Goldman's move comes after the bank was criticized for advising El Paso Corp on its planned sale to Kinder Morgan Inc even though Goldman had a multibillion-dollar stake in the acquirer and its top energy banker, Stephen Daniel, also held a $340,000 personal stake in Kinder Morgan.
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The Wall Street divisions of other banks, including Barclays PLC, Bank of America Corp and Citigroup Inc are also reviewing processes for managing conflicts on investment banking deals, the Journal reported, citing unnamed people familiar with the matter.
A Goldman Sachs spokesman did not immediately have a response to questions about the reported changes.
Morgan Stanley Chief Executive James Gorman said at an event on Friday morning that the bank faces inherent conflicts in its businesses every day, and manages them according to how significant they are.
"The more obvious the conflict, the higher the standard of care," said Gorman.
If Morgan Stanley has an investment in a company it is advising, he said, "you'd better make sure you've really vetted that well and each party understands that role."