March 7, 2013 / 11:20 PM / 4 years ago

Morgan Stanley says it would fare better under own stress test

Morgan Stanley's New York headquarters are seen at the corner of 48th Street and Broadway in New York May 22, 2012.Andrew Burton

NEW YORK (Reuters) - Morgan Stanley's (MS.N) own internal stress test left the bank with higher capital and leverage ratios than a test conducted by the Federal Reserve, according to a document posted on its website on Thursday evening.

Under severe economic stress over a nine-month period, Morgan Stanley's Tier 1 common capital ratio would drop to 7.5 percent from 13.9 percent, the bank said. Its minimum Tier 1 common ratio under the stress scenario outlined by the Federal Reserve would be 6.7 percent, compared with a 5.7 percent minimum projected by the regulator.

Morgan Stanley also said its Tier 1 capital ratio, total risk-based capital ratio and Tier 1 leverage ratio would all be higher under its own stress test than under the test conducted by the Fed.

Reporting By Lauren Tara LaCapra; Editing by Gary Hill

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