Morgan Stanley created a fixed- income sales group to focus on middle-market clients as it transfers some investment bank customers to its wealth- management division.
Bloomberg reports that the group will consist of 50 to 75 salespeople, Eric Benedict, head of capital markets for Morgan Stanley Wealth Management, said in an interview last week. It will be run by Tom Driscoll, who will report to Benedict, and serve more than 1,500 middle-market clients, about 1,000 of which will be transferred from the firm’s fixed-income division in its investment bank, according to an internal memo.
'It’s freeing up salespeople to cover these accounts better', Benedict said. 'We’re putting this platform on the wealth-management side of the business, where we think we can better cover these clients, and with that, there are revenue benefits to both'.
Bloomberg also reports that the firm was sued by IKB Deutsche Industriebank over claims the investment bank hid the truth about $147.1m in residential mortgage-backed securities it sold to the German company.