Morgan Stanley asked the Federal Reserve to reduce its capital requirements, the regulator said as it announced upcoming capital requirements for most Wall Street banks that are in line with lenders’ expectations.
“The firm requested reconsideration to reduce this requirement,” the Federal Reserve said in a statement Friday. “The board is reviewing the request to reduce the firm’s stress capital buffer requirement,” and plans to make and publish a decision by Sept. 30.
The central bank’s announcement formally wraps up its annual stress-tests exercise, a multistep process that assesses how the nation’s largest lenders are likely to perform under hypothetical economic conditions. It concludes with an updated total Common Equity Tier 1 capital-ratio requirement for each firm, which will take effect Oct 1.
“Morgan Stanley remains actively engaged with the Federal Reserve to reach a final SCB requirement” before Oct. 1, the New York-based bank said in a statement