{
  "ticker": "MS",
  "company": "Morgan Stanley",
  "filing_type": "10-K",
  "year_current": "2025",
  "year_prior": "2024",
  "summary": {
    "added": 455,
    "removed": 27,
    "modified": 115,
    "unchanged": 59,
    "total_current": 629,
    "total_prior": 201
  },
  "source": "SEC EDGAR",
  "url": "https://riskdiff.com/ms/2025-vs-2024/",
  "markdown_url": "https://riskdiff.com/ms/2025-vs-2024/index.md",
  "json_url": "https://riskdiff.com/ms/2025-vs-2024/index.json",
  "generated": "2026-06-01",
  "ai_summary": null,
  "risks": [
    {
      "status": "ADDED",
      "current_title": "Significant changes to interest rates could adversely affect our results of operations.",
      "prior_title": null,
      "current_body": "Our net interest income is sensitive to changes in interest rates, generally resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios. The level and pace of interest rate changes, along with other developments, such as pricing changes to certain deposit types due to various competitive dynamics and alternative cash-equivalent products available to depositors, have in the past impacted, and could again impact, client preferences for cash allocation and the pace of reallocation of client balances, resulting in changes in the deposit mix and associated interest expense, as well as client demand for loans. These factors have in the past adversely affected, and may in the future adversely affect, our results of operations, including our net interest income."
    },
    {
      "status": "ADDED",
      "current_title": "Our borrowing costs and access to the debt capital markets depend on our credit ratings.",
      "prior_title": null,
      "current_body": "The cost and availability of unsecured financing generally are impacted by (among other things) our long-term and short-term credit ratings. The rating agencies continue to monitor certain Firm-specific and industrywide factors that are important to the determination of our credit ratings. These include governance, capital adequacy, the level and quality of earnings, liquidity and funding, risk appetite and management, asset quality, strategic direction, business mix, regulatory or legislative changes, macroeconomic environment and perceived levels of support, and it is possible that the rating agencies could downgrade our ratings and those of similar institutions. Our credit ratings also can have an adverse impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as OTC and other derivative transactions, including credit derivatives and interest rate swaps. In connection with certain OTC trading agreements and certain other agreements associated with our Institutional Securities business segment, we may be required to provide additional collateral to, or immediately settle any outstanding liability balance with, certain counterparties in the event of a credit rating downgrade. Termination of our trading agreements could cause us to sustain losses and impair our liquidity by requiring us to find other sources of financing or to make significant payments in the form of cash or securities. The additional collateral or termination payments that may occur in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody’s Investors Service, Inc., S&P Global Ratings and/or other rating agencies. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Credit Ratings—Incremental Collateral or Terminating Payments.”"
    },
    {
      "status": "ADDED",
      "current_title": "Legal, Regulatory and Compliance Risk",
      "prior_title": null,
      "current_body": "Legal, regulatory and compliance risk includes the risk of legal or regulatory sanctions; material financial loss, including fines, penalties, judgments, damages and/or settlements; limitations on our business; or loss to reputation we may suffer as a result of our failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing and anti-corruption rules and regulations. For more information on how we monitor and manage legal, regulatory and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk.” December 2024 Form 10-K18 December 2024 Form 10-K18 December 2024 Form 10-K18 18 Table of Contents Table of Contents Table of Contents The financial services industry is subject to extensive regulation, and changes in regulation will impact our business.Like other major financial services firms, we are subject to extensive regulation by U.S. federal and state regulatory agencies and securities exchanges, and by regulators and exchanges in each of the major markets where we conduct our business, including an increasing number of complex sanctions and disclosure regimes. These laws and regulations, which may continue to increase in volume and complexity, significantly affect the way and costs of doing business and can restrict the scope of our existing businesses and limit our ability to expand our product offerings and pursue certain investments.The Firm and its employees are subject to wide-ranging regulation and supervision, which, among other things, subject us to intensive scrutiny of our businesses and any plans for expansion of those businesses through acquisitions or otherwise, limitations on activities, a systemic risk regime that imposes heightened capital and liquidity and funding requirements, including the global implementation of capital standards established by the Basel Committee, and other enhanced prudential standards, resolution regimes and resolution planning requirements, requirements for maintaining minimum amounts of TLAC and external long-term debt, restrictions on activities and investments imposed by the Volcker Rule, comprehensive derivatives regulation, interest rate benchmark requirements, commodities regulation, market structure regulation, consumer protection regulation, AML, terrorist financing and anti-corruption rules and regulations, tax regulations and interpretations, antitrust laws, trade and transaction reporting obligations, requirements related to preventing the misuse of confidential information, including material non-public information, record-keeping requirements, broadened fiduciary obligations and disclosure requirements.New laws, rules, regulations and guidelines, as well as ongoing implementation of, our efforts to comply with, and/or changes to laws, rules, regulations and guidelines, including changes in the breadth, application, interpretation or enforcement of laws, rules, regulations and guidelines, could materially impact the profitability of our businesses and the value of assets we hold, impact our income tax provision and effective tax rate, expose us to additional theories of liability and additional costs, require changes to business practices or force us to discontinue businesses, adversely affect our ability to pay dividends and repurchase our stock or require us to raise capital, including in ways that may adversely impact our shareholders or creditors.In addition, regulatory requirements that are imposed by foreign policymakers and regulators may be inconsistent or conflict with regulations that we are subject to in the U.S. and may adversely affect us. The application of regulatory requirements and strategies in the U.S. or other jurisdictions to facilitate the orderly resolution of large financial institutions may pose a greater risk of loss for our security holders and subject us to other restrictions.We are required to submit once every two years to the Federal Reserve and the FDIC a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of material financial distress or failure. If the Federal Reserve and the FDIC were to jointly determine that our resolution plan submission was not credible or would not facilitate an orderly resolution, and if we were unsuccessful in addressing any deficiencies identified by the regulators, we or any of our subsidiaries may be subject to more stringent capital, leverage or liquidity requirements or restrictions on our growth, activities or operations, or after a two-year period, we may be required to divest assets or operations.In addition, provided that certain procedures are met, we can be subject to a resolution proceeding under the orderly liquidation authority under Title II of the Dodd-Frank Act with the FDIC being appointed as receiver instead of being resolved under the U.S. Bankruptcy Code. The FDIC’s power under the orderly liquidation authority to disregard the priority of creditor claims and treat similarly situated creditors differently in certain circumstances, subject to certain limitations, could adversely impact holders of our unsecured debt. See “Business—Supervision and Regulation” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements.”Further, because both our resolution plan contemplates an SPOE strategy under the U.S. Bankruptcy Code and the FDIC has indicated that it expects to use an SPOE strategy through which it may apply its orderly liquidation authority powers for a U.S. G-SIB, we believe that the application of an SPOE strategy is the reasonably likely outcome if either our resolution plan were implemented or a resolution proceeding were commenced under the orderly liquidation authority. An SPOE strategy generally contemplates the provision of adequate capital and liquidity by the Parent Company to certain of its subsidiaries so that such subsidiaries have the resources necessary to implement the resolution strategy, and the Parent Company has entered into a secured amended and restated support agreement with such entities, pursuant to which it would provide such capital and liquidity to such entities.In addition, a wholly owned, direct subsidiary of the Parent Company, Morgan Stanley Holdings LLC (“Funding IHC”), serves as a resolution funding vehicle. The Parent Company has transferred, and has agreed to transfer on an ongoing basis, certain assets to the Funding IHC. In the event of a resolution scenario, the Parent Company would be obligated to contribute all of its material assets that can be contributed under the terms of the amended and restated support The financial services industry is subject to extensive regulation, and changes in regulation will impact our business.Like other major financial services firms, we are subject to extensive regulation by U.S. federal and state regulatory agencies and securities exchanges, and by regulators and exchanges in each of the major markets where we conduct our business, including an increasing number of complex sanctions and disclosure regimes. These laws and regulations, which may continue to increase in volume and complexity, significantly affect the way and costs of doing business and can restrict the scope of our existing businesses and limit our ability to expand our product offerings and pursue certain investments.The Firm and its employees are subject to wide-ranging regulation and supervision, which, among other things, subject us to intensive scrutiny of our businesses and any plans for expansion of those businesses through acquisitions or otherwise, limitations on activities, a systemic risk regime that imposes heightened capital and liquidity and funding requirements, including the global implementation of capital standards established by the Basel Committee, and other enhanced prudential standards, resolution regimes and resolution planning requirements, requirements for maintaining minimum amounts of TLAC and external long-term debt, restrictions on activities and investments imposed by the Volcker Rule, comprehensive derivatives regulation, interest rate benchmark requirements, commodities regulation, market structure regulation, consumer protection regulation, AML, terrorist financing and anti-corruption rules and regulations, tax regulations and interpretations, antitrust laws, trade and transaction reporting obligations, requirements related to preventing the misuse of confidential information, including material non-public information, record-keeping requirements, broadened fiduciary obligations and disclosure requirements.New laws, rules, regulations and guidelines, as well as ongoing implementation of, our efforts to comply with, and/or changes to laws, rules, regulations and guidelines, including changes in the breadth, application, interpretation or enforcement of laws, rules, regulations and guidelines, could materially impact the profitability of our businesses and the value of assets we hold, impact our income tax provision and effective tax rate, expose us to additional theories of liability and additional costs, require changes to business practices or force us to discontinue businesses, adversely affect our ability to pay dividends and repurchase our stock or require us to raise capital, including in ways that may adversely impact our shareholders or creditors.In addition, regulatory requirements that are imposed by foreign policymakers and regulators may be inconsistent or conflict with regulations that we are subject to in the U.S. and may adversely affect us."
    },
    {
      "status": "ADDED",
      "current_title": "Cybersecurity",
      "prior_title": null,
      "current_body": "For a discussion of cybersecurity, see “Quantitative and Qualitative Disclosures about Risk— Operational Risk— Cybersecurity.”"
    },
    {
      "status": "ADDED",
      "current_title": "Non-Interest Expenses",
      "prior_title": null,
      "current_body": "($ in millions) •Compensation and benefits expenses of $26,178 million in 2024 increased 7% from the prior year, primarily due to an increase in the formulaic payout to Wealth Management representatives and higher discretionary incentive compensation, both on higher revenues, partially offset by lower severance costs. In 2023, Compensation and benefits expenses included severance costs of $353 million, primarily associated with a specific Firmwide reduction in workforce during the second quarter of 2023. We recorded severance costs of $220 million in the Institutional Securities business segment, $105 million in the Wealth Management business segment, and $28 million in the Investment Management business segment for 2023. In 2022, Compensation and benefits expenses included severance costs of $133 million, associated with a specific Firmwide reduction in workforce during the fourth quarter of 2022. We recorded severance costs of $88 million in the Institutional Securities business segment, $30 million in the Wealth Management business segment, and $15 million in the Investment Management business segment for 2022. These specific reductions in workforce occurred across the Firm’s business segments and geographic regions, impacted approximately 4% and 1% of the Firm’s global workforce in 2023 and 2022, respectively, and resulted from the Firm’s review of its global workforce, operating expenses and the business environment following the acquisitions of E*TRADE Financial Corporation (“E*TRADE”) and Eaton Vance Corp. (“Eaton Vance”), rather than a change in strategy or exit of businesses. These costs were primarily incurred in the Americas and EMEA, with the majority in the Americas. •Non-compensation expenses of $17,723 million in 2024 increased 3% from the prior year, primarily driven by higher execution-related expenses and increased technology spend, partially offset by lower legal expenses and lower FDIC special assessment cost. In 2023, integration-related expenses were $293 million, of which $201 million related to the integration of E*TRADE within the Wealth Management business segment and $92 million related to the integration of Eaton Vance within the Investment Management business segment. In 2022, integration-related expenses were $470 million, of which $357 million related to the integration of E*TRADE within the Wealth Management business segment and $113 million related to the integration of Eaton Vance within the Investment Management business segment. Integration-related expenses primarily included non-compensation expenses such as information technology expense related to the consolidation of platforms, and professional fees related to changes in legal entity structures and the integration of clients, within both Wealth Management and Investment Management business segments. Integration-related activities were substantially completed as of December 31, 2023.Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios.For further information on the Provision for credit losses, see “Credit Risk” herein.Business Segment ResultsNet Revenues by Segment1($ in millions) In 2023, integration-related expenses were $293 million, of which $201 million related to the integration of E*TRADE within the Wealth Management business segment and $92 million related to the integration of Eaton Vance within the Investment Management business segment. In 2022, integration-related expenses were $470 million, of which $357 million related to the integration of E*TRADE within the Wealth Management business segment and $113 million related to the integration of Eaton Vance within the Investment Management business segment. Integration-related expenses primarily included non-compensation expenses such as information technology expense related to the consolidation of platforms, and professional fees related to changes in legal entity structures and the integration of clients, within both Wealth Management and Investment Management business segments. Integration-related activities were substantially completed as of December 31, 2023."
    },
    {
      "status": "ADDED",
      "current_title": "Economic and Market Conditions",
      "prior_title": null,
      "current_body": "The economic environment, client and investor confidence and overall market sentiment improved in 2024. While interest rates declined in recent months, elevated inflation, geopolitical risks including ongoing tensions in the Middle East, uncertainties surrounding government and policy developments in the markets we operate in and the timing and pace of further interest rate actions present ongoing risks to the economic environment. These factors have impacted, and could continue to impact capital markets and our businesses, as discussed further in “Business Segments” herein. For more information on economic and market conditions, and the potential effects of geopolitical events and acts of war or aggression on our future results, refer to “Risk Factors” and “Forward-Looking Statements.”"
    },
    {
      "status": "ADDED",
      "current_title": "Reconciliations from U.S. GAAP to Non-GAAP Consolidated Financial Measures",
      "prior_title": null,
      "current_body": "$ in millions202420232022Net revenues$61,761 $54,143 $53,668 Adjustment for mark-to-market losses (gains) on DCP1(363)(434)1,198 Adjusted Net revenues—non-GAAP$61,398 $53,709 $54,866 Compensation expense$26,178 $24,558 $23,053 Adjustment for mark-to-market losses (gains) on DCP1(672)(668)716 Adjusted Compensation expense—non-GAAP$25,506 $23,890 $23,769 Wealth Management Net revenues$28,420 $26,268 $24,417 Adjustment for mark-to-market losses (gains) on DCP1(239)(282)858 Adjusted Wealth Management Net revenues—non-GAAP$28,181 $25,986 $25,275 Wealth Management Compensation expense$15,207 $13,972 $12,534 Adjustment for mark-to-market losses (gains) on DCP1(431)(412)530 Adjusted Wealth Management Compensation expense—non-GAAP$14,776 $13,560 $13,064 $ in millions Adjustment for mark-to-market losses (gains) on DCP1 Adjustment for mark-to-market losses (gains) on DCP1 Adjustment for mark-to-market losses (gains) on DCP1 Adjustment for mark-to-market losses (gains) on DCP1 1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment. See “Other Matters” herein for more information. At December 31,$ in millions202420232022Tangible equityCommon equity$94,761 $90,288 $91,391 Less: Goodwill and net intangible assets(23,157)(23,761)(24,268)Tangible common equity—non-GAAP$71,604 $66,527 $67,123 Common equity"
    },
    {
      "status": "ADDED",
      "current_title": "Business Segments",
      "prior_title": null,
      "current_body": "Substantially all of our operating revenues and operating expenses are directly attributable to our business segments. Certain revenues and expenses have been allocated to each business segment, generally in proportion to its respective net revenues, non-interest expenses or other relevant measures. See Note 22 to the financial statements for segment net revenues by income statement line item and information on intersegment transactions. Net RevenuesInvestment Banking Investment banking revenues are derived from client engagements in which we act as an advisor, underwriter or distributor of capital.Within the Institutional Securities business segment, these revenues are primarily composed of fees earned from underwriting equity and fixed income securities, syndicating loans and advisory services in relation to mergers and acquisitions, divestitures and corporate restructurings.Within the Wealth Management business segment, these revenues are derived from the distribution of newly issued securities.TradingTrading revenues include the realized gains and losses from transactions in financial instruments, unrealized gains and losses from ongoing changes in the fair value of our positions, and gains and losses from financial instruments used to economically hedge compensation expense related to DCP. Within the Institutional Securities business segment, Trading revenues arise from transactions in cash instruments and derivatives in which we act as a market maker for our clients. In this role, we stand ready to buy, sell or otherwise transact with customers under a variety of market conditions and to provide firm or indicative prices in response to customer requests. Our liquidity obligations can be explicit in some cases, and in others, customers expect us to be willing to transact with them. In order to most effectively fulfill our market-making function, we engage in activities across all of our trading businesses that include, but are not limited to:•taking positions in anticipation of, and in response to, customer demand to buy or sell and—depending on the liquidity of the relevant market and the size of the position—to hold those positions for a period of time;•building, maintaining and rebalancing inventory held to facilitate client activity through trades with other market participants;•managing and assuming basis risk (risk associated with imperfect hedging) between risks incurred from the facilitation of client transactions and the standardized products available in the market to hedge those risks;•trading in the market to remain current on pricing and trends; and•engaging in other activities to provide efficiency and liquidity for markets.In many markets, the realized and unrealized gains and losses from purchase and sale transactions will include any spreads between bids and offers. Certain fees received on loans carried at fair value and dividends from equity securities are also recorded in Trading revenues since they relate to positions carried at fair value."
    },
    {
      "status": "ADDED",
      "current_title": "Institutional Securities—Fixed Income and Equities",
      "prior_title": null,
      "current_body": "Fixed income and Equities net revenues are composed of Trading revenues, Commissions and fees, Asset management revenues, Net interest, and certain Investments and Other revenues directly attributable to those businesses. These revenues, which can be affected by a variety of interrelated factors, including market volumes, bid-offer spreads and the impact of market conditions on inventory held to facilitate client activity, as well as the effect of hedging activity, are viewed in the aggregate when assessing the performance and profitability of our businesses. Following is a description of the revenue-generating activities within our equity and fixed income businesses, as well as how their results impact the income statement line items. Equity—Financing. We provide financing, prime brokerage and fund administration services to our clients active in the equity markets through a variety of products, including margin lending, securities lending and swaps. Results from this business are largely driven by the difference between financing income earned and financing and liquidity costs incurred, which are reflected in Net interest for securities lending products, and in Trading revenues for derivative products. Fees for providing fund administration services are reflected in Asset management revenues. Equity—Execution services. A significant portion of the results for this business is generated by commissions and fees from executing and clearing client transactions on major stock and derivative exchanges, as well as from OTC transactions. We make markets for our clients principally in equity-related securities and derivative products, including those that provide liquidity and are utilized for hedging. Market-making also generates gains and losses on inventory held to facilitate client activity, which are reflected in Trading revenues. Execution services also includes certain Investments and Other revenues. Fixed Income—Within fixed income, we make markets in various flow and structured products in order to facilitate client activity as part of the following products and services: •Global macro products. We make markets for our clients in interest rate, foreign exchange and emerging market products, including exchange-traded and OTC securities and derivative instruments. The results of this market-making activity are primarily driven by gains and losses from buying and selling positions to stand ready for and satisfy client demand and are recorded in Trading revenues. •Credit products. We make markets in credit-sensitive products, such as corporate bonds and mortgage securities and other securitized products, and related derivative instruments. The values of positions in this business are sensitive to changes in credit spreads and interest rates, which result in gains and losses reflected in Trading revenues. We undertake lending activities, which include commercial mortgage lending, secured lending facilities and financing extended to sales and trading customers. Due to the amount and type of the interest-bearing securities and loans making up this business, a significant portion of the results is also reflected in Net interest revenues.•Commodities products and Other. We make markets in various commodity products related primarily to electricity, natural gas, oil and metals. These activities are primarily recorded in Trading revenues.Fixed income also includes certain Investments and Other revenues.Institutional Securities—Other Net RevenuesOther net revenues include impacts from certain treasury functions, such as liquidity and funding costs and gains and losses on economic hedges related to certain borrowings. Other net revenues also include mark-to-market gains and losses on held-for-sale corporate loans and lending commitments, as well as net interest and gain and losses on economic hedges associated with held-for-sale and held-for-investment corporate loans and lending commitments. Also included are gains and losses from financial instruments used to economically hedge compensation expense related to certain DCP, income and losses from the equity method investment related to our Japanese securities joint venture with MUFG, as well as Investments and Other revenues that are not directly attributable to Fixed income and Equities businesses.Compensation ExpenseCompensation and benefits expenses include base salaries and fixed allowances, formulaic programs, discretionary incentive compensation, amortization of deferred cash and equity awards, changes in the fair value of DCP investments, carried interest allocated to employees, severance costs, and other items such as health and welfare benefits. For additional information on DCP, refer to “Other Matters” herein.The factors that drive compensation for our employees vary from period to period, from segment to segment and within a segment. For certain revenue-producing employees in the Wealth Management and Investment Management business segments, compensation is largely paid on the basis of formulaic payouts that link employee compensation to revenues. Compensation for other employees, including revenue-producing employees in the Institutional Securities business segment and employees in corporate support functions, include base salary and benefits and may also include incentive compensation that is determined following the assessment of the performance of the Firm, business unit and individual.Income TaxesThe Income tax provision for our business segments is generally determined based on the revenues, expenses and activities directly attributable to each business segment. Certain items have been allocated to each business segment, generally in proportion to its respective net revenues or other relevant measures. to the amount and type of the interest-bearing securities and loans making up this business, a significant portion of the results is also reflected in Net interest revenues. •Commodities products and Other. We make markets in various commodity products related primarily to electricity, natural gas, oil and metals. These activities are primarily recorded in Trading revenues. Fixed income also includes certain Investments and Other revenues."
    },
    {
      "status": "ADDED",
      "current_title": "Income Statement Information",
      "prior_title": null,
      "current_body": "% Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%"
    },
    {
      "status": "ADDED",
      "current_title": "Asset Management",
      "prior_title": null,
      "current_body": "Asset management revenues include fees associated with the management and supervision of assets and the distribution of funds and similar products. Within the Wealth Management business segment, Asset management revenues are related to advisory services associated with fee-based assets, account service and administration, as well as distribution of products. These revenues are generally based on the net asset value of the account in which a client is invested.Within the Investment Management business segment, Asset management revenues are primarily composed of fees received from investment vehicles on the basis of assets under management. Performance-based fees, not in the form of carried interest, are earned on certain products and separately managed accounts as a percentage of appreciation in value and, in certain cases, are based upon the achievement of performance criteria. These performance fees are generally recognized on a quarterly or annual basis. Net InterestInterest income and Interest expense are functions of the level and mix of total assets and liabilities, including Trading assets and Trading liabilities, Investment securities, Securities borrowed or purchased under agreements to resell, Securities loaned or sold under agreements to repurchase, Loans, Deposits and Borrowings. Within the Institutional Securities business segment, Net interest is a function of market-making strategies, client activity, and the prevailing level, term structure and volatility of interest rates. Net interest is impacted by market-making, lending and financing activities as we generally earn interest on securities held by the Firm, Securities borrowed, Securities purchased under agreements to resell, Loans and margin loans, while Borrowings, Securities loaned and Securities sold under agreements to repurchase generally incur interest expense. Within the Wealth Management business segment, Interest income is driven by assets held including Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. OtherOther revenues for Institutional Securities include revenues and losses from equity method investments, fees earned in association with lending activities, mark-to-market gains and losses on loans and lending commitments held for sale, as well as gains and losses on economic derivative hedges associated with certain held-for-sale and held-for-investment loans and lending commitments.Other revenues for Wealth Management include realized gains and losses on AFS securities, account handling fees, referral fees and other miscellaneous revenues.Provision for Credit LossesThe Provision for credit losses includes the provision for credit losses for loans and lending commitments held for investment. associated with fee-based assets, account service and administration, as well as distribution of products. These revenues are generally based on the net asset value of the account in which a client is invested. Within the Investment Management business segment, Asset management revenues are primarily composed of fees received from investment vehicles on the basis of assets under management. Performance-based fees, not in the form of carried interest, are earned on certain products and separately managed accounts as a percentage of appreciation in value and, in certain cases, are based upon the achievement of performance criteria. These performance fees are generally recognized on a quarterly or annual basis."
    },
    {
      "status": "ADDED",
      "current_title": "Accounting Development Updates",
      "prior_title": null,
      "current_body": "The Financial Accounting Standards Board has issued certain accounting updates that apply to us. Accounting updates not listed below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption. We are currently evaluating the following accounting updates; however, we do not expect a material impact on our financial condition or results of operations upon adoption: •Disaggregation of Income Statement Expenses. This update requires quantitative and qualitative disclosure of certain expense categories contained within their relevant expense lines in the income statement, including but not limited to: (1) employee compensation; (2) depreciation; and (3) intangible asset amortization. The update requires the disaggregation of these expense lines in a tabular format in the notes to the financial statements, including the separate disclosure of certain other expenses and gains or losses included within these expense lines which are required under existing U.S. GAAP, with all other expenses permitted to be disclosed in an “other items” category. Additionally, the update requires disclosure of the total amount and definition of the Firm’s selling expenses. The update is effective for annual periods beginning January 1, 2027, and interim reporting periods beginning January 1, 2028, with early adoption permitted. •Income Tax Disclosures. This update enhances annual income tax disclosures primarily to further disaggregate disclosures related to the income tax rate reconciliation and income taxes paid. For the income tax rate reconciliation, this update requires (1) disclosure of specific categories of reconciling items (where applicable), and (2) providing additional information for reconciling items that meet a quantitative threshold. For income taxes paid (net of refunds), this update requires disclosure of amounts disaggregated by (1) federal, state, and foreign taxes; and (2) individual jurisdictions that meet a quantitative threshold. Additionally, the update requires disclosure of (1) income (or loss) before income taxes, disaggregated between domestic and foreign; and (2) income tax expense disaggregated by federal, state and foreign. The update is effective for annual periods beginning January 1, 2025, with early adoption permitted."
    },
    {
      "status": "ADDED",
      "current_title": "Liquidity and Capital Resources",
      "prior_title": null,
      "current_body": "Our liquidity and capital policies are established and maintained by senior management, with oversight by the Asset/Liability Management Committee and our Board of Directors (“Board”). Through various risk and control committees, senior management reviews business performance relative to these policies, monitors the availability of alternative sources of financing, and oversees the liquidity, interest rate and currency sensitivity of our asset and liability position. Our Corporate Treasury department (“Treasury”), Firm Risk Committee, Asset/Liability Management Committee, and other committees and control groups assist in evaluating, monitoring and managing the impact that our business activities have on our balance sheet, liquidity and capital structure. Liquidity and capital matters are reported regularly to the Board and the Risk Committee of the Board."
    },
    {
      "status": "ADDED",
      "current_title": "Liquidity Resources",
      "prior_title": null,
      "current_body": "We maintain sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”), to cover daily funding needs and to meet strategic liquidity targets sized by the Required Liquidity Framework and Liquidity Stress Tests. We actively manage the amount of our Liquidity Resources considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements. The amount of Liquidity Resources we hold is based on our risk appetite and is calibrated to meet various internal and regulatory requirements and to fund prospective business activities. The Liquidity Resources are primarily held within the Parent Company and its major operating subsidiaries. The Total HQLA values in the tables immediately following are different from Eligible HQLA, which, in accordance with the LCR rule, also takes into account certain regulatory weightings and other operational considerations."
    },
    {
      "status": "ADDED",
      "current_title": "Collateralized Financing Transactions",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Securities purchased under agreements to resell and Securities borrowed$242,424 $231,831 Securities sold under agreements to repurchase and Securities loaned$65,293 $77,708 Securities received as collateral1$9,625 $6,219 Securities received as collateral1 1.Included within Trading assets in the balance sheet. Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024December 31, 2023Securities purchased under agreements to resell and Securities borrowed$250,354 $235,928 Securities sold under agreements to repurchase and Securities loaned$74,949 $87,285 See “Total Assets by Business Segment” herein for additional information on the assets shown in the previous table and Notes 2 and 8 to the financial statements for additional information on collateralized financing transactions. In addition to the collateralized financing transactions shown in the previous table, we engage in financing transactions collateralized by customer-owned securities, which are segregated in accordance with regulatory requirements. Receivables under these financing transactions, primarily margin loans, are included in Customer and other receivables in the balance sheet, and payables under these financing transactions, primarily to prime brokerage customers, are included in Customer and other payables in the balance sheet. Our risk exposure on these transactions is mitigated by collateral maintenance policies and the elements of our Liquidity Risk Management Framework."
    },
    {
      "status": "ADDED",
      "current_title": "Credit Ratings",
      "prior_title": null,
      "current_body": "We rely on external sources to finance a significant portion of our daily operations. Our credit ratings are one of the factors in the cost and availability of financing and can have an impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as certain OTC derivative transactions. When determining credit ratings, rating agencies consider both company-specific and industry-wide factors. See also “Risk Factors—Liquidity Risk.”"
    },
    {
      "status": "ADDED",
      "current_title": "Capital Management",
      "prior_title": null,
      "current_body": "We view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements, such as the SCB, and rating agency guidelines. In the future, we may expand or contract our capital base to address the changing needs of our businesses."
    },
    {
      "status": "ADDED",
      "current_title": "Regulatory Capital Framework",
      "prior_title": null,
      "current_body": "We are an FHC under the BHC Act and are subject to the regulation and oversight of the Federal Reserve. The Federal Reserve establishes capital requirements for us, including “well-capitalized” standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and standards for our U.S. Bank Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 16 to the financial statements."
    },
    {
      "status": "ADDED",
      "current_title": "Risk-based capital",
      "prior_title": null,
      "current_body": "StandardizedAdvanced$ in millionsAt December 31, 2024At December 31, 2023At December 31, 2024At December 31, 2023Risk-based capitalCET1 capital$75,095 $69,448 $75,095 $69,448 Tier 1 capital84,790 78,183 84,790 78,183 Total capital95,567 88,874 94,846 88,190 Total RWA471,834 456,053 477,331 448,154 Risk-based capital ratiosCET1 capital15.9 %15.2 %15.7 %15.5 %Tier 1 capital18.0 %17.1 %17.8 %17.4 %Total capital20.3 %19.5 %19.9 %19.7 %Required ratios1CET1 capital13.5 %12.9 %10.0 %10.0 %Tier 1 capital15.0 %14.4 %11.5 %11.5 %Total capital17.0 %16.4 %13.5 %13.5 %"
    },
    {
      "status": "ADDED",
      "current_title": "Required ratios1",
      "prior_title": null,
      "current_body": "CET1 capital ratio 1.Required ratios represent the regulatory minimum plus the capital buffer requirement. Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following: •Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us; •Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and•Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets).Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2024 and December 31, 2023, the differences between the actual and required ratios were lower under the Standardized Approach.Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%.CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024. The deferral impacts were fully phased-in from January 1, 2025. correlations or other market factors, such as market liquidity; and •Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets). Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2024 and December 31, 2023, the differences between the actual and required ratios were lower under the Standardized Approach. Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%. CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024. The deferral impacts were fully phased-in from January 1, 2025. December 2024 Form 10-K50 December 2024 Form 10-K50 December 2024 Form 10-K50 50 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Regulatory Capital RatiosRisk-based capitalStandardizedAdvanced$ in millionsAt December 31, 2024At December 31, 2023At December 31, 2024At December 31, 2023Risk-based capitalCET1 capital$75,095 $69,448 $75,095 $69,448 Tier 1 capital84,790 78,183 84,790 78,183 Total capital95,567 88,874 94,846 88,190 Total RWA471,834 456,053 477,331 448,154 Risk-based capital ratiosCET1 capital15.9 %15.2 %15.7 %15.5 %Tier 1 capital18.0 %17.1 %17.8 %17.4 %Total capital20.3 %19.5 %19.9 %19.7 %Required ratios1CET1 capital13.5 %12.9 %10.0 %10.0 %Tier 1 capital15.0 %14.4 %11.5 %11.5 %Total capital17.0 %16.4 %13.5 %13.5 %1.Required ratios are inclusive of any buffers applicable as of the date presented.Leveraged-based capital$ in millionsAt December 31, 2024At December 31, 2023Leveraged-based capitalAdjusted average assets1$1,223,779 $1,159,626 Supplementary leverage exposure21,517,687 1,429,552 Leveraged-based capital ratiosTier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %Required ratios3Tier 1 leverage4.0 %4.0 %SLR5.0 %5.0 %1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.2.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.3.Required ratios are inclusive of any buffers applicable as of the date presented. Regulatory Capital$ in millionsAtDecember 31,2024AtDecember 31,2023 ChangeCET1 capitalCommon shareholders’ equity$94,761 $90,288 $4,473 Regulatory adjustments and deductions:Net goodwill(16,354)(16,394)40 Net intangible assets(5,003)(5,509)506 Impact of CECL transition62 124 (61)Other adjustments and deductions11,629 939 690 Total CET1 capital$75,095 $69,448 $5,647 Additional Tier 1 capitalPreferred stock$9,750 $8,750 $1,000 Noncontrolling interests807 758 49 Additional Tier 1 capital$10,557 $9,508 $1,049 Deduction for investments in covered funds(862)(773)(89)Total Tier 1 capital$84,790 $78,183 $6,607 Standardized Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible ACL2,065 2,051 14 Other adjustments and deductions(139)(120)(19)Total Standardized Tier 2 capital$10,777 $10,691 $86 Total Standardized capital$95,567 $88,874 $6,693 Advanced Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible credit reserves1,344 1,367 (23)Other adjustments and deductions(139)(120)(19)Total Advanced Tier 2 capital$10,056 $10,007 $49 Total Advanced capital$94,846 $88,190 $6,656 1.Other adjustments and deductions used in the calculation of CET1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets. Regulatory Capital RatiosRisk-based capitalStandardizedAdvanced$ in millionsAt December 31, 2024At December 31, 2023At December 31, 2024At December 31, 2023Risk-based capitalCET1 capital$75,095 $69,448 $75,095 $69,448 Tier 1 capital84,790 78,183 84,790 78,183 Total capital95,567 88,874 94,846 88,190 Total RWA471,834 456,053 477,331 448,154 Risk-based capital ratiosCET1 capital15.9 %15.2 %15.7 %15.5 %Tier 1 capital18.0 %17.1 %17.8 %17.4 %Total capital20.3 %19.5 %19.9 %19.7 %Required ratios1CET1 capital13.5 %12.9 %10.0 %10.0 %Tier 1 capital15.0 %14.4 %11.5 %11.5 %Total capital17.0 %16.4 %13.5 %13.5 %1.Required ratios are inclusive of any buffers applicable as of the date presented.Leveraged-based capital$ in millionsAt December 31, 2024At December 31, 2023Leveraged-based capitalAdjusted average assets1$1,223,779 $1,159,626 Supplementary leverage exposure21,517,687 1,429,552 Leveraged-based capital ratiosTier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %Required ratios3Tier 1 leverage4.0 %4.0 %SLR5.0 %5.0 %1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.2.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.3.Required ratios are inclusive of any buffers applicable as of the date presented."
    },
    {
      "status": "ADDED",
      "current_title": "Leveraged-based capital",
      "prior_title": null,
      "current_body": "$ in millionsAt December 31, 2024At December 31, 2023Leveraged-based capitalAdjusted average assets1$1,223,779 $1,159,626 Supplementary leverage exposure21,517,687 1,429,552 Leveraged-based capital ratiosTier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %Required ratios3Tier 1 leverage4.0 %4.0 %SLR5.0 %5.0 %"
    },
    {
      "status": "ADDED",
      "current_title": "At December 31,",
      "prior_title": null,
      "current_body": "2024 Adjusted average assets1 Supplementary leverage exposure2"
    },
    {
      "status": "ADDED",
      "current_title": "Regulatory Capital",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024AtDecember 31,2023 ChangeCET1 capitalCommon shareholders’ equity$94,761 $90,288 $4,473 Regulatory adjustments and deductions:Net goodwill(16,354)(16,394)40 Net intangible assets(5,003)(5,509)506 Impact of CECL transition62 124 (61)Other adjustments and deductions11,629 939 690 Total CET1 capital$75,095 $69,448 $5,647 Additional Tier 1 capitalPreferred stock$9,750 $8,750 $1,000 Noncontrolling interests807 758 49 Additional Tier 1 capital$10,557 $9,508 $1,049 Deduction for investments in covered funds(862)(773)(89)Total Tier 1 capital$84,790 $78,183 $6,607 Standardized Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible ACL2,065 2,051 14 Other adjustments and deductions(139)(120)(19)Total Standardized Tier 2 capital$10,777 $10,691 $86 Total Standardized capital$95,567 $88,874 $6,693 Advanced Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible credit reserves1,344 1,367 (23)Other adjustments and deductions(139)(120)(19)Total Advanced Tier 2 capital$10,056 $10,007 $49 Total Advanced capital$94,846 $88,190 $6,656"
    },
    {
      "status": "ADDED",
      "current_title": "Basel III Endgame and G-SIB Surcharge Proposals",
      "prior_title": null,
      "current_body": "On July 27, 2023, U.S. banking agencies proposed revisions to risk-based capital and related standards applicable to us and our U.S. Bank Subsidiaries (“Basel III Endgame Proposal”). We continue to monitor developments related to this rulemaking as well as the proposed revisions to the G-SIB capital surcharge framework. December 2024 Form 10-K54 December 2024 Form 10-K54 December 2024 Form 10-K54 54 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "Risk Management Process",
      "prior_title": null,
      "current_body": "In subsequent sections, we discuss our risk management policies and procedures for our primary risks involved in the activities of our Institutional Securities, Wealth Management and Investment Management business segments. These sections and the estimated amounts of our risk exposure generated by our statistical analyses are forward-looking statements. However, the analyses used to assess such risks are not predictions of future events, and actual results may vary significantly from such analyses due to events in the markets in which we operate and certain other factors described in the following paragraphs."
    },
    {
      "status": "ADDED",
      "current_title": "Loans and Lending Commitments",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,889 $9,183 $— $16,072 Secured lending facilities48,842 2,507 — 51,349 Commercial and Residential real estate8,412 628 2,420 11,460 Securities-based lending and Other2,876 — 6,041 8,917 Total Institutional Securities67,019 12,318 8,461 87,798 Wealth Management:Residential real estate66,738 — — 66,738 Securities-based lending and Other93,139 1 — 93,140 Total Wealth Management159,877 1 — 159,878 Total Investment Management24 — 200 204 Total loans226,900 12,319 8,661 247,880 ACL(1,066)(1,066)Total loans, net of ACL$225,834 $12,319 $8,661 $246,814 Lending commitments3$148,818 $26,955 $758 $176,531 Total exposure$374,652 $39,274 $9,419 $423,345 FVO1"
    },
    {
      "status": "ADDED",
      "current_title": "Status of Loans Held for Investment",
      "prior_title": null,
      "current_body": "At December 31, 2024At December 31, 2023ISWMISWMAccrual99.2 %99.7 %98.9 %99.8 %Nonaccrual10.8 %0.3 %1.1 %0.2 % Nonaccrual1 1.Nonaccrual loans are loans where principal or interest is not expected when contractually due or are past due 90 days or more. Net Charge-off Ratios for Loans Held for Investment$ in millionsCorporate Secured Lending FacilitiesCREResidential Real EstateSBL and OtherTotal2024Net charge-off ratio 10.57 %0.03 %1.87 %— %0.03 %0.11 %Average loans$6,895 $43,158 $8,620 $63,204 $91,221 $213,098 2023Net charge-off ratio 10.47 %— %1.50 %— %— %0.08 %Average loans$7,062 $37,702 $8,590 $57,177 $91,126 $201,657 2022Net charge-off ratio 1(0.09)%0.01 %0.09 %— %0.02 %0.01 %Average loans$6,544 $33,172 $8,234 $49,937 $93,427 $191,314 Net charge-off ratio 1 Net charge-off ratio 1 Net charge-off ratio 1 CRE—Commercial real estate SBL—Securities-based lending 1.Net charge-off ratio represents gross charge-offs net of recoveries divided by total average loans held for investment before ACL."
