Morgan Stanley to Raise $2 Billion in Common Equity in Anticipation of Closing of Smith Barney Joint Venture
Firm Intends to Repay TARP Investment and Has More Than Sufficient Tier 1 Capital to Do So With Regulatory Approval; Firm Has Among Strongest Capital Positions in the Industry and Has Further Enhanced Capital Position Since December 2008 Test Date Used by Federal Reserve
May 7 2009 | New York
Morgan Stanley (NYSE: MS) said today that, in anticipation of the closing of the Firm's joint venture with Smith Barney and consistent with the Firm's long-term capital plan, it has commenced a public offering of $2 billion of its common stock for sale to the public.
Morgan Stanley also said it intends to repay the U.S. Treasury's TARP investment as soon as possible from its strong Tier 1 capital reserves, pending the approval of its regulators. The Firm said it believes it has more than sufficient Tier 1 capital to do so and anticipates completing shortly the required offerings of common equity and non-FDIC guaranteed debt.
Regarding the release today of the results of the Federal Reserve's Supervisory Capital Assessment Program, Morgan Stanley also noted that:
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Morgan Stanley has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Morgan Stanley has filed with the SEC for more complete information about Morgan Stanley and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Morgan Stanley, any underwriter or any dealer participating in this offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837.