Morgan Stanley (NYSE:MS): Current price $27.85
The owner of the number one brokerage on the planet reported that it is short of a minimum leverage ratio proposed by U.S. regulators last week, which measures a company’s capacity to withstand losses. Chief Financial Officer Ruth Porat revealed on a conference call with analysts Thursday that Morgan Stanley’s supplementary leverage ratio stood at 4.2 percent in the second quarter, which is under the proposed 5 percent minimum. However, the ratio at Morgan Stanley’s deposit-taking bank subsidiary is over the proposed 6 percent minimum. Porat predicted that Morgan Stanley will surpass both requirements by 2015. She also announced that the firm will repurchase $500 million in stock, and that Morgan’s plan to reach 5 percent by 2015 includes additional capital returns to shareholders.
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