    },
    {
      "status": "ADDED",
      "current_title": "Institutional Securities Loans and Lending Commitments1",
      "prior_title": null,
      "current_body": "At December 31, 2024 Contractual Years to Maturity $ in millions< 11-55-15>15TotalLoansAA$3 $575 $187 $— $765 A894 588 164 — 1,646 BBB5,165 13,185 91 124 18,565 BB11,235 24,467 2,592 358 38,652 Other NIG8,520 12,776 1,673 145 23,114 Unrated2227 1,176 420 2,503 4,326 Total loans, net of ACL26,044 52,767 5,127 3,130 87,068 Lending commitmentsAAA— 75 — — 75 AA2,560 4,285 88 — 6,933 A8,226 21,372 1,091 — 30,689 BBB10,135 54,752 1,507 146 66,540 BB3,174 23,239 3,062 941 30,416 Other NIG1,074 17,436 3,956 2 22,468 Unrated214 93 33 — 140 Total lendingcommitments25,183 121,252 9,737 1,089 157,261 Total exposure$51,227 $174,019 $14,864 $4,219 $244,329 Unrated2 Unrated2"
    },
    {
      "status": "ADDED",
      "current_title": "commitments",
      "prior_title": null,
      "current_body": "At December 31, 2023 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$3 $11 $216 $— $230 A1,054 950 182 — 2,186 BBB7,117 10,076 346 — 17,539 BB11,723 16,367 1,775 277 30,142 Other NIG9,586 12,961 2,924 156 25,627 Unrated2111 1,036 62 2,910 4,119 Total loans, net of ACL29,594 41,401 5,505 3,343 79,843 Lending commitmentsAAA— 50 — — 50 AA2,610 3,064 154 — 5,828 A7,704 21,256 593 — 29,553 BBB9,161 46,304 106 — 55,571 BB4,069 16,431 1,594 414 22,508 Other NIG1,916 13,842 1,077 3 16,838 Unrated26 7 — — 13 Total lendingcommitments25,466 100,954 3,524 417 130,361 Total exposure$55,060 $142,355 $9,029 $3,760 $210,204 NIG–Non-investment grade1.Counterparty credit ratings are internally determined by the CRM.2.Unrated loans and lending commitments are primarily trading positions that are measured at fair value and risk-managed as a component of market risk. For a further discussion of our market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk” herein.Institutional Securities Loans and Lending Commitments by Industry$ in millionsAtDecember 31,2024AtDecember 31,2023Financials$68,512 $57,804 Real estate40,041 35,342 Communications services20,425 15,301 Industrials20,024 18,056 Information technology15,666 12,430 Healthcare15,455 14,274 Consumer discretionary14,699 12,190 Consumer staples12,098 9,305 Utilities11,755 11,522 Energy9,036 9,156 Materials7,378 6,503 Insurance6,812 6,486 Other2,428 1,835 Total exposure$244,329 $210,204 Institutional Securities Lending ActivitiesThe Institutional Securities business segment lending activities include Corporate, Secured lending facilities, Commercial and Residential real estate, and Securities-based lending and Other. As of December 31, 2024 and December 31, 2023, over 90% of our total lending exposure, which consists of loans and lending commitments, was investment grade and/or secured by collateral. Corporate comprises relationship and event-driven loans and lending commitments supporting general and event-driven financing needs for our institutional clients, which typically consist of revolving lines of credit, term loans and bridge loans; may have varying terms; may be senior or At December 31, 2023 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$3 $11 $216 $— $230 A1,054 950 182 — 2,186 BBB7,117 10,076 346 — 17,539 BB11,723 16,367 1,775 277 30,142 Other NIG9,586 12,961 2,924 156 25,627 Unrated2111 1,036 62 2,910 4,119 Total loans, net of ACL29,594 41,401 5,505 3,343 79,843 Lending commitmentsAAA— 50 — — 50 AA2,610 3,064 154 — 5,828 A7,704 21,256 593 — 29,553 BBB9,161 46,304 106 — 55,571 BB4,069 16,431 1,594 414 22,508 Other NIG1,916 13,842 1,077 3 16,838 Unrated26 7 — — 13 Total lendingcommitments25,466 100,954 3,524 417 130,361 Total exposure$55,060 $142,355 $9,029 $3,760 $210,204 Unrated2 Unrated2"
    },
    {
      "status": "ADDED",
      "current_title": "Institutional Securities Loans and Lending Commitments by Industry",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024AtDecember 31,2023Financials$68,512 $57,804 Real estate40,041 35,342 Communications services20,425 15,301 Industrials20,024 18,056 Information technology15,666 12,430 Healthcare15,455 14,274 Consumer discretionary14,699 12,190 Consumer staples12,098 9,305 Utilities11,755 11,522 Energy9,036 9,156 Materials7,378 6,503 Insurance6,812 6,486 Other2,428 1,835 Total exposure$244,329 $210,204"
    },
    {
      "status": "ADDED",
      "current_title": "Institutional Securities Loans and Lending Commitments Held for Investment",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsLoansLending CommitmentsTotalCorporate$6,889 $105,824 $112,713 Secured lending facilities48,842 20,971 69,813 Commercial real estate8,412 1,249 9,661 Securities-based lending and Other2,876 1,504 4,380 Total, before ACL$67,019 $129,548 $196,567 ACL$(730)$(640)$(1,370)At December 31, 2023$ in millionsLoansLending CommitmentsTotalCorporate$6,758 $91,752 $98,510 Secured lending facilities39,498 15,589 55,087 Commercial real estate8,678 266 8,944 Securities-based lending and Other2,818 915 3,733 Total, before ACL$57,752 $108,522 $166,274 ACL$(874)$(533)$(1,407) Securities-based lending and Other Securities-based lending and Other"
    },
    {
      "status": "ADDED",
      "current_title": "Wealth Management Allowance for Credit Losses—Loans and Lending Commitments",
      "prior_title": null,
      "current_body": "Year Ended December 31, 2024$ in millionsResidential Real EstateSBL and OtherTotalACL—LoansBeginning balance$100 $195 $295 Gross charge-offs— (27)(27)Recoveries— 2 2 Net (charge-offs)/recoveries— (25)(25)Provision (release)(3)68 65 Other— 1 1 Ending balance$97 $239 $336 ACL—Lending commitmentsBeginning balance$4 $14 $18 Provision (release)— (3)(3)Other— 1 1 Ending balance$4 $12 $16 Total ending balance$101 $251 $352"
    },
    {
      "status": "ADDED",
      "current_title": "Year Ended December 31, 2024",
      "prior_title": null,
      "current_body": "CRE SBL and Other Beginning balance Gross charge-offs Recoveries Net (charge-offs)/recoveries Provision (release)"
    },
    {
      "status": "ADDED",
      "current_title": "ACL—Lending commitments",
      "prior_title": null,
      "current_body": "Beginning balance Provision (release) Ending balance Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance before AllowanceAtDecember 31,2024 AtDecember 31,2023 Corporate2.9 %3.6 %Secured lending facilities0.3 %0.4 %Commercial real estate4.4 %5.3 %Securities-based lending and Other0.6 %0.6 %Total Institutional Securities loans1.1 %1.5 %"
    },
    {
      "status": "ADDED",
      "current_title": "Margin and Other Lending",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024AtDecember 31,2023 Institutional Securities$27,612 $24,208 Wealth Management28,270 21,436 Total$55,882 $45,644 The Institutional Securities and Wealth Management business segments provide margin lending arrangements that allow customers to borrow against the value of qualifying securities, primarily for the purpose of purchasing additional securities, as well as to collateralize short positions. Institutional Securities primarily includes margin loans in the Equity Financing business. Wealth Management includes margin loans as well as non-purpose securities-based lending on non-bank entities. Amounts may fluctuate from period to period as overall client balances change as a result of market levels, client positioning and leverage. Credit exposures arising from margin lending activities are generally mitigated by their short-term nature, the value of collateral held and our right to call for additional margin when collateral values decline. However, we could incur losses in the event that the customer fails to meet margin calls and collateral values decline below the loan amount. This risk is elevated in loans backed by collateral pools with significant concentrations in individual issuers or securities with similar risk characteristics. For a further discussion, see “Risk Factors—Credit Risk” herein."
    },
    {
      "status": "ADDED",
      "current_title": "Employee Loans",
      "prior_title": null,
      "current_body": "For information on employee loans and related ACL, see Note 9 to the financial statements. December 2024 Form 10-K68 December 2024 Form 10-K68 December 2024 Form 10-K68 68 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents DerivativesFair Value of OTC Derivative AssetsAt December 31, 2024 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$1,711 $17,625 $50,643 $22,643 $9,793 $102,415 1-3 years541 6,249 19,068 10,248 6,095 42,201 3-5 years973 7,308 9,821 5,631 3,750 27,483 Over 5 years3,330 25,406 49,469 28,206 6,398 112,809 Total, gross$6,555 $56,588 $129,001 $66,728 $26,036 $284,908 Counterparty netting(3,320)(44,604)(98,598)(47,132)(14,691)(208,345)Cash and securities collateral(2,559)(10,632)(25,568)(13,729)(5,558)(58,046)Total, net$676 $1,352 $4,835 $5,867 $5,787 $18,517 At December 31, 2023 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$2,013 $16,885 $37,517 $25,529 $10,084 $92,028 1-3 years1,013 7,274 18,451 12,757 7,360 46,855 3-5 years504 8,897 8,814 5,989 3,825 28,029 Over 5 years3,955 29,511 50,512 28,003 6,597 118,578 Total, gross$7,485 $62,567 $115,294 $72,278 $27,866 $285,490 Counterparty netting(3,691)(48,821)(86,826)(53,178)(15,888)(208,404)Cash and securities collateral(2,709)(10,704)(25,921)(13,025)(5,554)(57,913)Total, net$1,085 $3,042 $2,547 $6,075 $6,424 $19,173 $ in millionsAtDecember 31,2024AtDecember 31,2023IndustryFinancials$5,678 $7,215 Utilities3,733 4,267 Industrials1,315 937 Consumer discretionary1,046 684 Energy987 533 Communications services914 841 Regional governments799 1,319 Consumer staples734 515 Sovereign governments683 262 Information technology634 677 Materials409 383 Healthcare353 468 Insurance207 156 Not-for-profit organizations94 166 Real estate91 167 Other840 583 Total$18,517 $19,173 1.Counterparty credit ratings are determined internally by the CRM.We are exposed to credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the possibility that a counterparty may fail to perform according to the terms of the contract. For a description of our risk mitigation strategies, see “Credit Risk—Risk Mitigation” herein.Credit DerivativesA credit derivative is a contract between a seller and buyer of protection against the risk of a credit event occurring on one or more debt obligations issued by a specified reference entity. The buyer typically pays a periodic premium over the life of the contract and is protected for the period. If a credit event occurs, the seller is required to make payment to the beneficiary based on the terms of the credit derivative contract. Credit events, as defined in the contract, may be one or more of the following defined events: bankruptcy, dissolution or insolvency of the referenced entity, failure to pay, obligation acceleration, repudiation, payment moratorium and restructuring.We trade in a variety of credit derivatives and may either purchase or write protection on a single name or portfolio of referenced entities. In transactions referencing a portfolio of entities or securities, protection may be limited to a tranche of exposure or a single name within the portfolio. We are an active market maker in the credit derivatives markets. As a market maker, we work to earn a bid-offer spread on client flow business and manage any residual credit or correlation risk on a portfolio basis. Further, we use credit derivatives to manage our exposure to residential and commercial mortgage loans and corporate lending exposures. The effectiveness of our CDS protection as a hedge of our exposures may vary depending upon a number of factors, including the contractual terms of the CDS.We actively monitor our counterparty credit risk related to credit derivatives. A majority of our counterparties are composed of banks, broker-dealers, insurance and other financial institutions. Contracts with these counterparties may include provisions related to counterparty rating downgrades, which may result in the counterparty posting additional collateral to us. As with all derivative contracts, we consider counterparty credit risk in the valuation of our positions and recognize CVAs as appropriate within Trading revenues in the income statement.For additional credit exposure information on our credit derivative portfolio, see Note 6 to the financial statements. DerivativesFair Value of OTC Derivative AssetsAt December 31, 2024 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$1,711 $17,625 $50,643 $22,643 $9,793 $102,415 1-3 years541 6,249 19,068 10,248 6,095 42,201 3-5 years973 7,308 9,821 5,631 3,750 27,483 Over 5 years3,330 25,406 49,469 28,206 6,398 112,809 Total, gross$6,555 $56,588 $129,001 $66,728 $26,036 $284,908 Counterparty netting(3,320)(44,604)(98,598)(47,132)(14,691)(208,345)Cash and securities collateral(2,559)(10,632)(25,568)(13,729)(5,558)(58,046)Total, net$676 $1,352 $4,835 $5,867 $5,787 $18,517 At December 31, 2023 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$2,013 $16,885 $37,517 $25,529 $10,084 $92,028 1-3 years1,013 7,274 18,451 12,757 7,360 46,855 3-5 years504 8,897 8,814 5,989 3,825 28,029 Over 5 years3,955 29,511 50,512 28,003 6,597 118,578 Total, gross$7,485 $62,567 $115,294 $72,278 $27,866 $285,490 Counterparty netting(3,691)(48,821)(86,826)(53,178)(15,888)(208,404)Cash and securities collateral(2,709)(10,704)(25,921)(13,025)(5,554)(57,913)Total, net$1,085 $3,042 $2,547 $6,075 $6,424 $19,173 $ in millionsAtDecember 31,2024AtDecember 31,2023IndustryFinancials$5,678 $7,215 Utilities3,733 4,267 Industrials1,315 937 Consumer discretionary1,046 684 Energy987 533 Communications services914 841 Regional governments799 1,319 Consumer staples734 515 Sovereign governments683 262 Information technology634 677 Materials409 383 Healthcare353 468 Insurance207 156 Not-for-profit organizations94 166 Real estate91 167 Other840 583 Total$18,517 $19,173 1.Counterparty credit ratings are determined internally by the CRM.We are exposed to credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the possibility that a counterparty may fail to perform according to the terms of the contract. For a description of our risk mitigation strategies, see “Credit Risk—Risk Mitigation” herein.Credit DerivativesA credit derivative is a contract between a seller and buyer of protection against the risk of a credit event occurring on one"
    },
    {
      "status": "ADDED",
      "current_title": "At December 31, 2024 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$1,711 $17,625 $50,643 $22,643 $9,793 $102,415 1-3 years541 6,249 19,068 10,248 6,095 42,201 3-5 years973 7,308 9,821 5,631 3,750 27,483 Over 5 years3,330 25,406 49,469 28,206 6,398 112,809 Total, gross$6,555 $56,588 $129,001 $66,728 $26,036 $284,908 Counterparty netting(3,320)(44,604)(98,598)(47,132)(14,691)(208,345)Cash and securities collateral(2,559)(10,632)(25,568)(13,729)(5,558)(58,046)Total, net$676 $1,352 $4,835 $5,867 $5,787 $18,517",
      "prior_title": null,
      "current_body": "Counterparty Credit Rating1 Counterparty netting At December 31, 2023 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$2,013 $16,885 $37,517 $25,529 $10,084 $92,028 1-3 years1,013 7,274 18,451 12,757 7,360 46,855 3-5 years504 8,897 8,814 5,989 3,825 28,029 Over 5 years3,955 29,511 50,512 28,003 6,597 118,578 Total, gross$7,485 $62,567 $115,294 $72,278 $27,866 $285,490 Counterparty netting(3,691)(48,821)(86,826)(53,178)(15,888)(208,404)Cash and securities collateral(2,709)(10,704)(25,921)(13,025)(5,554)(57,913)Total, net$1,085 $3,042 $2,547 $6,075 $6,424 $19,173 Counterparty Credit Rating1 $ in millionsAtDecember 31,2024AtDecember 31,2023IndustryFinancials$5,678 $7,215 Utilities3,733 4,267 Industrials1,315 937 Consumer discretionary1,046 684 Energy987 533 Communications services914 841 Regional governments799 1,319 Consumer staples734 515 Sovereign governments683 262 Information technology634 677 Materials409 383 Healthcare353 468 Insurance207 156 Not-for-profit organizations94 166 Real estate91 167 Other840 583 Total$18,517 $19,173 1.Counterparty credit ratings are determined internally by the CRM. We are exposed to credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the possibility that a counterparty may fail to perform according to the terms of the contract. For a description of our risk mitigation strategies, see “Credit Risk—Risk Mitigation” herein."
    },
    {
      "status": "ADDED",
      "current_title": "Credit Derivatives",
      "prior_title": null,
      "current_body": "A credit derivative is a contract between a seller and buyer of protection against the risk of a credit event occurring on one or more debt obligations issued by a specified reference entity. The buyer typically pays a periodic premium over the life of the contract and is protected for the period. If a credit event occurs, the seller is required to make payment to the beneficiary based on the terms of the credit derivative contract. Credit events, as defined in the contract, may be one or more of the following defined events: bankruptcy, dissolution or insolvency of the referenced entity, failure to pay, obligation acceleration, repudiation, payment moratorium and restructuring.We trade in a variety of credit derivatives and may either purchase or write protection on a single name or portfolio of referenced entities. In transactions referencing a portfolio of entities or securities, protection may be limited to a tranche of exposure or a single name within the portfolio. We are an active market maker in the credit derivatives markets. As a market maker, we work to earn a bid-offer spread on client flow business and manage any residual credit or correlation risk on a portfolio basis. Further, we use credit derivatives to manage our exposure to residential and commercial mortgage loans and corporate lending exposures. The effectiveness of our CDS protection as a hedge of our exposures may vary depending upon a number of factors, including the contractual terms of the CDS.We actively monitor our counterparty credit risk related to credit derivatives. A majority of our counterparties are composed of banks, broker-dealers, insurance and other financial institutions. Contracts with these counterparties may include provisions related to counterparty rating downgrades, which may result in the counterparty posting additional collateral to us. As with all derivative contracts, we consider counterparty credit risk in the valuation of our positions and recognize CVAs as appropriate within Trading revenues in the income statement.For additional credit exposure information on our credit derivative portfolio, see Note 6 to the financial statements. or more debt obligations issued by a specified reference entity. The buyer typically pays a periodic premium over the life of the contract and is protected for the period. If a credit event occurs, the seller is required to make payment to the beneficiary based on the terms of the credit derivative contract. Credit events, as defined in the contract, may be one or more of the following defined events: bankruptcy, dissolution or insolvency of the referenced entity, failure to pay, obligation acceleration, repudiation, payment moratorium and restructuring. We trade in a variety of credit derivatives and may either purchase or write protection on a single name or portfolio of referenced entities. In transactions referencing a portfolio of entities or securities, protection may be limited to a tranche of exposure or a single name within the portfolio. We are an active market maker in the credit derivatives markets. As a market maker, we work to earn a bid-offer spread on client flow business and manage any residual credit or correlation risk on a portfolio basis. Further, we use credit derivatives to manage our exposure to residential and commercial mortgage loans and corporate lending exposures. The effectiveness of our CDS protection as a hedge of our exposures may vary depending upon a number of factors, including the contractual terms of the CDS. We actively monitor our counterparty credit risk related to credit derivatives. A majority of our counterparties are composed of banks, broker-dealers, insurance and other financial institutions. Contracts with these counterparties may include provisions related to counterparty rating downgrades, which may result in the counterparty posting additional collateral to us. As with all derivative contracts, we consider counterparty credit risk in the valuation of our positions and recognize CVAs as appropriate within Trading revenues in the income statement. For additional credit exposure information on our credit derivative portfolio, see Note 6 to the financial statements. 69December 2024 Form 10-K 69December 2024 Form 10-K 69December 2024 Form 10-K 69 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Country RiskCountry risk exposure is the risk that events in, or that affect, a foreign country (any country other than the U.S.) might adversely affect us. We actively manage country risk exposure through a comprehensive risk management framework that combines credit and other market fundamentals and allows us to effectively identify, monitor and limit country risk.Our obligor credit evaluation process defines country of risk as the country that has the largest economic impact on the obligor and may be different from the obligor's country of jurisdiction. Examples where this applies may include corporations that are incorporated in one country but that derive the bulk of their revenue from another and mutual funds incorporated in one jurisdiction but with a concentration of investments in a different country.In addition to the direct country risk reflected in the “Top 10 Non-U.S. Country Exposures” table below, we also have indirect country exposure, for example, from collateral received in secured financing transactions or from providing client clearing services. These indirect exposures are managed through the credit and market risk frameworks.We conduct periodic stress testing that seeks to measure the impact on our credit and market exposures of shocks stemming from negative economic or political scenarios including changes to global trade policies and the implementation of tariffs. When deemed appropriate by our risk managers, the stress test scenarios include possible contagion effects and second order risks. This analysis, and results of the stress tests, may result in the amendment of limits or exposure mitigation.Our sovereign exposures consist of financial contracts and obligations entered into with sovereign and local governments. Our non-sovereign exposures consist of financial contracts and obligations entered into primarily with corporations and financial institutions.Index credit derivatives are included in the following “Top 10 Non-U.S. Country Exposures” table. Each reference entity within an index is allocated to that reference entity’s country of risk. Index exposures are allocated to the underlying reference entities in proportion to the notional weighting of each reference entity in the index, adjusted for any fair value receivable or payable for that reference entity. Where credit risk crosses multiple jurisdictions, for example, a CDS purchased from an issuer in a specific country that references bonds issued by an entity in a different country, the fair value of the CDS is reflected in the Net counterparty exposure row based on the country of the CDS issuer. Further, the notional amount of the CDS adjusted for the fair value of the receivable or payable is reflected in the Net inventory row based on the country of the underlying reference entity.Top 10 Non-U.S. Country ExposuresAt December 31, 2024$ in millionsUnited KingdomFranceJapanBrazilGermanySovereignNet inventory1$934 $1,530 $2,048 $4,845 $(4,924)Net counterparty exposure23 — 30 — 92 Exposure before hedges937 1,530 2,078 4,845 (4,832)Hedges3(55)(147)(165)(141)(242)Net exposure$882 $1,383 $1,913 $4,704 $(5,074)Non-sovereignNet inventory1$1,523 $868 $589 $83 $1,011 Net counterparty exposure27,788 3,396 3,551 575 3,368 Loans7,875 449 160 139 1,702 Lending commitments9,334 3,024 199 426 6,087 Exposure before hedges26,520 7,737 4,499 1,223 12,168 Hedges3(1,691)(1,534)(214)(35)(1,746)Net exposure$24,829 $6,203 $4,285 $1,188 $10,422 Total net exposure$25,711 $7,586 $6,198 $5,892 $5,348 $ in millionsKoreaSpainAustralia CanadaItalySovereignNet inventory1$3,149 $194 $(419)$(58)$1,703 Net counterparty exposure2250 — 86 22 23 Exposure before hedges3,399 194 (333)(36)1,726 Hedges3(35)(8)— — (29)Net exposure$3,364 $186 $(333)$(36)$1,697 Non-sovereignNet inventory1$118 $551 $365 $607 $281 Net counterparty exposure2842 479 701 1,106 753 Loans— 1,855 1,958 461 39 Lending commitments— 1,167 1,472 1,717 1,062 Exposure before hedges960 4,052 4,496 3,891 2,135 Hedges3(35)(272)(448)(154)(348)Net exposure$925 $3,780 $4,048 $3,737 $1,787 Total net exposure$4,289 $3,966 $3,715 $3,701 $3,484 1.Net inventory represents exposure to both long and short single-name and index positions (i.e., bonds and equities at fair value and CDS based on a notional amount assuming zero recovery adjusted for the fair value of any receivable or payable).2.Net counterparty exposure (e.g, repurchase transactions, securities lending and OTC derivatives) is net of the benefit of collateral received and also is net by counterparty when legally enforceable master netting agreements are in place. For more information, see “Additional Information—Top 10 Non-U.S. Country Exposures” herein.3. Amounts represent net CDS hedges (purchased and sold) on net counterparty exposure and lending executed by trading desks responsible for hedging counterparty and lending credit risk exposures. Amounts are based on the CDS notional amount assuming zero recovery adjusted for the fair value of any receivable or payable. For further description of the contractual terms for purchased credit protection and whether they may limit the effectiveness of our hedges, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Derivatives\" herein. Country RiskCountry risk exposure is the risk that events in, or that affect, a foreign country (any country other than the U.S.) might adversely affect us. We actively manage country risk exposure through a comprehensive risk management framework that combines credit and other market fundamentals and allows us to effectively identify, monitor and limit country risk.Our obligor credit evaluation process defines country of risk as the country that has the largest economic impact on the obligor and may be different from the obligor's country of jurisdiction. Examples where this applies may include corporations that are incorporated in one country but that derive the bulk of their revenue from another and mutual funds incorporated in one jurisdiction but with a concentration of investments in a different country.In addition to the direct country risk reflected in the “Top 10 Non-U.S. Country Exposures” table below, we also have indirect country exposure, for example, from collateral received in secured financing transactions or from providing client clearing services. These indirect exposures are managed through the credit and market risk frameworks.We conduct periodic stress testing that seeks to measure the impact on our credit and market exposures of shocks stemming from negative economic or political scenarios including changes to global trade policies and the implementation of tariffs. When deemed appropriate by our risk managers, the stress test scenarios include possible contagion effects and second order risks. This analysis, and results of the stress tests, may result in the amendment of limits or exposure mitigation.Our sovereign exposures consist of financial contracts and obligations entered into with sovereign and local governments. Our non-sovereign exposures consist of financial contracts and obligations entered into primarily with corporations and financial institutions.Index credit derivatives are included in the following “Top 10 Non-U.S. Country Exposures” table. Each reference entity within an index is allocated to that reference entity’s country of risk. Index exposures are allocated to the underlying reference entities in proportion to the notional weighting of each reference entity in the index, adjusted for any fair value receivable or payable for that reference entity. Where credit risk crosses multiple jurisdictions, for example, a CDS purchased from an issuer in a specific country that references bonds issued by an entity in a different country, the fair value of the CDS is reflected in the Net counterparty exposure row based on the country of the CDS issuer. Further, the notional amount of the CDS adjusted for the fair value of the receivable or payable is reflected in the Net inventory row based on the country of the underlying reference entity."
    },
    {
      "status": "ADDED",
      "current_title": "Country Risk",
      "prior_title": null,
      "current_body": "Country risk exposure is the risk that events in, or that affect, a foreign country (any country other than the U.S.) might adversely affect us. We actively manage country risk exposure through a comprehensive risk management framework that combines credit and other market fundamentals and allows us to effectively identify, monitor and limit country risk. Our obligor credit evaluation process defines country of risk as the country that has the largest economic impact on the obligor and may be different from the obligor's country of jurisdiction. Examples where this applies may include corporations that are incorporated in one country but that derive the bulk of their revenue from another and mutual funds incorporated in one jurisdiction but with a concentration of investments in a different country. In addition to the direct country risk reflected in the “Top 10 Non-U.S. Country Exposures” table below, we also have indirect country exposure, for example, from collateral received in secured financing transactions or from providing client clearing services. These indirect exposures are managed through the credit and market risk frameworks. We conduct periodic stress testing that seeks to measure the impact on our credit and market exposures of shocks stemming from negative economic or political scenarios including changes to global trade policies and the implementation of tariffs. When deemed appropriate by our risk managers, the stress test scenarios include possible contagion effects and second order risks. This analysis, and results of the stress tests, may result in the amendment of limits or exposure mitigation. Our sovereign exposures consist of financial contracts and obligations entered into with sovereign and local governments. Our non-sovereign exposures consist of financial contracts and obligations entered into primarily with corporations and financial institutions. Index credit derivatives are included in the following “Top 10 Non-U.S. Country Exposures” table. Each reference entity within an index is allocated to that reference entity’s country of risk. Index exposures are allocated to the underlying reference entities in proportion to the notional weighting of each reference entity in the index, adjusted for any fair value receivable or payable for that reference entity. Where credit risk crosses multiple jurisdictions, for example, a CDS purchased from an issuer in a specific country that references bonds issued by an entity in a different country, the fair value of the CDS is reflected in the Net counterparty exposure row based on the country of the CDS issuer. Further, the notional amount of the CDS adjusted for the fair value of the receivable or payable is reflected in the Net inventory row based on the country of the underlying reference entity. Top 10 Non-U.S. Country ExposuresAt December 31, 2024$ in millionsUnited KingdomFranceJapanBrazilGermanySovereignNet inventory1$934 $1,530 $2,048 $4,845 $(4,924)Net counterparty exposure23 — 30 — 92 Exposure before hedges937 1,530 2,078 4,845 (4,832)Hedges3(55)(147)(165)(141)(242)Net exposure$882 $1,383 $1,913 $4,704 $(5,074)Non-sovereignNet inventory1$1,523 $868 $589 $83 $1,011 Net counterparty exposure27,788 3,396 3,551 575 3,368 Loans7,875 449 160 139 1,702 Lending commitments9,334 3,024 199 426 6,087 Exposure before hedges26,520 7,737 4,499 1,223 12,168 Hedges3(1,691)(1,534)(214)(35)(1,746)Net exposure$24,829 $6,203 $4,285 $1,188 $10,422 Total net exposure$25,711 $7,586 $6,198 $5,892 $5,348 $ in millionsKoreaSpainAustralia CanadaItalySovereignNet inventory1$3,149 $194 $(419)$(58)$1,703 Net counterparty exposure2250 — 86 22 23 Exposure before hedges3,399 194 (333)(36)1,726 Hedges3(35)(8)— — (29)Net exposure$3,364 $186 $(333)$(36)$1,697 Non-sovereignNet inventory1$118 $551 $365 $607 $281 Net counterparty exposure2842 479 701 1,106 753 Loans— 1,855 1,958 461 39 Lending commitments— 1,167 1,472 1,717 1,062 Exposure before hedges960 4,052 4,496 3,891 2,135 Hedges3(35)(272)(448)(154)(348)Net exposure$925 $3,780 $4,048 $3,737 $1,787 Total net exposure$4,289 $3,966 $3,715 $3,701 $3,484 1.Net inventory represents exposure to both long and short single-name and index positions (i.e., bonds and equities at fair value and CDS based on a notional amount assuming zero recovery adjusted for the fair value of any receivable or payable).2.Net counterparty exposure (e.g, repurchase transactions, securities lending and OTC derivatives) is net of the benefit of collateral received and also is net by counterparty when legally enforceable master netting agreements are in place. For more information, see “Additional Information—Top 10 Non-U.S. Country Exposures” herein.3. Amounts represent net CDS hedges (purchased and sold) on net counterparty exposure and lending executed by trading desks responsible for hedging counterparty and lending credit risk exposures. Amounts are based on the CDS notional amount assuming zero recovery adjusted for the fair value of any receivable or payable. For further description of the contractual terms for purchased credit protection and whether they may limit the effectiveness of our hedges, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Derivatives\" herein."
    },
    {
      "status": "ADDED",
      "current_title": "Top 10 Non-U.S. Country Exposures",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsUnited KingdomFranceJapanBrazilGermanySovereignNet inventory1$934 $1,530 $2,048 $4,845 $(4,924)Net counterparty exposure23 — 30 — 92 Exposure before hedges937 1,530 2,078 4,845 (4,832)Hedges3(55)(147)(165)(141)(242)Net exposure$882 $1,383 $1,913 $4,704 $(5,074)Non-sovereignNet inventory1$1,523 $868 $589 $83 $1,011 Net counterparty exposure27,788 3,396 3,551 575 3,368 Loans7,875 449 160 139 1,702 Lending commitments9,334 3,024 199 426 6,087 Exposure before hedges26,520 7,737 4,499 1,223 12,168 Hedges3(1,691)(1,534)(214)(35)(1,746)Net exposure$24,829 $6,203 $4,285 $1,188 $10,422 Total net exposure$25,711 $7,586 $6,198 $5,892 $5,348 Japan Net inventory1 Net counterparty exposure2 Hedges3 Net inventory1 Net counterparty exposure2 Hedges3 $ in millionsKoreaSpainAustralia CanadaItalySovereignNet inventory1$3,149 $194 $(419)$(58)$1,703 Net counterparty exposure2250 — 86 22 23 Exposure before hedges3,399 194 (333)(36)1,726 Hedges3(35)(8)— — (29)Net exposure$3,364 $186 $(333)$(36)$1,697 Non-sovereignNet inventory1$118 $551 $365 $607 $281 Net counterparty exposure2842 479 701 1,106 753 Loans— 1,855 1,958 461 39 Lending commitments— 1,167 1,472 1,717 1,062 Exposure before hedges960 4,052 4,496 3,891 2,135 Hedges3(35)(272)(448)(154)(348)Net exposure$925 $3,780 $4,048 $3,737 $1,787 Total net exposure$4,289 $3,966 $3,715 $3,701 $3,484 Spain Australia Canada Italy Net inventory1 Net counterparty exposure2 Hedges3 Net inventory1 Net counterparty exposure2 Hedges3 1.Net inventory represents exposure to both long and short single-name and index positions (i.e., bonds and equities at fair value and CDS based on a notional amount assuming zero recovery adjusted for the fair value of any receivable or payable). 2.Net counterparty exposure (e.g, repurchase transactions, securities lending and OTC derivatives) is net of the benefit of collateral received and also is net by counterparty when legally enforceable master netting agreements are in place. For more information, see “Additional Information—Top 10 Non-U.S. Country Exposures” herein. 3. Amounts represent net CDS hedges (purchased and sold) on net counterparty exposure and lending executed by trading desks responsible for hedging counterparty and lending credit risk exposures. Amounts are based on the CDS notional amount assuming zero recovery adjusted for the fair value of any receivable or payable. For further description of the contractual terms for purchased credit protection and whether they may limit the effectiveness of our hedges, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Derivatives\" herein. December 2024 Form 10-K70 December 2024 Form 10-K70 December 2024 Form 10-K70 70 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Additional Information—Top 10 Non-U.S. Country ExposuresCollateral Held Against Net Counterparty Exposure1$ in millionsAtDecember 31,2024 Country of RiskCollateral2 United KingdomU.K., U.S., and France$8,618 JapanJapan and U.S.5,637 OtherItaly, U.S., and Korea18,366 1.The benefit of collateral received is reflected in the Top 10 Non-U.S. Country Exposures at December 31, 2024.2.Primarily consists of cash and government obligations of the countries listed.Operational RiskOperational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, human factors (e.g., inappropriate or unlawful conduct) or external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal and compliance risks, or damage to physical assets. We may incur operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (e.g., IT and trade processing). We have established an operational risk framework to identify, measure, monitor and control risk across the Firm. Effective operational risk management is essential to reducing the impact of operational risk incidents and mitigating legal, regulatory and reputational risks. The framework is continually evolving to account for changes in the Firm and to respond to the changing regulatory and business environment.We have implemented operational risk data and assessment systems to monitor and analyze internal and external operational risk events, to assess business environment and internal control factors, and to perform scenario analysis. The collected data elements are incorporated in the operational risk capital model. The model encompasses both quantitative and qualitative elements. Internal loss data and scenario analysis results are direct inputs to the capital model, while external operational incidents, business environment and internal control factors are evaluated as part of the scenario analysis process.In addition, we employ a variety of risk processes and mitigants to manage our operational risk exposures. These include a governance framework, a comprehensive risk management program and insurance. Operational risks and associated risk exposures are assessed relative to the risk appetite reviewed and confirmed by the Board and are prioritized accordingly.The breadth and range of operational risk are such that the types of mitigating activities are wide-ranging. Examples of activities include: continuous enhancement of defenses against cyberattacks, use of legal agreements and contracts to transfer and/or limit operational risk exposures, due diligence, implementation of enhanced policies and procedures, technology change management controls, exception management processing controls, and segregation of duties.Primary responsibility for the management of operational risk is with the business segments, the control groups and the business managers therein. The business managers maintain processes and controls designed to identify, assess, manage, mitigate and report operational risk. Each of the business segments has a designated operational risk coordinator. The operational risk coordinator regularly reviews operational risk issues and reports to our senior management within each business. Each control group also has a designated operational risk coordinator and a forum for discussing operational risk matters with our senior management. Oversight of operational risk is provided by the Non-Financial Risk Committee, legal entity risk committees, regional risk committees and senior management. In the event of a merger, joint venture, divestiture, reorganization, or creation of a new legal entity, a new product, or a business activity, operational risks are considered, and any necessary changes in processes or controls are implemented.The Operational Risk Department and Non-Financial Risk Cyber, Technology, and Information Security Department (“NFR CTIS”) provide independent oversight of operational risk and assess, measure and monitor operational risk against appetite. The Operational Risk Department and NFR CTIS work with the divisions and control groups to embed a transparent, consistent and comprehensive framework for managing operational risk within each area and across the Firm.The NFR CTIS scope includes oversight of technology risk, cybersecurity risk, information security risk and compliance. The Operational Risk Department scope includes oversight of the fraud risk management and prevention program, and third-party risk management (supplier and affiliate risk oversight and assessment), among others.CybersecurityRisk management and strategyWe, our businesses, and the broader financial services industry face an increasingly complex and evolving threat environment. We have made and continue to make substantial investments in cybersecurity and fraud prevention technology, and employ experienced talent to lead our Cybersecurity and Information Security organizations and program under the oversight of the Board and the BOTC. See “Risk Factors—Operational Risk” for information on risks to the Firm from cybersecurity threats.As part of the ERM framework, we have implemented and maintain a program to assess, identify and manage risks arising from the cybersecurity threats confronting the Firm (“Cybersecurity Program”). Our Cybersecurity Program helps Additional Information—Top 10 Non-U.S. Country ExposuresCollateral Held Against Net Counterparty Exposure1$ in millionsAtDecember 31,2024 Country of RiskCollateral2 United KingdomU.K., U.S., and France$8,618 JapanJapan and U.S.5,637 OtherItaly, U.S., and Korea18,366 1.The benefit of collateral received is reflected in the Top 10 Non-U.S. Country Exposures at December 31, 2024.2.Primarily consists of cash and government obligations of the countries listed.Operational RiskOperational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, human factors (e.g., inappropriate or unlawful conduct) or external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal and compliance risks, or damage to physical assets. We may incur operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (e.g., IT and trade processing). We have established an operational risk framework to identify, measure, monitor and control risk across the Firm. Effective operational risk management is essential to reducing the impact of operational risk incidents and mitigating legal, regulatory and reputational risks. The framework is continually evolving to account for changes in the Firm and to respond to the changing regulatory and business environment.We have implemented operational risk data and assessment systems to monitor and analyze internal and external operational risk events, to assess business environment and internal control factors, and to perform scenario analysis. The collected data elements are incorporated in the operational risk capital model. The model encompasses both quantitative and qualitative elements. Internal loss data and scenario analysis results are direct inputs to the capital model, while external operational incidents, business environment and internal control factors are evaluated as part of the scenario analysis process.In addition, we employ a variety of risk processes and mitigants to manage our operational risk exposures. These include a governance framework, a comprehensive risk management program and insurance. Operational risks and associated risk exposures are assessed relative to the risk appetite reviewed and confirmed by the Board and are prioritized accordingly.The breadth and range of operational risk are such that the types of mitigating activities are wide-ranging. Examples of activities include: continuous enhancement of defenses against cyberattacks, use of legal agreements and contracts to"
    },
    {
      "status": "ADDED",
      "current_title": "Collateral Held Against Net Counterparty Exposure1",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 Country of RiskCollateral2 United KingdomU.K., U.S., and France$8,618 JapanJapan and U.S.5,637 OtherItaly, U.S., and Korea18,366"
    },
    {
      "status": "ADDED",
      "current_title": "AtDecember 31,2024",
      "prior_title": null,
      "current_body": "Collateral2 1.The benefit of collateral received is reflected in the Top 10 Non-U.S. Country Exposures at December 31, 2024. 2.Primarily consists of cash and government obligations of the countries listed."
    },
    {
      "status": "ADDED",
      "current_title": "Operational Risk",
      "prior_title": null,
      "current_body": "Operational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, human factors (e.g., inappropriate or unlawful conduct) or external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal, regulatory and compliance risks, or damage to physical assets. We may experience operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (e.g., information technology (“IT”) and trade processing). Legal, regulatory and compliance risk is included in the scope of operational risk and is discussed below under “Legal, Regulatory and Compliance Risk.” For more information on how we monitor and manage operational risk, see “Quantitative and Qualitative Disclosures about Risk—Operational Risk.”"
    },
    {
      "status": "ADDED",
      "current_title": "Firm Resilience",
      "prior_title": null,
      "current_body": "The Firm’s critical processes and businesses could be disrupted by events including cyberattacks, failure or loss of access to technology and/or associated data, military conflicts, acts of terror, natural disasters, severe weather events and infectious disease. The Firm maintains a Firmwide resilience program that is designed to provide for operational resilience and enable it to respond to and recover critical processes and supporting assets in the event of a disruption impacting our people, technology, facilities and third parties. The key elements of the Firm’s resilience program include business continuity management, technology disaster recovery, third party resilience and key business service resilience. Resilience testing is performed both internally and with critical third parties to validate recovery capability in accordance with business requirements."
    },
    {
      "status": "ADDED",
      "current_title": "Third-Party Risk Management",
      "prior_title": null,
      "current_body": "In connection with our ongoing operations, we utilize the products and/or services of third parties, which we anticipate will continue and may increase in the future. These products and/or services include, for example, outsourced processing and support functions and other professional services. Our risk-based approach to managing exposure to our third parties includes the performance of due diligence, implementation of service-level and other contractual agreements, consideration of operational risks and ongoing monitoring of the performance of our third parties. We maintain and continue to enhance our third-party risk management program, which is designed to align with our risk tolerance and meet regulatory requirements. The program includes appropriate governance, policies, procedures and enabling technology. The third-party risk management program includes the adoption of appropriate risk management controls and practices throughout the third-party management life cycle to manage risk of service failure, risk of data loss and reputational risk, among others. 73December 2024 Form 10-K 73December 2024 Form 10-K 73December 2024 Form 10-K 73 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Model RiskModel risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs. Model risk can lead to financial loss, poor business and strategic decision-making, noncompliance with applicable laws and/or regulations or damage to the Firm's reputation. The risk inherent in a model is a function of the materiality, complexity and uncertainty around inputs and assumptions.Model risk is generated from the use of models impacting financial statements, regulatory filings, capital adequacy assessments and the formulation of strategy.Sound model risk management is an integral part of our Risk Management Framework. The Model Risk Management Department (“MRM”) is a distinct department in Risk Management responsible for the oversight of model risk.The MRM establishes a model risk tolerance in line with our risk appetite. The tolerance is based on an assessment of the materiality of the risk of financial loss or reputational damage due to errors in design, implementation and/or inappropriate use of models. The tolerance is monitored through model-specific and aggregate business-level assessments, which are based upon qualitative and quantitative factors.The effective challenge of models consists of critical analysis by objective, informed parties who can identify model limitations and assumptions and drive appropriate changes. The MRM provides effective challenge of models, independently validates and approves models for use, annually recertifies models, periodically revalidates, identifies and tracks remediation plans for model limitations and reports on model risk metrics. The department also oversees the development of controls to support a complete and accurate Firmwide model inventory.Liquidity RiskLiquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern. Liquidity risk also encompasses the associated funding risks triggered by the market or idiosyncratic stress events that may negatively affect our liquidity and may impact our ability to raise new funding or the cost of new funding. Generally, we incur liquidity and funding risk as a result of our trading, lending, investing and client facilitation activities.Our Liquidity Risk Management Framework is critical to helping ensure that we maintain sufficient liquidity reserves and durable funding sources to meet our daily obligations and to withstand unanticipated stress events. The Liquidity Risk Department is a distinct area in Risk Management responsible for the oversight and monitoring of liquidity risk. The Liquidity Risk Department ensures transparency of material liquidity and funding risks, compliance with established risk limits and escalation of risk concentrations to appropriate senior management.To execute these responsibilities, the Liquidity Risk Department establishes limits in line with our risk appetite, identifies and analyzes emerging liquidity and funding risks to ensure such risks are appropriately mitigated, monitors and reports risk exposures against metrics and limits, and reviews the methodologies and assumptions underpinning our Liquidity Stress Tests to ensure sufficient liquidity and funding under a range of adverse scenarios. The Treasury Department and applicable business units have primary responsibility for evaluating, monitoring and controlling the liquidity and funding risks arising from our business activities and for maintaining processes and controls to manage the key risks inherent in their respective areas. The Liquidity Risk Department coordinates with the Treasury Department and these business units to help ensure a consistent and comprehensive framework for managing liquidity and funding risk across the Firm. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” herein.Legal, Regulatory and Compliance RiskLegal, regulatory and compliance risk includes the risk of legal or regulatory sanctions, material financial loss, including fines, penalties, judgments, damages and/or settlements, limitations on our business, or loss to reputation that we may suffer as a result of failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing, and anti-corruption rules and regulations. We are generally subject to extensive regulation in the different jurisdictions in which we conduct our business (see also “Business—Supervision and Regulation” and “Risk Factors”).We have established procedures based on legal and regulatory requirements on a worldwide basis that are designed to facilitate compliance with applicable statutory and regulatory requirements and to require that our policies relating to business conduct, ethics and practices are followed globally. In addition, we have established procedures to mitigate the risk that a counterparty’s performance obligations will be unenforceable, including consideration of counterparty legal authority and capacity, adequacy of legal documentation, the permissibility of a transaction under applicable law and whether applicable bankruptcy or insolvency laws limit or alter contractual remedies. The heightened legal and Model RiskModel risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs. Model risk can lead to financial loss, poor business and strategic decision-making, noncompliance with applicable laws and/or regulations or damage to the Firm's reputation. The risk inherent in a model is a function of the materiality, complexity and uncertainty around inputs and assumptions.Model risk is generated from the use of models impacting financial statements, regulatory filings, capital adequacy assessments and the formulation of strategy.Sound model risk management is an integral part of our Risk Management Framework. The Model Risk Management Department (“MRM”) is a distinct department in Risk Management responsible for the oversight of model risk.The MRM establishes a model risk tolerance in line with our risk appetite. The tolerance is based on an assessment of the materiality of the risk of financial loss or reputational damage due to errors in design, implementation and/or inappropriate use of models. The tolerance is monitored through model-specific and aggregate business-level assessments, which are based upon qualitative and quantitative factors.The effective challenge of models consists of critical analysis by objective, informed parties who can identify model limitations and assumptions and drive appropriate changes. The MRM provides effective challenge of models, independently validates and approves models for use, annually recertifies models, periodically revalidates, identifies and tracks remediation plans for model limitations and reports on model risk metrics. The department also oversees the development of controls to support a complete and accurate Firmwide model inventory.Liquidity RiskLiquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern. Liquidity risk also encompasses the associated funding risks triggered by the market or idiosyncratic stress events that may negatively affect our liquidity and may impact our ability to raise new funding or the cost of new funding. Generally, we incur liquidity and funding risk as a result of our trading, lending, investing and client facilitation activities.Our Liquidity Risk Management Framework is critical to helping ensure that we maintain sufficient liquidity reserves and durable funding sources to meet our daily obligations and to withstand unanticipated stress events. The Liquidity Risk Model Risk Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs. Model risk can lead to financial loss, poor business and strategic decision-making, noncompliance with applicable laws and/or regulations or damage to the Firm's reputation. The risk inherent in a model is a function of the materiality, complexity and uncertainty around inputs and assumptions. Model risk is generated from the use of models impacting financial statements, regulatory filings, capital adequacy assessments and the formulation of strategy. Sound model risk management is an integral part of our Risk Management Framework. The Model Risk Management Department (“MRM”) is a distinct department in Risk Management responsible for the oversight of model risk. The MRM establishes a model risk tolerance in line with our risk appetite. The tolerance is based on an assessment of the materiality of the risk of financial loss or reputational damage due to errors in design, implementation and/or inappropriate use of models. The tolerance is monitored through model-specific and aggregate business-level assessments, which are based upon qualitative and quantitative factors. The effective challenge of models consists of critical analysis by objective, informed parties who can identify model limitations and assumptions and drive appropriate changes. The MRM provides effective challenge of models, independently validates and approves models for use, annually recertifies models, periodically revalidates, identifies and tracks remediation plans for model limitations and reports on model risk metrics. The department also oversees the development of controls to support a complete and accurate Firmwide model inventory."
