Morgan Stanley's Revised Capital Plan Approved by Fed
March 02 2017 - 5:00PM
Dow Jones News
By Ryan Tracy
WASHINGTON -- Morgan Stanley received approval from the Federal
Reserve for a revised plan to return capital to shareholders, a
positive development for the bank after the central bank rebuked
its planning processes in last year's "stress tests."
The bank was the only top U.S. firm in 2016 not to receive full
approval from the Fed for its plans to return capital to
shareholders as part of the annual tests. The Fed gave Morgan
Stanley a "conditional non-objection" to its capital plan, meaning
the firm had to resubmit a plan to address the regulator's
perceived shortcomings. The Fed said at the time that Morgan
Stanley's capital planning process "exhibited material
weaknesses."
On Thursday the Fed said it had approved the resubmitted plan
"as a result of progress made by the firm in addressing
deficiencies." The stress-testing exercise is already under way
again this year for Morgan Stanley and other banks, with results
likely in June.
Write to Ryan Tracy at ryan.tracy@wsj.com
(END) Dow Jones Newswires
March 02, 2017 16:45 ET (21:45 GMT)
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