Should Morgan Stanley (MS) Be Allowed To Repay TARP?
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Price: $91.57 +1.45%
Overall Analyst Rating:
NEUTRAL ( Down)
Dividend Yield: 1.7%
Revenue Growth %: +4.1%
Overall Analyst Rating:
NEUTRAL ( Down)
Dividend Yield: 1.7%
Revenue Growth %: +4.1%
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According to CNBC's Charlie Gasparino, Morgan Stanley (NYSE: MS) has sought preliminary approval to repay TARP. Should they be approved?
Based on the results of the recent stress tests, Morgan Stanley had a capital buffer shortfall of $1.8 billion. Morgan Stanley recently bolstered its capital base by $8 billion from selling common shares and debt.
So based on this, the company has more than covered the $1.8 billion capital buffer shortfall, but by repaying its $10 billion in TARP this may put the company back in the grey area. It is not clear if they will or should get the approval.
Based on the results of the recent stress tests, Morgan Stanley had a capital buffer shortfall of $1.8 billion. Morgan Stanley recently bolstered its capital base by $8 billion from selling common shares and debt.
So based on this, the company has more than covered the $1.8 billion capital buffer shortfall, but by repaying its $10 billion in TARP this may put the company back in the grey area. It is not clear if they will or should get the approval.
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