Ronald Reagan once said, "Mr. Gorbachev, tear down this wall." Eventually, the Berlin Wall came down. But for Morgan Stanley, building a wall is the best way to prevent conflicts of interest between its fixed income research and sales departments. That is exactly what it will do, the company said on Friday.
As part of a restructuring of its fixed-income department, Morgan Stanley will physically erect a wall to separate research analysts from salespeople and traders. According to Ryan Marshall, who will be entrenched in the new position of global head of fixed income research, said the decision is aimed to eliminate any chance of conflicts of interest.