Morgan Stanley kept its head down and chin up amid the recent banking turmoil. If the company emerges without a scratch, it will be by design.

CEO James Gorman has pivoted sharply from the firm’s roots in investment banking and trading, turning Morgan Stanley (ticker: MS) into an asset-management giant. With more than $20 billion in recent acquisitions, primarily for discount brokerage E*Trade and fund manager Eaton Vance, the company looks far better equipped to ride through another bout of banking stress.