Regulatory Alerts2026-03-26
Federal Reserve Board Joint Findings Approving Morgan Stanley Bank, N.A. Section 23A Exemption for European Reorganization
The Federal Reserve Board and the Office of the Comptroller of the Currency jointly determined that Morgan Stanley Bank, N.A.’s internal reorganization to acquire Morgan Stanley Europe SE and assume its subsidiary’s liabilities qualifies for an exemption from section 23A quantitative limits. The Board found the transaction in the public interest and consistent with statutory purposes, contingent upon the bank maintaining well-capitalized status under specific asset-quality commitments. Morgan Stanley Bank must fulfill written conditions requiring capital maintenance and quarterly cash payments or asset purchases for transferred low-quality assets over a two-year period to complete the restructuring.
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