Morgan Stanley Gets Stress Capital Buffer Cut by Fed

BY MT Newswires | ECONOMIC | 09/30/25 05:05 PM EDT

05:05 PM EDT, 09/30/2025 (MT Newswires) -- Morgan Stanley (MS) said late Tuesday that the Federal Reserve has reduced its Stress Capital Buffer to 4.3% from 5.1%, effective Wednesday, after the bank requested a reconsideration to the preliminary buffer.

With the new lower buffer in place, Morgan Stanley's (MS) required Common Equity Tier 1, or CET 1, ratio under the US Basel III Standardized Approach is now 11.8%. The company's CET1 ratio stood at 15% as of June 30.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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