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Wednesday, March 11, 2015

Morgan Stanley nixed preferred buyback in capital plan-source, (NYSE: MS)

Morgan Stanley 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.

Morgan Stanley, is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS traded higher by 0.2% or $0.07/share to $34.95. In the past year, the shares have traded as low as $28.31 and as high as $39.19. On average, 10537100 shares of MS exchange hands on a given day and today's volume is recorded at 10463342.