Morgan Stanley (MS) appeals Fed's new capital levels, seeks reconsideration

The U.S. Federal Reserve has finalized new capital levels for the largest banks following stress tests in June, with Morgan Stanley (MS) seeking reconsideration of its upcoming capital level.

The new requirements will take effect on October 1, and may be updated if the Fed adopts a proposal to average results from two years of stress tests.

Morgan Stanley is requesting a review of its stress capital buffer, with the Fed expected to make a decision by the end of September. Details on the potential buffer adjustment were not disclosed, but in 2024, Morgan Stanley had a buffer of 6%. In a similar situation, Goldman Sachs (GS) successfully appealed its buffer in 2024, lowering it from 6.4% to 6.2%.