The Federal Reserve finalizes new capital requirements for major banks, Morgan Stanley files for reconsideration

Jinse Finance reported that the Federal Reserve announced on Friday that it has finalized new capital levels for the largest U.S. banks following June's stress tests, but added that Morgan Stanley (MS.N) is seeking a reassessment of its soon-to-be-effective capital level. The new capital requirements will take effect on October 1. If the Federal Reserve adopts a proposal currently under review, which would average the results of two years of stress tests, the requirements will be updated. Based on the annual large bank financial stress tests, the Federal Reserve assesses how banks would perform under hypothetical adverse economic scenarios and sets their capital buffer levels accordingly. Morgan Stanley is requesting a reconsideration of its results, and the Federal Reserve will announce its decision by the end of September.