Morgan Stanley is now nearing the completion of its acquisition of the rest of its wealth management joint venture after completing its testing with the US Federal Reserve. CEO James Gorman said the bank had passed the stringent requirements of the regulation bank stress test.
According to Gorman, "The Federal Reserve's non-objection to our capital plan is another important step towards full ownership of our wealth management business, which has been one of the Firm's strategic priorities since 2009. Subject to further regulatory approval, we look forward to completing the acquisition of the remaining 35 percent stake in our wealth management joint venture."
The joint venture is with CitiGroup Inc after the two agreed on a merger of their retail brokerage franchises back in 2009. The fund firm had submitted plans to the Federal Reserve for capital infusion to purchase the remaining parts of the joint venture to which the Fed had no objections.
Join the Conversation