    },
    {
      "status": "ADDED",
      "current_title": "Liquidity Risk",
      "prior_title": null,
      "current_body": "Liquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern, as well as the associated funding risks triggered by the market or idiosyncratic stress events that may negatively affect our liquidity and may impact our ability to raise new funding or the cost of new funding. For more information on how we monitor and manage liquidity risk, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” and “Quantitative and Qualitative Disclosures about Risk—Liquidity Risk.”"
    },
    {
      "status": "ADDED",
      "current_title": "Legal, Regulatory and Compliance Risk",
      "prior_title": null,
      "current_body": "Legal, regulatory and compliance risk includes the risk of legal or regulatory sanctions; material financial loss, including fines, penalties, judgments, damages and/or settlements; limitations on our business; or loss to reputation we may suffer as a result of our failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing and anti-corruption rules and regulations. For more information on how we monitor and manage legal, regulatory and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk.” December 2024 Form 10-K18 December 2024 Form 10-K18 December 2024 Form 10-K18 18 Table of Contents Table of Contents Table of Contents The financial services industry is subject to extensive regulation, and changes in regulation will impact our business.Like other major financial services firms, we are subject to extensive regulation by U.S. federal and state regulatory agencies and securities exchanges, and by regulators and exchanges in each of the major markets where we conduct our business, including an increasing number of complex sanctions and disclosure regimes. These laws and regulations, which may continue to increase in volume and complexity, significantly affect the way and costs of doing business and can restrict the scope of our existing businesses and limit our ability to expand our product offerings and pursue certain investments.The Firm and its employees are subject to wide-ranging regulation and supervision, which, among other things, subject us to intensive scrutiny of our businesses and any plans for expansion of those businesses through acquisitions or otherwise, limitations on activities, a systemic risk regime that imposes heightened capital and liquidity and funding requirements, including the global implementation of capital standards established by the Basel Committee, and other enhanced prudential standards, resolution regimes and resolution planning requirements, requirements for maintaining minimum amounts of TLAC and external long-term debt, restrictions on activities and investments imposed by the Volcker Rule, comprehensive derivatives regulation, interest rate benchmark requirements, commodities regulation, market structure regulation, consumer protection regulation, AML, terrorist financing and anti-corruption rules and regulations, tax regulations and interpretations, antitrust laws, trade and transaction reporting obligations, requirements related to preventing the misuse of confidential information, including material non-public information, record-keeping requirements, broadened fiduciary obligations and disclosure requirements.New laws, rules, regulations and guidelines, as well as ongoing implementation of, our efforts to comply with, and/or changes to laws, rules, regulations and guidelines, including changes in the breadth, application, interpretation or enforcement of laws, rules, regulations and guidelines, could materially impact the profitability of our businesses and the value of assets we hold, impact our income tax provision and effective tax rate, expose us to additional theories of liability and additional costs, require changes to business practices or force us to discontinue businesses, adversely affect our ability to pay dividends and repurchase our stock or require us to raise capital, including in ways that may adversely impact our shareholders or creditors.In addition, regulatory requirements that are imposed by foreign policymakers and regulators may be inconsistent or conflict with regulations that we are subject to in the U.S. and may adversely affect us. The application of regulatory requirements and strategies in the U.S. or other jurisdictions to facilitate the orderly resolution of large financial institutions may pose a greater risk of loss for our security holders and subject us to other restrictions.We are required to submit once every two years to the Federal Reserve and the FDIC a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of material financial distress or failure. If the Federal Reserve and the FDIC were to jointly determine that our resolution plan submission was not credible or would not facilitate an orderly resolution, and if we were unsuccessful in addressing any deficiencies identified by the regulators, we or any of our subsidiaries may be subject to more stringent capital, leverage or liquidity requirements or restrictions on our growth, activities or operations, or after a two-year period, we may be required to divest assets or operations.In addition, provided that certain procedures are met, we can be subject to a resolution proceeding under the orderly liquidation authority under Title II of the Dodd-Frank Act with the FDIC being appointed as receiver instead of being resolved under the U.S. Bankruptcy Code. The FDIC’s power under the orderly liquidation authority to disregard the priority of creditor claims and treat similarly situated creditors differently in certain circumstances, subject to certain limitations, could adversely impact holders of our unsecured debt. See “Business—Supervision and Regulation” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements.”Further, because both our resolution plan contemplates an SPOE strategy under the U.S. Bankruptcy Code and the FDIC has indicated that it expects to use an SPOE strategy through which it may apply its orderly liquidation authority powers for a U.S. G-SIB, we believe that the application of an SPOE strategy is the reasonably likely outcome if either our resolution plan were implemented or a resolution proceeding were commenced under the orderly liquidation authority. An SPOE strategy generally contemplates the provision of adequate capital and liquidity by the Parent Company to certain of its subsidiaries so that such subsidiaries have the resources necessary to implement the resolution strategy, and the Parent Company has entered into a secured amended and restated support agreement with such entities, pursuant to which it would provide such capital and liquidity to such entities.In addition, a wholly owned, direct subsidiary of the Parent Company, Morgan Stanley Holdings LLC (“Funding IHC”), serves as a resolution funding vehicle. The Parent Company has transferred, and has agreed to transfer on an ongoing basis, certain assets to the Funding IHC. In the event of a resolution scenario, the Parent Company would be obligated to contribute all of its material assets that can be contributed under the terms of the amended and restated support The financial services industry is subject to extensive regulation, and changes in regulation will impact our business.Like other major financial services firms, we are subject to extensive regulation by U.S. federal and state regulatory agencies and securities exchanges, and by regulators and exchanges in each of the major markets where we conduct our business, including an increasing number of complex sanctions and disclosure regimes. These laws and regulations, which may continue to increase in volume and complexity, significantly affect the way and costs of doing business and can restrict the scope of our existing businesses and limit our ability to expand our product offerings and pursue certain investments.The Firm and its employees are subject to wide-ranging regulation and supervision, which, among other things, subject us to intensive scrutiny of our businesses and any plans for expansion of those businesses through acquisitions or otherwise, limitations on activities, a systemic risk regime that imposes heightened capital and liquidity and funding requirements, including the global implementation of capital standards established by the Basel Committee, and other enhanced prudential standards, resolution regimes and resolution planning requirements, requirements for maintaining minimum amounts of TLAC and external long-term debt, restrictions on activities and investments imposed by the Volcker Rule, comprehensive derivatives regulation, interest rate benchmark requirements, commodities regulation, market structure regulation, consumer protection regulation, AML, terrorist financing and anti-corruption rules and regulations, tax regulations and interpretations, antitrust laws, trade and transaction reporting obligations, requirements related to preventing the misuse of confidential information, including material non-public information, record-keeping requirements, broadened fiduciary obligations and disclosure requirements.New laws, rules, regulations and guidelines, as well as ongoing implementation of, our efforts to comply with, and/or changes to laws, rules, regulations and guidelines, including changes in the breadth, application, interpretation or enforcement of laws, rules, regulations and guidelines, could materially impact the profitability of our businesses and the value of assets we hold, impact our income tax provision and effective tax rate, expose us to additional theories of liability and additional costs, require changes to business practices or force us to discontinue businesses, adversely affect our ability to pay dividends and repurchase our stock or require us to raise capital, including in ways that may adversely impact our shareholders or creditors.In addition, regulatory requirements that are imposed by foreign policymakers and regulators may be inconsistent or conflict with regulations that we are subject to in the U.S. and may adversely affect us."
    },
    {
      "status": "ADDED",
      "current_title": "Climate Risk",
      "prior_title": null,
      "current_body": "Climate change manifests as physical and transition risks. The physical risks of climate change include harm to people and property arising from acute climate-related events, such as floods, hurricanes, heatwaves, droughts and wildfires, and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. The transition risk of climate change include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or regulation of carbon emissions. Climate risk, which is not expected to have a significant effect on our consolidated results of operations or financial condition in the near term, is an overarching risk that can impact other categories of risk. Physical risk may lead to increased credit risk by diminishing borrowers’ repayment capacity or impacting the value of collateral. In addition, physical risk could pose increased operational risk to our facilities and people. The impacts of transition risk may lead to and amplify credit or liquidity risk by reducing our customers’ operating income or the value of their assets as well as exposing us to reputational, compliance and/or litigation risk due to increased legal and regulatory scrutiny or negative public sentiment. As climate risk is interconnected with other risk types, we have developed and continue to enhance processes to embed climate risk considerations into our risk management practices and governance structures. The BRC oversees Firmwide risks, which include climate risk, and, as part of its oversight, receives updates on our risk management approach to climate risk, including our approaches toward scenario analysis and integration of climate risk into our existing risk management processes. Our climate risk management efforts are overseen by the Climate Risk Committee, which is co-chaired by our Chief Risk Officer and Chief Sustainability Officer and shapes our approach to managing climate-related risks in line with our overall risk framework. 75December 2024 Form 10-K 75December 2024 Form 10-K 75December 2024 Form 10-K 75 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM",
      "prior_title": null,
      "current_body": "To the Shareholders and the Board of Directors of Morgan Stanley: Opinion on the Financial StatementsWe have audited the accompanying consolidated balance sheets of Morgan Stanley and subsidiaries (the “Firm”) as of December 31, 2024 and 2023, the related consolidated income statements, comprehensive income statements, cash flow statements and statements of changes in total equity for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Firm as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Firm’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2025, expressed an unqualified opinion on the Firm’s internal control over financial reporting. Basis for OpinionThese financial statements are the responsibility of the Firm’s management. Our responsibility is to express an opinion on the Firm’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.Valuation of Level 3 Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis and Level 3 Loans Held for Sale — Refer to Note 4 to the financial statementsCritical Audit Matter DescriptionThe Firm’s trading and financing activities result in the Firm carrying material financial instruments having limited price transparency. These financial instruments can span a broad array of product types and generally include derivatives, securities, loans, and borrowings. As described in Note 4, these Level 3 financial assets and liabilities carried at fair value on a recurring basis approximate $6.8 billion and $4.1 billion, respectively, and the Level 3 loans held for sale approximate $6.1 billion at December 31, 2024. Unlike financial instruments whose inputs are readily observable and, therefore, more easily independently corroborated, the valuation of these financial instruments is inherently subjective and often involves the use of unobservable inputs and proprietary valuation models whose underlying algorithms and valuation methodologies are complex.We identified the valuation of Level 3 financial assets and liabilities carried at fair value on a recurring basis and Level 3 loans held for sale as a critical audit matter given the Firm uses complex valuation models and/or valuation inputs that are not observable in the marketplace to determine the respective carrying values. Performing our audit procedures to evaluate the appropriateness of these models and inputs involved a high degree of auditor judgment, professionals with specialized skills and knowledge, and an increased extent of testing.How the Critical Audit Matter Was Addressed in the AuditOur audit procedures related to the valuation of Level 3 financial assets and liabilities carried at fair value on a recurring basis and Level 3 loans held for sale included the following, among others:•We tested the design and operating effectiveness of the Firm’s model review and price verification controls. The Firm maintains these internal controls to assess the appropriateness Opinion on the Financial StatementsWe have audited the accompanying consolidated balance sheets of Morgan Stanley and subsidiaries (the “Firm”) as of December 31, 2024 and 2023, the related consolidated income statements, comprehensive income statements, cash flow statements and statements of changes in total equity for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Firm as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Firm’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2025, expressed an unqualified opinion on the Firm’s internal control over financial reporting. Basis for OpinionThese financial statements are the responsibility of the Firm’s management. Our responsibility is to express an opinion on the Firm’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion."
    },
    {
      "status": "ADDED",
      "current_title": "Opinion on the Financial Statements",
      "prior_title": null,
      "current_body": "We have audited the accompanying consolidated balance sheets of Morgan Stanley and subsidiaries (the “Firm”) as of December 31, 2024 and 2023, the related consolidated income statements, comprehensive income statements, cash flow statements and statements of changes in total equity for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Firm as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Firm’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2025, expressed an unqualified opinion on the Firm’s internal control over financial reporting."
    },
    {
      "status": "ADDED",
      "current_title": "Basis for Opinion",
      "prior_title": null,
      "current_body": "These financial statements are the responsibility of the Firm’s management. Our responsibility is to express an opinion on the Firm’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.Valuation of Level 3 Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis and Level 3 Loans Held for Sale — Refer to Note 4 to the financial statementsCritical Audit Matter DescriptionThe Firm’s trading and financing activities result in the Firm carrying material financial instruments having limited price transparency. These financial instruments can span a broad array of product types and generally include derivatives, securities, loans, and borrowings. As described in Note 4, these Level 3 financial assets and liabilities carried at fair value on a recurring basis approximate $6.8 billion and $4.1 billion, respectively, and the Level 3 loans held for sale approximate $6.1 billion at December 31, 2024. Unlike financial instruments whose inputs are readily observable and, therefore, more easily independently corroborated, the valuation of these financial instruments is inherently subjective and often involves the use of unobservable inputs and proprietary valuation models whose underlying algorithms and valuation methodologies are complex.We identified the valuation of Level 3 financial assets and liabilities carried at fair value on a recurring basis and Level 3 loans held for sale as a critical audit matter given the Firm uses complex valuation models and/or valuation inputs that are not observable in the marketplace to determine the respective carrying values. Performing our audit procedures to evaluate the appropriateness of these models and inputs involved a high degree of auditor judgment, professionals with specialized skills and knowledge, and an increased extent of testing.How the Critical Audit Matter Was Addressed in the AuditOur audit procedures related to the valuation of Level 3 financial assets and liabilities carried at fair value on a recurring basis and Level 3 loans held for sale included the following, among others:•We tested the design and operating effectiveness of the Firm’s model review and price verification controls. The Firm maintains these internal controls to assess the appropriateness"
    },
    {
      "status": "ADDED",
      "current_title": "Critical Audit Matter",
      "prior_title": null,
      "current_body": "The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates."
    },
    {
      "status": "ADDED",
      "current_title": "Valuation of Level 3 Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis and Level 3 Loans Held for Sale — Refer to Note 4 to the financial statements",
      "prior_title": null,
      "current_body": "Critical Audit Matter Description The Firm’s trading and financing activities result in the Firm carrying material financial instruments having limited price transparency. These financial instruments can span a broad array of product types and generally include derivatives, securities, loans, and borrowings. As described in Note 4, these Level 3 financial assets and liabilities carried at fair value on a recurring basis approximate $6.8 billion and $4.1 billion, respectively, and the Level 3 loans held for sale approximate $6.1 billion at December 31, 2024. Unlike financial instruments whose inputs are readily observable and, therefore, more easily independently corroborated, the valuation of these financial instruments is inherently subjective and often involves the use of unobservable inputs and proprietary valuation models whose underlying algorithms and valuation methodologies are complex. We identified the valuation of Level 3 financial assets and liabilities carried at fair value on a recurring basis and Level 3 loans held for sale as a critical audit matter given the Firm uses complex valuation models and/or valuation inputs that are not observable in the marketplace to determine the respective carrying values. Performing our audit procedures to evaluate the appropriateness of these models and inputs involved a high degree of auditor judgment, professionals with specialized skills and knowledge, and an increased extent of testing. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the valuation of Level 3 financial assets and liabilities carried at fair value on a recurring basis and Level 3 loans held for sale included the following, among others: •We tested the design and operating effectiveness of the Firm’s model review and price verification controls. The Firm maintains these internal controls to assess the appropriateness December 2024 Form 10-K76 December 2024 Form 10-K76 December 2024 Form 10-K76 76 Table of Contents Table of Contents Table of Contents of its valuation methodologies and the relevant inputs and assumptions.•We independently evaluated the appropriateness of management’s valuation methodologies, for selected financial instruments, including the input assumptions, considering the expected assumptions of other market participants and external data when available.•We developed independent estimates for selected financial instruments, using externally sourced inputs and independent valuation models, and used such estimates to further evaluate management’s estimates. For certain of our selected financial instruments, this included a comparison to the Firm’s estimates for similar transactions and an evaluation of the Firm’s assumptions inclusive of the inputs, as applicable.•We tested the revenues arising from the trade date fair value estimates for selected structured transactions for which we developed independent fair value estimates to test the valuation inputs and assumptions used by the Firm and evaluated whether these methods were consistent with the Firm’s relevant valuation policies.•We assessed the consistency by which management has applied significant and unobservable valuation assumptions used in developing the Firm's estimates.•We performed a retrospective assessment of management’s fair value estimates for certain of our selected financial instruments, for which there were events or transactions occurring after the valuation date. We did so by comparing management’s estimates to the relevant evidence provided by such events or transactions, as applicable./s/ Deloitte & Touche LLP New York, New YorkFebruary 21, 2025We have served as the Firm’s auditor since 1997. of its valuation methodologies and the relevant inputs and assumptions.•We independently evaluated the appropriateness of management’s valuation methodologies, for selected financial instruments, including the input assumptions, considering the expected assumptions of other market participants and external data when available.•We developed independent estimates for selected financial instruments, using externally sourced inputs and independent valuation models, and used such estimates to further evaluate management’s estimates. For certain of our selected financial instruments, this included a comparison to the Firm’s estimates for similar transactions and an evaluation of the Firm’s assumptions inclusive of the inputs, as applicable.•We tested the revenues arising from the trade date fair value estimates for selected structured transactions for which we developed independent fair value estimates to test the valuation inputs and assumptions used by the Firm and evaluated whether these methods were consistent with the Firm’s relevant valuation policies.•We assessed the consistency by which management has applied significant and unobservable valuation assumptions used in developing the Firm's estimates.•We performed a retrospective assessment of management’s fair value estimates for certain of our selected financial instruments, for which there were events or transactions occurring after the valuation date. We did so by comparing management’s estimates to the relevant evidence provided by such events or transactions, as applicable./s/ Deloitte & Touche LLP New York, New YorkFebruary 21, 2025We have served as the Firm’s auditor since 1997. of its valuation methodologies and the relevant inputs and assumptions. •We independently evaluated the appropriateness of management’s valuation methodologies, for selected financial instruments, including the input assumptions, considering the expected assumptions of other market participants and external data when available. •We developed independent estimates for selected financial instruments, using externally sourced inputs and independent valuation models, and used such estimates to further evaluate management’s estimates. For certain of our selected financial instruments, this included a comparison to the Firm’s estimates for similar transactions and an evaluation of the Firm’s assumptions inclusive of the inputs, as applicable. •We tested the revenues arising from the trade date fair value estimates for selected structured transactions for which we developed independent fair value estimates to test the valuation inputs and assumptions used by the Firm and evaluated whether these methods were consistent with the Firm’s relevant valuation policies. •We assessed the consistency by which management has applied significant and unobservable valuation assumptions used in developing the Firm's estimates. •We performed a retrospective assessment of management’s fair value estimates for certain of our selected financial instruments, for which there were events or transactions occurring after the valuation date. We did so by comparing management’s estimates to the relevant evidence provided by such events or transactions, as applicable. /s/ Deloitte & Touche LLP New York, New York February 21, 2025 We have served as the Firm’s auditor since 1997. 77December 2024 Form 10-K 77December 2024 Form 10-K 77December 2024 Form 10-K 77 Table of Contents Consolidated Income Statement Table of Contents Consolidated Income Statement Table of Contents in millions, except per share data202420232022RevenuesInvestment banking$6,705 $4,948 $5,599 Trading16,763 15,263 13,928 Investments824 573 15 Commissions and fees5,094 4,537 4,938 Asset management22,499 19,617 19,578 Other1,265 975 283 Total non-interest revenues53,150 45,913 44,341 Interest income154,135 45,849 21,595 Interest expense145,524 37,619 12,268 Net interest8,611 8,230 9,327 Net revenues61,761 54,143 53,668 Provision for credit losses264 532 280 Non-interest expensesCompensation and benefits26,178 24,558 23,053 Brokerage, clearing and exchange fees4,140 3,476 3,458 Information processing and communications4,088 3,775 3,493 Professional services2,901 3,058 3,070 Occupancy and equipment1,905 1,895 1,729 Marketing and business development965 898 905 Other3,724 4,138 3,591 Total non-interest expenses43,901 41,798 39,299 Income before provision for income taxes17,596 11,813 14,089 Provision for income taxes4,067 2,583 2,910 Net income$13,529 $9,230 $11,179 Net income applicable to noncontrolling interests139 143 150 Net income applicable to Morgan Stanley$13,390 $9,087 $11,029 Preferred stock dividends 590 557 489 Earnings applicable to Morgan Stanley common shareholders$12,800 $8,530 $10,540 Earnings per common shareBasic$8.04 $5.24 $6.23 Diluted7.95 5.18 6.15 Average common shares outstandingBasic1,591 1,628 1,691 Diluted1,611 1,646 1,713 Interest income1 Interest expense1 1.2023 amounts have been adjusted to conform with the current period presentation. See Note 2 for additional information. Consolidated Comprehensive Income Statement $ in millions202420232022Net income$13,529 $9,230 $11,179 Other comprehensive income (loss), net of tax:Foreign currency translation adjustments(422)(20)(337)Change in net unrealized gains (losses) on available-for-sale securities521 1,098 (4,437)Pension and other12 (87)43 Change in net debt valuation adjustment(534)(1,290)1,502 Net change in cash flow hedges(51)20 (4)Total other comprehensive income (loss)$(474)$(279)$(3,233)Comprehensive income$13,055 $8,951 $7,946 Net income applicable to noncontrolling interests139 143 150 Other comprehensive income (loss) applicable to noncontrolling interests(81)(111)(82)Comprehensive income applicable to Morgan Stanley$12,997 $8,919 $7,878 December 2024 Form 10-K78See Notes to Consolidated Financial Statements December 2024 Form 10-K78See Notes to Consolidated Financial Statements December 2024 Form 10-K78See Notes to Consolidated Financial Statements 78 Table of Contents Consolidated Balance Sheet Table of Contents Consolidated Balance Sheet Table of Contents $ in millions, except share dataAtDecember 31, 2024AtDecember 31, 2023AssetsCash and cash equivalents$105,386 $89,232 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties)331,884 367,074 Investment securities:Available-for-sale at fair value (amortized cost of $101,960 and $92,149)98,608 88,113 Held-to-maturity (fair value of $51,203 and $57,453)61,071 66,694 Securities purchased under agreements to resell (includes $— and $7 at fair value)118,565 110,740 Securities borrowed123,859 121,091 Customer and other receivables86,158 80,105 Loans:Held for investment (net of allowance for credit losses of $1,066 and $1,169)225,834 203,385 Held for sale12,319 15,255 Goodwill16,706 16,707 Intangible assets (net of accumulated amortization of $5,445 and $4,847)6,453 7,055 Other assets28,228 28,242 Total assets$1,215,071 $1,193,693 LiabilitiesDeposits (includes $6,499 and $6,472 at fair value)$376,007 $351,804 Trading liabilities at fair value153,764 151,513 Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value)50,067 62,651 Securities loaned15,226 15,057 Other secured financings (includes $14,088 and $9,899 at fair value)21,602 12,655 Customer and other payables175,938 208,148 Other liabilities and accrued expenses28,220 28,151 Borrowings (includes $103,332 and $93,900 at fair value)288,819 263,732 Total liabilities1,109,643 1,093,711 Commitments and contingent liabilities (see Note 14)EquityMorgan Stanley shareholders’ equity:Preferred stock9,750 8,750 Common stock, $0.01 par value:Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,43720 20 Additional paid-in capital30,179 29,832 Retained earnings104,989 97,996 Employee stock trusts5,103 5,314 Accumulated other comprehensive income (loss)(6,814)(6,421)Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares)(33,613)(31,139)Common stock issued to employee stock trusts(5,103)(5,314)Total Morgan Stanley shareholders’ equity104,511 99,038 Noncontrolling interests917 944 Total equity105,428 99,982 Total liabilities and equity$1,215,071 $1,193,693 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Consolidated Statement of Changes in Total Equity",
      "prior_title": null,
      "current_body": "Table of Contents $ in millions202420232022Preferred stockBeginning balance$8,750 $8,750 $7,750 Issuance of preferred stock1,000 — 1,000 Ending balance9,750 8,750 8,750 Common stockBeginning and ending balance20 20 20 Additional paid-in capitalBeginning balance29,832 29,339 28,841 Share-based award activity352 493 503 Issuance of preferred stock(5)— (6)Other net increases (decreases)— — 1 Ending balance30,179 29,832 29,339 Retained earningsBeginning balance97,996 94,862 89,432 Cumulative adjustment related to the adoption of accounting standard update1(60)— — Net income applicable to Morgan Stanley13,390 9,087 11,029 Preferred stock dividends2(590)(557)(489)Common stock dividends2(5,745)(5,393)(5,108)Other net increases (decreases)(2)(3)(2)Ending balance104,989 97,996 94,862 Employee stock trustsBeginning balance5,314 4,881 3,955 Share-based award activity(211)433 926 Ending balance5,103 5,314 4,881 Accumulated other comprehensive income (loss)Beginning balance(6,421)(6,253)(3,102)Net change in Accumulated other comprehensive income (loss)(393)(168)(3,151)Ending balance(6,814)(6,421)(6,253)Common stock held in treasury at costBeginning balance(31,139)(26,577)(17,500)Share-based award activity1,704 1,654 1,794 Repurchases of common stock and employee tax withholdings(4,178)(6,216)(10,871)Ending balance(33,613)(31,139)(26,577)Common stock issued to employee stock trustsBeginning balance(5,314)(4,881)(3,955)Share-based award activity211 (433)(926)Ending balance(5,103)(5,314)(4,881)Noncontrolling interestsBeginning balance944 1,090 1,157 Net income applicable to noncontrolling interests139 143 150 Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests(81)(111)(82)Other net increases (decreases)(85)(178)(135)Ending balance917 944 1,090 Total equity$105,428 $99,982 $101,231"
    },
    {
      "status": "ADDED",
      "current_title": "Retained earnings",
      "prior_title": null,
      "current_body": "Cumulative adjustment related to the adoption of accounting standard update1 Preferred stock dividends2 Common stock dividends2"
    },
    {
      "status": "ADDED",
      "current_title": "Total equity",
      "prior_title": null,
      "current_body": "1.The Firm adopted the Investments - Tax Credit Structures accounting standard update on January 1, 2024. Refer to Note 2 for further information. The Firm adopted the Investments - Tax Credit Structures accounting standard update on January 1, 2024. Refer to Note 2 for further information. 2.See Note 17 for information regarding dividends per share for each class of stock. See Note 17 for information regarding dividends per share for each class of stock. December 2024 Form 10-K80See Notes to Consolidated Financial Statements December 2024 Form 10-K80See Notes to Consolidated Financial Statements December 2024 Form 10-K80See Notes to Consolidated Financial Statements 80 Table of Contents Consolidated Cash Flow Statement Table of Contents Consolidated Cash Flow Statement Table of Contents $ in millions202420232022Cash flows from operating activitiesNet income$13,529 $9,230 $11,179 Adjustments to reconcile net income to net cash provided by (used for) operating activities:Deferred income taxes152 (463)(849)Stock-based compensation expense1,622 1,709 1,875 Depreciation and amortization5,161 4,256 3,998 Provision for credit losses264 532 280 Other operating adjustments4 308 618 Changes in assets and liabilities:Trading assets, net of Trading liabilities34,496 (61,026)(39,422)Securities borrowed(2,768)12,283 (3,661)Securities loaned169 (622)3,380 Customer and other receivables and other assets(5,308)602 14,664 Customer and other payables and other liabilities(25,550)(3,629)(4,897)Securities purchased under agreements to resell(7,825)3,167 6,092 Securities sold under agreements to repurchase(12,584)117 346 Net cash provided by (used for) operating activities1,362 (33,536)(6,397)Cash flows from investing activitiesProceeds from (payments for):Other assets—Premises, equipment and software(3,462)(3,412)(3,078)Changes in loans, net(22,618)(4,059)(23,652)AFS securities:Purchases(35,327)(23,078)(24,602)Proceeds from sales5,728 5,929 22,014 Proceeds from paydowns and maturities21,089 14,316 13,435 HTM securities:Purchases(3,860)— (5,231)Proceeds from paydowns and maturities10,475 8,143 9,829 Other investing activities(1,485)(923)(347)Net cash provided by (used for) investing activities(29,460)(3,084)(11,632)Cash flows from financing activitiesNet proceeds from (payments for):Other secured financings4,358 796 (884)Deposits23,955 (5,075)1,659 Issuance of preferred stock, net of issuance costs995 — 994 Proceeds from issuance of Borrowings108,365 78,424 72,460 Payments for:Borrowings(80,230)(64,805)(34,898)Repurchases of common stock and employee tax withholdings(4,199)(6,178)(10,871)Cash dividends(6,138)(5,763)(5,401)Other financing activities(350)(125)(345)Net cash provided by (used for) financing activities46,756 (2,726)22,714 Effect of exchange rate changes on cash and cash equivalents(2,504)451 (4,283)Net increase (decrease) in cash and cash equivalents16,154 (38,895)402 Cash and cash equivalents, at beginning of period89,232 128,127 127,725 Cash and cash equivalents, at end of period$105,386 $89,232 $128,127 Supplemental Disclosure of Cash Flow InformationCash payments for:Interest$46,359 $41,940 $9,819 Income taxes, net of refunds1,885 2,035 4,147 See Notes to Consolidated Financial Statements81December 2024 Form 10-K See Notes to Consolidated Financial Statements81December 2024 Form 10-K See Notes to Consolidated Financial Statements81December 2024 Form 10-K 81"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "1. Introduction and Basis of Presentation",
      "prior_title": null,
      "current_body": "The Firm Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K. A description of the clients and principal products and services of each of the Firm’s business segments is as follows: Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research. Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors."
    },
    {
      "status": "ADDED",
      "current_title": "Basis of Financial Information",
      "prior_title": null,
      "current_body": "The financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto."
    },
    {
      "status": "ADDED",
      "current_title": "Consolidation",
      "prior_title": null,
      "current_body": "The financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet. For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method December 2024 Form 10-K82 December 2024 Form 10-K82 December 2024 Form 10-K82 82"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Presentation Changes in 2024",
      "prior_title": null,
      "current_body": "In the first quarter of 2024, the Firm implemented certain presentation changes which resulted in a decrease to both interest income and interest expense of $4,432 million for the year ended December 31, 2023, and no effect on net interest income, with the entire impact to the Firm recorded within the Institutional Securities segment. These changes further aligned the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related customer receivables and payables that are currently accounted for as a single unit of account on the balance sheet. The current and previous presentation of these interest income and interest expense amounts are acceptable and the change does not represent a change in accounting principle. These changes were applied retrospectively to the consolidated income statement for 2023 and accordingly, 2023 amounts were adjusted to conform with the current presentation."
    },
    {
      "status": "ADDED",
      "current_title": "Revenue Recognition",
      "prior_title": null,
      "current_body": "Revenues are recognized when the promised goods or services are delivered to our customers in an amount that is based on the consideration the Firm expects to receive in exchange for those goods or services when such amounts are not probable of significant reversal. Investment BankingRevenues from investment banking activities consist of revenues earned from underwriting, primarily equity and fixed income securities and loan syndications, and advisory fees, primarily for mergers, acquisitions and restructurings. Underwriting revenues are generally recognized on trade date if there is no uncertainty or contingency related to the amount to be paid. Underwriting costs are deferred and recognized in the relevant non-interest expenses line items when the related underwriting revenues are recorded.Advisory fees are recognized as advice is provided to the client, based on the estimated progress of work and when revenues are not probable of a significant reversal. Advisory costs are recognized as incurred in the relevant non-interest expenses line items, including those reimbursed.Commissions and FeesCommission and fee revenues generally result from transaction-based arrangements in which the client is charged a fee for the execution of transactions. Such revenues primarily arise from transactions in equity securities; services related to sales and trading activities; and sales of mutual funds, alternative funds, futures, insurance products and options, as well as revenues from order flow payments for directing customer orders to broker-dealers, exchanges and market centers for execution. Commission and fee revenues are recognized on trade date when the performance obligation is satisfied.Asset Management RevenuesAsset management, distribution and administration fees are generally based on related asset levels, such as the AUM of a customer’s account or the net asset value of a fund. These fees are generally recognized when services are performed and the value of the assets is known. Management fees are reduced by estimated fee waivers and expense caps, if any, provided to the customer.Performance-based fees not in the form of carried interest are recorded when the annual performance target is met and the revenues are not probable of a significant reversal.Sales commissions paid by the Firm in connection with the sale of certain classes of shares of its open-end mutual fund products are accounted for as deferred commission assets and amortized to Other expenses over the expected life of the contract. The Firm periodically tests deferred commission assets for recoverability based on cash flows expected to be received in future periods. Other asset management and distribution costs are recognized as incurred in the relevant non-interest expenses line items."
    },
    {
      "status": "ADDED",
      "current_title": "Investment Banking",
      "prior_title": null,
      "current_body": "Investment banking revenues are derived from client engagements in which we act as an advisor, underwriter or distributor of capital. Within the Institutional Securities business segment, these revenues are primarily composed of fees earned from underwriting equity and fixed income securities, syndicating loans and advisory services in relation to mergers and acquisitions, divestitures and corporate restructurings. Within the Wealth Management business segment, these revenues are derived from the distribution of newly issued securities. Trading Trading revenues include the realized gains and losses from transactions in financial instruments, unrealized gains and losses from ongoing changes in the fair value of our positions, and gains and losses from financial instruments used to economically hedge compensation expense related to DCP. Within the Institutional Securities business segment, Trading revenues arise from transactions in cash instruments and derivatives in which we act as a market maker for our clients. In this role, we stand ready to buy, sell or otherwise transact with customers under a variety of market conditions and to provide firm or indicative prices in response to customer requests. Our liquidity obligations can be explicit in some cases, and in others, customers expect us to be willing to transact with them. In order to most effectively fulfill our market-making function, we engage in activities across all of our trading businesses that include, but are not limited to: •taking positions in anticipation of, and in response to, customer demand to buy or sell and—depending on the liquidity of the relevant market and the size of the position—to hold those positions for a period of time; •building, maintaining and rebalancing inventory held to facilitate client activity through trades with other market participants; •managing and assuming basis risk (risk associated with imperfect hedging) between risks incurred from the facilitation of client transactions and the standardized products available in the market to hedge those risks; •trading in the market to remain current on pricing and trends; and •engaging in other activities to provide efficiency and liquidity for markets. In many markets, the realized and unrealized gains and losses from purchase and sale transactions will include any spreads between bids and offers. Certain fees received on loans carried at fair value and dividends from equity securities are also recorded in Trading revenues since they relate to positions carried at fair value. December 2024 Form 10-K30 December 2024 Form 10-K30 December 2024 Form 10-K30 30 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Within the Wealth Management business segment, Trading revenues primarily include revenues from customers’ purchases and sales of fixed income instruments in which we act as principal, as well as gains and losses related to DCP investments.InvestmentsInvestments revenues are composed of realized and unrealized gains and losses derived from investments, including those associated with employee deferred compensation and co-investment plans. Estimates of the fair value of the investments that produce these revenues may involve significant judgment and may fluctuate significantly over time in light of business, market, economic and financial conditions, generally or in relation to specific transactions.Within the Institutional Securities segment, gains and losses are primarily from business-related investments. Certain investments are subject to sale restrictions.Within the Investment Management business segment, Investments revenues are primarily from performance-based fees in the form of carried interest, a portion of which is subject to reversal, and gains and losses from investments. The business is entitled to receive carried interest when the return in certain funds exceeds specified performance targets. Additionally, we consolidate certain sponsored Investment Management funds where revenues are primarily attributable to holders of noncontrolling interests. Commissions and Fees Commissions and fees result from arrangements in which the client is charged a fee for executing transactions related to securities, services related to sales and trading activities, and sales of other products. Within the Institutional Securities business segment, commissions and fees include fees earned from market-making activities, such as executing and clearing client transactions on major stock and derivative exchanges, as well as from OTC derivatives. Within the Wealth Management business segment, commissions and fees arise from client transactions including in equity securities, insurance products, mutual funds, alternative investments, futures and options. Wealth Management also earns revenues from order flow payments for directing customer orders to broker-dealers, exchanges and market centers for execution. Asset ManagementAsset management revenues include fees associated with the management and supervision of assets and the distribution of funds and similar products.Within the Wealth Management business segment, Asset management revenues are related to advisory services associated with fee-based assets, account service and administration, as well as distribution of products. These revenues are generally based on the net asset value of the account in which a client is invested.Within the Investment Management business segment, Asset management revenues are primarily composed of fees received from investment vehicles on the basis of assets under management. Performance-based fees, not in the form of carried interest, are earned on certain products and separately managed accounts as a percentage of appreciation in value and, in certain cases, are based upon the achievement of performance criteria. These performance fees are generally recognized on a quarterly or annual basis. Net InterestInterest income and Interest expense are functions of the level and mix of total assets and liabilities, including Trading assets and Trading liabilities, Investment securities, Securities borrowed or purchased under agreements to resell, Securities loaned or sold under agreements to repurchase, Loans, Deposits and Borrowings. Within the Institutional Securities business segment, Net interest is a function of market-making strategies, client activity, and the prevailing level, term structure and volatility of interest rates. Net interest is impacted by market-making, lending and financing activities as we generally earn interest on securities held by the Firm, Securities borrowed, Securities purchased under agreements to resell, Loans and margin loans, while Borrowings, Securities loaned and Securities sold under agreements to repurchase generally incur interest expense. Within the Wealth Management business segment, Interest income is driven by assets held including Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. OtherOther revenues for Institutional Securities include revenues and losses from equity method investments, fees earned in association with lending activities, mark-to-market gains and losses on loans and lending commitments held for sale, as well as gains and losses on economic derivative hedges associated with certain held-for-sale and held-for-investment loans and lending commitments.Other revenues for Wealth Management include realized gains and losses on AFS securities, account handling fees, referral fees and other miscellaneous revenues.Provision for Credit LossesThe Provision for credit losses includes the provision for credit losses for loans and lending commitments held for investment. Within the Wealth Management business segment, Trading revenues primarily include revenues from customers’ purchases and sales of fixed income instruments in which we act as principal, as well as gains and losses related to DCP investments.InvestmentsInvestments revenues are composed of realized and unrealized gains and losses derived from investments, including those associated with employee deferred compensation and co-investment plans. Estimates of the fair value of the investments that produce these revenues may involve significant judgment and may fluctuate significantly over time in light of business, market, economic and financial conditions, generally or in relation to specific transactions.Within the Institutional Securities segment, gains and losses are primarily from business-related investments. Certain investments are subject to sale restrictions.Within the Investment Management business segment, Investments revenues are primarily from performance-based fees in the form of carried interest, a portion of which is subject to reversal, and gains and losses from investments. The business is entitled to receive carried interest when the return in certain funds exceeds specified performance targets. Additionally, we consolidate certain sponsored Investment Management funds where revenues are primarily attributable to holders of noncontrolling interests. Commissions and Fees Commissions and fees result from arrangements in which the client is charged a fee for executing transactions related to securities, services related to sales and trading activities, and sales of other products. Within the Institutional Securities business segment, commissions and fees include fees earned from market-making activities, such as executing and clearing client transactions on major stock and derivative exchanges, as well as from OTC derivatives. Within the Wealth Management business segment, commissions and fees arise from client transactions including in equity securities, insurance products, mutual funds, alternative investments, futures and options. Wealth Management also earns revenues from order flow payments for directing customer orders to broker-dealers, exchanges and market centers for execution. Asset ManagementAsset management revenues include fees associated with the management and supervision of assets and the distribution of funds and similar products.Within the Wealth Management business segment, Asset management revenues are related to advisory services Within the Wealth Management business segment, Trading revenues primarily include revenues from customers’ purchases and sales of fixed income instruments in which we act as principal, as well as gains and losses related to DCP investments."
    },
    {
      "status": "ADDED",
      "current_title": "Commissions and Fees",
      "prior_title": null,
      "current_body": "Commissions and fees result from arrangements in which the client is charged a fee for executing transactions related to securities, services related to sales and trading activities, and sales of other products. Within the Institutional Securities business segment, commissions and fees include fees earned from market-making activities, such as executing and clearing client transactions on major stock and derivative exchanges, as well as from OTC derivatives. Within the Wealth Management business segment, commissions and fees arise from client transactions including in equity securities, insurance products, mutual funds, alternative investments, futures and options. Wealth Management also earns revenues from order flow payments for directing customer orders to broker-dealers, exchanges and market centers for execution."
