Boston, MA 10\/29\/2013 (wallstreetpr) –\u00a0<\/b>Morgan Stanley (NYSE:MS) will be seeking the U.S. Federal Reserve approval for its plan to widen its share repurchase program. Earlier this year, the global financial services company was cleared to buy $500 million, but now it wants approval to extend this repurchase limit.<\/p>\n
By bushing to increase its repurchase limit next year, the bank is seeking to boost its return on equity which is good news to its investors. MS seems buoyed by its completion of the brokerage business purchase from Citigroup as well as better profits so far. It thus seems to have a lot of gas to drive up the buyback of its shares.<\/p>\n
Although the bank has indicated strong intent to lift its buyback budget in 2014, it is not yet clearly known what exactly to would be asking for or whether I would ask for something bigger than the current $500 million. The company\u2019s existing buyback plan is expected to end in March next year. So far the bank has spent $123 million of the authorized $500 million.<\/p>\n
Procedurally, banks which are considered to be large and complex are required to obtain Fed approval to carry out their stock buyback programs as well as pay dividend to shareholders.<\/p>\n
The U.S. banks regulator is expected to issue details to banks as regards conducting what is called \u201cstress tests\u201d on their balance sheets. When this happens, it might reveal just how much the bank is seeking approval for in its fresh buyback plan.<\/p>\n
Morgan Stanley provides financial products and services to a wide network of clients including individuals, governments, financial institution and corporations. MS operates in three business segments namely: Asset Management, Institutional Securities and Global Wealth Management.<\/p>\n
The company traded south in the previous trading session, losing 0.89% to stand at $28.97. It has market cap of $56.59 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/29\/2013 (wallstreetpr) –\u00a0Morgan Stanley (NYSE:MS) will be seeking the U.S. Federal Reserve approval for its plan to widen its share repurchase program. Earlier […]<\/p>\n","protected":false},"author":12,"featured_media":11717,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3474,1877,3475,1431],"stock_ticker":[],"class_list":["post-11716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-morgan-stanley","tag-morgan-stanley-nysems","tag-ms","tag-nysems","entry"],"acf":[],"yoast_head":"\n