will provide the broadest possible inventory and unmatched purchasing power," says the memo. "Combining our municipal inventory in a single balance sheet will enable us to enhance our risk-management discipline across the organization.”

These partnerships are one plank of CEO Gorman's hope to double firm ROE this year.

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  • 15560722
    , contributor
    Comments (33) | Send Message
    It makes sense to me... the obj. of the clientele for muni's is really not all that much different btw institutional and retail. In fact, i believe more synergies will be created bc of it, in spite of the fact, some layoffs may occur sometimes down the road due to this. Hopefully the weakness of $MS yesterday is not due to this.
    13 Mar 2014, 06:00 AM Reply Like
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