Morgan Stanley Appeals for Reconsideration of Stress Capital Buffer

Core Insights - The Federal Reserve announced finalized Stress Capital Buffer (SCB) requirements and new capital ratios for major banks, with Morgan Stanley seeking reassessment of its SCB [1][8] Group 1: Morgan Stanley's SCB and Capital Requirements - Morgan Stanley is requesting a downward adjustment to its SCB, currently at 6%, the highest among tested banks, with a final decision expected by September 30 [2][3] - The bank anticipates its SCB will be reduced to 5.1% for the period from October 1, 2025, to September 30, 2026, and its common equity tier 1 (CET1) requirement is expected to decrease from 15% to 12.6% [3][8] Group 2: Comparisons with Other Banks - Other banks, including Goldman Sachs and Wells Fargo, have also received downward revisions to their SCBs, with Goldman’s SCB reduced from 6.4% to 6.2% and Wells Fargo’s from 3.8% to 3.7% [4] Group 3: Market Performance - Over the past six months, Morgan Stanley's shares have increased by 16.5%, slightly trailing the industry growth of 17.1% [5]