Dec 11 Morgan Stanley might seek approval
from the Federal Reserve to repurchase shares for the first time
in four years, the Wall Street Journal reported, citing people
familiar with the firm's thinking.
The bank, which last bought back shares in 2008, could make
the request when it submits plans for its annual stress test in
January, the Journal said.
Regular stress tests are part of a more rigorous regime
required by the 2010 Dodd-Frank financial oversight law. They
are designed to ensure banks have enough capital cushions and
are not being overly aggressive in returning cash to
"There's an incentive to push for what you can get, but you
also don't want" to get denied, a Morgan Stanley official told
In March, Citigroup and MetLife led a list of
financial institutions that failed to get permission to
As of Sept. 30, Morgan Stanley had about $1.6 billion
remaining under its current share repurchase authorization,
according to a filing with the U.S. Securities and Exchange
Commission. Share repurchases by the company are subject to
regulatory approval, the bank said in the filing.
Morgan Stanley could not be reached for comment by Reuters
outside of regular business hours.