Morgan Stanley Nixed Preferred Buyback in Capital Plan: Source


Morgan Stanley (NYSE:MS) withdrew a proposal to repurchase $4.9 billion worth of trust preferred securities in order to get approval from the U.S. Federal Reserve for its capital plan, a person familiar with the matter said.

Morgan Stanley's capital plan originally included buying back those hybrid securities, as well as the dividend increase and common stock buyback that it announced on Wednesday, said the person, who was not authorized to speak publicly about the matter. That plan would have pushed Morgan Stanley's capital levels below minimum thresholds, so the bank resubmitted a plan without the preferred buyback to gain approval.

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(Reporting by Lauren Tara LaCapra; Editing by David Gregorio)