The Federal Reserve finalizes new capital requirements for large banks, Morgan Stanley applies for a reconsideration.

The Federal Reserve announced on Friday that it has finalized the new capital levels for the largest banks in the United States after the June stress tests, but added that Morgan Stanley is seeking a reassessment of its upcoming capital levels. The new capital requirements will take effect on October 1st, and if the Federal Reserve adopts a proposal currently under consideration to average the results of the two-year stress tests, the requirements will be updated. According to the annual Comprehensive Capital Analysis and Review (CCAR) stress tests for large banks, the Federal Reserve evaluates the banks' performance under assumed economic downturn scenarios and sets their capital buffer levels accordingly. Morgan Stanley is requesting a reconsideration of its results, and the Federal Reserve will announce a decision by the end of September.