Morgan Stanley to beat 5 pct leverage requirement by 2015 -CFO

NEW YORK, July 18 Thu Jul 18, 2013 11:19am EDT

NEW YORK, July 18 (Reuters) - Morgan Stanley will exceed its leverage ratio requirement by 2015 through its existing plan to reduce risky assets and focus on centrally cleared derivatives, Chief Financial Officer Ruth Porat said on Thursday.

The bank had a leverage ratio of 4.2 percent as of June 30, below the 5 percent requirement for bank holding companies laid out by regulators earlier this month. Banks must comply with the standard by 2018, according to the rule proposal.

On a conference call with analysts, Porat said Morgan Stanley has a "clearly identified path to exceed" the 5 percent benchmark in 2015, which aligns with its plans to reduce balance sheet risk to free up capital.

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