Fed agrees to shrink Morgan Stanley's 'stress capital buffer'

ReutersSep 30, 2025 8:30 PM

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WASHINGTON, Sept 30 (Reuters) - The U.S. Federal Reserve announced Tuesday it had agreed to reduce how much capital Morgan Stanley must hold as a result of its most recent "stress test" results, lowering the required buffer from 5.1% to 4.3% for the upcoming year.

In a statement, the Fed said further analysis showed that the central bank may have been too conservative in making some estimations under the test, and other unique characteristics of the bank contributed to the reconsideration. Morgan Stanley announced it would be appealing the results of the June test in August, when the Fed announced new capital levels for all the large banks examined.

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