On August 29, 2025, the Board of Governors of the Federal Reserve System stated that it is still reviewing Morgan Stanley’s request for a lower Stress Capital Buffer (SCB) requirement. The company said it is working with the Federal Reserve to determine its final SCB before the effective date of October 1, 2025.
"Morgan Stanley remains actively engaged with the Federal Reserve to reach a final SCB requirement before the October 1, 2025 effective date," according to a statement from the firm.
The SCB is part of federal regulations that require large banks to hold enough capital to absorb losses during periods of economic stress. This review process may impact how much capital Morgan Stanley will need to set aside under these rules.