    },
    {
      "status": "ADDED",
      "current_title": "Asset Management Revenues",
      "prior_title": null,
      "current_body": "Asset management, distribution and administration fees are generally based on related asset levels, such as the AUM of a customer’s account or the net asset value of a fund. These fees are generally recognized when services are performed and the value of the assets is known. Management fees are reduced by estimated fee waivers and expense caps, if any, provided to the customer. Performance-based fees not in the form of carried interest are recorded when the annual performance target is met and the revenues are not probable of a significant reversal. Sales commissions paid by the Firm in connection with the sale of certain classes of shares of its open-end mutual fund products are accounted for as deferred commission assets and amortized to Other expenses over the expected life of the contract. The Firm periodically tests deferred commission assets for recoverability based on cash flows expected to be received in future periods. Other asset management and distribution costs are recognized as incurred in the relevant non-interest expenses line items. 83December 2024 Form 10-K 83December 2024 Form 10-K 83December 2024 Form 10-K 83"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Investments Revenues—Carried Interest",
      "prior_title": null,
      "current_body": "The Firm is entitled to receive performance-based fees in the form of carried interest when the return in certain funds exceeds specified performance targets. When the Firm earns carried interest from funds as specified performance thresholds are met, that carried interest and any related general or limited partner interest are accounted for under the equity method of accounting and measured based on the Firm’s claim on the NAV of the fund at the reporting date, taking into account the distribution terms applicable to the interest held. Such items are reflected within Investments revenues. See Note 22 for information regarding the net cumulative unrealized amount of performance-based fee revenues at risk of reversal. See Note 14 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received."
    },
    {
      "status": "ADDED",
      "current_title": "Other Items",
      "prior_title": null,
      "current_body": "Revenues from certain commodities-related contracts are recognized in Trading revenues when the Firm has transferred control over the promised goods or services to the customer. Receivables from contracts with customers are recognized in Customer and other receivables in the balance sheet when the underlying performance obligations have been satisfied and the Firm has the right per the contract to bill the customer. Contract assets are recognized in Other assets when the Firm has satisfied its performance obligations but customer payment is conditional on something other than the passage of time. Contract liabilities are recognized in Other liabilities and accrued expenses when the Firm has collected payment from a customer based on the terms of the contract but the underlying performance obligations are not yet satisfied. For contracts with a term of less than one year, incremental costs to obtain the contract are expensed as incurred. Revenues are not discounted when payment is expected within one year. The Firm generally presents, net within revenues, taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Firm from a customer."
    },
    {
      "status": "ADDED",
      "current_title": "Cash and Cash Equivalents",
      "prior_title": null,
      "current_body": "Cash and cash equivalents consist of Cash and due from banks and interest-bearing deposits with banks. Cash equivalents are highly liquid investments with remaining maturities of three months or less from the acquisition date that are readily convertible to cash and are not held for trading purposes. Cash and cash equivalents also include Restricted cash, such as cash segregated in compliance with federal or other regulations, including minimum reserve requirements set by the Federal Reserve Bank and other central banks, and the Firm’s initial margin deposited with clearing organizations.Fair Value of Financial InstrumentsInstruments within Trading assets and Trading liabilities are measured at fair value, either as required or allowed by accounting guidance. These financial instruments primarily represent the Firm’s trading and investment positions and include both cash and derivative products. In addition, securities classified as Available-for-Sale (“AFS”) are measured at fair value.Gains and losses on instruments carried at fair value are reflected in Trading revenues, Investments revenues or Investment banking revenues in the income statement, except for gains and losses related to AFS securities (see “AFS Investment Securities” section herein and Note 7) and derivatives accounted for as hedges, as well as economic derivative hedges associated with certain held-for-sale and held-for-investment corporate loans and lending commitments (see “Hedge Accounting” and “Other Hedges” herein and Note 6).Interest income and interest expense are recorded within the income statement depending on the nature of the instrument and related market conventions. When interest is included as a component of the instruments’ fair value, interest is recorded within Trading revenues or Investments revenues. Otherwise, it is recorded within Interest income or Interest expense. Dividend income is recorded in Trading revenues or Investments revenues depending on the business activity.The fair value of OTC financial instruments, including derivative contracts related to financial instruments and commodities, is presented in the accompanying balance sheet on a net-by-counterparty basis, when appropriate. Additionally, the Firm nets the fair value of cash collateral paid or received against the fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting agreement.Fair Value OptionThe Firm has elected to measure certain eligible instruments at fair value, including Securities purchased under agreements to resell, Loans and lending commitments, equity method investments and certain other assets, Deposits, Securities sold under agreements to repurchase, Other secured financings and Borrowings.Fair Value Measurement—Definition and HierarchyFair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in Cash and cash equivalents also include Restricted cash, such as cash segregated in compliance with federal or other regulations, including minimum reserve requirements set by the Federal Reserve Bank and other central banks, and the Firm’s initial margin deposited with clearing organizations."
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value of Financial Instruments",
      "prior_title": null,
      "current_body": "Instruments within Trading assets and Trading liabilities are measured at fair value, either as required or allowed by accounting guidance. These financial instruments primarily represent the Firm’s trading and investment positions and include both cash and derivative products. In addition, securities classified as Available-for-Sale (“AFS”) are measured at fair value. Gains and losses on instruments carried at fair value are reflected in Trading revenues, Investments revenues or Investment banking revenues in the income statement, except for gains and losses related to AFS securities (see “AFS Investment Securities” section herein and Note 7) and derivatives accounted for as hedges, as well as economic derivative hedges associated with certain held-for-sale and held-for-investment corporate loans and lending commitments (see “Hedge Accounting” and “Other Hedges” herein and Note 6). Interest income and interest expense are recorded within the income statement depending on the nature of the instrument and related market conventions. When interest is included as a component of the instruments’ fair value, interest is recorded within Trading revenues or Investments revenues. Otherwise, it is recorded within Interest income or Interest expense. Dividend income is recorded in Trading revenues or Investments revenues depending on the business activity. The fair value of OTC financial instruments, including derivative contracts related to financial instruments and commodities, is presented in the accompanying balance sheet on a net-by-counterparty basis, when appropriate. Additionally, the Firm nets the fair value of cash collateral paid or received against the fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting agreement."
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value Option",
      "prior_title": null,
      "current_body": "The Firm has elected to measure certain eligible instruments at fair value, including Securities purchased under agreements to resell, Loans and lending commitments, equity method investments and certain other assets, Deposits, Securities sold under agreements to repurchase, Other secured financings and Borrowings."
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value Measurement—Definition and Hierarchy",
      "prior_title": null,
      "current_body": "Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in December 2024 Form 10-K84 December 2024 Form 10-K84 December 2024 Form 10-K84 84"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Valuation Techniques",
      "prior_title": null,
      "current_body": "Many cash instruments and OTC derivative contracts have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that a party is willing to pay for an asset. Ask prices represent the lowest price that a party is willing to accept for an asset. The Firm carries positions at the point within the bid-ask range that meets its best estimate of fair value. For offsetting positions in the same financial instrument, the same price within the bid-ask spread is used to measure both the long and short positions. Fair value for many cash instruments and OTC derivative contracts is derived using pricing models. Pricing models take into account the contract terms, as well as multiple inputs, including, where applicable, commodity prices, equity prices, interest rate yield curves, credit curves, correlation, creditworthiness of the counterparty, creditworthiness of the Firm, option volatility and currency rates. Where appropriate, valuation adjustments are made to account for various factors such as liquidity risk (bid-ask adjustments), credit quality, model uncertainty, and concentration risk and funding in order to arrive at fair value. Adjustments for liquidity risk adjust model-derived mid-market amounts of Level 2 and Level 3 financial instruments for the bid-mid or mid-ask spread required to properly reflect the exit price of a risk position. Bid-mid and mid-ask spreads are marked to levels observed in trade activity, broker quotes or other external third-party data. Where these spreads are unobservable for the particular position in question, spreads are derived from observable levels of similar positions. The Firm applies credit-related valuation adjustments to its Borrowings for which the fair value option was elected and to OTC derivatives. The Firm considers the impact of changes in its own credit spreads based upon observations of the secondary bond market spreads when measuring the fair value for Borrowings. 85December 2024 Form 10-K 85December 2024 Form 10-K 85December 2024 Form 10-K 85"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Assets and Liabilities Measured at Fair Value on a Non-recurring Basis",
      "prior_title": null,
      "current_body": "Certain of the Firm’s assets and liabilities are measured at fair value on a non-recurring basis. The Firm incurs losses or gains for any adjustments of these assets or liabilities to fair value. For assets and liabilities measured at fair value on a non-recurring basis, fair value is determined by using various valuation approaches. The same hierarchy for inputs as described above, which requires that observable inputs be used when available, is used in measuring fair value for these items.For further information on financial assets and liabilities that are measured at fair value on a recurring and non-recurring basis, see Note 4.Offsetting of Derivative InstrumentsIn connection with its derivative activities, the Firm generally enters into master netting agreements and collateral agreements with its counterparties. These agreements provide the Firm with the right, in the event of a default by the counterparty, to net a counterparty’s rights and obligations under the agreement and to liquidate and set off cash collateral against any net amount owed by the counterparty. Derivatives with enforceable master netting agreements are reported net of cash collateral received and posted.However, in certain circumstances, the Firm may not have such an agreement in place; the relevant insolvency regime may not support the enforceability of the master netting agreement or collateral agreement; or the Firm may not have sought legal advice to support the enforceability of the agreement. In cases where the Firm has not determined an agreement to be enforceable, the related amounts are not offset (see Note 6).The Firm’s policy is generally to receive cash and/or securities posted as collateral (with rights of rehypothecation) in connection with derivative transactions, irrespective of the enforceability determination regarding the master netting and collateral agreement. In certain cases, the Firm may agree for such collateral to be posted by the counterparty to a third-party custodian under a control agreement that enables it to take control of such collateral in the event of a counterparty default. The enforceability of the master netting agreement is taken into account in the Firm’s risk management practices and application of counterparty credit limits.For information related to offsetting of derivatives, see Note 6.Hedge AccountingThe Firm applies hedge accounting using various derivative financial instruments for the following types of hedges: hedges of changes in the fair value of assets and liabilities due to the risk being hedged (fair value hedges); hedges of variability in forecasted cash flows from floating-rate assets due to contractually specified interest rates (cash flow hedges) and hedges of net investments in foreign operations whose functional currency is different from the reporting currency of the Parent Company (net investment hedges). These financial instruments are included within Trading assets—Derivative and other contracts or Trading liabilities—Derivative and other contracts in the balance sheet. For hedges where hedge accounting is being applied, the Firm performs effectiveness testing and other procedures. The change in the fair value of the designated portion of the hedging instrument should be used when available, is used in measuring fair value for these items. For further information on financial assets and liabilities that are measured at fair value on a recurring and non-recurring basis, see Note 4."
    },
    {
      "status": "ADDED",
      "current_title": "Offsetting of Derivative Instruments",
      "prior_title": null,
      "current_body": "In connection with its derivative activities, the Firm generally enters into master netting agreements and collateral agreements with its counterparties. These agreements provide the Firm with the right, in the event of a default by the counterparty, to net a counterparty’s rights and obligations under the agreement and to liquidate and set off cash collateral against any net amount owed by the counterparty. Derivatives with enforceable master netting agreements are reported net of cash collateral received and posted. However, in certain circumstances, the Firm may not have such an agreement in place; the relevant insolvency regime may not support the enforceability of the master netting agreement or collateral agreement; or the Firm may not have sought legal advice to support the enforceability of the agreement. In cases where the Firm has not determined an agreement to be enforceable, the related amounts are not offset (see Note 6). The Firm’s policy is generally to receive cash and/or securities posted as collateral (with rights of rehypothecation) in connection with derivative transactions, irrespective of the enforceability determination regarding the master netting and collateral agreement. In certain cases, the Firm may agree for such collateral to be posted by the counterparty to a third-party custodian under a control agreement that enables it to take control of such collateral in the event of a counterparty default. The enforceability of the master netting agreement is taken into account in the Firm’s risk management practices and application of counterparty credit limits. For information related to offsetting of derivatives, see Note 6."
    },
    {
      "status": "ADDED",
      "current_title": "Hedge Accounting",
      "prior_title": null,
      "current_body": "The Firm applies hedge accounting using various derivative financial instruments for the following types of hedges: hedges of changes in the fair value of assets and liabilities due to the risk being hedged (fair value hedges); hedges of variability in forecasted cash flows from floating-rate assets due to contractually specified interest rates (cash flow hedges) and hedges of net investments in foreign operations whose functional currency is different from the reporting currency of the Parent Company (net investment hedges). These financial instruments are included within Trading assets—Derivative and other contracts or Trading liabilities—Derivative and other contracts in the balance sheet. For hedges where hedge accounting is being applied, the Firm performs effectiveness testing and other procedures. The change in the fair value of the designated portion of the hedging instrument should be December 2024 Form 10-K86 December 2024 Form 10-K86 December 2024 Form 10-K86 86"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value Hedges—Interest Rate Risk",
      "prior_title": null,
      "current_body": "The Firm’s designated fair value hedges consist of interest rate swaps designated as hedges of changes in the benchmark interest rate of certain fixed-rate AFS securities and senior borrowings. The Firm also designates interest rate swaps as fair value hedges of changes in the benchmark interest rate of certain fixed rate deposits. The Firm is permitted to hedge the full, or part of the contractual term of the hedged instrument. The Firm uses regression analysis to perform an ongoing prospective and retrospective assessment of the effectiveness of these hedging relationships. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative, offset by the change in the fair value attributable to the change in the benchmark interest rate risk of the hedged asset (liability), is recognized in earnings each period as a component of Interest income (expense). For AFS securities, the change in fair value of the hedged item due to changes other than the risk being hedged will continue to be reported in OCI. When a derivative is de-designated as a hedge, any basis adjustment remaining on the hedged asset (liability) is amortized to Interest income (expense) over the remaining life of the asset (liability) using the effective interest method. For certain AFS securities, the Firm also applies the portfolio layer method of hedge accounting, which permits prepayable and non-prepayable assets to be included in the portfolio and allows more of the portfolio to be hedged. Further, the portfolio layer method of accounting requires that basis adjustments are maintained at the portfolio level and not allocated to individual items until certain de-designation events occur. The amount designated as hedged is the sum of the notional amounts of all outstanding layers in each portfolio. Refer to Note 6 and Note 7 to the financial statements for additional information on portfolio layer method hedging."
    },
    {
      "status": "ADDED",
      "current_title": "Net Investment Hedges",
      "prior_title": null,
      "current_body": "The Firm uses forward foreign exchange contracts to manage a portion of the currency exposure relating to its net investments in foreign operations. To the extent that the notional amounts of the hedging instruments equal the portion of the investments being hedged and the underlying exchange rate of the derivative hedging instrument is the same as the exchange rate between the functional currency of the investee and the intermediate parent entity’s functional currency, it is considered to be perfectly effective. The gain or loss from revaluing qualifying hedges of net investments in foreign operations at the spot rate is reported within AOCI. The forward points on the hedging instruments are excluded from hedge effectiveness testing and changes in the fair value of this excluded component are recorded currently in Interest income.Cash Flow Hedges—Interest Rate RiskThe Firm’s designated cash flow hedges consist of interest rate derivatives designated as hedges of variability in forecasted cash flows from floating-rate assets due to changes in the contractually specified interest rates. The Firm uses regression analysis to perform an ongoing prospective and retrospective assessment of the effectiveness of these hedging relationships. The objective of this strategy is to hedge the risk of changes in the hedged item’s cash flows attributable to changes in the contractually specified interest rate. For qualifying cash flow hedges of contractually specified interest rates, changes in the fair value of the derivative are recorded in OCI and subsequently reclassified to earnings in the same periods when the hedged item affects earnings. If cash flow hedge accounting is discontinued, AOCI is released into earnings immediately if the cash flow of the hedged item is probable of not occurring. Otherwise the amount in AOCI is released into earnings as the forecasted transaction affects earnings.Other HedgesIn addition to hedges that are designated and qualify for hedge accounting, the Firm uses derivatives to economically hedge credit risk associated with certain held-for-sale and held-for-investment corporate loans and lending commitments, and the related gains and losses are reported within Other revenues in the income statement.For further information on derivative instruments and hedging activities, see Note 6.AFS Investment SecuritiesAFS securities are reported at fair value in the balance sheet. Interest income, including amortization of premiums and accretion of discounts, is included in Interest income in the income statement. Unrealized gains are recorded in OCI, and unrealized losses are recorded either in OCI or in Other revenues as described below.AFS securities in an unrealized loss position are first evaluated to determine whether there is an intent to sell or it is more likely than not the Firm will be required to sell before recovery of the amortized cost basis. If so, the amortized cost basis is written down to the fair value of the security such that the entire unrealized loss is recognized in Other revenues, and any previously established ACL is written off.For all other AFS securities in an unrealized loss position, any portion of unrealized losses representing a credit loss is recognized in Other revenues and as an increase to the ACL for AFS securities, with the remainder of unrealized losses recognized in OCI. A credit loss exists if the Firm does not expect to recover the amortized cost basis of the security. this excluded component are recorded currently in Interest income."
    },
    {
      "status": "ADDED",
      "current_title": "Cash Flow Hedges—Interest Rate Risk",
      "prior_title": null,
      "current_body": "The Firm’s designated cash flow hedges consist of interest rate derivatives designated as hedges of variability in forecasted cash flows from floating-rate assets due to changes in the contractually specified interest rates. The Firm uses regression analysis to perform an ongoing prospective and retrospective assessment of the effectiveness of these hedging relationships. The objective of this strategy is to hedge the risk of changes in the hedged item’s cash flows attributable to changes in the contractually specified interest rate. For qualifying cash flow hedges of contractually specified interest rates, changes in the fair value of the derivative are recorded in OCI and subsequently reclassified to earnings in the same periods when the hedged item affects earnings. If cash flow hedge accounting is discontinued, AOCI is released into earnings immediately if the cash flow of the hedged item is probable of not occurring. Otherwise the amount in AOCI is released into earnings as the forecasted transaction affects earnings."
    },
    {
      "status": "ADDED",
      "current_title": "Other Hedges",
      "prior_title": null,
      "current_body": "In addition to hedges that are designated and qualify for hedge accounting, the Firm uses derivatives to economically hedge credit risk associated with certain held-for-sale and held-for-investment corporate loans and lending commitments, and the related gains and losses are reported within Other revenues in the income statement. For further information on derivative instruments and hedging activities, see Note 6."
    },
    {
      "status": "ADDED",
      "current_title": "AFS Investment Securities",
      "prior_title": null,
      "current_body": "AFS securities are reported at fair value in the balance sheet. Interest income, including amortization of premiums and accretion of discounts, is included in Interest income in the income statement. Unrealized gains are recorded in OCI, and unrealized losses are recorded either in OCI or in Other revenues as described below. AFS securities in an unrealized loss position are first evaluated to determine whether there is an intent to sell or it is more likely than not the Firm will be required to sell before recovery of the amortized cost basis. If so, the amortized cost basis is written down to the fair value of the security such that the entire unrealized loss is recognized in Other revenues, and any previously established ACL is written off. For all other AFS securities in an unrealized loss position, any portion of unrealized losses representing a credit loss is recognized in Other revenues and as an increase to the ACL for AFS securities, with the remainder of unrealized losses recognized in OCI. A credit loss exists if the Firm does not expect to recover the amortized cost basis of the security. 87December 2024 Form 10-K 87December 2024 Form 10-K 87December 2024 Form 10-K 87"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Presentation of ACL and Provision for Credit Losses",
      "prior_title": null,
      "current_body": "ACLProvision for Credit LossesAFS securitiesContra investment securitiesOther revenue"
    },
    {
      "status": "ADDED",
      "current_title": "Nonaccrual & ACL Charge-offs on AFS Securities",
      "prior_title": null,
      "current_body": "AFS securities follow the same nonaccrual and charge-off guidance as discussed in “Allowance for Credit Losses” herein."
    },
    {
      "status": "ADDED",
      "current_title": "HTM Securities",
      "prior_title": null,
      "current_body": "HTM securities are reported at amortized cost, net of any ACL, in the balance sheet. Refer to “Allowance for Credit Losses” herein for guidance on the ACL determination. Interest income, including amortization of premiums and accretion of discounts on HTM securities, is included in Interest income in the income statement. Loans The Firm accounts for loans based on the following categories: loans held for investment; loans held for sale; and loans at fair value. Nonaccrual and ACL Charge-offs on LoansAll loan categories described below follow the same nonaccrual guidance and loans held for investment follow the charge-off guidance as discussed in “Allowance for Credit Losses” herein.Loans Held for InvestmentLoans held for investment are reported at amortized cost, which consists of the outstanding principle balance adjusted for any charge-offs, the allowance for credit losses, any unamortized deferred fees or costs for originated loans, and any unamortized premiums or discounts for purchased loans.Interest Income. Interest income on performing loans held for investment is accrued and recognized as interest income at the contractual rate of interest. Purchase price discounts or premiums, as well as net deferred loan fees or costs, are amortized into interest income over the life of the loan to produce a level rate of return.Lending Commitments. The Firm records the liability and related expense for the credit exposure related to commitments to fund loans. The liability is recorded in Other liabilities and accrued expenses in the balance sheet and the expense is recorded in the Provision for credit losses in the income statement. For more information regarding loan commitments, standby letters of credit and financial guarantees, see Note 14.For more information regarding allowance for credit losses, refer to “Allowance for Credit Losses” herein.Loans Held for SaleLoans held for sale are measured at the lower of amortized cost or fair value, with valuation changes recorded in Other revenues. The Firm determines the valuation allowance on an individual loan basis, except for residential mortgage loans for which the valuation allowance is determined at the loan product level. Any decreases in fair value below the initial carrying amount and any recoveries in fair value up to the initial carrying amount are recorded in Other revenues. Increases in fair value above initial carrying value are not recognized.Interest Income. Interest income on loans held for sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred as an adjustment to the loan’s cost basis until the related loan is sold and, as such, are included in the periodic determination of the lower of cost or fair value adjustments and the gain or loss recognized at the time of sale.Lending Commitments. Commitments to fund mortgage loans held for sale are derivatives and are reported in Trading assets or Trading liabilities in the balance sheet and in Trading revenues in the income statement."
    },
    {
      "status": "ADDED",
      "current_title": "Nonaccrual and ACL Charge-offs on Loans",
      "prior_title": null,
      "current_body": "All loan categories described below follow the same nonaccrual guidance and loans held for investment follow the charge-off guidance as discussed in “Allowance for Credit Losses” herein."
    },
    {
      "status": "ADDED",
      "current_title": "Loans Held for Investment",
      "prior_title": null,
      "current_body": "Loans held for investment are reported at amortized cost, which consists of the outstanding principle balance adjusted for any charge-offs, the allowance for credit losses, any unamortized deferred fees or costs for originated loans, and any unamortized premiums or discounts for purchased loans. Interest Income. Interest income on performing loans held for investment is accrued and recognized as interest income at the contractual rate of interest. Purchase price discounts or premiums, as well as net deferred loan fees or costs, are amortized into interest income over the life of the loan to produce a level rate of return. Lending Commitments. The Firm records the liability and related expense for the credit exposure related to commitments to fund loans. The liability is recorded in Other liabilities and accrued expenses in the balance sheet and the expense is recorded in the Provision for credit losses in the income statement. For more information regarding loan commitments, standby letters of credit and financial guarantees, see Note 14. For more information regarding allowance for credit losses, refer to “Allowance for Credit Losses” herein."
    },
    {
      "status": "ADDED",
      "current_title": "Loans Held for Sale",
      "prior_title": null,
      "current_body": "Loans held for sale are measured at the lower of amortized cost or fair value, with valuation changes recorded in Other revenues. The Firm determines the valuation allowance on an individual loan basis, except for residential mortgage loans for which the valuation allowance is determined at the loan product level. Any decreases in fair value below the initial carrying amount and any recoveries in fair value up to the initial carrying amount are recorded in Other revenues. Increases in fair value above initial carrying value are not recognized. Interest Income. Interest income on loans held for sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred as an adjustment to the loan’s cost basis until the related loan is sold and, as such, are included in the periodic determination of the lower of cost or fair value adjustments and the gain or loss recognized at the time of sale. Lending Commitments. Commitments to fund mortgage loans held for sale are derivatives and are reported in Trading assets or Trading liabilities in the balance sheet and in Trading revenues in the income statement. December 2024 Form 10-K88 December 2024 Form 10-K88 December 2024 Form 10-K88 88"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Loans at Fair Value",
      "prior_title": null,
      "current_body": "Loans for which the fair value option is elected are carried at fair value and included in Trading assets in the balance sheet, with changes in fair value recognized in earnings. For further information on loans carried at fair value and classified as Trading assets, see Note 4. Lending Commitments. The Firm records the liability and related expense for the fair value exposure related to commitments to fund loans that will be measured at fair value. The liability is recorded in Trading liabilities in the balance sheet, and the expense is recorded in Trading revenues in the income statement. Because such loans and lending commitments are reported at fair value, the allowance for credit losses and charge-off policies do not apply to these loans. For further information on loans, see Note 9. For more information regarding loan commitments, standby letters of credit and financial guarantees, see Note 14."
    },
    {
      "status": "ADDED",
      "current_title": "Allowance for Credit Losses",
      "prior_title": null,
      "current_body": "The ACL for financial instruments measured at amortized cost and certain off-balance sheet exposures (e.g., HFI loans and lending commitments, HTM securities, customer and other receivables and certain guarantees) represents an estimate of expected credit losses over the entire life of the financial instrument. Factors considered by management when determining the ACL include payment status, fair value of collateral and expected payments of principal and interest, as well as internal or external information relating to past events, current conditions, and reasonable and supportable forecasts. The Firm uses three forecasts that include assumptions about certain macroeconomic variables, including, but not limited to, U.S. gross domestic product (“GDP”), equity market indices and unemployment rates, as well as commercial real estate and home price indices. At the conclusion of the Firm’s reasonable and supportable forecast period of 13 quarters, there is a gradual reversion back to historical averages. The ACL is measured on a collective basis when similar risk characteristics exist for multiple instruments, considering all available information relevant to assessing the collectability of cash flows. Generally, the Firm applies a probability of default/loss given default model for instruments that are collectively assessed, under which the ACL is calculated as the product of probability of default, loss given default and exposure at default. These parameters are forecast for each collective group of assets using a scenario-based statistical model.If the instrument does not share similar risk characteristics with other instruments, including when it is probable that the Firm will be unable to collect the full payment of principal and interest on the instrument when due, the ACL is measured on an individual basis. The Firm generally applies a discounted cash flow method for instruments that are individually assessed.The Firm may also elect to use an approach that considers the fair value of the collateral when measuring the ACL if the loan is collateral dependent (i.e., repayment of the loan is expected to be provided substantially by the sale or operation of the underlying collateral and the borrower is experiencing financial difficulty).Additionally, the Firm can elect to use an approach to measure the ACL that considers the fair value of collateral where the borrower is required to, and reasonably expected to, continually adjust and replenish the amount of collateral securing the instrument to reflect changes in the fair value of such collateral. The Firm has elected to use this approach for certain securities-based loans, margin loans, securities purchased under agreements to resell and securities borrowed.Credit quality indicators considered in developing the ACL include:•Corporate loans, secured lending facilities, commercial real estate loans and securities, and other loans: Internal risk ratings developed by the CRM that are refreshed at least annually, and more frequently as necessary. These ratings generally correspond to external ratings published by S&P. The Firm also considers transaction structure, including type of collateral, collateral terms and position of the obligation within the capital structure. In addition, for commercial real estate, the Firm considers property type and location, net operating income and LTV ratios, among other factors, as well as commercial real estate price and credit spread indices and capitalization rates.•Residential real estate loans: Loan origination Fair Isaac Corporation (“FICO”) credit scores as determined by independent credit agencies in the U.S. and LTV ratios.•Employee loans: Employment status, which includes those currently employed by the Firm and for which the Firm can deduct any unpaid amounts due to it through certain compensation arrangements; and those no longer employed by the Firm where such arrangements are no longer applicable. Qualitative and environmental factors such as economic and business conditions, the nature and volume of the portfolio, default/loss given default model for instruments that are collectively assessed, under which the ACL is calculated as the product of probability of default, loss given default and exposure at default. These parameters are forecast for each collective group of assets using a scenario-based statistical model. If the instrument does not share similar risk characteristics with other instruments, including when it is probable that the Firm will be unable to collect the full payment of principal and interest on the instrument when due, the ACL is measured on an individual basis. The Firm generally applies a discounted cash flow method for instruments that are individually assessed. The Firm may also elect to use an approach that considers the fair value of the collateral when measuring the ACL if the loan is collateral dependent (i.e., repayment of the loan is expected to be provided substantially by the sale or operation of the underlying collateral and the borrower is experiencing financial difficulty). Additionally, the Firm can elect to use an approach to measure the ACL that considers the fair value of collateral where the borrower is required to, and reasonably expected to, continually adjust and replenish the amount of collateral securing the instrument to reflect changes in the fair value of such collateral. The Firm has elected to use this approach for certain securities-based loans, margin loans, securities purchased under agreements to resell and securities borrowed. Credit quality indicators considered in developing the ACL include: •Corporate loans, secured lending facilities, commercial real estate loans and securities, and other loans: Internal risk ratings developed by the CRM that are refreshed at least annually, and more frequently as necessary. These ratings generally correspond to external ratings published by S&P. The Firm also considers transaction structure, including type of collateral, collateral terms and position of the obligation within the capital structure. In addition, for commercial real estate, the Firm considers property type and location, net operating income and LTV ratios, among other factors, as well as commercial real estate price and credit spread indices and capitalization rates. •Residential real estate loans: Loan origination Fair Isaac Corporation (“FICO”) credit scores as determined by independent credit agencies in the U.S. and LTV ratios. •Employee loans: Employment status, which includes those currently employed by the Firm and for which the Firm can deduct any unpaid amounts due to it through certain compensation arrangements; and those no longer employed by the Firm where such arrangements are no longer applicable. Qualitative and environmental factors such as economic and business conditions, the nature and volume of the portfolio, 89December 2024 Form 10-K 89December 2024 Form 10-K 89December 2024 Form 10-K 89"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Presentation of ACL and Provision for Credit Losses",
      "prior_title": null,
      "current_body": "ACLProvision for Credit LossesAFS securitiesContra investment securitiesOther revenue"
    },
    {
      "status": "ADDED",
      "current_title": "ACL Charge-offs",
      "prior_title": null,
      "current_body": "The principal balance of a financial instrument is charged off in the period it is deemed uncollectible, resulting in a reduction in the ACL and in the balance of the financial instrument in the balance sheet. Accrued interest receivable balances that are separately recorded from the related financial instruments are charged off against Interest income when the related financial instrument is placed on nonaccrual status. Accordingly, the Firm elected not to measure an ACL for accrued interest receivables."
    },
    {
      "status": "ADDED",
      "current_title": "Transfers of Financial Assets",
      "prior_title": null,
      "current_body": "Transfers of financial assets are accounted for as sales when the Firm has relinquished control over the transferred assets. Any related gain or loss on sale is recorded in Net revenues. Transfers that are not accounted for as sales are treated as collateralized financings. Securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase are treated as collateralized financings (see Note 8). Securities purchased under agreements to resell (“reverse repurchase agreements”) and Securities sold under agreements to repurchase (“repurchase agreements”), including repurchase and reverse repurchase agreements-to-maturity, are carried in the balance sheet at the amount of cash paid or received plus accrued interest except for certain reverse repurchase and repurchase agreements for which the Firm has elected the fair value option (see Note 5). Where appropriate, repurchase agreements and reverse repurchase agreements with the same counterparty are reported on a net basis. Securities borrowed and securities loaned are recorded at the amount of cash collateral advanced or received.In instances where the Firm is the lender in securities-for-securities transactions and is permitted to sell or repledge these securities, the fair value of the collateral received is reported in Trading assets, and the related obligation to return the collateral is reported in Trading liabilities in the balance sheet. Securities-for-securities transactions where the Firm is the borrower are not included in the balance sheet.In order to manage credit exposure arising from these transactions, in appropriate circumstances, the Firm enters into master netting agreements and collateral agreements with its counterparties. These agreements provide the Firm with the right, in the event of a default by the counterparty, to net a counterparty’s rights and obligations under the agreement and to liquidate and set off collateral held by the Firm against the net amount owed by the counterparty.The Firm’s policy is generally to take possession of securities purchased or borrowed in connection with reverse repurchase agreements and securities borrowed transactions, respectively, and to receive cash and/or securities delivered under repurchase agreements or securities loaned transactions (with rights of rehypothecation). For information related to offsetting of certain collateralized transactions, see Note 8.Premises, Equipment and Capitalized Software CostsPremises, equipment and capitalized software costs consist of buildings, leasehold improvements, furniture, fixtures, computer and communications equipment, power generation assets and capitalized software (externally purchased and developed for internal use). Premises, equipment and capitalized software costs are stated at cost less accumulated depreciation and amortization and are included in Other assets in the balance sheet. Depreciation and amortization are provided by the straight-line method over the estimated useful life of the asset. including repurchase and reverse repurchase agreements-to-maturity, are carried in the balance sheet at the amount of cash paid or received plus accrued interest except for certain reverse repurchase and repurchase agreements for which the Firm has elected the fair value option (see Note 5). Where appropriate, repurchase agreements and reverse repurchase agreements with the same counterparty are reported on a net basis. Securities borrowed and securities loaned are recorded at the amount of cash collateral advanced or received. In instances where the Firm is the lender in securities-for-securities transactions and is permitted to sell or repledge these securities, the fair value of the collateral received is reported in Trading assets, and the related obligation to return the collateral is reported in Trading liabilities in the balance sheet. Securities-for-securities transactions where the Firm is the borrower are not included in the balance sheet. In order to manage credit exposure arising from these transactions, in appropriate circumstances, the Firm enters into master netting agreements and collateral agreements with its counterparties. These agreements provide the Firm with the right, in the event of a default by the counterparty, to net a counterparty’s rights and obligations under the agreement and to liquidate and set off collateral held by the Firm against the net amount owed by the counterparty. The Firm’s policy is generally to take possession of securities purchased or borrowed in connection with reverse repurchase agreements and securities borrowed transactions, respectively, and to receive cash and/or securities delivered under repurchase agreements or securities loaned transactions (with rights of rehypothecation). For information related to offsetting of certain collateralized transactions, see Note 8."
    },
    {
      "status": "ADDED",
      "current_title": "Premises, Equipment and Capitalized Software Costs",
      "prior_title": null,
      "current_body": "Premises, equipment and capitalized software costs consist of buildings, leasehold improvements, furniture, fixtures, computer and communications equipment, power generation assets and capitalized software (externally purchased and developed for internal use). Premises, equipment and capitalized software costs are stated at cost less accumulated depreciation and amortization and are included in Other assets in the balance sheet. Depreciation and amortization are provided by the straight-line method over the estimated useful life of the asset. December 2024 Form 10-K90 December 2024 Form 10-K90 December 2024 Form 10-K90 90"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Estimated Useful Life of Assets",
      "prior_title": null,
      "current_body": "in yearsEstimated Useful LifeBuildings39Leasehold improvements—Buildingterm of lease to 25Leasehold improvements—Otherterm of lease to 15Furniture and fixtures7Computer and communications equipment3 to 9Power generation assets15 to 29Capitalized software costs2 to 10 term of lease to 25 term of lease to 15 3 to 9 15 to 29 2 to 10 Premises, equipment and capitalized software costs are tested for impairment whenever events or changes in circumstances suggest that an asset’s carrying value may not be fully recoverable."
    },
    {
      "status": "ADDED",
      "current_title": "Goodwill and Intangible Assets",
      "prior_title": null,
      "current_body": "Goodwill We test goodwill for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist. Evaluating goodwill for impairment requires management to make significant judgments, including, in part, the use of unobservable inputs that are subject to uncertainty. Goodwill impairment tests are performed at the reporting unit level, which is generally at the level of or one level below our business segments. Goodwill no longer retains its association with a particular acquisition once it has been assigned to a reporting unit. As such, all the activities of a reporting unit, whether acquired or organically developed, are available to support the value of the goodwill. For both the annual and interim tests, we have the option to either (i) perform a quantitative impairment test or (ii) first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, in which case the quantitative test would be performed. When performing a quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, the goodwill impairment loss is equal to the excess of the carrying value over the fair value, limited by the carrying amount of goodwill allocated to that reporting unit. The carrying value of each reporting unit is determined based on the capital allocated to the reporting unit. The estimated fair value of the reporting units is derived based on valuation techniques we believe market participants would use for each of the reporting units. The estimated fair value is generally determined by utilizing a discounted cash flow methodology. In certain instances, we may also utilize methodologies that incorporate price-to-book and price-to-earnings multiples of comparable companies. The discounted cash flow methodology uses projected future cash flows based on the reporting units’ earnings forecast. The discount rate used represents an estimate of the cost of equity for that reporting unit based on the Capital Asset Pricing Model. December 2024 Form 10-K42 December 2024 Form 10-K42 December 2024 Form 10-K42 42 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents At each annual goodwill impairment testing date, each of our reporting units with goodwill had a fair value that was substantially in excess of its carrying value.Intangible AssetsIntangible assets are initially recorded at cost, or in the situation where acquired as part of a business combination, at the fair value determined as part of the acquisition method of accounting. Subsequently, amortizable intangible assets are carried in the balance sheet at amortized cost, where amortization is recognized over their estimated useful lives. Indefinite-lived intangible assets are not amortized but are tested for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist.On a quarterly basis: •All intangible assets are assessed for the presence of impairment indicators. Where such indicators are present, an evaluation for impairment is conducted. •For amortizable intangible assets, an impairment loss exists if the carrying amount of the intangible asset is not recoverable and exceeds its fair value. The carrying amount of the intangible asset is not recoverable if it exceeds the sum of the expected undiscounted cash flows. •For indefinite-lived intangible assets, an impairment exists if the carrying amount of the intangible asset exceeds its fair value. •Amortizable intangible assets are assessed for any indication that the remaining useful life or the finite life classification should be revised. In such cases, the remaining carrying amount is amortized prospectively over the revised useful life, unless it is determined that the life of the intangible asset is indefinite, in which case the intangible asset is not amortized.•Indefinite-lived intangible assets are assessed for any indication that the life of the intangible asset is no longer indefinite; in such cases, the carrying amount of the intangible asset is amortized prospectively over its remaining useful life.The initial valuation of an intangible asset as part of the acquisition method of accounting and the subsequent valuation of intangible assets as part of an impairment assessment are subjective and based, in part, on inputs that are unobservable and can be subject to uncertainty. These inputs include, but are not limited to, forecasted cash flows, revenue growth rates, customer attrition rates and discount rates.For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For amortizable intangible assets, the new cost basis is amortized over the remaining useful life of that asset. Unanticipated declines in our revenue-generating capability, adverse market or economic events, and regulatory actions, could result in material impairment charges in future periods.See Notes 2 and 10 to the financial statements for additional information about goodwill and intangible assets.Legal and Regulatory ContingenciesIn the normal course of business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a global diversified financial services institution.Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our sales and trading businesses and our activities in the capital markets.We are also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding our business, and involving, among other matters, sales, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by us, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief.We contest liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and we can reasonably estimate the amount of that loss or the range of loss, we accrue an estimated loss by a charge to income. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where we have determined that a loss is probable or reasonably possible, or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, we are often unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or At each annual goodwill impairment testing date, each of our reporting units with goodwill had a fair value that was substantially in excess of its carrying value.Intangible AssetsIntangible assets are initially recorded at cost, or in the situation where acquired as part of a business combination, at the fair value determined as part of the acquisition method of accounting. Subsequently, amortizable intangible assets are carried in the balance sheet at amortized cost, where amortization is recognized over their estimated useful lives. Indefinite-lived intangible assets are not amortized but are tested for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist.On a quarterly basis: •All intangible assets are assessed for the presence of impairment indicators. Where such indicators are present, an evaluation for impairment is conducted. •For amortizable intangible assets, an impairment loss exists if the carrying amount of the intangible asset is not recoverable and exceeds its fair value. The carrying amount of the intangible asset is not recoverable if it exceeds the sum of the expected undiscounted cash flows. •For indefinite-lived intangible assets, an impairment exists if the carrying amount of the intangible asset exceeds its fair value. •Amortizable intangible assets are assessed for any indication that the remaining useful life or the finite life classification should be revised. In such cases, the remaining carrying amount is amortized prospectively over the revised useful life, unless it is determined that the life of the intangible asset is indefinite, in which case the intangible asset is not amortized.•Indefinite-lived intangible assets are assessed for any indication that the life of the intangible asset is no longer indefinite; in such cases, the carrying amount of the intangible asset is amortized prospectively over its remaining useful life.The initial valuation of an intangible asset as part of the acquisition method of accounting and the subsequent valuation of intangible assets as part of an impairment assessment are subjective and based, in part, on inputs that are unobservable and can be subject to uncertainty. These inputs include, but are not limited to, forecasted cash flows, revenue growth rates, customer attrition rates and discount rates.For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For amortizable intangible assets, the new cost basis is amortized over the remaining useful life of that asset. Unanticipated declines in our revenue-generating capability, adverse market or economic events, and regulatory actions, could result in material impairment charges in future periods. At each annual goodwill impairment testing date, each of our reporting units with goodwill had a fair value that was substantially in excess of its carrying value."
    },
    {
      "status": "ADDED",
      "current_title": "Earnings per Common Share",
      "prior_title": null,
      "current_body": "Basic EPS is computed by dividing earnings applicable to Morgan Stanley common shareholders by the weighted average number of common shares outstanding for the period. Earnings applicable to Morgan Stanley common shareholders represents net income applicable to Morgan Stanley reduced by preferred stock dividends. Common shares outstanding include common stock and vested RSUs where recipients have satisfied the relevant vesting terms. Diluted EPS reflects the assumed conversion of all dilutive securities. Share-based awards, including awards that pay dividend equivalents subject to vesting, are included in diluted shares outstanding (if dilutive) under the treasury stock method. The Firm has granted PSUs that vest and convert to shares of common stock only if predetermined performance and market goals are satisfied. Since the issuance of the shares is contingent upon the satisfaction of certain conditions, the PSUs are included in diluted EPS based on the number of shares (if any) that would be issuable if the reporting date was the end of the performance period. For further information on diluted earnings (loss) per common share, see Note 17 to the financial statements."
