Back to the future

24 April 2009 By Antony Currie Follow @AntonyMCurrie

The bank has been debating the idea for 18 months or more. The credit crunch only increases the rationale if the move derisks the firm and gives it more credit as an asset manager. Meanwhile, UBS’s Dillon Read fiasco provides useful pointers.

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Morgan Stanley is considering removing its proprietary quantative trading unit known as Process Driven Trading from its investment bank, according to the Wall Street Journal.

One plan under discussion is to place the unit in Morgan Stanley's asset management unit. Another involves spinning it out of the bank entirely. In both cases, Morgan Stanley would keep capital in the business.

Morgan Stanley first considered moving the desk out of the investment bank in 2007, as breakingviews.com was first to report.

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