Morgan Stanley will be entertaining acquisitions using its existing office network to expand its private banking services without creating a separate private banking group as previously reported.

The firm will seek to grow its private banking capabilities under the newly created retail private banking group headed by ex-Wachovia banking specialists Cece Sutton and Jonathan Witter, but a spokesman said it is too early to comment on a structure at this stage.

“[Ms] Sutton will look at ways for expanding banking services through our existing network, and also through possible acquisitions,” the spokesman said.

In November Morgan Stanley announced the creation of its new retail banking group as part of the firm’s global wealth management efforts to grow deposits and banking products.

Ms Sutton officially started in her role as president of the retail banking group this month.

The new retail banking group was conceived late last year in line with Morgan Stanley’s stated goal to expand its deposit taking activities following the credit market collapse.

In terms of potential acquisitions, Morgan Stanley chief financial officer Colm Kelleher said during the company’s forth quarter results announcement, “…there is no such thing as too small to matter,” he said. “We're talking about garnering deposits that fit into a well defined retail strategy.”