    },
    {
      "status": "ADDED",
      "current_title": "Stock-Based Compensation",
      "prior_title": null,
      "current_body": "The Firm measures compensation expense for stock-based awards at fair value. The Firm determines the fair value of RSUs (including PSUs with non-market performance conditions) based on the grant-date fair value of its common stock, measured as the volume-weighted average price on the date of grant (“VWAP”). The fair value of RSUs not entitled to dividends until conversion is measured at VWAP reduced by the present value of dividends expected to be paid on the underlying shares prior to scheduled conversion date. PSUs that contain market-based conditions are valued using a Monte Carlo valuation model. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of the award. Compensation expense for awards with performance conditions is recognized based on the probable outcome of the performance condition at each reporting date. Compensation expense for awards with market-based conditions is recognized irrespective of the probability of the market condition being achieved and is not reversed if the market condition is not met. The Firm accounts for forfeitures as they occur. Stock-based awards generally contain clawback and cancellation provisions. Certain awards provide the Firm discretion to claw back or cancel all or a portion of the award 91December 2024 Form 10-K 91December 2024 Form 10-K 91December 2024 Form 10-K 91"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Employee Stock Trusts",
      "prior_title": null,
      "current_body": "In connection with certain stock-based compensation plans, the Firm has established employee stock trusts to provide, at its discretion, common stock voting rights to certain RSU holders. Following the grant of an RSU award, when a stock trust is utilized, the Firm contributes shares to be held in the stock trust until the RSUs convert to common shares. The assets of the employee stock trusts are consolidated with those of the Firm and are generally accounted for in a manner similar to treasury stock, where the shares of common stock outstanding reported in Common stock issued to employee stock trusts are offset by an equal amount reported in Employee stock trusts in the balance sheet. The Firm uses the grant-date fair value of stock-based compensation as the basis for recording the movement of the assets to or from the employee stock trusts. Changes in the fair value are not recognized as the Firm’s stock-based compensation must be settled by delivery of a fixed number of shares of the Firm’s common stock."
    },
    {
      "status": "ADDED",
      "current_title": "Deferred Cash-Based Compensation",
      "prior_title": null,
      "current_body": "The Firm sponsors a number of deferred cash-based compensation programs for current and former employees, which generally contain vesting, clawback and cancellation provisions. Employees are permitted to allocate the value of their deferred awards among a menu of notional investments, whereby the value of their awards will track the performance of the referenced notional investments. The menu of investments, which is selected by the Firm, includes fixed income, equity, commodity and money market funds. Compensation expense for DCP awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards. We invest directly, as principal, in financial instruments and other investments to economically hedge certain of our obligations under these DCP awards. Changes in the fair value of such investments, net of financing costs, are recorded in net revenues, and included in Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments recognized in net revenues, there is typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period. While this timing difference may not be material to our Income before provision for income taxes in any individual period, it may impact the Wealth Management business segment reported ratios and operating metrics in certain periods due to potentially significant impacts to net revenues and compensation expenses. At December 31, 2024 and December 31, 2023, substantially all employee-referenced investments that subjected the Firm to price risk were economically hedged."
    },
    {
      "status": "ADDED",
      "current_title": "Retirement-Eligible Employee Compensation",
      "prior_title": null,
      "current_body": "For year-end stock-based awards and DCP awards anticipated to be granted to retirement-eligible employees under award terms that do not contain a future service requirement, the Firm accrues the estimated cost of the awards over the course of the calendar year preceding the grant date, which reflects the period over which the compensation is earned."
    },
    {
      "status": "ADDED",
      "current_title": "Carried Interest Compensation",
      "prior_title": null,
      "current_body": "The Firm generally recognizes compensation expense for any portion of carried interest (both realized and unrealized) that is allocated to employees. For information on performance-based fees in the form of carried interest, which are directly related to carried interest compensation, see “Revenue Recognition—Carried Interest” herein."
    },
    {
      "status": "ADDED",
      "current_title": "Income Taxes",
      "prior_title": null,
      "current_body": "The Income tax provision for our business segments is generally determined based on the revenues, expenses and activities directly attributable to each business segment. Certain items have been allocated to each business segment, generally in proportion to its respective net revenues or other relevant measures. December 2024 Form 10-K32 December 2024 Form 10-K32 December 2024 Form 10-K32 32 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Institutional SecuritiesIncome Statement Information % Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%Investment BankingInvestment Banking Volumes$ in billions202420232022Completed mergers and acquisitions1$628 $677 $881 Equity and equity-related offerings2, 363 32 23 Fixed income offerings2, 4323 236 229 Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of January 2, 2025. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.2.Based on full credit for single book managers and equal credit for joint book managers.3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues.•Advisory revenues increased primarily due to higher completed M&A transactions.•Equity underwriting revenues increased primarily on higher initial public offerings and follow-on offerings.•Fixed income underwriting revenues increased primarily reflecting higher bond issuances, non-investment grade loan issuances and securitized products revenues.While Investment Banking results improved from the prior year, we continue to operate in a market environment with lower completed M&A activity relative to longer-term averages.See “Investment Banking Volumes” herein.Equity, Fixed Income and Other Net RevenuesEquity and Fixed Income Net Revenues 2024$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$8,135 $566 $(2,840)$17 $5,878 Execution services3,702 2,591 (291)350 6,352 Total Equity$11,837 $3,157 $(3,131)$367 $12,230 Total Fixed income$8,464 $394 $(730)$290 $8,418 2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 1.Includes Commissions and fees and Asset management revenues.2.Includes funding costs, which are allocated to the businesses based on funding usage. 3.Includes Investments and Other revenues.EquityNet revenues of $12,230 million in 2024 increased 22% compared with the prior year, reflecting an increase in both Execution services and Financing, particularly in Asia and the Americas.•Financing revenues increased primarily due to higher client activity and lower funding and liquidity costs.•Execution services revenues increased primarily due to higher gains on inventory held to facilitate client activity and increased client activity in derivatives and cash equities.Fixed IncomeNet revenues of $8,418 million in 2024 increased 10% compared with the prior year, reflecting an increase across businesses, particularly in Credit and Global macro products.•Global macro products increased primarily due to lower losses on foreign exchange products and higher gains on rates products, on inventory held to facilitate client activity.•Credit products revenues increased primarily due to higher lending and securitized products revenues and lower losses Institutional SecuritiesIncome Statement Information % Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%Investment BankingInvestment Banking Volumes$ in billions202420232022Completed mergers and acquisitions1$628 $677 $881 Equity and equity-related offerings2, 363 32 23 Fixed income offerings2, 4323 236 229 Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of January 2, 2025. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.2.Based on full credit for single book managers and equal credit for joint book managers.3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues.•Advisory revenues increased primarily due to higher completed M&A transactions.•Equity underwriting revenues increased primarily on higher initial public offerings and follow-on offerings.•Fixed income underwriting revenues increased primarily reflecting higher bond issuances, non-investment grade loan issuances and securitized products revenues."
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Foreign Currencies",
      "prior_title": null,
      "current_body": "Assets and liabilities of operations with non-U.S. dollar functional currencies are translated at year-end rates of exchange. Gains or losses resulting from translating foreign currency financial statements, net of hedge gains or losses and related tax effects, are reflected in AOCI in the balance sheet. Gains or losses resulting from remeasurement of foreign currency transactions are included in net income, and amounts recognized in the income statement are translated at the rate of exchange on the respective date of recognition for each amount."
    },
    {
      "status": "ADDED",
      "current_title": "Segment Reporting",
      "prior_title": null,
      "current_body": "The Firm adopted the Segment Reporting - Improvements to Reportable Segment Disclosures accounting update retrospectively, effective January 1, 2024. This accounting update requires additional reportable segment disclosures on an annual and interim basis, primarily about significant segment expenses and other segment items that are regularly provided to the chief operating decision maker and included within the reported measure of segment profit or loss. See Note 22 to the financial statements for disclosures on the Firm’s reportable segments."
    },
    {
      "status": "ADDED",
      "current_title": "Investments - Tax Credit Structures",
      "prior_title": null,
      "current_body": "The Firm adopted the Investments - Equity Method and Joint Ventures - Tax Credit Structures accounting update on January 1, 2024 using the modified retrospective method. This accounting update permits an election to account for tax equity investments using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the income tax credits and other income tax benefits received and recognized net in the income statement as a component of provision for income taxes. The update requires a separate accounting policy election to be made for each tax credit program. Additional disclosures are required regarding (i) the nature of our tax equity investments and (ii) the effect of our tax equity investments and related income tax credits on the financial condition and results of operations (see Note 11). The adoption resulted in a decrease to Retained earnings of $60 million as of January 1, 2024, net of tax, and a corresponding reduction to Other assets. Accounting Update Adopted in 2022Reference Rate ReformThe Firm has adopted the Reference Rate Reform accounting update, which extends the period of time entities can utilize the reference rate reform relief guidance from December 31, 2022 to December 31, 2024. The relief provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference LIBOR or other interest rate benchmarks for which the referenced rate is expected to be discontinued or replaced. The Firm is applying the accounting relief as relevant contract and hedge accounting relationship modifications are made during the course of the reference rate reform transition period. There was no impact to the Firm’s financial statements upon issuance of this accounting standard update. 3. Cash and Cash Equivalents $ in millionsAtDecember 31,2024 AtDecember 31,2023 Cash and due from banks$4,436 $7,323 Interest bearing deposits with banks100,950 81,909 Total Cash and cash equivalents$105,386 $89,232 Restricted cash$29,643 $30,571 For additional information on cash and cash equivalents, including restricted cash, see Note 2."
    },
    {
      "status": "ADDED",
      "current_title": "Reference Rate Reform",
      "prior_title": null,
      "current_body": "The Firm has adopted the Reference Rate Reform accounting update, which extends the period of time entities can utilize the reference rate reform relief guidance from December 31, 2022 to December 31, 2024. The relief provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference LIBOR or other interest rate benchmarks for which the referenced rate is expected to be discontinued or replaced. The Firm is applying the accounting relief as relevant contract and hedge accounting relationship modifications are made during the course of the reference rate reform transition period. There was no impact to the Firm’s financial statements upon issuance of this accounting standard update."
    },
    {
      "status": "ADDED",
      "current_title": "3. Cash and Cash Equivalents",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Cash and due from banks$4,436 $7,323 Interest bearing deposits with banks100,950 81,909 Total Cash and cash equivalents$105,386 $89,232 Restricted cash$29,643 $30,571 For additional information on cash and cash equivalents, including restricted cash, see Note 2. 93December 2024 Form 10-K 93December 2024 Form 10-K 93December 2024 Form 10-K 93"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Assets and Liabilities Measured at Fair Value on a Recurring Basis",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsLevel 1Level 2Level 3Netting1TotalAssets at fair valueTrading assets:U.S. Treasury and agency securities$54,436 $44,332 $— $— $98,768 Other sovereign government obligations25,179 9,969 17 — 35,165 State and municipal securities— 2,993 — — 2,993 MABS— 2,231 281 — 2,512 Loans and lending commitments2— 7,602 1,059 — 8,661 Corporate and other debt— 30,394 1,258 — 31,652 Corporate equities3,5102,874 606 154 — 103,634 Derivative and other contracts:Interest rate4,154 124,309 343 — 128,806 Credit— 8,783 367 — 9,150 Foreign exchange65 108,037 620 — 108,722 Equity2,704 72,532 446 — 75,682 Commodity and other1,366 12,370 2,195 — 15,931 Netting1(6,471)(251,771)(645)(40,835)(299,722)Total derivative and other contracts1,818 74,260 3,326 (40,835)38,569 Investments4,5808 933 754 — 2,495 Physical commodities— 1,229 — — 1,229 Total trading assets4185,115 174,549 6,849 (40,835)325,678 Investment securities —AFS69,834 28,774 — — 98,608 Total assets at fair value$254,949 $203,323 $6,849 $(40,835)$424,286 Netting1 Loans and lending commitments2 Corporate equities3,5 Netting1 Investments4,5 Total trading assets4 At December 31, 2024$ in millionsLevel 1Level 2Level 3Netting1TotalLiabilities at fair valueDeposits$— $6,498 $1 $— $6,499 Trading liabilities:U.S. Treasury and agency securities21,505 3 — — 21,508 Other sovereign government obligations20,724 3,712 84 — 24,520 Corporate and other debt— 9,032 11 — 9,043 Corporate equities360,653 95 15 — 60,763 Derivative and other contracts:Interest rate3,615 114,179 396 — 118,190 Credit— 9,302 270 — 9,572 Foreign exchange147 104,793 31 — 104,971 Equity3,241 90,639 1,594 — 95,474 Commodity and other1,461 11,215 887 — 13,563 Netting1(6,471)(251,771)(645)(44,953)(303,840)Total derivative and other contracts1,993 78,357 2,533 (44,953)37,930 Total trading liabilities104,875 91,199 2,643 (44,953)153,764 Securities sold under agreements to repurchase— 512 444 — 956 Other secured financings— 14,012 76 — 14,088 Borrowings— 102,385 947 — 103,332 Total liabilities at fair value$104,875 $214,606 $4,111 $(44,953)$278,639 At December 31, 2023$ in millionsLevel 1Level 2Level 3Netting1TotalAssets at fair valueTrading assets:U.S. Treasury and agency securities$56,459 $53,741 $— $— $110,200 Other sovereign government obligations22,580 9,946 94 — 32,620 State and municipal securities— 2,148 34 — 2,182 MABS— 1,540 489 — 2,029 Loans and lending commitments2— 6,122 2,066 — 8,188 Corporate and other debt— 35,833 1,983 — 37,816 Corporate equities3,5126,772 929 199 — 127,900 Derivative and other contracts:Interest rate7,284 140,139 784 — 148,207 Credit— 10,244 393 — 10,637 Foreign exchange12 93,218 20 — 93,250 Equity2,169 55,319 587 — 58,075 Commodity and other1,608 11,862 2,811 — 16,281 Netting1(7,643)(237,497)(1,082)(42,915)(289,137)Total derivative and other contracts3,430 73,285 3,513 (42,915)37,313 Investments4,5781 836 949 — 2,566 Physical commodities— 736 — — 736 Total trading assets4210,022 185,116 9,327 (42,915)361,550 Investment securities —AFS57,405 30,708 — — 88,113 Securities purchased under agreements to resell— 7 — — 7 Total assets at fair value$267,427 $215,831 $9,327 $(42,915)$449,670 At December 31, 2024$ in millionsLevel 1Level 2Level 3Netting1TotalLiabilities at fair valueDeposits$— $6,498 $1 $— $6,499 Trading liabilities:U.S. Treasury and agency securities21,505 3 — — 21,508 Other sovereign government obligations20,724 3,712 84 — 24,520 Corporate and other debt— 9,032 11 — 9,043 Corporate equities360,653 95 15 — 60,763 Derivative and other contracts:Interest rate3,615 114,179 396 — 118,190 Credit— 9,302 270 — 9,572 Foreign exchange147 104,793 31 — 104,971 Equity3,241 90,639 1,594 — 95,474 Commodity and other1,461 11,215 887 — 13,563 Netting1(6,471)(251,771)(645)(44,953)(303,840)Total derivative and other contracts1,993 78,357 2,533 (44,953)37,930 Total trading liabilities104,875 91,199 2,643 (44,953)153,764 Securities sold under agreements to repurchase— 512 444 — 956 Other secured financings— 14,012 76 — 14,088 Borrowings— 102,385 947 — 103,332 Total liabilities at fair value$104,875 $214,606 $4,111 $(44,953)$278,639 Netting1 Corporate equities3 Netting1 At December 31, 2023$ in millionsLevel 1Level 2Level 3Netting1TotalAssets at fair valueTrading assets:U.S. Treasury and agency securities$56,459 $53,741 $— $— $110,200 Other sovereign government obligations22,580 9,946 94 — 32,620 State and municipal securities— 2,148 34 — 2,182 MABS— 1,540 489 — 2,029 Loans and lending commitments2— 6,122 2,066 — 8,188 Corporate and other debt— 35,833 1,983 — 37,816 Corporate equities3,5126,772 929 199 — 127,900 Derivative and other contracts:Interest rate7,284 140,139 784 — 148,207 Credit— 10,244 393 — 10,637 Foreign exchange12 93,218 20 — 93,250 Equity2,169 55,319 587 — 58,075 Commodity and other1,608 11,862 2,811 — 16,281 Netting1(7,643)(237,497)(1,082)(42,915)(289,137)Total derivative and other contracts3,430 73,285 3,513 (42,915)37,313 Investments4,5781 836 949 — 2,566 Physical commodities— 736 — — 736 Total trading assets4210,022 185,116 9,327 (42,915)361,550 Investment securities —AFS57,405 30,708 — — 88,113 Securities purchased under agreements to resell— 7 — — 7 Total assets at fair value$267,427 $215,831 $9,327 $(42,915)$449,670 Netting1 Loans and lending commitments2 Corporate equities3,5 Netting1 Investments4,5 Total trading assets4 December 2024 Form 10-K94 December 2024 Form 10-K94 December 2024 Form 10-K94 94"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Detail of Loans and Lending Commitments at Fair Value",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Commercial real estate$498 $422 Residential real estate1,922 2,909 Securities-based lending and Other loans6,241 4,857 Total$8,661 $8,188 At"
    },
    {
      "status": "ADDED",
      "current_title": "Unsettled Fair Value of Futures Contracts1",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Customer and other receivables, net$1,914 $1,062 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "U.S. Treasury and Agency Securities",
      "prior_title": null,
      "current_body": "U.S. Treasury Securities Valuation Technique: •Fair value is determined using quoted market prices. Valuation Hierarchy Classification: •Level 1—as inputs are observable and in an active market U.S. Agency Securities Valuation Techniques: •Non-callable agency-issued debt securities are generally valued using quoted market prices, and callable agency-issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for comparable instruments. •The fair value of agency mortgage pass-through pool securities is model-driven based on spreads of comparable to-be-announced securities. •CMOs are generally valued using quoted market prices and trade data adjusted by subsequent changes in related indices for comparable instruments. Valuation Hierarchy Classification: •Level 1—on-the-run agency issued debt securities if actively traded and inputs are observable •Level 2—all other agency issued debt securities, agency mortgage pass-through pool securities and CMOs if actively traded and inputs are observable •Level 3—in instances where the trading activity is limited or inputs are unobservable"
    },
    {
      "status": "ADDED",
      "current_title": "Other Sovereign Government Obligations",
      "prior_title": null,
      "current_body": "Valuation Techniques: •Fair value is determined using quoted prices in active markets when available. When not available, quoted prices in less active markets are used. In the absence of position-specific quoted prices, fair value may be determined through benchmarking from comparable instruments. Valuation Hierarchy Classification: •Level 1—if actively traded and inputs are observable •Level 2—if the market is less active or prices are dispersed •Level 3—in instances where the prices are unobservable"
    },
    {
      "status": "ADDED",
      "current_title": "State and Municipal Securities",
      "prior_title": null,
      "current_body": "Valuation Techniques: •Fair value is determined using recently executed transactions, market price quotations or pricing models that factor in, where applicable, interest rates, bond or CDS spreads, adjusted for any basis difference between cash and derivative instruments. Valuation Hierarchy Classification: •Level 2—if value based on observable market data supported by market liquidity for comparable instruments •Level 3—in instances where market data are not observable or supported by market liquidity 95December 2024 Form 10-K 95December 2024 Form 10-K 95December 2024 Form 10-K 95"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Mortgage- and Asset-Backed Securities",
      "prior_title": null,
      "current_body": "Valuation Techniques: •Mortgage- and asset-backed securities may be valued based on price or spread data obtained from observed transactions or independent external parties such as vendors or brokers. •When position-specific external price data are not observable, the fair value determination may require benchmarking to comparable instruments, and/or analyzing expected credit losses, default and recovery rates, and/or applying discounted cash flow techniques. When evaluating the comparable instruments for use in the valuation of each security, security collateral-specific attributes, including payment priority, credit enhancement levels, type of collateral, delinquency rates and loss severity, are considered. In addition, for RMBS borrowers, FICO scores and the level of documentation for the loan are considered. •Market standard cash flow models may be utilized to model the specific collateral composition and cash flow structure of each transaction. Key inputs to these models are market spreads, forecasted credit losses, and default and prepayment rates for each asset category. •Valuation levels of RMBS and CMBS indices are used as an additional data point for benchmarking purposes or to price outright index positions. Valuation Hierarchy Classification: •Level 2—if value based on observable market data supported by market liquidity for comparable instruments •Level 3—if external prices or significant spread inputs are unobservable or not supported by market liquidity or if the comparability assessment involves significant subjectivity related to property type differences, cash flows, performance or other inputs"
    },
    {
      "status": "ADDED",
      "current_title": "Loans and Lending Commitments",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,889 $9,183 $— $16,072 Secured lending facilities48,842 2,507 — 51,349 Commercial and Residential real estate8,412 628 2,420 11,460 Securities-based lending and Other2,876 — 6,041 8,917 Total Institutional Securities67,019 12,318 8,461 87,798 Wealth Management:Residential real estate66,738 — — 66,738 Securities-based lending and Other93,139 1 — 93,140 Total Wealth Management159,877 1 — 159,878 Total Investment Management24 — 200 204 Total loans226,900 12,319 8,661 247,880 ACL(1,066)(1,066)Total loans, net of ACL$225,834 $12,319 $8,661 $246,814 Lending commitments3$148,818 $26,955 $758 $176,531 Total exposure$374,652 $39,274 $9,419 $423,345 FVO1"
    },
    {
      "status": "ADDED",
      "current_title": "Corporate and Other Debt",
      "prior_title": null,
      "current_body": "Corporate Bonds Valuation Techniques: •Fair value is determined using recently executed transactions, market price quotations, bond spreads and CDS spreads obtained from independent external parties, such as vendors and brokers, adjusted for any basis difference between cash and derivative instruments. •The spread data used is for the same maturity as the bond. If the spread data does not reference the issuer, then data that references comparable issuers are used. When position-specific external price data is not observable, fair value is determined based on either benchmarking to comparable instruments or cash flow models with yield curves, bond or single-name CDS spreads and recovery rates or loss given default as significant inputs. Valuation Hierarchy Classification: •Level 2—if value based on observable market data for comparable instruments •Level 3—in instances where prices or significant spread inputs are unobservable or if the comparability assessment involves significant subjectivity CDOs Valuation Techniques: •The Firm holds cash CDOs that typically reference a tranche of an underlying synthetic portfolio of single-name CDS spreads collateralized by corporate bonds (“CLN”) or cash portfolio of ABS/loans (“asset-backed CDOs”). •Credit correlation, a primary input used to determine the fair value of CLNs, is usually unobservable and derived using a benchmarking technique. Other model inputs, such as credit spreads, including collateral spreads and interest rates, are typically observable. •Asset-backed CDOs are valued based on an evaluation of the market and model input parameters sourced from comparable instruments as indicated by market activity. December 2024 Form 10-K96 December 2024 Form 10-K96 December 2024 Form 10-K96 96"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Corporate Equities",
      "prior_title": null,
      "current_body": "Valuation Techniques: •Exchange-traded equity securities are generally valued based on quoted prices from the exchange. •Unlisted equity securities are generally valued based on an assessment of each security, considering rounds of financing and third-party transactions, discounted cash flow analyses and market-based information, including comparable transactions, trading multiples and changes in market outlook, among other factors. •Listed fund units are generally marked to the exchange-traded price if actively traded, or to NAV if not. Unlisted fund units are generally marked to NAV. Valuation Hierarchy Classification: •Level 1—actively traded exchange-traded securities and fund units •Level 2—if not actively traded, inputs are observable or if undergoing a recent M&A event or corporate action •Level 3—if not actively traded, inputs are unobservable or if undergoing an aged M&A event or corporate action"
    },
    {
      "status": "ADDED",
      "current_title": "Derivative and Other Contracts",
      "prior_title": null,
      "current_body": "Exchange-Traded Derivative Contracts Valuation Techniques: •Exchange-traded derivatives that are actively traded are valued based on quoted prices from the exchange. •Exchange-traded derivatives that are not actively traded are valued using the same techniques as those applied to OTC derivatives as noted below. Valuation Hierarchy Classification: •Level 1—when actively traded •Level 2—when not actively traded OTC Derivative ContractsValuation Techniques:•OTC derivative contracts include forward, swap and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices or commodity prices. •Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be modeled using a series of techniques, including closed-form analytic formulas, such as the Black-Scholes option-pricing model, simulation models or a combination thereof. Many pricing models do not entail material subjectivity as the methodologies employed do not necessitate significant judgment since model inputs may be observed from actively quoted markets, as is the case for generic interest rate swaps, many equity, commodity and foreign currency option contracts, and certain CDS. In the case of more established derivative products, the pricing models used by the Firm are widely accepted by the financial services industry. •More complex OTC derivative products are typically less liquid and require more judgment in the implementation of the valuation technique since direct trading activity or quotes are unobservable. This includes certain types of interest rate derivatives with both volatility and correlation exposure, equity, commodity or foreign currency derivatives that are either longer-dated or include exposure to multiple underlyings, and credit derivatives, including CDS on certain mortgage- or asset-backed securities and basket CDS. Where required inputs are unobservable, relationships to observable data points, based on historical and/or implied observations, may be employed as a technique to estimate the model input values. For further information on the valuation techniques for OTC derivative products, see Note 2.Valuation Hierarchy Classification:•Level 2—when valued using observable inputs supported by market liquidity or where the unobservable input is not deemed significant •Level 3—when valued using observable inputs with limited market liquidity or if an unobservable input is deemed significant InvestmentsValuation Techniques:•Investments include direct investments in equity securities, as well as various investment management funds, which include DCP investments. •Exchange-traded direct equity investments are generally valued based on quoted prices from the exchange. •For direct investments, initially, the transaction price is generally considered by the Firm as the exit price and is its best estimate of fair value. •After initial recognition, in determining the fair value of non-exchange-traded internally and externally managed funds, the Firm generally considers the NAV of the fund provided by the fund manager to be the best estimate of fair value. These investments are included in the Fund OTC Derivative Contracts Valuation Techniques: •OTC derivative contracts include forward, swap and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices or commodity prices. •Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be modeled using a series of techniques, including closed-form analytic formulas, such as the Black-Scholes option-pricing model, simulation models or a combination thereof. Many pricing models do not entail material subjectivity as the methodologies employed do not necessitate significant judgment since model inputs may be observed from actively quoted markets, as is the case for generic interest rate swaps, many equity, commodity and foreign currency option contracts, and certain CDS. In the case of more established derivative products, the pricing models used by the Firm are widely accepted by the financial services industry. •More complex OTC derivative products are typically less liquid and require more judgment in the implementation of the valuation technique since direct trading activity or quotes are unobservable. This includes certain types of interest rate derivatives with both volatility and correlation exposure, equity, commodity or foreign currency derivatives that are either longer-dated or include exposure to multiple underlyings, and credit derivatives, including CDS on certain mortgage- or asset-backed securities and basket CDS. Where required inputs are unobservable, relationships to observable data points, based on historical and/or implied observations, may be employed as a technique to estimate the model input values. For further information on the valuation techniques for OTC derivative products, see Note 2. Valuation Hierarchy Classification: •Level 2—when valued using observable inputs supported by market liquidity or where the unobservable input is not deemed significant •Level 3—when valued using observable inputs with limited market liquidity or if an unobservable input is deemed significant"
    },
    {
      "status": "ADDED",
      "current_title": "Investments",
      "prior_title": null,
      "current_body": "Investments revenues are composed of realized and unrealized gains and losses derived from investments, including those associated with employee deferred compensation and co-investment plans. Estimates of the fair value of the investments that produce these revenues may involve significant judgment and may fluctuate significantly over time in light of business, market, economic and financial conditions, generally or in relation to specific transactions. Within the Institutional Securities segment, gains and losses are primarily from business-related investments. Certain investments are subject to sale restrictions. Within the Investment Management business segment, Investments revenues are primarily from performance-based fees in the form of carried interest, a portion of which is subject to reversal, and gains and losses from investments. The business is entitled to receive carried interest when the return in certain funds exceeds specified performance targets. Additionally, we consolidate certain sponsored Investment Management funds where revenues are primarily attributable to holders of noncontrolling interests."
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Physical Commodities",
      "prior_title": null,
      "current_body": "Valuation Techniques: •Fair value is determined using observable inputs, including broker quotations and published indices. Valuation Hierarchy Classification: •Level 2—valued using observable inputs"
    },
    {
      "status": "ADDED",
      "current_title": "Investment Securities—AFS Securities",
      "prior_title": null,
      "current_body": "Valuation Techniques: •AFS securities are composed of U.S. government and agency securities (e.g., U.S. Treasury securities, agency-issued debt, agency mortgage pass-through securities and CMOs), CMBS, ABS, state and municipal securities. For further information on the determination of fair value, refer to the corresponding asset/liability Valuation Technique described herein for the same instruments. Valuation Hierarchy Classification: •For further information on the determination of valuation hierarchy classification, see the corresponding Valuation Hierarchy Classification described herein. Deposits Valuation Techniques: •The Firm issues FDIC-insured certificates of deposit that pay either fixed coupons or that have repayment terms linked to the performance of debt or equity securities, indices or currencies. The fair value of these certificates of deposit is determined using valuation models that incorporate observable inputs referencing identical or comparable securities, including prices to which the deposits are linked, interest rate yield curves, option volatility and currency rates, equity prices, and the impact of the Firm’s own credit spreads, adjusted for the impact of the FDIC insurance, which is based on vanilla deposit issuance rates. Valuation Hierarchy Classification: •Level 2—when valuation inputs are observable •Level 3—in instances where an unobservable input is deemed significant Securities Purchased under Agreements to Resell and Securities Sold under Agreements to RepurchaseValuation Techniques:•Fair value is computed using a standard cash flow discounting methodology. •The inputs to the valuation include contractual cash flows and collateral funding spreads, which are the incremental spread over the OIS rate for a specific collateral rate (which refers to the rate applicable to a specific type of security pledged as collateral). Valuation Hierarchy Classification:•Level 2—when the valuation inputs are observable and supported by market liquidity•Level 3—in instances where the valuation input is observable but not supported by market liquidity or if an unobservable input is deemed significantOther Secured FinancingsValuation Techniques:•Other secured financings are composed of short-dated notes secured by Corporate equities, agreements to repurchase Physical commodities, the liabilities related to sales of Loans and lending commitments accounted for as financings, and secured contracts that are not classified as OTC derivatives because they fail net investment criteria. For further information on the determination of fair value, refer to the Valuation Techniques described herein for the corresponding instruments, which are the collateral referenced by the other secured financing liability.Valuation Hierarchy Classification:•For further information on the determination of valuation hierarchy classification, see the Valuation Hierarchy Classification described herein for the corresponding instruments, which are the collateral referenced by the other secured financing liability.BorrowingsValuation Techniques:•The Firm carries certain borrowings at fair value that are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. •Fair value is determined using valuation models for the derivative and debt portions of the instruments. These models incorporate observable inputs referencing identical or comparable securities, including prices to which the instruments are linked, interest rate yield curves, option volatility and currency rates, and commodity or equity prices. •Independent, external and traded prices are considered, as well as the impact of the Firm’s own credit spreads, which are based on observed secondary bond market spreads."
    },
    {
      "status": "ADDED",
      "current_title": "Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase",
      "prior_title": null,
      "current_body": "Valuation Techniques: •Fair value is computed using a standard cash flow discounting methodology. •The inputs to the valuation include contractual cash flows and collateral funding spreads, which are the incremental spread over the OIS rate for a specific collateral rate (which refers to the rate applicable to a specific type of security pledged as collateral). Valuation Hierarchy Classification: •Level 2—when the valuation inputs are observable and supported by market liquidity •Level 3—in instances where the valuation input is observable but not supported by market liquidity or if an unobservable input is deemed significant"
    },
    {
      "status": "ADDED",
      "current_title": "Other Secured Financings",
      "prior_title": null,
      "current_body": "Valuation Techniques: •Other secured financings are composed of short-dated notes secured by Corporate equities, agreements to repurchase Physical commodities, the liabilities related to sales of Loans and lending commitments accounted for as financings, and secured contracts that are not classified as OTC derivatives because they fail net investment criteria. For further information on the determination of fair value, refer to the Valuation Techniques described herein for the corresponding instruments, which are the collateral referenced by the other secured financing liability. Valuation Hierarchy Classification: •For further information on the determination of valuation hierarchy classification, see the Valuation Hierarchy Classification described herein for the corresponding instruments, which are the collateral referenced by the other secured financing liability. Borrowings Valuation Techniques: •The Firm carries certain borrowings at fair value that are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. •Fair value is determined using valuation models for the derivative and debt portions of the instruments. These models incorporate observable inputs referencing identical or comparable securities, including prices to which the instruments are linked, interest rate yield curves, option volatility and currency rates, and commodity or equity prices. •Independent, external and traded prices are considered, as well as the impact of the Firm’s own credit spreads, which are based on observed secondary bond market spreads. December 2024 Form 10-K98 December 2024 Form 10-K98 December 2024 Form 10-K98 98"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis",
      "prior_title": null,
      "current_body": "$ in millions202420232022U.S. Treasury and agency securitiesBeginning balance$— $17 $2 Realized and unrealized gains (losses)— — (3)Purchases— — 14 Sales— (10)(1)Net transfers— (7)5 Ending balance$— $— $17 Unrealized gains (losses)$— $— $(1)Other sovereign government obligationsBeginning balance$94 $169 $211 Realized and unrealized gains (losses)(12)5 (5)Purchases4 38 116 Sales— (86)(107)Net transfers(69)(32)(46)Ending balance$17 $94 $169 Unrealized gains (losses)$(9)$2 $(14)State and municipal securitiesBeginning balance$34 $145 $13 Realized and unrealized gains (losses)— — (4)Purchases— 9 91 Sales(29)(6)(82)Net transfers(5)(114)127 Ending balance$— $34 $145 Unrealized gains (losses)$— $— $— MABSBeginning balance$489 $416 $344 Realized and unrealized gains (losses)9 (2)(342)Purchases83 232 511 Sales(121)(165)(130)Net transfers(179)8 33 Ending balance$281 $489 $416 Unrealized gains (losses)$(16)$(14)$2 Loans and lending commitmentsBeginning balance$2,066 $2,017 $3,806 Realized and unrealized gains (losses)(15)(189)(80)Purchases and originations235 1,502 793 Sales(674)(477)(740)Settlements(221)(843)(1,526)Net transfers(332)56 (236)Ending balance$1,059 $2,066 $2,017 Unrealized gains (losses)$(15)$(76)$29 Net transfers $ in millions202420232022Corporate and other debtBeginning balance$1,983 $2,096 $1,973 Realized and unrealized gains (losses)(72)145 456 Purchases and originations602 623 1,165 Sales(631)(664)(1,889)Settlements(84)(33)(27)Net transfers(540)(184)418 Ending balance$1,258 $1,983 $2,096 Unrealized gains (losses)$55 $(10)$160 Corporate equitiesBeginning balance$199 $116 $115 Realized and unrealized gains (losses)(119)12 (97)Purchases40 85 73 Sales(16)(41)(22)Net transfers50 27 47 Ending balance$154 $199 $116 Unrealized gains (losses)$(44)$19 $11 InvestmentsBeginning balance$949 $923 $1,125 Realized and unrealized gains (losses)33 35 (409)Purchases62 158 63 Sales(288)(183)(107)Net transfers(2)16 251 Ending balance$754 $949 $923 Unrealized gains (losses)$(32)$27 $(397)Investment securities—AFSBeginning balance$— $35 $— Realized and unrealized gains (losses)— — (3)Sales— (32)— Net transfers— (3)38 Ending balance$— $— $35 Unrealized gains (losses)$— $— $(3)Net derivatives: Interest rateBeginning balance$(73)$(151)$708 Realized and unrealized gains (losses)126 (336)(643)Purchases59 140 1 Issuances(9)(43)— Settlements(175)241 (92)Net transfers19 76 (125)Ending balance$(53)$(73)$(151)Unrealized gains (losses)$(53)$(210)$(327)Net derivatives: CreditBeginning balance$96 $110 $98 Realized and unrealized gains (losses)(30)5 84 Purchases— — 5 Issuances— — (10)Settlements32 (21)(61)Net transfers(1)2 (6)Ending balance$97 $96 $110 Unrealized gains (losses)$(47)$2 $70 $ in millions202420232022Corporate and other debtBeginning balance$1,983 $2,096 $1,973 Realized and unrealized gains (losses)(72)145 456 Purchases and originations602 623 1,165 Sales(631)(664)(1,889)Settlements(84)(33)(27)Net transfers(540)(184)418 Ending balance$1,258 $1,983 $2,096 Unrealized gains (losses)$55 $(10)$160 Corporate equitiesBeginning balance$199 $116 $115 Realized and unrealized gains (losses)(119)12 (97)Purchases40 85 73 Sales(16)(41)(22)Net transfers50 27 47 Ending balance$154 $199 $116 Unrealized gains (losses)$(44)$19 $11 InvestmentsBeginning balance$949 $923 $1,125 Realized and unrealized gains (losses)33 35 (409)Purchases62 158 63 Sales(288)(183)(107)Net transfers(2)16 251 Ending balance$754 $949 $923 Unrealized gains (losses)$(32)$27 $(397)Investment securities—AFSBeginning balance$— $35 $— Realized and unrealized gains (losses)— — (3)Sales— (32)— Net transfers— (3)38 Ending balance$— $— $35 Unrealized gains (losses)$— $— $(3)Net derivatives: Interest rateBeginning balance$(73)$(151)$708 Realized and unrealized gains (losses)126 (336)(643)Purchases59 140 1 Issuances(9)(43)— Settlements(175)241 (92)Net transfers19 76 (125)Ending balance$(53)$(73)$(151)Unrealized gains (losses)$(53)$(210)$(327)Net derivatives: CreditBeginning balance$96 $110 $98 Realized and unrealized gains (losses)(30)5 84 Purchases— — 5 Issuances— — (10)Settlements32 (21)(61)Net transfers(1)2 (6)Ending balance$97 $96 $110 Unrealized gains (losses)$(47)$2 $70 Net transfers Net transfers 99December 2024 Form 10-K 99December 2024 Form 10-K 99December 2024 Form 10-K 99"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Valuation Techniques and Unobservable Inputs",
      "prior_title": null,
      "current_body": "Balance / Range (Average1)$ in millions, except inputsAt December 31, 2024At December 31, 2023Assets at Fair Value on a Recurring BasisOther sovereign government obligations$17 $94 Comparable pricing:Bond price45 to 104 points (75 points)61 to 110 points (87 points)MABS$281 $489 Comparable pricing:Bond price27 to 98 points (67 points)0 to 88 points (61 points) Balance / Range (Average1) $ in millions, except inputs"
    },
    {
      "status": "ADDED",
      "current_title": "27 to 98 points (67 points)",
      "prior_title": null,
      "current_body": "0 to 88 points (61 points) December 2024 Form 10-K100 December 2024 Form 10-K100 December 2024 Form 10-K100 100"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "54% to 100% (94%)",
      "prior_title": null,
      "current_body": "54% to 100% (94%) Balance / Range (Average1)$ in millions, except inputsAt December 31, 2024At December 31, 2023Liabilities at Fair Value on a Recurring BasisSecurities sold under agreements to repurchase$444 $449 Discounted cash flow:Funding spread 11 to 102 bps (36 / 26 bps)28 to 135 bps (79 bps)Other secured financings$76 $92 Comparable pricing:Loan price0 to 100 points (33 points)22 to 101 points (76 points)Borrowings$947 $1,878 Option model:Equity volatility 7% to 71% (21%)6% to 69% (13%)Equity volatility skew -2% to 0% (0%) -2% to 0% (0%)Equity correlation53% to 64% (58%)41% to 97% (79%)Equity - FX correlation -52% to 24% (-12%) -65% to 40% (-30%)IR curve correlationN/M50% to 89% (71% / 70%)Credit default swap model:Credit spread247 to 433 bps (340 bps)N/MDiscounted cash flow:Loss given default54% to 84% (62% / 54%)54% to 84% (62% / 54%)Nonrecurring Fair Value MeasurementLoans$4,518 $4,532 Corporate loan model:Credit spread109 to 1,469 bps (1,007 bps)99 to 1,467 bps (1,015 bps)Comparable pricing:Loan price25 to 100 points (71 points)25 to 93 points (70 points) Warehouse model:Credit spread207 to 280 bps (254 bps)115 to 268 bps (185 bps)Points—Percentage of par IR—Interest rate FX—Foreign exchange 1.A single amount is disclosed for range and average when there is no significant difference between the minimum, maximum and average. Amounts represent weighted averages except where simple averages and the median of the inputs are more relevant.2.Includes derivative contracts with multiple risks (i.e., hybrid products).The previous table provides information on the valuation techniques, significant unobservable inputs, and the ranges and averages for each major category of assets and liabilities measured at fair value on a recurring and nonrecurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory of financial instruments. Further, the range of unobservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm’s inventory. Generally, there are no predictable relationships between multiple significant unobservable inputs attributable to a given valuation technique.During 2024, there were no significant revisions made to the descriptions of the Firm’s significant unobservable inputs.An increase (decrease) to the following significant unobservable inputs would generally result in a higher (lower) fair value. Balance / Range (Average1)$ in millions, except inputsAt December 31, 2024At December 31, 2023Liabilities at Fair Value on a Recurring BasisSecurities sold under agreements to repurchase$444 $449 Discounted cash flow:Funding spread 11 to 102 bps (36 / 26 bps)28 to 135 bps (79 bps)Other secured financings$76 $92 Comparable pricing:Loan price0 to 100 points (33 points)22 to 101 points (76 points)Borrowings$947 $1,878 Option model:Equity volatility 7% to 71% (21%)6% to 69% (13%)Equity volatility skew -2% to 0% (0%) -2% to 0% (0%)Equity correlation53% to 64% (58%)41% to 97% (79%)Equity - FX correlation -52% to 24% (-12%) -65% to 40% (-30%)IR curve correlationN/M50% to 89% (71% / 70%)Credit default swap model:Credit spread247 to 433 bps (340 bps)N/MDiscounted cash flow:Loss given default54% to 84% (62% / 54%)54% to 84% (62% / 54%)Nonrecurring Fair Value MeasurementLoans$4,518 $4,532 Corporate loan model:Credit spread109 to 1,469 bps (1,007 bps)99 to 1,467 bps (1,015 bps)Comparable pricing:Loan price25 to 100 points (71 points)25 to 93 points (70 points) Warehouse model:Credit spread207 to 280 bps (254 bps)115 to 268 bps (185 bps) Balance / Range (Average1) $ in millions, except inputs"
    },
    {
      "status": "ADDED",
      "current_title": "-52% to 24% (-12%)",
      "prior_title": null,
      "current_body": "-65% to 40% (-30%) IR curve correlation N/M 50% to 89% (71% / 70%)"
    },
    {
      "status": "ADDED",
      "current_title": "207 to 280 bps (254 bps)",
      "prior_title": null,
      "current_body": "115 to 268 bps (185 bps) Points—Percentage of par IR—Interest rate FX—Foreign exchange 1.A single amount is disclosed for range and average when there is no significant difference between the minimum, maximum and average. Amounts represent weighted averages except where simple averages and the median of the inputs are more relevant. 2.Includes derivative contracts with multiple risks (i.e., hybrid products). The previous table provides information on the valuation techniques, significant unobservable inputs, and the ranges and averages for each major category of assets and liabilities measured at fair value on a recurring and nonrecurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory of financial instruments. Further, the range of unobservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm’s inventory. Generally, there are no predictable relationships between multiple significant unobservable inputs attributable to a given valuation technique. During 2024, there were no significant revisions made to the descriptions of the Firm’s significant unobservable inputs. An increase (decrease) to the following significant unobservable inputs would generally result in a higher (lower) fair value. 101December 2024 Form 10-K 101December 2024 Form 10-K 101December 2024 Form 10-K 101"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Fund Interests",
      "prior_title": null,
      "current_body": "At December 31, 2024At December 31, 2023$ in millionsCarryingValueCommitmentCarryingValueCommitmentPrivate equity and other$2,653 $644 $2,685 $720 Real estate3,461 214 2,765 240 Hedge92 2 74 3 Total$6,206 $860 $5,524 $963 Amounts in the previous table represent the Firm’s carrying value of general and limited partnership interests in fund December 2024 Form 10-K102 December 2024 Form 10-K102 December 2024 Form 10-K102 102"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Nonredeemable Funds by Contractual Maturity",
      "prior_title": null,
      "current_body": "Carrying Value at December 31, 2024$ in millionsPrivate Equity and OtherReal EstateLess than 5 years$1,066 $2,016 5-10 years1,432 1,334 Over 10 years155 111 Total$2,653 $3,461 Private Equity and Other Nonrecurring Fair Value MeasurementsAssets and Liabilities Measured at Fair Value on a Nonrecurring Basis At December 31, 2024$ in millionsLevel 2Level 31TotalAssetsLoans$1,607 $4,518 $6,125 Other assets—Other investments— 58 58 Other assets—ROU assets23 — 23 Total$1,630 $4,576 $6,206 LiabilitiesOther liabilities and accrued expenses—Lending commitments$48 $33 $81 Total$48 $33 $81 At December 31, 2023$ in millionsLevel 2Level 31TotalAssetsLoans$4,215 $4,532 $8,747 Other assets—Other investments— 4 4 Other assets—ROU assets23 — 23 Total$4,238 $4,536 $8,774 LiabilitiesOther liabilities and accrued expenses—Lending commitments$110 $60 $170 Total$110 $60 $170 1.For significant Level 3 balances, refer to “Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements” section herein for details of the significant unobservable inputs used for nonrecurring fair value measurement.Gains (Losses) from Nonrecurring Fair Value Remeasurements1 $ in millions202420232022AssetsLoans2$(64)$(426)$(563)Other assets—Other investments3(9)(15)(14)Other assets—Premises, equipment and software4(17)(8)(6)Other assets—ROU assets5(33)(35)(11)Total$(123)$(484)$(594)LiabilitiesOther liabilities and accrued expenses—Lending commitments2$19 $75 $(137)Total$19 $75 $(137)1.Gains and losses for Loans and Other assets—Other investments are classified in Other revenues. For other items, gains and losses are recorded in Other revenues if the item is held for sale; otherwise, they are recorded in Other expenses. 2.Nonrecurring changes in the fair value of loans and lending commitments, which exclude the impact of related economic hedges, are calculated as follows: for the held-for-investment category, based on the value of the underlying collateral; and for the held-for-sale category, based on recently executed transactions, market price quotations, valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and CDS spread levels adjusted for any basis difference between cash and derivative instruments, or default recovery analysis where such transactions and quotations are unobservable. 3.Losses related to Other assets—Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and recently executed transactions.4.Losses related to Other assets—Premises, equipment and software generally include impairments as well as write-offs related to the disposal of certain assets.5.Losses related to Other Assets—ROU assets include impairments related to the discontinued leased properties."
