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