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Fed grants Morgan Stanley lower stress capital buffer
['Caitlin Mullen', 'Senior Reporter']
Banking Dive - Latest News
Dive Brief:The Federal Reserve has adjusted Morgan Stanley’s stress capital buffer requirement for this fiscal year, from 5.1% to 4.3% , according to a Tuesday news release from the central bank.
Morgan Stanley requested the modification in late August, after the Fed laid out new individual capital requirements for large banks following its annual stress testing.
Dive Insight:Morgan Stanley’s successful petition follows that of Goldman Sachs, which last year asked the central bank to reduce its stress capital buffer requirement from 6.4% to 6.2%.
Morgan Stanley “appreciates the Federal Reserve’s careful reconsideration” of the bank’s most recent stress test results, CFO Sharon Yeshaya said in a Tuesday statement.
Big-bank capital requirements are informed by the Fed’s stress test results.