    },
    {
      "status": "ADDED",
      "current_title": "Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsLevel 2Level 31TotalAssetsLoans$1,607 $4,518 $6,125 Other assets—Other investments— 58 58 Other assets—ROU assets23 — 23 Total$1,630 $4,576 $6,206 LiabilitiesOther liabilities and accrued expenses—Lending commitments$48 $33 $81 Total$48 $33 $81 Level 31 At December 31, 2023$ in millionsLevel 2Level 31TotalAssetsLoans$4,215 $4,532 $8,747 Other assets—Other investments— 4 4 Other assets—ROU assets23 — 23 Total$4,238 $4,536 $8,774 LiabilitiesOther liabilities and accrued expenses—Lending commitments$110 $60 $170 Total$110 $60 $170 Level 31 1.For significant Level 3 balances, refer to “Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements” section herein for details of the significant unobservable inputs used for nonrecurring fair value measurement."
    },
    {
      "status": "ADDED",
      "current_title": "Gains (Losses) from Nonrecurring Fair Value Remeasurements1",
      "prior_title": null,
      "current_body": "$ in millions202420232022AssetsLoans2$(64)$(426)$(563)Other assets—Other investments3(9)(15)(14)Other assets—Premises, equipment and software4(17)(8)(6)Other assets—ROU assets5(33)(35)(11)Total$(123)$(484)$(594)LiabilitiesOther liabilities and accrued expenses—Lending commitments2$19 $75 $(137)Total$19 $75 $(137) Loans2 Other assets—Other investments3 Other assets—Premises, equipment and software4 Other assets—ROU assets5 Other liabilities and accrued expenses—Lending commitments2 1.Gains and losses for Loans and Other assets—Other investments are classified in Other revenues. For other items, gains and losses are recorded in Other revenues if the item is held for sale; otherwise, they are recorded in Other expenses. 2.Nonrecurring changes in the fair value of loans and lending commitments, which exclude the impact of related economic hedges, are calculated as follows: for the held-for-investment category, based on the value of the underlying collateral; and for the held-for-sale category, based on recently executed transactions, market price quotations, valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and CDS spread levels adjusted for any basis difference between cash and derivative instruments, or default recovery analysis where such transactions and quotations are unobservable. 3.Losses related to Other assets—Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and recently executed transactions. 4.Losses related to Other assets—Premises, equipment and software generally include impairments as well as write-offs related to the disposal of certain assets. 5.Losses related to Other Assets—ROU assets include impairments related to the discontinued leased properties. 5. 103December 2024 Form 10-K 103December 2024 Form 10-K 103December 2024 Form 10-K 103"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Financial Instruments Not Measured at Fair Value",
      "prior_title": null,
      "current_body": "At December 31, 2024 CarryingValueFair Value$ in millionsLevel 1Level 2Level 3TotalFinancial assetsCash and cash equivalents$105,386 $105,386 $— $— $105,386 Investment securities—HTM61,071 15,803 34,180 1,220 51,203 Securities purchased under agreements to resell118,565 — 117,151 1,450 118,601 Securities borrowed123,859 — 123,859 — 123,859 Customer and other receivables79,586 — 75,361 4,056 79,417 Loans1:Held for investment225,834 — 17,859 202,297 220,156 Held for sale12,319 — 6,324 6,115 12,439 Other assets839 — 839 — 839 Financial liabilitiesDeposits$369,508 $— $370,039 $— $370,039 Securities sold under agreements to repurchase49,111 — 49,103 — 49,103 Securities loaned15,226 — 15,228 — 15,228 Other secured financings7,514 — 7,511 — 7,511 Customer and other payables175,890 — 175,890 — 175,890 Borrowings185,487 — 188,269 93 188,362 CommitmentAmountLending commitments2$175,774 $— $1,094 $839 $1,933 Securities purchased under agreements to resell Loans1: Held for investment Held for sale Lending commitments2 At December 31, 2023 CarryingValueFair Value$ in millionsLevel 1Level 2Level 3TotalFinancial assetsCash and cash equivalents$89,232 $89,232 $— $— $89,232 Investment securities—HTM66,694 21,937 34,411 1,105 57,453 Securities purchased under agreements to resell110,733 — 108,099 2,674 110,773 Securities borrowed121,091 — 121,091 — 121,091 Customer and other receivables74,337 — 70,110 4,031 74,141 Loans1:Held for investment203,385 — 20,125 176,291 196,416 Held for sale15,255 — 8,652 6,672 15,324 Other assets704 — 704 — 704 Financial liabilitiesDeposits$345,332 $— $345,391 $— $345,391 Securities sold under agreements to repurchase61,631 — 61,621 — 61,621 Securities loaned15,057 — 15,055 — 15,055 Other secured financings2,756 — 2,756 — 2,756 Customer and other payables208,015 — 208,015 — 208,015 Borrowings169,832 — 171,009 4 171,013 CommitmentAmountLending commitments2$149,464 $— $1,338 $749 $2,087 Securities purchased under agreements to resell Loans1: Held for sale Lending commitments2 1.Amounts include loans measured at fair value on a nonrecurring basis. 2.Represents Lending commitments accounted for as Held for Investment and Held for Sale. For a further discussion on lending commitments, see Note 14. The previous tables exclude all non-financial assets and liabilities, such as Goodwill and Intangible assets, and certain financial instruments, such as equity method investments and certain receivables. 5. Fair Value Option The Firm has elected the fair value option for certain eligible instruments that are risk managed on a fair value basis to mitigate income statement volatility caused by measurement basis differences between the elected instruments and their associated risk management transactions or to eliminate complexities of applying certain accounting models. Borrowings Measured at Fair Value on a Recurring Basis $ in millionsAtDecember 31, 2024AtDecember 31, 2023Business Unit Responsible for Risk ManagementEquity$49,144 $46,073 Interest rates34,451 31,055 Commodities14,829 12,798 Credit3,306 2,400 Foreign exchange1,602 1,574 Total$103,332 $93,900 Net Revenues from Liabilities under the Fair Value Option $ in millionsTrading RevenuesInterest ExpenseNet Revenues12024Borrowings$(1,118)$650 $(1,767)Deposits(134)242 (376)2023Borrowings(7,991)503 (8,494)2022Borrowings12,370 293 12,077 1.Amounts do not reflect any gains or losses from related economic hedges. Gains (losses) from changes in fair value are recorded in Trading revenues and are mainly attributable to movements in the reference price or index, interest rates or foreign exchange rates.Gains (Losses) Due to Changes in Instrument-Specific Credit Risk $ in millionsTradingRevenuesOCI2024Loans and other receivables1$(53)$— Lending commitments(3)— Deposits— (39)Borrowings(27)(663)2023Loans and other receivables1$(123)$— Lending commitments14 — Deposits— 17 Borrowings(19)(1,726)2022Loans and other receivables1$(108)$— Lending commitments(12)— Deposits— (24)Borrowings— 2,006 financial instruments, such as equity method investments and certain receivables."
    },
    {
      "status": "ADDED",
      "current_title": "5. Fair Value Option",
      "prior_title": null,
      "current_body": "The Firm has elected the fair value option for certain eligible instruments that are risk managed on a fair value basis to mitigate income statement volatility caused by measurement basis differences between the elected instruments and their associated risk management transactions or to eliminate complexities of applying certain accounting models."
    },
    {
      "status": "ADDED",
      "current_title": "Borrowings Measured at Fair Value on a Recurring Basis",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Business Unit Responsible for Risk ManagementEquity$49,144 $46,073 Interest rates34,451 31,055 Commodities14,829 12,798 Credit3,306 2,400 Foreign exchange1,602 1,574 Total$103,332 $93,900 At"
    },
    {
      "status": "ADDED",
      "current_title": "Net Revenues from Liabilities under the Fair Value Option",
      "prior_title": null,
      "current_body": "$ in millionsTrading RevenuesInterest ExpenseNet Revenues12024Borrowings$(1,118)$650 $(1,767)Deposits(134)242 (376)2023Borrowings(7,991)503 (8,494)2022Borrowings12,370 293 12,077 Trading Revenues Interest Expense Net Revenues1 1.Amounts do not reflect any gains or losses from related economic hedges. Gains (losses) from changes in fair value are recorded in Trading revenues and are mainly attributable to movements in the reference price or index, interest rates or foreign exchange rates."
    },
    {
      "status": "ADDED",
      "current_title": "Gains (Losses) Due to Changes in Instrument-Specific Credit Risk",
      "prior_title": null,
      "current_body": "$ in millionsTradingRevenuesOCI2024Loans and other receivables1$(53)$— Lending commitments(3)— Deposits— (39)Borrowings(27)(663)2023Loans and other receivables1$(123)$— Lending commitments14 — Deposits— 17 Borrowings(19)(1,726)2022Loans and other receivables1$(108)$— Lending commitments(12)— Deposits— (24)Borrowings— 2,006 Loans and other receivables1 Loans and other receivables1 Loans and other receivables1 December 2024 Form 10-K104 December 2024 Form 10-K104 December 2024 Form 10-K104 104"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Difference between Contractual Principal and Fair Value1",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Loans and other receivables2$10,207 $11,086 Nonaccrual loans2 7,719 8,566 Borrowings33,249 3,030 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value Loans on Nonaccrual Status",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Nonaccrual loans$647 $440 Nonaccrual loans 90 or more days past due$155 $75 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "6. Derivative Instruments and Hedging Activities",
      "prior_title": null,
      "current_body": "The Firm trades and makes markets globally in listed futures, OTC swaps, forwards, options and other derivatives referencing, among other things, interest rates, equities, currencies, investment grade and non-investment grade corporate credits, loans, bonds, U.S. and other sovereign securities, emerging market bonds and loans, credit indices, ABS indices, property indices, mortgage-related and other ABS, and real estate loan products. The Firm uses these instruments for market-making, managing foreign currency and credit exposure, and asset/liability management. The Firm manages its market-making positions by employing a variety of risk mitigation strategies. These strategies include diversification of risk exposures and hedging. Hedging activities consist of the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). The Firm manages the market risk associated with its market-making activities on a Firmwide basis, on a worldwide trading division level and on an individual product basis. Fair Values of Derivative Contracts Assets at December 31, 2024$ in millionsBilateralOTCClearedOTCExchange-TradedTotalDesignated as accounting hedgesInterest rate$4 $— $— $4 Foreign exchange185 122 — 307 Total189 122 — 311 Not designated as accounting hedgesEconomic hedges of loansCredit— 28 — 28 Other derivativesInterest rate115,520 13,163 119 128,802 Credit4,711 4,411 — 9,122 Foreign exchange104,024 4,301 90 108,415 Equity24,368 — 51,314 75,682 Commodity and other14,071 — 1,860 15,931 Total262,694 21,903 53,383 337,980 Total gross derivatives$262,883 $22,025 $53,383 $338,291 Amounts offsetCounterparty netting(188,069)(20,276)(51,168)(259,513)Cash collateral netting(38,511)(1,698)— (40,209)Total in Trading assets$36,303 $51 $2,215 $38,569 Amounts not offset1Financial instruments collateral(17,837)— — (17,837)Net amounts$18,466 $51 $2,215 $20,732 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable$3,354 Liabilities at December 31, 2024$ in millionsBilateralOTCClearedOTCExchange-TradedTotalDesignated as accounting hedgesInterest rate$533 $— $— $533 Foreign exchange3 — — 3 Total536 — — 536 Not designated as accounting hedgesEconomic hedges of loansCredit53 718 — 771 Other derivativesInterest rate104,495 13,038 124 117,657 Credit4,941 3,860 — 8,801 Foreign exchange100,730 4,085 153 104,968 Equity42,332 — 53,142 95,474 Commodity and other11,584 — 1,979 13,563 Total264,135 21,701 55,398 341,234 Total gross derivatives$264,671 $21,701 $55,398 $341,770 Amounts offsetCounterparty netting(188,070)(20,276)(51,168)(259,514)Cash collateral netting(43,126)(1,200)— (44,326)Total in Trading liabilities$33,475 $225 $4,230 $37,930 Amounts not offset1Financial instruments collateral(6,338)— (2,658)(8,996)Net amounts$27,137 $225 $1,572 $28,934 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable$4,321"
    },
    {
      "status": "ADDED",
      "current_title": "Fair Values of Derivative Contracts",
      "prior_title": null,
      "current_body": "Assets at December 31, 2024$ in millionsBilateralOTCClearedOTCExchange-TradedTotalDesignated as accounting hedgesInterest rate$4 $— $— $4 Foreign exchange185 122 — 307 Total189 122 — 311 Not designated as accounting hedgesEconomic hedges of loansCredit— 28 — 28 Other derivativesInterest rate115,520 13,163 119 128,802 Credit4,711 4,411 — 9,122 Foreign exchange104,024 4,301 90 108,415 Equity24,368 — 51,314 75,682 Commodity and other14,071 — 1,860 15,931 Total262,694 21,903 53,383 337,980 Total gross derivatives$262,883 $22,025 $53,383 $338,291 Amounts offsetCounterparty netting(188,069)(20,276)(51,168)(259,513)Cash collateral netting(38,511)(1,698)— (40,209)Total in Trading assets$36,303 $51 $2,215 $38,569 Amounts not offset1Financial instruments collateral(17,837)— — (17,837)Net amounts$18,466 $51 $2,215 $20,732 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable$3,354"
    },
    {
      "status": "ADDED",
      "current_title": "Amounts not offset1",
      "prior_title": null,
      "current_body": "Liabilities at December 31, 2024$ in millionsBilateralOTCClearedOTCExchange-TradedTotalDesignated as accounting hedgesInterest rate$533 $— $— $533 Foreign exchange3 — — 3 Total536 — — 536 Not designated as accounting hedgesEconomic hedges of loansCredit53 718 — 771 Other derivativesInterest rate104,495 13,038 124 117,657 Credit4,941 3,860 — 8,801 Foreign exchange100,730 4,085 153 104,968 Equity42,332 — 53,142 95,474 Commodity and other11,584 — 1,979 13,563 Total264,135 21,701 55,398 341,234 Total gross derivatives$264,671 $21,701 $55,398 $341,770 Amounts offsetCounterparty netting(188,070)(20,276)(51,168)(259,514)Cash collateral netting(43,126)(1,200)— (44,326)Total in Trading liabilities$33,475 $225 $4,230 $37,930 Amounts not offset1Financial instruments collateral(6,338)— (2,658)(8,996)Net amounts$27,137 $225 $1,572 $28,934 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable$4,321"
    },
    {
      "status": "ADDED",
      "current_title": "Amounts not offset1",
      "prior_title": null,
      "current_body": "Liabilities at December 31, 2024$ in millionsBilateralOTCClearedOTCExchange-TradedTotalDesignated as accounting hedgesInterest rate$533 $— $— $533 Foreign exchange3 — — 3 Total536 — — 536 Not designated as accounting hedgesEconomic hedges of loansCredit53 718 — 771 Other derivativesInterest rate104,495 13,038 124 117,657 Credit4,941 3,860 — 8,801 Foreign exchange100,730 4,085 153 104,968 Equity42,332 — 53,142 95,474 Commodity and other11,584 — 1,979 13,563 Total264,135 21,701 55,398 341,234 Total gross derivatives$264,671 $21,701 $55,398 $341,770 Amounts offsetCounterparty netting(188,070)(20,276)(51,168)(259,514)Cash collateral netting(43,126)(1,200)— (44,326)Total in Trading liabilities$33,475 $225 $4,230 $37,930 Amounts not offset1Financial instruments collateral(6,338)— (2,658)(8,996)Net amounts$27,137 $225 $1,572 $28,934 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable$4,321"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Amounts not offset1",
      "prior_title": null,
      "current_body": "Liabilities at December 31, 2024$ in millionsBilateralOTCClearedOTCExchange-TradedTotalDesignated as accounting hedgesInterest rate$533 $— $— $533 Foreign exchange3 — — 3 Total536 — — 536 Not designated as accounting hedgesEconomic hedges of loansCredit53 718 — 771 Other derivativesInterest rate104,495 13,038 124 117,657 Credit4,941 3,860 — 8,801 Foreign exchange100,730 4,085 153 104,968 Equity42,332 — 53,142 95,474 Commodity and other11,584 — 1,979 13,563 Total264,135 21,701 55,398 341,234 Total gross derivatives$264,671 $21,701 $55,398 $341,770 Amounts offsetCounterparty netting(188,070)(20,276)(51,168)(259,514)Cash collateral netting(43,126)(1,200)— (44,326)Total in Trading liabilities$33,475 $225 $4,230 $37,930 Amounts not offset1Financial instruments collateral(6,338)— (2,658)(8,996)Net amounts$27,137 $225 $1,572 $28,934 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable$4,321"
    },
    {
      "status": "ADDED",
      "current_title": "Amounts not offset1",
      "prior_title": null,
      "current_body": "Liabilities at December 31, 2024$ in millionsBilateralOTCClearedOTCExchange-TradedTotalDesignated as accounting hedgesInterest rate$533 $— $— $533 Foreign exchange3 — — 3 Total536 — — 536 Not designated as accounting hedgesEconomic hedges of loansCredit53 718 — 771 Other derivativesInterest rate104,495 13,038 124 117,657 Credit4,941 3,860 — 8,801 Foreign exchange100,730 4,085 153 104,968 Equity42,332 — 53,142 95,474 Commodity and other11,584 — 1,979 13,563 Total264,135 21,701 55,398 341,234 Total gross derivatives$264,671 $21,701 $55,398 $341,770 Amounts offsetCounterparty netting(188,070)(20,276)(51,168)(259,514)Cash collateral netting(43,126)(1,200)— (44,326)Total in Trading liabilities$33,475 $225 $4,230 $37,930 Amounts not offset1Financial instruments collateral(6,338)— (2,658)(8,996)Net amounts$27,137 $225 $1,572 $28,934 Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable$4,321"
    },
    {
      "status": "ADDED",
      "current_title": "Liabilities at December 31, 2024",
      "prior_title": null,
      "current_body": "Assets at December 31, 2023$ in billionsBilateralOTCClearedOTCExchange-TradedTotalDesignated as accounting hedgesInterest rate$— $92 $— $92 Foreign exchange1 1 — 2 Total1 93 — 94 Not designated as accounting hedgesEconomic hedges of loansCredit— 1 — 1 Other derivativesInterest rate4,153 8,357 560 13,070 Credit214 176 — 390 Foreign exchange3,378 165 7 3,550 Equity528 — 440 968 Commodity and other142 — 65 207 Total8,415 8,699 1,072 18,186 Total gross derivatives$8,416 $8,792 $1,072 $18,280 Assets at December 31, 2023 December 2024 Form 10-K106 December 2024 Form 10-K106 December 2024 Form 10-K106 106"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Gains (Losses) on Accounting Hedges",
      "prior_title": null,
      "current_body": "$ in millions202420232022Fair value hedges—Recognized in Interest incomeInterest rate contracts$291 $(576)$1,928 Investment Securities—AFS(204)638 (1,838)Fair value hedges—Recognized in Interest expenseInterest rate contracts$(822)$3,664 $(15,159)Deposits(75)(88)124 Borrowings889 (3,564)15,042 Net investment hedges—Foreign exchange contractsRecognized in OCI$1,084 $(168)$657 Forward points excluded from hedge effectiveness testing—Recognized in Interest income214 211 (33)Cash flow hedges—Interest rate contracts1Recognized in OCI$(100)$9 $(4)Less: Realized gains (losses) (pre-tax) reclassified from AOCI to interest income(32)(16)— Net change in cash flow hedges included within AOCI(68)25 (4) Forward points excluded from hedge effectiveness testing—Recognized in Interest income"
    },
    {
      "status": "ADDED",
      "current_title": "Cash flow hedges—Interest rate contracts1",
      "prior_title": null,
      "current_body": "Less: Realized gains (losses) (pre-tax) reclassified from AOCI to interest income 1.For the year ended 2024, there were no forecasted transactions that failed to occur. The net gains (losses) associated with cash flow hedges expected to be reclassified from AOCI within 12 months as of December 31, 2024 is approximately $31 million. The maximum length of time over which forecasted cash flows are hedged is 28 months. Fair Value Hedges—Hedged Items$ in millionsAtDecember 31, 2024AtDecember 31, 2023Investment securities—AFSAmortized cost basis currently or previously hedged1$54,809 $47,179 Basis adjustments included in amortized cost2$(741)$(732)DepositsCarrying amount currently or previously hedged$21,524 $10,569 Basis adjustments included in carrying amount2$44 $(31)BorrowingsCarrying amount currently or previously hedged$171,834 $158,659 Basis adjustments included in carrying amount—Outstanding hedges$(10,072)$(9,219)Basis adjustments included in amortized cost—Terminated hedges$(648)$(671)1.Carrying amount represents the amortized cost, net of allowance if applicable. At December 31, 2024, the amortized cost of the portfolio layer method closed portfolios was $325 million, of which $178 million was designated as hedged. The cumulative amount of basis adjustments was $(2) million as of December 31, 2024. Refer to Note 2 and Note 7 for additional information.2.Hedge accounting basis adjustments are primarily related to outstanding hedges.Gains (Losses) on Economic Hedges of Loans$ in millions202420232022Recognized in Other revenuesCredit contracts1(294)(522)(62)1.Amounts related to hedges of certain held-for-investment and held-for-sale loans. Derivatives with Credit Risk-Related ContingenciesNet Derivative Liabilities and Collateral Posted$ in millionsAtDecember 31, 2024AtDecember 31, 2023Net derivative liabilities with credit risk-related contingent features$22,414 $21,957 Collateral posted16,252 16,389 The previous table presents the aggregate fair value of certain derivative contracts that contain credit risk-related contingent features that are in a net liability position for which the Firm has posted collateral in the normal course of business.Incremental Collateral and Termination Payments upon Potential Future Ratings Downgrade$ in millionsAtDecember 31, 2024One-notch downgrade$235 Two-notch downgrade411 Bilateral downgrade agreements included in the amounts above1$524 1.Amount represents arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downgrade arrangements are used by the Firm to manage the risk of counterparty downgrades.The additional collateral or termination payments that may be called in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody’s Investors Service, Inc., S&P Global Ratings and/or other rating agencies. The previous table shows the future potential"
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value Hedges—Hedged Items",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Investment securities—AFSAmortized cost basis currently or previously hedged1$54,809 $47,179 Basis adjustments included in amortized cost2$(741)$(732)DepositsCarrying amount currently or previously hedged$21,524 $10,569 Basis adjustments included in carrying amount2$44 $(31)BorrowingsCarrying amount currently or previously hedged$171,834 $158,659 Basis adjustments included in carrying amount—Outstanding hedges$(10,072)$(9,219)Basis adjustments included in amortized cost—Terminated hedges$(648)$(671) At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Gains (Losses) on Economic Hedges of Loans",
      "prior_title": null,
      "current_body": "$ in millions202420232022Recognized in Other revenuesCredit contracts1(294)(522)(62) Credit contracts1 1.Amounts related to hedges of certain held-for-investment and held-for-sale loans. 1."
    },
    {
      "status": "ADDED",
      "current_title": "Net Derivative Liabilities and Collateral Posted",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Net derivative liabilities with credit risk-related contingent features$22,414 $21,957 Collateral posted16,252 16,389 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Incremental Collateral and Termination Payments upon Potential Future Ratings Downgrade",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024One-notch downgrade$235 Two-notch downgrade411 Bilateral downgrade agreements included in the amounts above1$524 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Maximum Potential Payout/Notional of Credit Protection Sold1",
      "prior_title": null,
      "current_body": "Years to Maturity at December 31, 2024$ in billions< 11-33-5Over 5TotalSingle-name CDSInvestment grade$15 $31 $37 $10 $93 Non-investment grade7 16 16 1 40 Total$22 $47 $53 $11 $133 Index and basket CDSInvestment grade$3 $12 $10 $— $25 Non-investment grade11 22 158 16 207 Total$14 $34 $168 $16 $232 Total CDS sold$36 $81 $221 $27 $365 Other credit contracts— — — 3 3 Total credit protection sold$36 $81 $221 $30 $368 CDS protection sold with identical protection purchased$303 Years to Maturity at December 31, 2023$ in billions< 11-33-5Over 5TotalSingle-name CDSInvestment grade$19 $29 $39 $10 $97 Non-investment grade7 14 17 1 39 Total$26 $43 $56 $11 $136 Index and basket CDSInvestment grade$8 $19 $85 $4 $116 Non-investment grade8 14 95 17 134 Total$16 $33 $180 $21 $250 Total CDS sold$42 $76 $236 $32 $386 Other credit contracts— — — 3 3 Total credit protection sold$42 $76 $236 $35 $389 CDS protection sold with identical protection purchased$330"
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value Asset (Liability) of Credit Protection Sold1",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Single-name CDSInvestment grade$1,890 $1,904 Non-investment grade585 399 Total$2,475 $2,303 Index and basket CDSInvestment grade$799 $1,929 Non-investment grade489 45 Total$1,288 $1,974 Total CDS sold$3,763 $4,277 Other credit contracts133 314 Total credit protection sold$3,896 $4,591 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Protection Purchased with CDS",
      "prior_title": null,
      "current_body": "Notional$ in billionsAtDecember 31,2024 AtDecember 31,2023 Single name$156 $166 Index and basket193 213 Tranched index and basket28 30 Total$377 $409 Fair Value Asset (Liability)$ in millionsAtDecember 31,2024 AtDecember 31,2023 Single name$(2,693)$(2,799)Index and basket(654)(1,208)Tranched index and basket(962)(1,012)Total$(4,309)$(5,019) The Firm enters into credit derivatives, principally CDS, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Firm’s counterparties for these derivatives are banks, broker-dealers, and insurance and other financial institutions. The fair value amounts as shown in the previous tables are prior to cash collateral or counterparty netting. The purchase of credit protection does not represent the sole manner in which the Firm risk manages its exposure to credit derivatives. The Firm manages its exposure to these derivative contracts through a variety of risk mitigation strategies, which include managing the credit and correlation risk across single-name, non-tranched indices and baskets, tranched indices and baskets, and cash positions. Aggregate market risk limits have been established for credit derivatives, and market risk measures are routinely monitored against these limits. The Firm may also recover amounts on the underlying reference obligation delivered to the Firm under CDS where credit protection was sold. Single-Name CDS. A CDS protects the buyer against the loss of principal on a bond or loan in case of a default by the issuer. The protection buyer pays a periodic premium (generally quarterly) over the life of the contract and is protected for the period. The Firm, in turn, performs under a CDS if a credit event as defined under the contract occurs. Typical credit events include bankruptcy, dissolution or insolvency of the referenced entity, failure to pay and restructuring of the obligations of the referenced entity. Index and Basket CDS. Index and basket CDS are products where credit protection is provided on a portfolio of single-name CDS. Generally, in the event of a default on one of the underlying names, the Firm pays a pro rata portion of the total notional amount of the CDS. The Firm also enters into tranched index and basket CDS where credit protection is provided on a particular portion of the portfolio loss distribution. The most junior tranches cover initial defaults, and once losses exceed the notional of the December 2024 Form 10-K108 December 2024 Form 10-K108 December 2024 Form 10-K108 108"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "AFS and HTM Securities",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsAmortizedCost1GrossUnrealizedGainsGrossUnrealizedLossesFairValueAFS securitiesU.S. Treasury securities$70,160 $62 $388 69,834 U.S. agency securities224,113 6 2,652 21,467 Agency CMBS5,704 — 388 5,316 State and municipal securities1,373 18 4 1,387 FFELP student loan ABS3612 1 9 604 Unallocated basis adjustment4(2)2 — — Total AFS securities101,960 89 3,441 98,608 HTM securitiesU.S. Treasury securities16,885 — 1,082 15,803 U.S. agency securities241,582 4 8,592 32,994 Agency CMBS1,154 — 88 1,066 Non-agency CMBS1,450 3 113 1,340 Total HTM securities61,071 7 9,875 51,203 Total investment securities$163,031 $96 $13,316 $149,811 Amortized Cost1 U.S. agency securities2 FFELP student loan ABS3 Unallocated basis adjustment4 U.S. agency securities2 At December 31, 2023$ in millionsAmortizedCost1GrossUnrealizedGainsGrossUnrealizedLossesFairValueAFS securitiesU.S. Treasury securities$58,484 $24 $1,103 $57,405 U.S. agency securities225,852 4 2,528 23,328 Agency CMBS5,871 — 456 5,415 State and municipal securities 1,132 46 5 1,173 FFELP student loan ABS3810 — 18 792 Total AFS securities92,149 74 4,110 88,113 HTM securitiesU.S. Treasury securities23,222 — 1,285 21,937 U.S. agency securities240,894 — 7,699 33,195 Agency CMBS1,337 — 121 1,216 Non-agency CMBS1,241 2 138 1,105 Total HTM securities66,694 2 9,243 57,453 Total investment securities$158,843 $76 $13,353 $145,566 Amortized Cost1 U.S. agency securities2 FFELP student loan ABS3 U.S. agency securities2 1.Amounts are net of any ACL. 2.U.S. agency securities consist mainly of agency mortgage pass-through pool securities, CMOs and agency-issued debt. 3.Underlying loans are backed by a guarantee, ultimately from the U.S. Department of Education, of at least 95% of the principal balance and interest outstanding. 4.Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 and Note 6 for additional information. Investment Securities in an Unrealized Loss Position At December 31,2024At December 31,2023$ in millionsFair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLossesU.S. Treasury securitiesLess than12 months$18,338 $65 $14,295 $22 12 months or longer19,629 323 33,458 1,081 Total37,967 388 47,753 1,103 U.S. agency securitiesLess than12 months765 11 4,297 43 12 months or longer18,996 2,641 18,459 2,485 Total19,761 2,652 22,756 2,528 Agency CMBS12 months or longer5,018 388 5,415 456 Total5,018 388 5,415 456 State and municipal securitiesLess than12 months242 2 524 3 12 months or longer62 2 35 2 Total304 4 559 5 FFELP student loan ABSLess than12 months— — 56 1 12 months or longer442 9 616 17 Total442 9 672 18 Total AFS securities in an unrealized loss positionLess than12 months19,345 78 19,172 69 12 months or longer44,147 3,363 57,983 4,041 Total$63,492 $3,441 $77,155 $4,110 For AFS securities, the Firm believes there are no securities in an unrealized loss position that have credit losses after performing the analysis described in Note 2. Additionally, the Firm does not intend to sell these securities and is not likely to be required to sell these securities prior to recovery of the amortized cost basis. As of December 31, 2024 and December 31, 2023, the securities in an unrealized loss position are predominantly investment grade.The HTM securities net carrying amounts at December 31, 2024 and December 31, 2023 reflect an ACL of $52 million and $44 million, respectively, predominantly related to Non-agency CMBS. See Note 2 for a description of the ACL methodology used for HTM Securities. As of December 31, 2024 and December 31, 2023, 98% of the Firm’s portfolio of HTM securities were investment grade U.S. agency securities, U.S. Treasury securities and Agency CMBS, which were on accrual status and for which there is an underlying assumption of zero credit losses. Non-investment grade HTM securities primarily consisted of certain Non-agency CMBS securities, for which the expected credit losses were insignificant and were predominantly on accrual status at December 31, 2024 and December 31, 2023. See Note 15 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS, and FFELP student loan ABS."
    },
    {
      "status": "ADDED",
      "current_title": "Investment Securities in an Unrealized Loss Position",
      "prior_title": null,
      "current_body": "At December 31,2024At December 31,2023$ in millionsFair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLossesU.S. Treasury securitiesLess than12 months$18,338 $65 $14,295 $22 12 months or longer19,629 323 33,458 1,081 Total37,967 388 47,753 1,103 U.S. agency securitiesLess than12 months765 11 4,297 43 12 months or longer18,996 2,641 18,459 2,485 Total19,761 2,652 22,756 2,528 Agency CMBS12 months or longer5,018 388 5,415 456 Total5,018 388 5,415 456 State and municipal securitiesLess than12 months242 2 524 3 12 months or longer62 2 35 2 Total304 4 559 5 FFELP student loan ABSLess than12 months— — 56 1 12 months or longer442 9 616 17 Total442 9 672 18 Total AFS securities in an unrealized loss positionLess than12 months19,345 78 19,172 69 12 months or longer44,147 3,363 57,983 4,041 Total$63,492 $3,441 $77,155 $4,110 State and municipal securities For AFS securities, the Firm believes there are no securities in an unrealized loss position that have credit losses after performing the analysis described in Note 2. Additionally, the Firm does not intend to sell these securities and is not likely to be required to sell these securities prior to recovery of the amortized cost basis. As of December 31, 2024 and December 31, 2023, the securities in an unrealized loss position are predominantly investment grade. The HTM securities net carrying amounts at December 31, 2024 and December 31, 2023 reflect an ACL of $52 million and $44 million, respectively, predominantly related to Non-agency CMBS. See Note 2 for a description of the ACL methodology used for HTM Securities. As of December 31, 2024 and December 31, 2023, 98% of the Firm’s portfolio of HTM securities were investment grade U.S. agency securities, U.S. Treasury securities and Agency CMBS, which were on accrual status and for which there is an underlying assumption of zero credit losses. Non-investment grade HTM securities primarily consisted of certain Non-agency CMBS securities, for which the expected credit losses were insignificant and were predominantly on accrual status at December 31, 2024 and December 31, 2023. See Note 15 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS, and FFELP student loan ABS. 109December 2024 Form 10-K 109December 2024 Form 10-K 109December 2024 Form 10-K 109"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Investment Securities by Contractual Maturity",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsAmortizedCost1FairValueAnnualized Average Yield2,3AFS securitiesU.S. Treasury securities:Due within 1 year$18,575 $18,393 2.2 %After 1 year through 5 years46,529 46,395 3.7 %After 5 years through 10 years5,056 5,046 4.2 %Total70,160 69,834 U.S. agency securities:Due within 1 year11 11 1.0 %After 1 year through 5 years254 241 1.6 %After 5 years through 10 years414 380 1.8 %After 10 years23,434 20,835 3.4 %Total24,113 21,467 Agency CMBS:After 1 year through 5 years4,054 3,899 2.0 %After 5 years through 10 years547 535 1.6 %After 10 years1,103 882 1.5 %Total5,704 5,316 State and municipal securities:Due within 1 year852 852 4.9 %After 1 year through 5 years215 214 4.7 %After 5 years through 10 years49 48 5.8 %After 10 years257 273 4.6 %Total1,373 1,387 FFELP student loan ABS:Due within 1 year12 11 5.3 %After 1 year through 5 years113 110 5.6 %After 5 years through 10 years24 23 5.4 %After 10 years463 460 5.8 %Total612 604 Unallocated basis adjustment4:(2)— — Total AFS securities101,960 98,608 3.3 % Amortized Cost1 Annualized Average Yield2,3 Unallocated basis adjustment4: At December 31, 2024$ in millionsAmortizedCost1FairValueAnnualized Average Yield2HTM securitiesU.S. Treasury securities:Due within 1 year$4,635 $4,558 1.2 %After 1 year through 5 years10,191 9,777 2.3 %After 5 years through 10 years503 414 1.1 %After 10 years1,556 1,054 2.3 %Total16,885 15,803 U.S. agency securities:After 1 year through 5 years8 8 1.8 %After 5 years through 10 years223 208 2.1 %After 10 years41,351 32,778 2.1 %Total41,582 32,994 Agency CMBS:Due within 1 year294 289 1.5 %After 1 year through 5 years632 591 1.2 %After 5 years through 10 years176 144 1.6 %After 10 years52 42 1.3 %Total1,154 1,066 Non-agency CMBS:Due within 1 year146 124 3.9 %After 1 year through 5 years648 618 4.5 %After 5 years through 10 years455 403 4.0 %After 10 years201 195 7.4 %Total1,450 1,340 Total HTM securities61,071 51,203 2.1 %Total investment securities$163,031 $149,811 2.9 %1.Amounts are net of any ACL.2.Annualized average yield is computed using the effective yield, weighted based on the amortized cost of each security. The effective yield is shown pre-tax and excludes the effect of related hedging derivatives. 3.At December 31, 2024, the annualized average yield, including the interest rate swap accrual of related hedges, was 2.7% for AFS securities contractually maturing within 1 year and 3.8% for all AFS securities.4.Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 and Note 6 for additional information.Gross Realized Gains (Losses) on Sales of AFS Securities$ in millions202420232022Gross realized gains$52 $70 $164 Gross realized (losses)— (21)(94)Total1$52 $49 $70 1.Realized gains and losses are recognized in Other revenues in the income statement.8. Collateralized Transactions The Firm enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers’ needs and to finance its inventory positions. The Firm monitors the fair value of the underlying securities as compared with the related receivable or payable, including accrued interest, and, as necessary, requests additional collateral, as provided under the applicable agreement to ensure such transactions are adequately collateralized, or returns excess collateral. At December 31, 2024$ in millionsAmortizedCost1FairValueAnnualized Average Yield2HTM securitiesU.S. Treasury securities:Due within 1 year$4,635 $4,558 1.2 %After 1 year through 5 years10,191 9,777 2.3 %After 5 years through 10 years503 414 1.1 %After 10 years1,556 1,054 2.3 %Total16,885 15,803 U.S. agency securities:After 1 year through 5 years8 8 1.8 %After 5 years through 10 years223 208 2.1 %After 10 years41,351 32,778 2.1 %Total41,582 32,994 Agency CMBS:Due within 1 year294 289 1.5 %After 1 year through 5 years632 591 1.2 %After 5 years through 10 years176 144 1.6 %After 10 years52 42 1.3 %Total1,154 1,066 Non-agency CMBS:Due within 1 year146 124 3.9 %After 1 year through 5 years648 618 4.5 %After 5 years through 10 years455 403 4.0 %After 10 years201 195 7.4 %Total1,450 1,340 Total HTM securities61,071 51,203 2.1 %Total investment securities$163,031 $149,811 2.9 % Amortized Cost1 Annualized Average Yield2 1.Amounts are net of any ACL. 2.Annualized average yield is computed using the effective yield, weighted based on the amortized cost of each security. The effective yield is shown pre-tax and excludes the effect of related hedging derivatives. 3.At December 31, 2024, the annualized average yield, including the interest rate swap accrual of related hedges, was 2.7% for AFS securities contractually maturing within 1 year and 3.8% for all AFS securities. 4.Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 and Note 6 for additional information."
    },
    {
      "status": "ADDED",
      "current_title": "Gross Realized Gains (Losses) on Sales of AFS Securities",
      "prior_title": null,
      "current_body": "$ in millions202420232022Gross realized gains$52 $70 $164 Gross realized (losses)— (21)(94)Total1$52 $49 $70 Total1 1.Realized gains and losses are recognized in Other revenues in the income statement."
