Morgan Stanley might seek approval from the Federal Reserve to repurchase shares for the first time in four years, the Wall Street Journal reported, citing people familiar with the firm's thinking.
The bank, which last bought back shares in 2008, could make the request when it submits plans for its annual stress test in January, the Journal said.
Regular stress tests are part of a more rigorous regime required by the 2010 Dodd-Frank financial oversight law. They are designed to ensure banks have enough capital cushions and are not being overly aggressive in returning cash to shareholders.
"There's an incentive to push for what you can get, but you also don't want" to get denied, a Morgan Stanley official told the Journal.
In March, Citigroup and MetLife led a list of financial institutions that failed to get permission to repurchase shares.
As of September 30, Morgan Stanley had about $1.6 billion remaining under its current share repurchase authorization, according to a filing with the U.S. Securities and Exchange Commission. Share repurchases by the company are subject to regulatory approval, the bank said in the filing.
Morgan Stanley could not be reached for comment by Reuters outside of regular business hours.
(Reporting by Tej Sapru in Bangalore; additional reporting by Sakthi Prasad; Editing by Chris Gallagher)