Morgan Stanley SCB cut to 4.3% by Federal Reserve

Morgan Stanley reports that the Federal Reserve has reduced its Stress Capital Buffer from 5.1% to 4.3%, effective October 1, 2025, after the company sought reconsideration of its preliminary buffer set in June 2025.

Rhea-AI Filing Summary

Morgan Stanley reports that the Federal Reserve has reduced its Stress Capital Buffer from 5.1% to 4.3%, effective October 1, 2025, after the company sought reconsideration of its preliminary buffer set in June 2025. This lower buffer, combined with other regulatory capital requirements, results in an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio requirement of 11.8%.

The company’s actual U.S. Basel III Standardized Approach CET1 ratio was 15.0% as of June 30, 2025, meaning its capital stood above the new required minimum at that date. Morgan Stanley also notes that it has issued a press release about this change, which is included as an exhibit.

Insights

Bank capital and regulation analyst

Fed trims Morgan Stanley’s capital buffer, leaving a sizable surplus.

The Federal Reserve cut Morgan Stanley’s Stress Capital Buffer from 5.1% to 4.3%, effective on October 1, 2025, after the firm requested reconsideration. The SCB is a key component of large banks’ capital requirements, so a lower level directly reduces the minimum common equity Tier 1 (CET1) capital they must hold against risk-weighted assets.

With the revised buffer, Morgan Stanley’s aggregate U.S. Basel III Standardized Approach CET1 requirement is 11.8%, while its actual CET1 ratio stood at 15.0% as of June 30, 2025. This indicates a capital level above the new regulatory minimum at that point in time. Future disclosures in company filings may show how management responds to the additional flexibility this surplus could provide.

8-K Event Classification

2 items: 8.01, 9.01

2 items

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What regulatory change did Morgan Stanley (MS) disclose in this 8-K?

Morgan Stanley disclosed that the Federal Reserve reduced its Stress Capital Buffer from 5.1% to 4.3%, effective October 1, 2025.

How does the new Stress Capital Buffer affect Morgan Stanley’s CET1 requirement?

With the revised buffer, Morgan Stanley’s aggregate U.S. Basel III Standardized Approach CET1 ratio requirement is now 11.8%.

What was Morgan Stanley’s actual CET1 ratio as of June 30, 2025?

Morgan Stanley’s U.S. Basel III Standardized Approach CET1 ratio was 15.0% as of June 30, 2025.

When does the reduced Stress Capital Buffer for Morgan Stanley become effective?

The reduced Stress Capital Buffer of 4.3% becomes effective on October 1, 2025.

Did Morgan Stanley issue a press release about the Stress Capital Buffer change?

Yes. A company press release dated September 30, 2025 discussing the change is attached as Exhibit 99.1.

Which securities of Morgan Stanley are listed on the New York Stock Exchange?

Listed securities include common stock (MS), several series of non-cumulative preferred stock depositary shares, and certain Global Medium-Term Notes, Series A.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 09/30/2025 - 04:58 PM EDT Learn about SEC filing dates

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant To Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): September 30, 2025

Morgan Stanley

(Exact Name of Registrant

as Specified in Charter)

Delaware	1-11758	36-3145972
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1585 Broadway, New York, New York		10036
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 761-4000

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	MS	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate Non-Cumulative Preferred Stock, Series A, $0.01 par value	MS/PA	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E, $0.01 par value	MS/PE	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F, $0.01 par value	MS/PF	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I, $0.01 par value	MS/PI	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K, $0.01 par value	MS/PK	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 4.875% Non-Cumulative Preferred Stock, Series L, $0.01 par value	MS/PL	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 4.250% Non-Cumulative Preferred Stock, Series O, $0.01 par value	MS/PO	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 6.500% Non-Cumulative Preferred Stock, Series P, $0.01 par value	MS/PP	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 6.625% Non-Cumulative Preferred Stock, Series Q, $0.01 par value	MS/PQ	New York Stock Exchange
Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026 of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)	MS/26C	New York Stock Exchange
Global Medium-Term Notes, Series A, Floating Rate Notes Due 2029 of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)	MS/29	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01 Other Events.

The Federal Reserve announced today that it has reduced Morgan Stanley’s (the “Company”) Stress Capital Buffer (“SCB”) from 5.1% to 4.3%, effective on October 1, 2025 in response to the Company seeking reconsideration of its preliminary SCB announced in June 2025. Together with other features of the regulatory capital framework, this SCB results in an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 (“CET1”) ratio of 11.8%. The Company’s U.S. Basel III Standardized Approach CET1 ratio was 15.0% as of June 30, 2025.

A copy of the Company’s press release relating to this announcement is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

Item 9.01.		Financial Statements and Exhibits.
(d)		Exhibits
Exhibit
Number		Description
99.1		Press Release of the Company, dated September 30, 2025.
101		Interactive Data Files pursuant to Rule 406 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBL”).
104		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

			MORGAN STANLEY (Registrant)
Date:	September 30, 2025		By:	/s/ Martin M. Cohen
				Name:	Martin M. Cohen
				Title:	Corporate Secretary