Morgan Stanley is one step closer to buying out wealth unit: CEO
NEW YORK (Reuters) - Morgan Stanley (MS.N) is a step closer to acquiring the rest of a wealth-management joint venture after passing the U.S. Federal Reserve's stress test, Chief Executive James Gorman said on Thursday.
"The Federal Reserve's non-objection to our capital plan is another important step towards full ownership of our wealth management business, which has been one of the Firm's key strategic priorities since 2009," Gorman said in a statement. "Subject to further regulatory approval, we look forward to completing the acquisition of the remaining 35 percent stake in our wealth management joint venture."
Morgan Stanley Wealth Management is a joint venture with Citigroup Inc (C.N), after the two banks agreed to merge their retail brokerage franchises in 2009. Morgan Stanley submitted plans to the Fed to use its capital to buy the remainder of the business, and the Fed did not object