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Morgan Stanley Smith Barney

The document summarizes the organizational structure of investment banks Morgan Stanley and Goldman Sachs. Morgan Stanley has three main business units: wealth management, sales and trading, and investment banking. It also has divisions for capital markets, investment management, research, company management, and operations/technology. Goldman Sachs has a flatter structure with 12 divisions including finance, compliance, research, human resources, investment banking, and operations.

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Noor Nabi Shaikh
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160 views4 pages

Morgan Stanley Smith Barney

The document summarizes the organizational structure of investment banks Morgan Stanley and Goldman Sachs. Morgan Stanley has three main business units: wealth management, sales and trading, and investment banking. It also has divisions for capital markets, investment management, research, company management, and operations/technology. Goldman Sachs has a flatter structure with 12 divisions including finance, compliance, research, human resources, investment banking, and operations.

Uploaded by

Noor Nabi Shaikh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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The structure of investment banks:

Divisions and services

> IB is loosely defined as FIs that offer underwriting and advisory services for mergers and acquisitions.

> Morgan Stanley defines it as “Morgan Stanley offers its investment banking clients, including
corporations, governments and other entities, underwriting and distribution services for debt and
equity offerings in addition to financial advisory services regarding key strategic matters, such as
mergers and acquisitions, restructuring, real estate and project finance.”

> This chapter reviews Morgan Stanley and Goldman Sachs organizational structure of an investment
bank.

Morgan Stanley

> Three main areas

> business units:

> Morgan Stanley Smith Barney:

> Services: brokerage and investment advisory services, financial and wealth
planning, credit and lending, cash management, annuities and insurance, and
retirement and trust.

> Clients: individuals, businesses, and institutions.

> Sales and Trading:

> Services: sales, trading, market making in most types of financial instruments,
including stocks, bonds, derivatives, foreign exchange, and commodities.

> Investment Banking:

> Services: underwriting of equity and equity-related transactions, high-yield


debt financing, corporate debt issuance, and in mergers and acquisitions.

> Global Capital Markets:

> Services: works with clients to arrange financing and risk management
solutions. This group provides guidance as to size, structure, timing, and
marketing of transactions.

> Investment Management

> individual and institutional clients a diverse array of equity, fixed income, and
alternative investments.

> Research.

> equity analysts provide research coverage for investment recommendations.


Economists, strategists, and fixed-income analysts cover all major regions and
other asset classes around the world. Many investors, institutional and
individual, consider such recommendations in their investment and trading
decisions.

> Company management,

> There are 11 departments in Company Management, including

legal and compliance,


corporate services,
finance,
government relations,
human resources,
internal audit,
corporate communications,
community affairs,
strategy and execution,
firmwide marketing, and
risk management.

> Operations and technology

> Technology provides quantitative trading systems, modelling and simulation


software, comprehensive risk and security systems, and infrastructure supporting these
systems and tools.

> Operations is the backbone for sales, trading, and other business activities. It ensures
that the firm is aware of all operational risks, makes sure transactions are settled and
recorded correctly, and supports new markets and products.

Goldman Sachs

> Flat organizational structure, comprising 12 divisions.

1. Finance,
2. global compliance,
3. global investment research,
4. human capital management,
5. investment banking,
6. investment management,
7. legal and internal audit,
8. merchant banking/private equity,
9. operations,
10. securities,
11. services, and
12. technology.

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