    },
    {
      "status": "ADDED",
      "current_title": "8. Collateralized Transactions",
      "prior_title": null,
      "current_body": "The Firm enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers’ needs and to finance its inventory positions. The Firm monitors the fair value of the underlying securities as compared with the related receivable or payable, including accrued interest, and, as necessary, requests additional collateral, as provided under the applicable agreement to ensure such transactions are adequately collateralized, or returns excess collateral. December 2024 Form 10-K110 December 2024 Form 10-K110 December 2024 Form 10-K110 110"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Offsetting of Certain Collateralized Transactions",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsGrossAmountsAmountsOffsetBalance Sheet Net AmountsAmountsNot Offset1NetAmountsAssetsSecurities purchased under agreements to resell$409,635 $(291,070)$118,565 $(116,157)$2,408 Securities borrowed165,642 (41,783)123,859 (117,573)6,286 LiabilitiesSecurities sold under agreements to repurchase$341,137 $(291,070)$50,067 $(45,520)$4,547 Securities loaned57,009 (41,783)15,226 (15,211)15 Net amounts for which master netting agreements are not in place or may not be legally enforceableSecurities purchased under agreements to resell$2,054 Securities borrowed2,079 Securities sold under agreements to repurchase3,448 Securities loaned— Amounts Not Offset1 At December 31, 2023$ in millionsGrossAmountsAmountsOffsetBalance Sheet Net AmountsAmountsNot Offset1NetAmountsAssetsSecurities purchased under agreements to resell$300,242 $(189,502)$110,740 $(108,893)$1,847 Securities borrowed142,453 (21,362)121,091 (115,969)5,122 LiabilitiesSecurities sold under agreements to repurchase$252,153 $(189,502)$62,651 $(58,357)$4,294 Securities loaned36,419 (21,362)15,057 (15,046)11 Net amounts for which master netting agreements are not in place or may not be legally enforceableSecurities purchased under agreements to resell$1,741 Securities borrowed607 Securities sold under agreements to repurchase3,014 Securities loaned2 Amounts Not Offset1 1.Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. For information related to offsetting of derivatives, see Note 6.Gross Secured Financing Balances by Remaining Contractual Maturity At December 31, 2024$ in millionsOvernight and OpenLess than 30 Days30-90 DaysOver 90 DaysTotalSecurities sold under agreements to repurchase$180,793 $104,551 $25,071 $30,722 $341,137 Securities loaned42,473 — 317 14,219 57,009 Total included in the offsetting disclosure$223,266 $104,551 $25,388 $44,941 $398,146 Trading liabilities—Obligation to return securities received as collateral18,067 — — — 18,067 Total$241,333 $104,551 $25,388 $44,941 $416,213 At December 31, 2023$ in millionsOvernight and OpenLess than 30 Days30-90 DaysOver 90 DaysTotalSecurities sold under agreements to repurchase$80,376 $114,826 $25,510 $31,441 $252,153 Securities loaned21,508 1,345 709 12,857 36,419 Total included in the offsetting disclosure$101,884 $116,171 $26,219 $44,298 $288,572 Trading liabilities—Obligation to return securities received as collateral13,528 — — — 13,528 Total$115,412 $116,171 $26,219 $44,298 $302,100 Gross Secured Financing Balances by Class of Collateral Pledged$ in millionsAtDecember 31, 2024AtDecember 31, 2023Securities sold under agreements to repurchaseU.S. Treasury and agency securities$177,464 $98,377 Other sovereign government obligations135,806 122,342 Corporate equities14,993 18,144 Other12,874 13,290 Total$341,137 $252,153 Securities loanedOther sovereign government obligations$1,805 $1,379 Corporate equities54,144 34,434 Other1,060 606 Total$57,009 $36,419 Total included in the offsetting disclosure$398,146 $288,572 Trading liabilities—Obligation to return securities received as collateralCorporate equities$18,059 $13,502 Other8 26 Total$18,067 $13,528 Total$416,213 $302,100 Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge$ in millionsAtDecember 31, 2024AtDecember 31, 2023Trading assets$30,867 $37,522 The Firm pledges certain of its trading assets to collateralize securities sold under agreements to repurchase, securities For information related to offsetting of derivatives, see Note 6."
    },
    {
      "status": "ADDED",
      "current_title": "Gross Secured Financing Balances by Remaining Contractual Maturity",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsOvernight and OpenLess than 30 Days30-90 DaysOver 90 DaysTotalSecurities sold under agreements to repurchase$180,793 $104,551 $25,071 $30,722 $341,137 Securities loaned42,473 — 317 14,219 57,009 Total included in the offsetting disclosure$223,266 $104,551 $25,388 $44,941 $398,146 Trading liabilities—Obligation to return securities received as collateral18,067 — — — 18,067 Total$241,333 $104,551 $25,388 $44,941 $416,213 At December 31, 2023$ in millionsOvernight and OpenLess than 30 Days30-90 DaysOver 90 DaysTotalSecurities sold under agreements to repurchase$80,376 $114,826 $25,510 $31,441 $252,153 Securities loaned21,508 1,345 709 12,857 36,419 Total included in the offsetting disclosure$101,884 $116,171 $26,219 $44,298 $288,572 Trading liabilities—Obligation to return securities received as collateral13,528 — — — 13,528 Total$115,412 $116,171 $26,219 $44,298 $302,100"
    },
    {
      "status": "ADDED",
      "current_title": "Gross Secured Financing Balances by Class of Collateral Pledged",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Securities sold under agreements to repurchaseU.S. Treasury and agency securities$177,464 $98,377 Other sovereign government obligations135,806 122,342 Corporate equities14,993 18,144 Other12,874 13,290 Total$341,137 $252,153 Securities loanedOther sovereign government obligations$1,805 $1,379 Corporate equities54,144 34,434 Other1,060 606 Total$57,009 $36,419 Total included in the offsetting disclosure$398,146 $288,572 Trading liabilities—Obligation to return securities received as collateralCorporate equities$18,059 $13,502 Other8 26 Total$18,067 $13,528 Total$416,213 $302,100 At"
    },
    {
      "status": "ADDED",
      "current_title": "Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge",
      "prior_title": null,
      "current_body": "Pledged Pledged $ in millionsAtDecember 31, 2024AtDecember 31, 2023Trading assets$30,867 $37,522 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value of Collateral Received with Right to Sell or Repledge",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Collateral received with right to sell or repledge$932,626 $735,830 Collateral that was sold or repledged1724,177 553,386 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Securities Segregated for Regulatory Purposes",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Segregated securities1$26,329 $20,670 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Concentration Based on the Firm’s Total Assets",
      "prior_title": null,
      "current_body": "AtDecember 31, 2024AtDecember 31, 2023U.S. government and agency securities and other sovereign government obligationsTrading assets111 %12 %Off balance sheet—Collateral received212 %11 % At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Customer Margin and Other Lending",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Margin and other lending$55,882 $45,644 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Other Secured Financings",
      "prior_title": null,
      "current_body": "Valuation Techniques: •Other secured financings are composed of short-dated notes secured by Corporate equities, agreements to repurchase Physical commodities, the liabilities related to sales of Loans and lending commitments accounted for as financings, and secured contracts that are not classified as OTC derivatives because they fail net investment criteria. For further information on the determination of fair value, refer to the Valuation Techniques described herein for the corresponding instruments, which are the collateral referenced by the other secured financing liability. Valuation Hierarchy Classification: •For further information on the determination of valuation hierarchy classification, see the Valuation Hierarchy Classification described herein for the corresponding instruments, which are the collateral referenced by the other secured financing liability. Borrowings Valuation Techniques: •The Firm carries certain borrowings at fair value that are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. •Fair value is determined using valuation models for the derivative and debt portions of the instruments. These models incorporate observable inputs referencing identical or comparable securities, including prices to which the instruments are linked, interest rate yield curves, option volatility and currency rates, and commodity or equity prices. •Independent, external and traded prices are considered, as well as the impact of the Firm’s own credit spreads, which are based on observed secondary bond market spreads. December 2024 Form 10-K98 December 2024 Form 10-K98 December 2024 Form 10-K98 98"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "9. Loans, Lending Commitments and Related Allowance for Credit Losses",
      "prior_title": null,
      "current_body": "The Firm’s held-for-investment and held-for-sale loan portfolios consist of the following types of loans: •Corporate. Corporate includes revolving lines of credit, term loans and bridge loans made to corporate entities for a variety of purposes. •Secured Lending Facilities. Secured lending facilities include loans provided to clients, which are collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other assets. •Commercial Real Estate. Commercial real estate loans include owner-occupied loans and income-producing loans. •Residential Real Estate. Residential real estate loans mainly include non-conforming loans and HELOC. •Securities-based Lending and Other. Securities-based lending includes loans that allow clients to borrow money against the value of qualifying securities, generally for any suitable purpose other than purchasing, trading, or carrying securities or refinancing margin debt. The majority of these loans are structured as revolving lines of credit. Other primarily includes certain loans originated in the tailored lending business within the Wealth Management business segment."
    },
    {
      "status": "ADDED",
      "current_title": "Loans by Type",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsHFI LoansHFS LoansTotal LoansCorporate$6,889 $9,183 $16,072 Secured lending facilities48,842 2,507 51,349 Commercial real estate8,412 628 9,040 Residential real estate66,738 — 66,738 Securities-based lending and Other96,019 1 96,020 Total loans226,900 12,319 239,219 ACL(1,066)(1,066)Total loans, net$225,834 $12,319 $238,153 Loans to non-U.S. borrowers, net$23,335 $4,763 $28,098 Securities-based lending and Other At December 31, 2023$ in millionsHFI LoansHFS LoansTotal LoansCorporate$6,758 $11,862 $18,620 Secured lending facilities39,498 3,161 42,659 Commercial real estate8,678 209 8,887 Residential real estate60,375 22 60,397 Securities-based lending and Other 89,245 1 89,246 Total loans204,554 15,255 219,809 ACL(1,169)(1,169)Total loans, net$203,385 $15,255 $218,640 Loans to non-U.S. borrowers, net$21,152 $5,043 $26,195 Securities-based lending and Other Loans by Interest Rate Type At December 31, 2024At December 31, 2023$ in millionsFixed RateFloating or Adjustable RateFixed RateFloating or Adjustable RateCorporate$— $16,071 $— $18,620 Secured lending facilities— 51,349 — 42,659 Commercial real estate— 9,041 141 8,746 Residential real estate31,014 35,724 28,934 31,464 Securities-based lending and Other 25,478 70,542 23,922 65,323 Total loans, before ACL$56,492 $182,727 $52,997 $166,812 See Note 4 for further information regarding Loans and lending commitments held at fair value. See Note 14 for details of current commitments to lend in the future.Credit QualityThe CRM evaluates new obligors before credit transactions are initially approved and at least annually thereafter for corporate and commercial real estate loans. For Corporate, Secured lending facilities and Other loans, credit evaluations typically involve the evaluation of financial statements, assessment of leverage, liquidity, capital strength, asset composition and quality, market capitalization and access to capital markets, cash flow projections and debt service requirements, and the adequacy of collateral, if applicable. The CRM also evaluates strategy, market position, industry dynamics, obligor’s management and other factors that could affect an obligor’s risk profile. For Commercial real estate loans, the credit evaluation is focused on property and transaction metrics, including property type, LTV ratio, occupancy levels, debt service ratio, prevailing capitalization rates and market dynamics.For Residential real estate and Securities-based loans, the initial credit evaluation typically includes, but is not limited to, review of the obligor’s income, net worth, liquidity, collateral, LTV ratio and credit bureau information. Subsequent credit monitoring for residential real estate loans is performed at the portfolio level. Securities-based loan collateral values are monitored on an ongoing basis.For information related to credit quality indicators considered in developing the ACL, see Note 2."
    },
    {
      "status": "ADDED",
      "current_title": "Loans by Interest Rate Type",
      "prior_title": null,
      "current_body": "At December 31, 2024At December 31, 2023$ in millionsFixed RateFloating or Adjustable RateFixed RateFloating or Adjustable RateCorporate$— $16,071 $— $18,620 Secured lending facilities— 51,349 — 42,659 Commercial real estate— 9,041 141 8,746 Residential real estate31,014 35,724 28,934 31,464 Securities-based lending and Other 25,478 70,542 23,922 65,323 Total loans, before ACL$56,492 $182,727 $52,997 $166,812 Securities-based lending and Other See Note 4 for further information regarding Loans and lending commitments held at fair value. See Note 14 for details of current commitments to lend in the future."
    },
    {
      "status": "ADDED",
      "current_title": "Credit Quality",
      "prior_title": null,
      "current_body": "The CRM evaluates new obligors before credit transactions are initially approved and at least annually thereafter for corporate and commercial real estate loans. For Corporate, Secured lending facilities and Other loans, credit evaluations typically involve the evaluation of financial statements, assessment of leverage, liquidity, capital strength, asset composition and quality, market capitalization and access to capital markets, cash flow projections and debt service requirements, and the adequacy of collateral, if applicable. The CRM also evaluates strategy, market position, industry dynamics, obligor’s management and other factors that could affect an obligor’s risk profile. For Commercial real estate loans, the credit evaluation is focused on property and transaction metrics, including property type, LTV ratio, occupancy levels, debt service ratio, prevailing capitalization rates and market dynamics. For Residential real estate and Securities-based loans, the initial credit evaluation typically includes, but is not limited to, review of the obligor’s income, net worth, liquidity, collateral, LTV ratio and credit bureau information. Subsequent credit monitoring for residential real estate loans is performed at the portfolio level. Securities-based loan collateral values are monitored on an ongoing basis. For information related to credit quality indicators considered in developing the ACL, see Note 2. 113December 2024 Form 10-K 113December 2024 Form 10-K 113December 2024 Form 10-K 113"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Loans Held for Investment before Allowance by Credit Quality and Origination Year",
      "prior_title": null,
      "current_body": "At December 31, 2024At December 31, 2023Corporate$ in millionsIGNIGTotalIGNIGTotalRevolving$2,668 $3,963 $6,631 $2,350 $3,863 $6,213 202476 58 134 2023— 50 50 — 88 88 2022— 25 25 — 166 166 202115 — 15 15 89 104 202031 3 34 29 25 54 Prior— — — — 133 133 Total$2,790 $4,099 $6,889 $2,394 $4,364 $6,758 Revolving Prior Total At December 31, 2024At December 31, 2023Secured Lending Facilities$ in millionsIGNIGTotalIGNIGTotalRevolving$11,405 $27,753 $39,158 $9,494 $22,240 $31,734 2024818 2,863 3,681 20231,371 1,359 2,730 1,535 1,459 2,994 2022279 1,909 2,188 392 2,390 2,782 2021— 198 198 — 365 365 2020— — — — 80 80 Prior100 787 887 356 1,187 1,543 Total$13,973 $34,869 $48,842 $11,777 $27,721 $39,498 Revolving Prior Total At December 31, 2024At December 31, 2023Commercial Real Estate$ in millionsIGNIGTotalIGNIGTotalRevolving$— $161 $161 $— $170 $170 2024147 2,202 2,349 2023351 772 1,123 261 1,067 1,328 2022305 1,488 1,793 284 1,900 2,184 2021166 1,603 1,769 370 1,494 1,864 2020— 430 430 — 756 756 Prior— 787 787 195 2,181 2,376 Total$969 $7,443 $8,412 $1,110 $7,568 $8,678 Prior Total"
    },
    {
      "status": "ADDED",
      "current_title": "At December 31, 2024Residential Real Estateby FICO Scoresby LTV RatioTotal$ in millions≥ 740680-739≤ 679≤ 80%> 80%Revolving$136 $39 $5 $180 $— $180 20248,653 1,607 191 9,458 993 10,451 20236,778 1,431 201 7,529 881 8,410 202210,294 2,298 370 11,941 1,021 12,962 202110,510 2,247 228 12,094 891 12,985 20206,494 1,346 97 7,529 408 7,937 Prior10,594 2,825 394 12,826 987 13,813 Total$53,459 $11,793 $1,486 $61,557 $5,181 $66,738",
      "prior_title": null,
      "current_body": "At December 31, 2023Residential Real Estateby FICO Scoresby LTV RatioTotal$ in millions≥ 740680-739≤ 679≤ 80%> 80%Revolving$108 $33 $8 $149 $— $149 20237,390 1,517 230 8,168 969 9,137 202210,927 2,424 389 12,650 1,090 13,740 202111,075 2,376 239 12,763 927 13,690 20206,916 1,430 104 8,017 433 8,450 Prior11,642 3,131 436 14,106 1,103 15,209 Total$48,058 $10,911 $1,406 $55,853 $4,522 $60,375 At December 31, 2024Securities-based lending1Other2$ in millionsIGNIGTotalRevolving$76,432 $6,342 $1,551 $84,325 20241,291 719 453 2,463 2023949 424 685 2,058 2022449 472 1,053 1,974 2021100 14 538 652 202039 219 497 755 Prior231 1,211 2,350 3,792 Total$79,491 $9,401 $7,127 $96,019 At December 31, 2023Securities-based lending1Other2$ in millionsIGNIGTotalRevolving$71,474 $5,230 $1,362 $78,066 20231,612 627 346 2,585 20221,128 816 804 2,748 2021165 330 377 872 2020— 435 414 849 Prior215 2,096 1,814 4,125 Total$74,594 $9,534 $5,117 $89,245 IG—Investment GradeNIG—Non-investment Grade1.Securities-based loans are subject to collateral maintenance provisions, and at December 31, 2024 and December 31, 2023, these loans are predominantly over-collateralized. For more information on the ACL methodology related to securities-based loans, see Note 2.2. Other loans primarily include tailored lending. For a further discussion of Other loans, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein.Past Due Loans Held for Investment before Allowance1$ in millionsAt December 31, 2024At December 31, 2023Corporate$— $47 Commercial real estate272 185 Residential real estate186 160 Securities-based lending and Other 86 1 Total$544 $393 1.As of December 31, 2024, the majority of the amounts are 90 days or more past due. As of December 31, 2023, the majority of the amounts are past due for a period of less than 90 days.Nonaccrual Loans Held for Investment before Allowance1$ in millionsAt December 31, 2024At December 31, 2023Corporate$108 $95 Secured lending facilities6 87 Commercial real estate447 426 Residential real estate160 95 Securities-based lending and Other 298 174 Total$1,019 $877 Nonaccrual loans without an ACL$162 $86 1.There were no loans held for investment that were 90 days or more past due and still accruing as of December 31, 2024 and December 31, 2023. For further information on the Firm’s nonaccrual policy, see Note 2 to the financial statements.Loan Modifications to Borrowers Experiencing Financial DifficultyThe Firm may modify the terms of certain loans for economic or legal reasons related to a borrower’s financial difficulties, and these modifications include interest rate reductions, principal forgiveness, term extensions and other-than-"
    },
    {
      "status": "ADDED",
      "current_title": "At December 31, 2024Securities-based lending1Other2$ in millionsIGNIGTotalRevolving$76,432 $6,342 $1,551 $84,325 20241,291 719 453 2,463 2023949 424 685 2,058 2022449 472 1,053 1,974 2021100 14 538 652 202039 219 497 755 Prior231 1,211 2,350 3,792 Total$79,491 $9,401 $7,127 $96,019",
      "prior_title": null,
      "current_body": "Securities-based lending1 Other2 Revolving At December 31, 2023Securities-based lending1Other2$ in millionsIGNIGTotalRevolving$71,474 $5,230 $1,362 $78,066 20231,612 627 346 2,585 20221,128 816 804 2,748 2021165 330 377 872 2020— 435 414 849 Prior215 2,096 1,814 4,125 Total$74,594 $9,534 $5,117 $89,245 Securities-based lending1 Other2 IG—Investment Grade NIG—Non-investment Grade 1.Securities-based loans are subject to collateral maintenance provisions, and at December 31, 2024 and December 31, 2023, these loans are predominantly over-collateralized. For more information on the ACL methodology related to securities-based loans, see Note 2. 2. Other loans primarily include tailored lending. For a further discussion of Other loans, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein."
    },
    {
      "status": "ADDED",
      "current_title": "Past Due Loans Held for Investment before Allowance1",
      "prior_title": null,
      "current_body": "$ in millionsAt December 31, 2024At December 31, 2023Corporate$— $47 Commercial real estate272 185 Residential real estate186 160 Securities-based lending and Other 86 1 Total$544 $393 Securities-based lending and Other 1.As of December 31, 2024, the majority of the amounts are 90 days or more past due. As of December 31, 2023, the majority of the amounts are past due for a period of less than 90 days."
    },
    {
      "status": "ADDED",
      "current_title": "Nonaccrual Loans Held for Investment before Allowance1",
      "prior_title": null,
      "current_body": "$ in millionsAt December 31, 2024At December 31, 2023Corporate$108 $95 Secured lending facilities6 87 Commercial real estate447 426 Residential real estate160 95 Securities-based lending and Other 298 174 Total$1,019 $877 Nonaccrual loans without an ACL$162 $86 Securities-based lending and Other Total 1.There were no loans held for investment that were 90 days or more past due and still accruing as of December 31, 2024 and December 31, 2023. For further information on the Firm’s nonaccrual policy, see Note 2 to the financial statements."
    },
    {
      "status": "ADDED",
      "current_title": "Loan Modifications to Borrowers Experiencing Financial Difficulty",
      "prior_title": null,
      "current_body": "The Firm may modify the terms of certain loans for economic or legal reasons related to a borrower’s financial difficulties, and these modifications include interest rate reductions, principal forgiveness, term extensions and other-than- December 2024 Form 10-K114 December 2024 Form 10-K114 December 2024 Form 10-K114 114"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Period-end loans held for investment modified during the following periods1",
      "prior_title": null,
      "current_body": "Year Ended December 31,20242023$ in millionsAmortized Cost% of Total Loans2Amortized Cost% of Total Loans2Term ExtensionCorporate$211 3.1 %$183 2.7 %Secured lending facilities41 0.1 %— — %Commercial real estate172 2.0 %199 2.3 %Residential real estate— — %1 0.1 %Securities-based lending and Other 138 0.1 %145 0.2 %Total$562 0.4 %$528 0.3 %Other-than-insignificant Payment DelaySecurities-based lending and Other$— — %$71 0.1 %Total$— — %$71 0.1 %Interest Rate ReductionResidential real estate$2 — %$— — %Total$2 — %$— — %Multiple Modifications - Term Extension and Interest Rate ReductionCommercial real estate$81 1.0 %$— — %Residential real estate1 — %1 — %Total $82 0.1 %$1 — %Multiple Modifications - Term Extension and Other-than-insignificant Payment DelayCommercial real estate$— — %$24 0.3 %Total$— — %$24 0.3 %Total Modifications$646 0.3 %$624 0.4 % % of Total Loans2 % of Total Loans2"
    },
    {
      "status": "ADDED",
      "current_title": "Multiple Modifications - Term Extension and Other-than-insignificant Payment Delay",
      "prior_title": null,
      "current_body": "1.Lending commitments to borrowers for which the Firm has modified terms of the receivable, during the year ended December 31, 2024 and 2023, were $746 million and $1,062 million, as of December 31, 2024 and December 31, 2023, respectively. 2.Percentage of total loans represents the percentage of modified loans to total loans held for investment by loan type. Financial Impact of Modifications on Loans Held for InvestmentYear Ended December 31, 2024Term Extension(Months)Other-than-insignificant Payment Delay(Months)Principal Forgiveness($ millions)Interest Rate Reduction(%)Single ModificationsCorporate150$— — %Secured lending facilities20— — %Commercial real estate110— — %Residential real estate00— 1 %Securities-based lending and Other210— — %Multiple Modifications - Term Extension and Interest Rate ReductionCommercial real estate610— 2 %Residential real estate840— 1 %Year Ended December 31, 20231Term Extension(Months)Other-than-insignificant Payment Delay(Months)Principal Forgiveness($ millions)Interest Rate Reduction(%)Single ModificationsCorporate220$— — %Commercial real estate500— — %Residential real estate40— — %Securities-based lending and Other76— — %Multiple Modifications - Term Extension and Other-than-insignificant Payment DelayCommercial real estate76$— — %Multiple Modifications - Term Extension and Interest Rate ReductionResidential real estate1200$— 1 %1.In instances where more than one loan was modified, modification impact is presented on a weighted-average basis.Past Due Loans Held for Investment Modified in the Last 12 months At December 31, 2024$ in millions30-89 Days Past Due90+ Days Past DueTotalCommercial real estate$— 56 56 At December 31, 2023$ in millions30-89 Days Past Due90+ days Past DueTotalCommercial real estate$24 $21 $45 Residential real estate— 1 1 Total$24 $22 $46 At December 31, 2024, there were two commercial real estate loans held for investment with a total amortized cost of $56 million that defaulted during the year ended December 31, 2024 and had been modified in the 12 month period prior to default. There were no loans held for investment that defaulted during the year ended December 31, 2023 that had been modified in the 12 month period prior."
    },
    {
      "status": "ADDED",
      "current_title": "Multiple Modifications - Term Extension and Interest Rate Reduction",
      "prior_title": null,
      "current_body": "Year Ended December 31, 20231Term Extension(Months)Other-than-insignificant Payment Delay(Months)Principal Forgiveness($ millions)Interest Rate Reduction(%)Single ModificationsCorporate220$— — %Commercial real estate500— — %Residential real estate40— — %Securities-based lending and Other76— — %Multiple Modifications - Term Extension and Other-than-insignificant Payment DelayCommercial real estate76$— — %Multiple Modifications - Term Extension and Interest Rate ReductionResidential real estate1200$— 1 % Year Ended December 31, 20231"
    },
    {
      "status": "ADDED",
      "current_title": "Single Modifications",
      "prior_title": null,
      "current_body": "1.In instances where more than one loan was modified, modification impact is presented on a weighted-average basis. Past Due Loans Held for Investment Modified in the Last 12 months At December 31, 2024$ in millions30-89 Days Past Due90+ Days Past DueTotalCommercial real estate$— 56 56 90+ Days Past Due At December 31, 2023$ in millions30-89 Days Past Due90+ days Past DueTotalCommercial real estate$24 $21 $45 Residential real estate— 1 1 Total$24 $22 $46 At December 31, 2024, there were two commercial real estate loans held for investment with a total amortized cost of $56 million that defaulted during the year ended December 31, 2024 and had been modified in the 12 month period prior to default. There were no loans held for investment that defaulted during the year ended December 31, 2023 that had been modified in the 12 month period prior. 115December 2024 Form 10-K 115December 2024 Form 10-K 115December 2024 Form 10-K 115"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Allowance for Credit Losses Rollforward and Allocation—Loans and Lending Commitments",
      "prior_title": null,
      "current_body": "Year Ended December 31, 2024$ in millionsCorporate Secured Lending FacilitiesCREResidential Real EstateSBL and OtherTotalACL—LoansBeginning balance$241 $153 $463 $100 $212 $1,169 Gross charge-offs(39)(11)(165)— (27)(242)Recoveries— — 4 — 3 7 Net (charge-offs)/recoveries(39)(11)(161)— (24)(235)Provision (release)2 1 77 (3)69 146 Other(4)(3)(6)— (1)(14)Ending balance$200 $140 $373 $97 $256 $1,066 Percent of loans to total loans13 %22 %4 %29 %42 %100 %ACL—Lending commitmentsBeginning balance$431 $70 $26 $4 $20 $551 Provision (release)86 19 16 — (3)118 Other(10)(1)(2)— — (13)Ending balance$507 $88 $40 $4 $17 $656 Total ending balance$707 $228 $413 $101 $273 $1,722"
    },
    {
      "status": "ADDED",
      "current_title": "Year Ended December 31, 2024",
      "prior_title": null,
      "current_body": "CRE SBL and Other Beginning balance Gross charge-offs Recoveries Net (charge-offs)/recoveries Provision (release)"
    },
    {
      "status": "ADDED",
      "current_title": "Total ending balance",
      "prior_title": null,
      "current_body": "Year Ended December 31, 2023$ in millionsCorporate Secured Lending FacilitiesCREResidential Real EstateSBL and OtherTotalACL—LoansBeginning balance$235 $153 $275 $87 $89 $839 Gross charge-offs(34)— (129)— (4)(167)Recoveries1 — — 1 — 2 Net (charge-offs)/recoveries(33)— (129)1 (4)(165)Provision (release)37 — 314 13 124 488 Other2 — 3 (1)3 7 Ending balance$241 $153 $463 $100 $212 $1,169 Percent of loans to total loans13 %19 %4 %30 %44 %100 %ACL—Lending commitmentsBeginning balance$411 $51 $15 $4 $23 $504 Provision (release)16 18 11 — (1)44 Other4 1 — — (2)3 Ending balance$431 $70 $26 $4 $20 $551 Total ending balance$672 $223 $489 $104 $232 $1,720 CRE Residential Real Estate SBL and Other Beginning balance Net (charge-offs)/recoveries Percent of loans to total loans1"
    },
    {
      "status": "ADDED",
      "current_title": "Total ending balance",
      "prior_title": null,
      "current_body": "Year Ended December 31, 2023$ in millionsCorporate Secured Lending FacilitiesCREResidential Real EstateSBL and OtherTotalACL—LoansBeginning balance$235 $153 $275 $87 $89 $839 Gross charge-offs(34)— (129)— (4)(167)Recoveries1 — — 1 — 2 Net (charge-offs)/recoveries(33)— (129)1 (4)(165)Provision (release)37 — 314 13 124 488 Other2 — 3 (1)3 7 Ending balance$241 $153 $463 $100 $212 $1,169 Percent of loans to total loans13 %19 %4 %30 %44 %100 %ACL—Lending commitmentsBeginning balance$411 $51 $15 $4 $23 $504 Provision (release)16 18 11 — (1)44 Other4 1 — — (2)3 Ending balance$431 $70 $26 $4 $20 $551 Total ending balance$672 $223 $489 $104 $232 $1,720 CRE Residential Real Estate SBL and Other Beginning balance Net (charge-offs)/recoveries Percent of loans to total loans1"
    },
    {
      "status": "ADDED",
      "current_title": "Year Ended December 31, 2022",
      "prior_title": null,
      "current_body": "CRE Residential Real Estate SBL and Other Beginning balance Net (charge-offs)/recoveries Percent of loans to total loans1"
    },
    {
      "status": "ADDED",
      "current_title": "Total ending balance",
      "prior_title": null,
      "current_body": "Year Ended December 31, 2023$ in millionsCorporate Secured Lending FacilitiesCREResidential Real EstateSBL and OtherTotalACL—LoansBeginning balance$235 $153 $275 $87 $89 $839 Gross charge-offs(34)— (129)— (4)(167)Recoveries1 — — 1 — 2 Net (charge-offs)/recoveries(33)— (129)1 (4)(165)Provision (release)37 — 314 13 124 488 Other2 — 3 (1)3 7 Ending balance$241 $153 $463 $100 $212 $1,169 Percent of loans to total loans13 %19 %4 %30 %44 %100 %ACL—Lending commitmentsBeginning balance$411 $51 $15 $4 $23 $504 Provision (release)16 18 11 — (1)44 Other4 1 — — (2)3 Ending balance$431 $70 $26 $4 $20 $551 Total ending balance$672 $223 $489 $104 $232 $1,720 CRE Residential Real Estate SBL and Other Beginning balance Net (charge-offs)/recoveries Percent of loans to total loans1"
    },
    {
      "status": "ADDED",
      "current_title": "Gross Charge-offs by Origination Year",
      "prior_title": null,
      "current_body": "Year Ended December 31, 2024$ in millionsCorporateSecured Lending FacilitiesCREResidential Real EstateSBL and OtherTotalRevolving$(39)$— $— $— $— $(39)2022— — (18)— — (18)2021— — (14)— (2)(16)2020— (11)— — — (11)Prior— — (133)— (25)(158)Total$(39)$(11)$(165)$— $(27)$(242) Revolving 2022 2021 2020 Prior Total December 2024 Form 10-K116 December 2024 Form 10-K116 December 2024 Form 10-K116 116"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Selected Credit Ratios",
      "prior_title": null,
      "current_body": "Selected Credit Ratios AtDecember 31,2024 AtDecember 31,2023 ACL for loans to total HFI loans0.5 %0.6 %Nonaccrual HFI loans to total HFI loans0.4 %0.4 %ACL for loans to nonaccrual HFI loans 104.6 %133.3 % Nonaccrual HFI loans to total HFI loans ACL for loans to nonaccrual HFI loans"
    },
    {
      "status": "ADDED",
      "current_title": "Employee Loans",
      "prior_title": null,
      "current_body": "For information on employee loans and related ACL, see Note 9 to the financial statements. December 2024 Form 10-K68 December 2024 Form 10-K68 December 2024 Form 10-K68 68 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents DerivativesFair Value of OTC Derivative AssetsAt December 31, 2024 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$1,711 $17,625 $50,643 $22,643 $9,793 $102,415 1-3 years541 6,249 19,068 10,248 6,095 42,201 3-5 years973 7,308 9,821 5,631 3,750 27,483 Over 5 years3,330 25,406 49,469 28,206 6,398 112,809 Total, gross$6,555 $56,588 $129,001 $66,728 $26,036 $284,908 Counterparty netting(3,320)(44,604)(98,598)(47,132)(14,691)(208,345)Cash and securities collateral(2,559)(10,632)(25,568)(13,729)(5,558)(58,046)Total, net$676 $1,352 $4,835 $5,867 $5,787 $18,517 At December 31, 2023 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$2,013 $16,885 $37,517 $25,529 $10,084 $92,028 1-3 years1,013 7,274 18,451 12,757 7,360 46,855 3-5 years504 8,897 8,814 5,989 3,825 28,029 Over 5 years3,955 29,511 50,512 28,003 6,597 118,578 Total, gross$7,485 $62,567 $115,294 $72,278 $27,866 $285,490 Counterparty netting(3,691)(48,821)(86,826)(53,178)(15,888)(208,404)Cash and securities collateral(2,709)(10,704)(25,921)(13,025)(5,554)(57,913)Total, net$1,085 $3,042 $2,547 $6,075 $6,424 $19,173 $ in millionsAtDecember 31,2024AtDecember 31,2023IndustryFinancials$5,678 $7,215 Utilities3,733 4,267 Industrials1,315 937 Consumer discretionary1,046 684 Energy987 533 Communications services914 841 Regional governments799 1,319 Consumer staples734 515 Sovereign governments683 262 Information technology634 677 Materials409 383 Healthcare353 468 Insurance207 156 Not-for-profit organizations94 166 Real estate91 167 Other840 583 Total$18,517 $19,173 1.Counterparty credit ratings are determined internally by the CRM.We are exposed to credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the possibility that a counterparty may fail to perform according to the terms of the contract. For a description of our risk mitigation strategies, see “Credit Risk—Risk Mitigation” herein.Credit DerivativesA credit derivative is a contract between a seller and buyer of protection against the risk of a credit event occurring on one or more debt obligations issued by a specified reference entity. The buyer typically pays a periodic premium over the life of the contract and is protected for the period. If a credit event occurs, the seller is required to make payment to the beneficiary based on the terms of the credit derivative contract. Credit events, as defined in the contract, may be one or more of the following defined events: bankruptcy, dissolution or insolvency of the referenced entity, failure to pay, obligation acceleration, repudiation, payment moratorium and restructuring.We trade in a variety of credit derivatives and may either purchase or write protection on a single name or portfolio of referenced entities. In transactions referencing a portfolio of entities or securities, protection may be limited to a tranche of exposure or a single name within the portfolio. We are an active market maker in the credit derivatives markets. As a market maker, we work to earn a bid-offer spread on client flow business and manage any residual credit or correlation risk on a portfolio basis. Further, we use credit derivatives to manage our exposure to residential and commercial mortgage loans and corporate lending exposures. The effectiveness of our CDS protection as a hedge of our exposures may vary depending upon a number of factors, including the contractual terms of the CDS.We actively monitor our counterparty credit risk related to credit derivatives. A majority of our counterparties are composed of banks, broker-dealers, insurance and other financial institutions. Contracts with these counterparties may include provisions related to counterparty rating downgrades, which may result in the counterparty posting additional collateral to us. As with all derivative contracts, we consider counterparty credit risk in the valuation of our positions and recognize CVAs as appropriate within Trading revenues in the income statement.For additional credit exposure information on our credit derivative portfolio, see Note 6 to the financial statements. DerivativesFair Value of OTC Derivative AssetsAt December 31, 2024 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$1,711 $17,625 $50,643 $22,643 $9,793 $102,415 1-3 years541 6,249 19,068 10,248 6,095 42,201 3-5 years973 7,308 9,821 5,631 3,750 27,483 Over 5 years3,330 25,406 49,469 28,206 6,398 112,809 Total, gross$6,555 $56,588 $129,001 $66,728 $26,036 $284,908 Counterparty netting(3,320)(44,604)(98,598)(47,132)(14,691)(208,345)Cash and securities collateral(2,559)(10,632)(25,568)(13,729)(5,558)(58,046)Total, net$676 $1,352 $4,835 $5,867 $5,787 $18,517 At December 31, 2023 Counterparty Credit Rating1 $ in millionsAAAAAABBBNIGTotalLess than 1 year$2,013 $16,885 $37,517 $25,529 $10,084 $92,028 1-3 years1,013 7,274 18,451 12,757 7,360 46,855 3-5 years504 8,897 8,814 5,989 3,825 28,029 Over 5 years3,955 29,511 50,512 28,003 6,597 118,578 Total, gross$7,485 $62,567 $115,294 $72,278 $27,866 $285,490 Counterparty netting(3,691)(48,821)(86,826)(53,178)(15,888)(208,404)Cash and securities collateral(2,709)(10,704)(25,921)(13,025)(5,554)(57,913)Total, net$1,085 $3,042 $2,547 $6,075 $6,424 $19,173 $ in millionsAtDecember 31,2024AtDecember 31,2023IndustryFinancials$5,678 $7,215 Utilities3,733 4,267 Industrials1,315 937 Consumer discretionary1,046 684 Energy987 533 Communications services914 841 Regional governments799 1,319 Consumer staples734 515 Sovereign governments683 262 Information technology634 677 Materials409 383 Healthcare353 468 Insurance207 156 Not-for-profit organizations94 166 Real estate91 167 Other840 583 Total$18,517 $19,173 1.Counterparty credit ratings are determined internally by the CRM.We are exposed to credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the possibility that a counterparty may fail to perform according to the terms of the contract. For a description of our risk mitigation strategies, see “Credit Risk—Risk Mitigation” herein.Credit DerivativesA credit derivative is a contract between a seller and buyer of protection against the risk of a credit event occurring on one"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Goodwill Rollforward",
      "prior_title": null,
      "current_body": "$ in millionsISWMIMTotalAt December 31, 2022¹$429 $10,202 $6,021 $16,652 Foreign currency(5)2 7 4 Acquired— — 56 56 Disposals— (5)— (5)At December 31, 2023¹$424 $10,199 $6,084 $16,707 Foreign currency(12)(8)(3)(23)Acquired23 — — 23 Disposals— (1)— (1)At December 31, 2024¹$435 $10,190 $6,081 $16,706 Accumulated impairments2$673 $— $27 $700 Foreign currency Acquired Disposals Accumulated impairments2 1.Balances represent the amount of the Firm’s goodwill after accumulated impairments. 2.There were no impairments recorded in 2024, 2023 or 2022."
    },
    {
      "status": "ADDED",
      "current_title": "Intangible Assets Rollforward",
      "prior_title": null,
      "current_body": "$ in millionsISWMIM TotalAt December 31, 2022$36 $3,911 $3,671 $7,618 Acquired— 9 37 46 Disposals— (13)— (13)Amortization expense(10)(481)(110)(601)Other— 1 4 5 At December 31, 2023$26 $3,427 $3,602 $7,055 Acquired13 — — 13 Disposals— (6)— (6)Amortization expense(10)(479)(113)(602)Other(2)(3)(2)(7)At December 31, 2024$27 $2,939 $3,487 $6,453 Acquired"
    },
    {
      "status": "ADDED",
      "current_title": "Intangible Assets by Type",
      "prior_title": null,
      "current_body": "Non-amortizableAmortizable$ in millionsGrossCarryingAmountGrossCarryingAmountAccumulatedAmortizationAt December 31, 2024Management contracts$2,112 $245 $93 Customer relationships— 8,746 5,121 Trade names— 769 223 Other— 26 8 Total$2,112 $9,786 $5,445 At December 31, 2023Management contracts2,113 245 72 Customer relationships— 8,763 4,582 Trade names— 767 187 Other— 14 6 Total$2,113 $9,789 $4,847 Trade names Trade names"
    },
    {
      "status": "ADDED",
      "current_title": "Intangible Assets Estimated Future Amortization Expense",
      "prior_title": null,
      "current_body": "$ in millionsAt December 31, 20242025$451 2026343 2027340 2028336 2029333 The Firm’s annual goodwill and non-amortizable intangible asset impairment testing as of July 1, 2024 did not indicate any impairment. For more information, see Note 2. 117December 2024 Form 10-K 117December 2024 Form 10-K 117December 2024 Form 10-K 117"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Equity Method Investments",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Investments$1,869 $1,915 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Japanese Securities Joint Venture",
      "prior_title": null,
      "current_body": "$ in millions202420232022Income (loss) from investment in MUMSS$146 $129 $35 The Firm and Mitsubishi UFJ Financial Group, Inc. (“MUFG”) formed a joint venture in Japan comprising their respective investment banking and securities businesses by forming two joint venture companies, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”) and Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”) (collectively, the “Joint Venture”). The Firm owns a 40% economic interest in the Joint Venture, and MUFG owns the other 60%. The Firm’s 40% voting interest in MUMSS is accounted for under the equity method within the Institutional Securities business segment and is included in the equity method investment balances above. The Firm consolidates MSMS into the Institutional Securities business segment, based on its 51% voting interest. The Firm engages in transactions in the ordinary course of business with MUFG and its affiliates; for example, investment banking, financial advisory, sales and trading, derivatives, investment management, lending, securitization and other financial services transactions. Such transactions are on substantially the same terms as those that would be available to unrelated third parties for comparable transactions. Additionally, during 2024 the Firm further expanded its alliance with MUFG to collaborate in the foreign exchange trading and Japanese research and equity businesses for institutional clients."
