Morgan Stanley’s stress test estimate strays from Fed’s
Half of US systemic lenders lowball capital hits in DFAST 2021
Four US global systemically important banks (G-Sibs) overshot the Federal Reserve’s estimates of their stressed Common Equity Tier 1 capital ratio in the 2021 stress test, Risk Quantum analysis shows.
Morgan Stanley missed the Fed’s estimate by 150 basis points, projecting a less severe capital burn to its CET1 ratio under the severely adverse scenario.
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