Morgan Stanley Reports Reduced Stress Capital Buffer
Summary
The Federal Reserve reduced Morgan Stanley's Stress Capital Buffer (SCB) from 5.1% to 4.3%, effective October 1, 2025 (via Ex. 99.1 press release). This reduction followed the Company's request for reconsideration of its preliminary SCB announced in June 2025. The new SCB results in an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio of 11.8%. The Company's CET1 ratio was 15.0% as of June 30, 2025.
Why It Matters
The reduction in Morgan Stanley's Stress Capital Buffer from 5.1% to 4.3% is a material positive regulatory development, potentially easing capital requirements and impacting the Company's required Common Equity Tier 1 (CET1) ratio of 11.8%. This provides greater capital flexibility for investors.
Key Quote
“that it has reduced Morgan Stanley's (the "Company") Stress Capital Buffer ("SCB") from 5.1% to 4.3%, effective.”
— From Item 8.01
Filing Details
Reported Items
Additional Information
- CIK Number
- 0000895421
- Filing Date
- Tuesday, September 30, 2025
- Filing Time
- 12:00 AM UTC
- Form Type
- 8-K
- Materiality Level
- medium
- Sentiment
- neutral