    },
    {
      "status": "ADDED",
      "current_title": "Tax Equity Investments",
      "prior_title": null,
      "current_body": "The Firm invests in tax equity investment interests which entitle the Firm to a share of tax credits and other income tax benefits generated by the projects underlying the investments. Effective January 1, 2024, the Firm made an election to account for certain renewable energy and other tax equity investments programs using the proportional amortization method under newly adopted accounting guidance.Tax Equity Investments under the Proportional Amortization Method$ in millionsAtDecember 31,2024 AtDecember 31,2023 Low-income housing1$1,787 $1,699 Renewable energy and other267 — Total3$1,854 $1,699 1.Amounts include unfunded equity contributions of $613 million and $661 million as of December 31, 2024 and December 31, 2023, respectively. The corresponding liabilities for the commitments to fund these equity contributions are recorded in Other liabilities and accrued expenses. The majority of these commitments are expected to be funded within 5 years.2.Prior to adoption of the Investments - Tax Credit Structures accounting update on January 1, 2024, Renewable energy and other investments were accounted for under the equity method.3.At December 31, 2024, this amount excludes $48 million of tax equity investments within programs for which the Firm elected the proportional amortization method that do not meet the conditions to apply the proportional amortization method, which are accounted for as equity method investments.Income tax credits and other income tax benefits recognized as well as proportional amortization are included in the Provision for income taxes line in the consolidated income statement and in the Depreciation and amortization line in the consolidated cash flow statement. Net Benefits Attributable to Tax Equity Investments under the Proportional Amortization Method$ in millions202420232022Income tax credits and other income tax benefits$301 $237 $208 Proportional amortization(239)(197)(174)Net benefits$62 $40 $34 LeasesThe Firm’s leases are principally non-cancelable operating real estate leases.Balance Sheet Amounts Related to Leases$ in millionsAtDecember 31, 2024AtDecember 31, 2023Other assets—ROU assets$4,114 $4,368 Other liabilities and accrued expenses—Lease liabilities4,937 5,417 Weighted average:Remaining lease term, in years8.58.7Discount rate4.3 %4.0 % Effective January 1, 2024, the Firm made an election to account for certain renewable energy and other tax equity investments programs using the proportional amortization method under newly adopted accounting guidance."
    },
    {
      "status": "ADDED",
      "current_title": "Tax Equity Investments under the Proportional Amortization Method",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Low-income housing1$1,787 $1,699 Renewable energy and other267 — Total3$1,854 $1,699 Low-income housing1 Renewable energy and other2 Total3 Total 3 1.Amounts include unfunded equity contributions of $613 million and $661 million as of December 31, 2024 and December 31, 2023, respectively. The corresponding liabilities for the commitments to fund these equity contributions are recorded in Other liabilities and accrued expenses. The majority of these commitments are expected to be funded within 5 years. 2.Prior to adoption of the Investments - Tax Credit Structures accounting update on January 1, 2024, Renewable energy and other investments were accounted for under the equity method. 3.At December 31, 2024, this amount excludes $48 million of tax equity investments within programs for which the Firm elected the proportional amortization method that do not meet the conditions to apply the proportional amortization method, which are accounted for as equity method investments. Income tax credits and other income tax benefits recognized as well as proportional amortization are included in the Provision for income taxes line in the consolidated income statement and in the Depreciation and amortization line in the consolidated cash flow statement."
    },
    {
      "status": "ADDED",
      "current_title": "Net Benefits Attributable to Tax Equity Investments under the Proportional Amortization Method",
      "prior_title": null,
      "current_body": "$ in millions202420232022Income tax credits and other income tax benefits$301 $237 $208 Proportional amortization(239)(197)(174)Net benefits$62 $40 $34 Income tax credits and other income tax benefits Proportional amortization Net benefits Leases The Firm’s leases are principally non-cancelable operating real estate leases."
    },
    {
      "status": "ADDED",
      "current_title": "Balance Sheet Amounts Related to Leases",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Other assets—ROU assets$4,114 $4,368 Other liabilities and accrued expenses—Lease liabilities4,937 5,417 Weighted average:Remaining lease term, in years8.58.7Discount rate4.3 %4.0 % At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Lease Liabilities",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 20232024$913 2025$772 846 2026790 774 2027736 716 2028716 644 2029562 500 Thereafter2,405 2,137 Total undiscounted cash flows5,981 6,530 Imputed interest(1,044)(1,113)Amount on balance sheet$4,937 $5,417 Committed leases not yet commenced$63 $248 At"
    },
    {
      "status": "ADDED",
      "current_title": "Lease Costs",
      "prior_title": null,
      "current_body": "$ in millions202420232022Fixed costs$917 $938 $841 Variable costs1181 206 170 Less: Sublease income(6)(10)(7)Total lease cost, net$1,092 $1,134 $1,004 Variable costs1 1.Includes common area maintenance charges and other variable costs not included in the measurement of ROU assets and lease liabilities."
    },
    {
      "status": "ADDED",
      "current_title": "Cash Flows Statement Supplemental Information",
      "prior_title": null,
      "current_body": "$ in millions202420232022Cash outflows—Lease liabilities$942 $892 $881 Non-cash—ROU assets recorded for new and modified leases489 1,055 544 Occupancy lease agreements, in addition to base rentals, generally provide for rent and operating expense escalations resulting from increased assessments for real estate taxes and other charges."
    },
    {
      "status": "ADDED",
      "current_title": "12. Deposits",
      "prior_title": null,
      "current_body": "Deposits $ in millionsAtDecember 31,2024 AtDecember 31,2023 Savings and demand deposits$299,898 $288,252 Time deposits76,109 63,552 Total deposits$376,007 $351,804 Deposits subject to FDIC insurance$298,351 $276,598 Deposits not subject to FDIC insurance$77,656 $75,206"
    },
    {
      "status": "ADDED",
      "current_title": "Time Deposit Maturities",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 20242025$38,046 202618,016 20279,433 20286,047 20294,148 Thereafter419 Total$76,109 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Uninsured Non-U.S. Time Deposit Maturities",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024Less than 3 months$2,659 3 - 6 months431 6 - 12 months390 Over 12 months— Total$3,480"
    },
    {
      "status": "ADDED",
      "current_title": "Deposits in U.S. Bank Subsidiaries from Non-U.S. Depositors",
      "prior_title": null,
      "current_body": "$ in millionsAt December 31, 2024At December 31, 2023Deposits in U.S. bank subsidiaries from non-U.S. depositors$700 $880"
    },
    {
      "status": "ADDED",
      "current_title": "Maturities and Terms of Borrowings",
      "prior_title": null,
      "current_body": "Parent CompanySubsidiariesAtDecember 31, 2024AtDecember 31, 2023$ in millionsFixed Rate1Variable Rate2Fixed Rate1Variable Rate2Original maturities of one year or less:Next 12 months$— $— $146 $4,366 $4,512 $3,188 Original maturities greater than one year:2024$20,151 2025$6,617 $927 $2,672 $11,705 $21,921 35,523 202623,288 1,450 3,828 9,403 37,969 35,423 202718,833 1,883 3,452 9,882 34,050 25,338 202812,478 1,366 5,808 9,067 28,719 21,239 202916,129 189 1,278 8,563 26,159 22,193 Thereafter96,378 2,508 11,499 25,104 135,489 100,677 Total greater than one year$173,723 $8,323 $28,537 $73,724 $284,307 $260,544 Total$173,723 $8,323 $28,683 $78,090 $288,819 $263,732 Weighted average coupon at period end33.9 %4.9 %5.1 %5.9 %4.1 %3.6 % At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Borrowings with Original Maturities Greater than One Year",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Senior$270,594 $248,174 Subordinated13,713 12,370 Total$284,307 $260,544 Weighted average stated maturity, in years6.66.6 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Senior Debt Subject to Put Options or Liquidity Obligations",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Put options embedded in debt agreements$429 $1,571 Liquidity obligations1$3,597 $3,166 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Subordinated Debt",
      "prior_title": null,
      "current_body": "20242023Contractual weighted average coupon4.5 %4.3 % Subordinated debt generally is issued to meet the capital requirements of the Firm or its regulated subsidiaries and primarily is U.S. dollar denominated. Maturities of subordinated debt range from 2025 to 2039."
    },
    {
      "status": "ADDED",
      "current_title": "Rates for Borrowings with Original Maturities Greater than One Year",
      "prior_title": null,
      "current_body": "At December 31,202420232022Contractual weighted average coupon14.1 %3.6 %3.2 %Weighted average coupon after hedging derivatives5.6 %6.5 %5.1 % Contractual weighted average coupon1 1.Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes financial instruments for which the fair value option was elected. In general, other than securities inventories and customer balances financed by secured funding sources, the majority of the Firm’s assets are financed with a combination of deposits, short-term funding, floating rate long-term debt or fixed rate long-term debt swapped to a floating rate. The Firm uses interest rate swaps to more closely match these borrowings to the duration, holding period and interest rate characteristics of the assets being funded and to manage interest rate risk. These swaps effectively convert certain of the Firm’s fixed rate borrowings into floating rate obligations. In addition, for non-U.S. dollar currency borrowings that are not used to fund assets in the same currency, the Firm has entered into currency swaps that effectively convert the borrowings into U.S. dollar obligations. The Firm’s use of swaps for asset and liability management affects its effective average borrowing rate.Other Secured Financings$ in millionsAtDecember 31, 2024AtDecember 31, 2023Original maturities:One year or less$17,133 $5,732 Greater than one year4,469 6,923 Total$21,602 $12,655 Transfers of assets accounted for as secured financings10,275 5,848 Maturities and Terms of Other Secured Financings1 At December 31, 2024AtDecember 31,2023 $ in millionsFixedRateVariableRate2TotalOriginal maturities of one year or less:Next 12 months$3,055 $3,951 $7,006 $8 Original maturities greater than one year:2024$5,085 2025$— $2,389 $2,389 95 20267 683 690 92 2027— 107 107 — 2028— 453 453 434 2029— — — — Thereafter7 675 682 1,093 Total$14 $4,307 $4,321 $6,799 Weighted average coupon at period-end34.6 %4.9 %4.6 %5.6 %1.Excludes transfers of assets accounted for as secured financings. See subsequent table.2.Variable rate other secured financings bear interest based on a variety of indices, including SOFR and federal funds rates. Amounts include notes carried at fair value with various payment provisions, including notes linked to equity, credit, commodity or other indices.3.Includes only other secured financings with original maturities greater than one year. Weighted average coupon is calculated utilizing U.S. and non-U.S. dollar interest rates and excludes other secured financings that are linked to non-interest indices and for which the fair value option was elected.Other secured financings include the liabilities related to collateralized notes, transfers of financial assets that are accounted for as financings rather than sales and consolidated VIEs where the Firm is deemed to be the primary beneficiary. These liabilities are generally payable from the cash flows of the related assets accounted for as Trading assets. See Note 15 for further information on other secured financings related to VIEs and securitization activities. Maturities of Transfers of Assets Accounted for as Secured Financings1$ in millionsAtDecember 31, 2024AtDecember 31, 20232024$— $5,749 202510,184 9 202642 36 20275 21 202812 11 20295 3 Thereafter27 19 Total$10,275 $5,848 1.Excludes Securities sold under agreements to repurchase and Securities loaned. The Firm’s use of swaps for asset and liability management affects its effective average borrowing rate."
    },
    {
      "status": "ADDED",
      "current_title": "Other Secured Financings",
      "prior_title": null,
      "current_body": "Valuation Techniques: •Other secured financings are composed of short-dated notes secured by Corporate equities, agreements to repurchase Physical commodities, the liabilities related to sales of Loans and lending commitments accounted for as financings, and secured contracts that are not classified as OTC derivatives because they fail net investment criteria. For further information on the determination of fair value, refer to the Valuation Techniques described herein for the corresponding instruments, which are the collateral referenced by the other secured financing liability. Valuation Hierarchy Classification: •For further information on the determination of valuation hierarchy classification, see the Valuation Hierarchy Classification described herein for the corresponding instruments, which are the collateral referenced by the other secured financing liability. Borrowings Valuation Techniques: •The Firm carries certain borrowings at fair value that are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. •Fair value is determined using valuation models for the derivative and debt portions of the instruments. These models incorporate observable inputs referencing identical or comparable securities, including prices to which the instruments are linked, interest rate yield curves, option volatility and currency rates, and commodity or equity prices. •Independent, external and traded prices are considered, as well as the impact of the Firm’s own credit spreads, which are based on observed secondary bond market spreads. December 2024 Form 10-K98 December 2024 Form 10-K98 December 2024 Form 10-K98 98"
    },
    {
      "status": "ADDED",
      "current_title": "Maturities and Terms of Other Secured Financings1",
      "prior_title": null,
      "current_body": "At December 31, 2024AtDecember 31,2023 $ in millionsFixedRateVariableRate2TotalOriginal maturities of one year or less:Next 12 months$3,055 $3,951 $7,006 $8 Original maturities greater than one year:2024$5,085 2025$— $2,389 $2,389 95 20267 683 690 92 2027— 107 107 — 2028— 453 453 434 2029— — — — Thereafter7 675 682 1,093 Total$14 $4,307 $4,321 $6,799 Weighted average coupon at period-end34.6 %4.9 %4.6 %5.6 % Variable Rate2 Weighted average coupon at period-end3 1.Excludes transfers of assets accounted for as secured financings. See subsequent table. 2.Variable rate other secured financings bear interest based on a variety of indices, including SOFR and federal funds rates. Amounts include notes carried at fair value with various payment provisions, including notes linked to equity, credit, commodity or other indices. 3.Includes only other secured financings with original maturities greater than one year. Weighted average coupon is calculated utilizing U.S. and non-U.S. dollar interest rates and excludes other secured financings that are linked to non-interest indices and for which the fair value option was elected. Other secured financings include the liabilities related to collateralized notes, transfers of financial assets that are accounted for as financings rather than sales and consolidated VIEs where the Firm is deemed to be the primary beneficiary. These liabilities are generally payable from the cash flows of the related assets accounted for as Trading assets. See Note 15 for further information on other secured financings related to VIEs and securitization activities."
    },
    {
      "status": "ADDED",
      "current_title": "Maturities of Transfers of Assets Accounted for as Secured Financings1",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 20232024$— $5,749 202510,184 9 202642 36 20275 21 202812 11 20295 3 Thereafter27 19 Total$10,275 $5,848 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Commitments",
      "prior_title": null,
      "current_body": "Years to Maturity at December 31, 2024$ in millionsLess than 11-33-5Over 5TotalLending:Corporate$17,393 $40,373 $64,851 $6,357 $128,974 Secured lending facilities6,894 6,646 7,169 3,874 24,583 Commercial and Residential real estate762 404 126 411 1,703 Securities-based lending and Other16,453 3,418 788 612 21,271 Forward-starting secured financing receivables1122,535 1,503 — — 124,038 Central counterparty300 — — 20,747 21,047 Investment activities1,509 107 84 466 2,166 Letters of credit and other financial guarantees39 2 — 6 47 Total$165,885 $52,453 $73,018 $32,473 $323,829 Lending commitments participated to third parties$10,859 Forward-starting secured financing receivables1 1.These amounts primarily include secured financing receivables yet to settle as of December 31, 2024, with settlement generally occurring within three business days. These amounts also include commitments to enter into certain collateralized financing transactions. Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements."
    },
    {
      "status": "ADDED",
      "current_title": "Types of Commitments",
      "prior_title": null,
      "current_body": "Lending Commitments. Lending commitments primarily represent the notional amount of legally binding obligations to provide funding to clients for different types of loan transactions. For syndications that are led by the Firm, the lending commitments accepted by the borrower but not yet closed are net of the amounts agreed to by counterparties that will participate in the syndication. For syndications that the Firm participates in and does not lead, lending commitments accepted by the borrower but not yet closed include only the amount that the Firm expects it will be allocated from the lead syndicate bank. Due to the nature of the Firm’s obligations under the commitments, these amounts include certain commitments participated to third parties. Forward-Starting Secured Financing Receivables. These amounts include securities purchased under agreements to resell and securities borrowed that the Firm has entered into prior to the balance sheet date that will settle after the balance sheet date. These transactions are primarily secured by collateral from U.S. government agency securities and other sovereign government obligations when they are funded. Central Counterparty. These commitments relate to the Firm’s membership in certain clearinghouses and are contingent upon the default of a clearinghouse member or other stress events.Underwriting Commitments. The Firm provides underwriting commitments in connection with its capital raising sources to a diverse group of corporate and other institutional clients.Investment Activities. The Firm sponsors several non-consolidated investment management funds for third-party investors where it typically acts as general partner of, and investment adviser to, these funds and typically commits to invest a minority of the capital of such funds, with subscribing third-party investors contributing the majority. The Firm has contractual capital commitments, guarantees and counterparty arrangements with respect to these investment management funds.Letters of Credit and Other Financial Guarantees. The Firm has outstanding letters of credit and other financial guarantees issued by third-party banks to certain of the Firm’s counterparties. The Firm is contingently liable for these letters of credit and other financial guarantees, which are primarily used to provide collateral for securities and commodities traded and to satisfy various margin requirements in lieu of depositing cash or securities with these counterparties.Guarantees At December 31, 2024 Maximum Potential Payout/Notional of Obligations by Years to MaturityCarryingAmountAsset(Liability)$ in millionsLess than 11-33-5Over 5Non-credit derivatives11,161,382 626,951 152,534 460,222 (40,849)Standby letters of credit and other financial guarantees issued2,31,599 732 1,031 2,581 18 Liquidity facilities2,453 — — — 2 Whole loan sales guarantees24 63 — 23,050 — Securitization representations and warranties4— — — 87,305 — General partner guarantees180 133 53 35 (98)Client clearing guarantees816 — — — — 1.The carrying amounts of derivative contracts that meet the accounting definition of a guarantee are shown on a gross basis. For further information on derivative contracts, see Note 6. 2.These amounts include certain issued standby letters of credit participated to third parties, totaling $0.6 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements. 3.As of December 31, 2024, the carrying amount of standby letters of credit and other financial guarantees issued includes an allowance for credit losses of $56 million.4.Related to commercial, residential mortgage and asset backed securitizations.Types of GuaranteesNon-Credit Derivatives. Certain derivative contracts meet the accounting definition of a guarantee, including certain written options, contingent-forward contracts and CDS (see Note 6 regarding credit derivatives in which the Firm has sold credit protection to the counterparty which are excluded from the previous table). For non-credit derivative contracts that meet the accounting definition of a guarantee, the notional amount is used as the maximum potential payout for certain derivative contracts, such as written interest rate caps and written foreign contingent upon the default of a clearinghouse member or other stress events. Underwriting Commitments. The Firm provides underwriting commitments in connection with its capital raising sources to a diverse group of corporate and other institutional clients. Investment Activities. The Firm sponsors several non-consolidated investment management funds for third-party investors where it typically acts as general partner of, and investment adviser to, these funds and typically commits to invest a minority of the capital of such funds, with subscribing third-party investors contributing the majority. The Firm has contractual capital commitments, guarantees and counterparty arrangements with respect to these investment management funds. Letters of Credit and Other Financial Guarantees. The Firm has outstanding letters of credit and other financial guarantees issued by third-party banks to certain of the Firm’s counterparties. The Firm is contingently liable for these letters of credit and other financial guarantees, which are primarily used to provide collateral for securities and commodities traded and to satisfy various margin requirements in lieu of depositing cash or securities with these counterparties. Guarantees At December 31, 2024 Maximum Potential Payout/Notional of Obligations by Years to MaturityCarryingAmountAsset(Liability)$ in millionsLess than 11-33-5Over 5Non-credit derivatives11,161,382 626,951 152,534 460,222 (40,849)Standby letters of credit and other financial guarantees issued2,31,599 732 1,031 2,581 18 Liquidity facilities2,453 — — — 2 Whole loan sales guarantees24 63 — 23,050 — Securitization representations and warranties4— — — 87,305 — General partner guarantees180 133 53 35 (98)Client clearing guarantees816 — — — — Non-credit derivatives1 Standby letters of credit and other financial guarantees issued2,3 Securitization representations and warranties4 1.The carrying amounts of derivative contracts that meet the accounting definition of a guarantee are shown on a gross basis. For further information on derivative contracts, see Note 6. 2.These amounts include certain issued standby letters of credit participated to third parties, totaling $0.6 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements. 3.As of December 31, 2024, the carrying amount of standby letters of credit and other financial guarantees issued includes an allowance for credit losses of $56 million. 4.Related to commercial, residential mortgage and asset backed securitizations."
    },
    {
      "status": "ADDED",
      "current_title": "Types of Guarantees",
      "prior_title": null,
      "current_body": "Non-Credit Derivatives. Certain derivative contracts meet the accounting definition of a guarantee, including certain written options, contingent-forward contracts and CDS (see Note 6 regarding credit derivatives in which the Firm has sold credit protection to the counterparty which are excluded from the previous table). For non-credit derivative contracts that meet the accounting definition of a guarantee, the notional amount is used as the maximum potential payout for certain derivative contracts, such as written interest rate caps and written foreign 121December 2024 Form 10-K 121December 2024 Form 10-K 121December 2024 Form 10-K 121"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Other Guarantees and Indemnities",
      "prior_title": null,
      "current_body": "In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactions. These provisions generally are standard contractual terms. Certain of these guarantees and indemnifications are described below: •Indemnities. The Firm provides standard indemnities to counterparties for certain contingent exposures and taxes, including U.S. and foreign withholding taxes, on interest and other payments made on derivatives, securities and stock lending transactions, certain annuity products and other financial arrangements. These indemnity payments could be required based on a change in the tax laws, a change in interpretation of applicable tax rulings or a change in factual circumstances. Certain contracts contain provisions that enable the Firm to terminate the agreement upon the occurrence of such events. The Firm may also provide indemnities when it sells a business or assets to a third-party, pursuant to which it indemnifies the third-party for losses incurred on assets acquired or liabilities assumed or due to actions taken by the Firm prior to the sale of the business or assets. The Firm expects the risk of loss associated with indemnities related to the sale of businesses or assets to be remote. The maximum potential amount of future payments that the Firm could be required to make under these indemnifications cannot be estimated. •Market Value Guarantees. Market value guarantees are issued to guarantee timely payment of a specified return to investors in certain affordable housing tax credit funds. These guarantees are designed to return an investor’s contribution to a fund and the investor’s share of tax losses and tax credits expected to be generated by a fund. •Exchange/Clearinghouse Member Guarantees. The Firm is a member of various exchanges and clearinghouses that trade and clear securities and/or derivative contracts. Associated with its membership, the Firm may be required to pay a certain amount as determined by the exchange or the clearinghouse in case of a default of any of its members or pay a proportionate share of the financial obligations of another member that may default on its obligations to the exchange or the clearinghouse. While the rules governing different exchange or clearinghouse memberships and the forms of these guarantees may vary, in general the Firm’s obligations under these rules would arise only if the exchange or clearinghouse had previously exhausted its resources. In addition, some clearinghouse rules require members to assume a proportionate share of losses resulting from the clearinghouse’s investment of guarantee fund contributions and initial margin and of other losses unrelated to the default of a clearing member, if such losses exceed the specified resources allocated for such purpose by the clearinghouse. The maximum potential payout under these rules cannot be estimated. The Firm has not recorded any contingent liability in its financial statements for these agreements and believes that any potential requirement to make payments under these agreements is remote.•Futures and Over-the-Counter Derivatives Clearing. The Firm provides clearing services on central counterparty clearinghouses (“CCPs”) for clients that need to clear exchange-traded and OTC derivatives contracts with CCPs. The Firm acts as an agent in its role as clearing member for these client transactions. As such, the Firm does not reflect the underlying exchange-traded or OTC derivatives contracts in its Consolidated Financial Statements. See Note 6 for a discussion of the Firm’s derivatives activities that are reflected in its Consolidated Financial Statements. As a clearing member, the Firm is responsible to the CCP for the performance of its clients, collects cash and securities collateral (margin) as well as any settlement amounts due from or to clients, and remits them to the relevant CCP or client in whole or part. There are two types of margin: (1) variation margin is posted on a daily basis based on the value of clients’ derivative contracts and (2) initial margin is posted at inception of a derivative contract, generally on the basis of the potential changes in the variation margin requirement for the contract.As a clearing member, the Firm is exposed to the risk of nonperformance by its clients to CCPs but is not liable to clients for the performance of the CCPs. Where possible, the Firm seeks to mitigate its risk to the client through the collection of appropriate amounts of margin at inception and throughout the life of the transactions. In the event of nonperformance by a client, the Firm would close out the client’s positions and access available margin. The CCP would utilize any margin it holds to make itself whole, with any remaining shortfalls required to be paid by the Firm as a clearing member.It is difficult to estimate the Firm’s maximum possible exposure through its role as a clearing member as it depends on the nature and volume of client's future transactions, market conditions and potential client defaults. However, based upon historical experience, the Firm’s exposure is significantly mitigated by the credit risk mitigants available to the Firm. As a result, management believes that the risk of material loss to the Firm is expected to be remote.•Merger and Acquisition Guarantees. The Firm may, from time to time, in its role as investment banking advisor be required to provide guarantees in connection with certain European merger and acquisition transactions. If required by the regulating authorities, the Firm provides a guarantee that the acquirer in the transaction has or will have sufficient funds to complete the transaction and would then be required to make the acquisition payments in the event the acquirer’s funds are insufficient at the completion date of the transaction. These arrangements generally cover the time frame from the transaction offer date to its closing date The maximum potential payout under these rules cannot be estimated. The Firm has not recorded any contingent liability in its financial statements for these agreements and believes that any potential requirement to make payments under these agreements is remote. •Futures and Over-the-Counter Derivatives Clearing. The Firm provides clearing services on central counterparty clearinghouses (“CCPs”) for clients that need to clear exchange-traded and OTC derivatives contracts with CCPs. The Firm acts as an agent in its role as clearing member for these client transactions. As such, the Firm does not reflect the underlying exchange-traded or OTC derivatives contracts in its Consolidated Financial Statements. See Note 6 for a discussion of the Firm’s derivatives activities that are reflected in its Consolidated Financial Statements. As a clearing member, the Firm is responsible to the CCP for the performance of its clients, collects cash and securities collateral (margin) as well as any settlement amounts due from or to clients, and remits them to the relevant CCP or client in whole or part. There are two types of margin: (1) variation margin is posted on a daily basis based on the value of clients’ derivative contracts and (2) initial margin is posted at inception of a derivative contract, generally on the basis of the potential changes in the variation margin requirement for the contract.As a clearing member, the Firm is exposed to the risk of nonperformance by its clients to CCPs but is not liable to clients for the performance of the CCPs. Where possible, the Firm seeks to mitigate its risk to the client through the collection of appropriate amounts of margin at inception and throughout the life of the transactions. In the event of nonperformance by a client, the Firm would close out the client’s positions and access available margin. The CCP would utilize any margin it holds to make itself whole, with any remaining shortfalls required to be paid by the Firm as a clearing member.It is difficult to estimate the Firm’s maximum possible exposure through its role as a clearing member as it depends on the nature and volume of client's future transactions, market conditions and potential client defaults. However, based upon historical experience, the Firm’s exposure is significantly mitigated by the credit risk mitigants available to the Firm. As a result, management believes that the risk of material loss to the Firm is expected to be remote. •Merger and Acquisition Guarantees. The Firm may, from time to time, in its role as investment banking advisor be required to provide guarantees in connection with certain European merger and acquisition transactions. If required by the regulating authorities, the Firm provides a guarantee that the acquirer in the transaction has or will have sufficient funds to complete the transaction and would then be required to make the acquisition payments in the event the acquirer’s funds are insufficient at the completion date of the transaction. These arrangements generally cover the time frame from the transaction offer date to its closing date 123December 2024 Form 10-K 123December 2024 Form 10-K 123December 2024 Form 10-K 123"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Finance Subsidiary",
      "prior_title": null,
      "current_body": "The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a wholly owned finance subsidiary. No other subsidiary of the Parent Company guarantees these securities."
    },
    {
      "status": "ADDED",
      "current_title": "Contingencies",
      "prior_title": null,
      "current_body": "Legal In addition to the matters described below, in the normal course of business, the Firm has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our wealth management businesses, sales and trading businesses, and our activities in the capital markets. The Firm is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental or other regulatory agencies regarding the Firm’s business, and involving, among other matters, sales, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by the Firm, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief. The Firm contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and the Firm can reasonably estimate the amount of that loss or the range of loss, the Firm accrues an estimated loss by a charge to income, including with respect to certain of the individual proceedings or investigations described below.$ in millions202420232022Legal expenses$106 $488 $443 The Firm’s legal expenses can, and may in the future, fluctuate from period to period, given the current environment regarding government or regulatory agency investigations and private litigation affecting global financial services firms, including the Firm.In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where the Firm has determined that a loss is probable or reasonably possible or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, the Firm may be unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question.The Firm has identified below any individual proceedings or investigations where the Firm believes a material loss to be reasonably possible. In certain legal proceedings in which the Firm has determined that a material loss is reasonably possible, the Firm is unable to reasonably estimate the loss or range of loss. There are other matters in which the Firm has determined a loss or range of loss to be reasonably possible, but the Firm does not believe, based on current knowledge and after consultation with counsel, that such losses could have a material adverse effect on the Firm’s financial statements as a whole, although the outcome of such proceedings or investigations may significantly impact the Firm’s business or results of operations for any particular reporting period, or cause significant reputational harm. The Firm contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and the Firm can reasonably estimate the amount of that loss or the range of loss, the Firm accrues an estimated loss by a charge to income, including with respect to certain of the individual proceedings or investigations described below. $ in millions202420232022Legal expenses$106 $488 $443 The Firm’s legal expenses can, and may in the future, fluctuate from period to period, given the current environment regarding government or regulatory agency investigations and private litigation affecting global financial services firms, including the Firm. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where the Firm has determined that a loss is probable or reasonably possible or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, the Firm may be unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question. The Firm has identified below any individual proceedings or investigations where the Firm believes a material loss to be reasonably possible. In certain legal proceedings in which the Firm has determined that a material loss is reasonably possible, the Firm is unable to reasonably estimate the loss or range of loss. There are other matters in which the Firm has determined a loss or range of loss to be reasonably possible, but the Firm does not believe, based on current knowledge and after consultation with counsel, that such losses could have a material adverse effect on the Firm’s financial statements as a whole, although the outcome of such proceedings or investigations may significantly impact the Firm’s business or results of operations for any particular reporting period, or cause significant reputational harm. December 2024 Form 10-K124 December 2024 Form 10-K124 December 2024 Form 10-K124 124"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Antitrust Related Matters",
      "prior_title": null,
      "current_body": "The Firm and other financial institutions are responding to a number of governmental investigations and civil litigation matters related to allegations of anticompetitive conduct in various aspects of the financial services industry, including the matters described below. Beginning in February of 2016, the Firm was named as a defendant in multiple purported antitrust class actions now consolidated into a single proceeding in the United States District Court for the Southern District of New York (“SDNY”) styled In Re: Interest Rate Swaps Antitrust Litigation. Plaintiffs allege, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. and New York state antitrust laws from 2008 through December of 2016 in connection with alleged efforts to prevent the development of electronic exchange-based platforms for interest rate swaps trading. Complaints were filed both on behalf of a purported class of investors who purchased interest rate swaps from defendants, as well as on behalf of three operators of swap execution facilities that allegedly were thwarted by the defendants in their efforts to develop such platforms. The consolidated complaints seek, inter alia, certification of the investor class of plaintiffs and treble damages. On July 28, 2017, the court granted in part and denied in part the defendants’ motion to dismiss the complaints. On December 15, 2023, the court denied the class plaintiffs’ motion for class certification. On December 29, 2023, the class plaintiffs petitioned the United States Court of Appeals for the Second Circuit for leave to appeal that decision. On February 28, 2024, the parties reached an agreement in principle to settle the class claims. On July 11, 2024, the court granted preliminary approval of the settlement. The Firm is a defendant in three antitrust class action complaints which have been consolidated into one proceeding in the United States District Court for the SDNY under the caption City of Philadelphia, et al. v. Bank of America Corporation, et al. Plaintiffs allege, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. antitrust laws and relevant state laws in connection with alleged efforts to artificially inflate interest rates for Variable Rate Demand Obligations (“VRDO”). The consolidated complaint seeks, inter alia, certification of the class of plaintiffs and treble damages. The complaint was filed on behalf of a class of municipal issuers of VRDO for which defendants served as remarketing agent. On November 2, 2020, the court granted in part and denied in part the defendants’ motion to dismiss the consolidated complaint, dismissing state law claims, but denying dismissal of the U.S. antitrust claims. On September 21, 2023, the court granted plaintiffs’ motion for class certification. On February 5, 2024, the United States Court of Appeals for the Second Circuit granted leave to appeal that decision.European MattersTaxIn matters styled Case number 15/3637 and Case number 15/4353, the Dutch Tax Authority (“Dutch Authority”) challenged in the Dutch courts the prior set-off by the Firm of approximately €124 million (approximately $128 million) plus accrued interest of withholding tax credits against the Firm’s corporation tax liabilities for the tax years 2007 to 2012. The Dutch Authority alleged that the Firm was not entitled to receive the withholding tax credits on the basis, inter alia, that a Firm subsidiary did not hold legal title to certain securities subject to withholding tax on the relevant dates. On April 26, 2018, the District Court in Amsterdam issued a decision dismissing the Dutch Authority’s claims with respect to certain of the tax years in dispute. On May 12, 2020, the Court of Appeal in Amsterdam granted the Dutch Authority’s appeal in matters re-styled Case number 18/00318 and Case number 18/00319. On January 19, 2024, the Dutch High Court granted the Firm’s appeal in matters re-styled Case number 20/01884 and referred the case to the Court of Appeal in The Hague. On November 11, 2024, the Firm reached an agreement to settle the Dutch Authority’s challenges for the tax years 2007 to 2012 and made payment of the prior set-off amounts and interest indicated above. The case has been withdrawn.On June 22, 2021, Dutch criminal authorities sought various documents in connection with an investigation of the Firm related to the civil claims asserted by the Dutch Authority concerning the accuracy of the Firm subsidiary’s tax returns for 2007 to 2012. The Dutch criminal authorities have requested additional information, and the Firm is continuing to respond to them in connection with their ongoing investigation, and is engaging with them as the criminal process progresses. U.K. Government Bond MatterOn February 21, 2025, the U.K. Competition and Markets Authority announced a settlement with the Firm, as well as other financial institutions, in connection with its investigation of suspected anti-competitive arrangements in the financial services sector, specifically regarding the Firm’s activities concerning certain liquid fixed income products between 2009 and 2012. Separately, on June 16, 2023, the Firm was named as a defendant in a purported antitrust class action in the United States District Court for the SDNY styled Oklahoma Firefighters Pension and Retirement System v. Deutsche Bank Aktiengesellschaft, et al., alleging, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. antitrust laws in complaint, dismissing state law claims, but denying dismissal of the U.S. antitrust claims. On September 21, 2023, the court granted plaintiffs’ motion for class certification. On February 5, 2024, the United States Court of Appeals for the Second Circuit granted leave to appeal that decision."
    },
    {
      "status": "ADDED",
      "current_title": "European Matters",
      "prior_title": null,
      "current_body": "Tax In matters styled Case number 15/3637 and Case number 15/4353, the Dutch Tax Authority (“Dutch Authority”) challenged in the Dutch courts the prior set-off by the Firm of approximately €124 million (approximately $128 million) plus accrued interest of withholding tax credits against the Firm’s corporation tax liabilities for the tax years 2007 to 2012. The Dutch Authority alleged that the Firm was not entitled to receive the withholding tax credits on the basis, inter alia, that a Firm subsidiary did not hold legal title to certain securities subject to withholding tax on the relevant dates. On April 26, 2018, the District Court in Amsterdam issued a decision dismissing the Dutch Authority’s claims with respect to certain of the tax years in dispute. On May 12, 2020, the Court of Appeal in Amsterdam granted the Dutch Authority’s appeal in matters re-styled Case number 18/00318 and Case number 18/00319. On January 19, 2024, the Dutch High Court granted the Firm’s appeal in matters re-styled Case number 20/01884 and referred the case to the Court of Appeal in The Hague. On November 11, 2024, the Firm reached an agreement to settle the Dutch Authority’s challenges for the tax years 2007 to 2012 and made payment of the prior set-off amounts and interest indicated above. The case has been withdrawn. On June 22, 2021, Dutch criminal authorities sought various documents in connection with an investigation of the Firm related to the civil claims asserted by the Dutch Authority concerning the accuracy of the Firm subsidiary’s tax returns for 2007 to 2012. The Dutch criminal authorities have requested additional information, and the Firm is continuing to respond to them in connection with their ongoing investigation, and is engaging with them as the criminal process progresses."
    },
    {
      "status": "ADDED",
      "current_title": "U.K. Government Bond Matter",
      "prior_title": null,
      "current_body": "On February 21, 2025, the U.K. Competition and Markets Authority announced a settlement with the Firm, as well as other financial institutions, in connection with its investigation of suspected anti-competitive arrangements in the financial services sector, specifically regarding the Firm’s activities concerning certain liquid fixed income products between 2009 and 2012. Separately, on June 16, 2023, the Firm was named as a defendant in a purported antitrust class action in the United States District Court for the SDNY styled Oklahoma Firefighters Pension and Retirement System v. Deutsche Bank Aktiengesellschaft, et al., alleging, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. antitrust laws in 125December 2024 Form 10-K 125December 2024 Form 10-K 125December 2024 Form 10-K 125"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "15. Variable Interest Entities and Securitization Activities",
      "prior_title": null,
      "current_body": "Overview The Firm is involved with various SPEs in the normal course of business. In most cases, these entities are deemed to be VIEs. The Firm’s variable interests in VIEs include debt and equity interests, commitments, guarantees, derivative instruments and certain fees. The Firm’s involvement with VIEs arises primarily from: •Interests purchased in connection with market-making activities, securities held in its Investment securities portfolio and retained interests held as a result of securitization activities, including re-securitization transactions. •Guarantees issued and residual interests retained in connection with municipal bond securitizations. •Loans made to and investments in VIEs that hold debt, equity, real estate or other assets. •Derivatives entered into with VIEs. •Structuring of CLNs or other asset-repackaging notes designed to meet the investment objectives of clients. •Other structured transactions designed to provide tax-efficient yields to the Firm or its clients. The Firm determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE. This determination is based upon an analysis of the design of the VIE, including the VIE’s structure and activities, the power to make significant economic decisions held by the Firm and by other parties, and the variable interests owned by the Firm and other parties. The power to make the most significant economic decisions may take a number of different forms in different types of VIEs. The Firm considers servicing or collateral management decisions as representing the power to make the most significant economic decisions in transactions such as securitizations or CDOs. As a result, the Firm does not consolidate securitizations or CDOs for which it does not act as the servicer or collateral manager unless it holds certain other rights to replace the servicer or collateral manager or to require the liquidation of the entity. If the Firm serves as servicer or collateral manager, or has certain other rights described in the previous sentence, the Firm analyzes the interests in the VIE that it holds and consolidates only those VIEs for which it holds a potentially significant interest in the VIE. For many transactions, such as re-securitization transactions, CLNs and other asset-repackaging notes, there are no significant economic decisions made on an ongoing basis. In these cases, the Firm focuses its analysis on decisions made prior to the initial closing of the transaction and at the termination of the transaction. The Firm concluded in most of these transactions that decisions made prior to the initial closing were shared between the Firm and the initial investors based upon the nature of the assets, including whether the assets were issued in a transaction sponsored by the Firm and the extent of the information available to the Firm and to investors, the number, nature and involvement of investors, other rights held by the Firm and investors, the standardization of the legal documentation and the level of continuing involvement by the Firm, including the amount and type of interests owned by the Firm and by other investors. The Firm focused its control decision on any right held by the Firm or investors related to the termination of the VIE. Most re-securitization transactions, CLNs and other asset-repackaging notes have no such termination rights.Consolidated VIE Assets and Liabilities by Type of Activity At December 31, 2024At December 31, 2023$ in millionsVIE AssetsVIE LiabilitiesVIE AssetsVIE LiabilitiesMABS1$575 $236 $597 $256 Investment vehicles2378 189 753 502 MTOB619 578 582 520 Other156 4 378 97 Total$1,728 $1,007 $2,310 $1,375 MTOB—Municipal tender option bonds 1.Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets and may be in loan or security form. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable.2.Amounts include investment funds and CLOs.Consolidated VIE Assets and Liabilities by Balance Sheet Caption$ in millionsAtDecember 31, 2024AtDecember 31, 2023AssetsCash and cash equivalents$37 $164 Trading assets at fair value1,395 1,557 Investment securities278 492 Securities purchased under agreements to resell— 67 Customer and other receivables16 26 Other assets2 4 Total$1,728 $2,310 LiabilitiesOther secured financings$921 $1,222 Other liabilities and accrued expenses82 121 Borrowings4 32 Total$1,007 $1,375 Noncontrolling interests$42 $54 Consolidated VIE assets and liabilities are presented in the previous tables after intercompany eliminations. Generally, most assets owned by consolidated VIEs cannot be removed unilaterally by the Firm and are not available to the Firm For many transactions, such as re-securitization transactions, CLNs and other asset-repackaging notes, there are no significant economic decisions made on an ongoing basis. In these cases, the Firm focuses its analysis on decisions made prior to the initial closing of the transaction and at the termination of the transaction. The Firm concluded in most of these transactions that decisions made prior to the initial closing were shared between the Firm and the initial investors based upon the nature of the assets, including whether the assets were issued in a transaction sponsored by the Firm and the extent of the information available to the Firm and to investors, the number, nature and involvement of investors, other rights held by the Firm and investors, the standardization of the legal documentation and the level of continuing involvement by the Firm, including the amount and type of interests owned by the Firm and by other investors. The Firm focused its control decision on any right held by the Firm or investors related to the termination of the VIE. Most re-securitization transactions, CLNs and other asset-repackaging notes have no such termination rights."
    },
    {
      "status": "ADDED",
      "current_title": "Consolidated VIE Assets and Liabilities by Type of Activity",
      "prior_title": null,
      "current_body": "At December 31, 2024At December 31, 2023$ in millionsVIE AssetsVIE LiabilitiesVIE AssetsVIE LiabilitiesMABS1$575 $236 $597 $256 Investment vehicles2378 189 753 502 MTOB619 578 582 520 Other156 4 378 97 Total$1,728 $1,007 $2,310 $1,375 MABS1 Investment vehicles2 MTOB—Municipal tender option bonds 1.Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets and may be in loan or security form. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable. 2.Amounts include investment funds and CLOs."
    },
    {
      "status": "ADDED",
      "current_title": "Consolidated VIE Assets and Liabilities by Balance Sheet Caption",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023AssetsCash and cash equivalents$37 $164 Trading assets at fair value1,395 1,557 Investment securities278 492 Securities purchased under agreements to resell— 67 Customer and other receivables16 26 Other assets2 4 Total$1,728 $2,310 LiabilitiesOther secured financings$921 $1,222 Other liabilities and accrued expenses82 121 Borrowings4 32 Total$1,007 $1,375 Noncontrolling interests$42 $54 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Non-consolidated VIEs",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsMABS1CDOMTOBOSFOther2VIE assets (UPB)$179,686 $1,621 $3,654 $3,603 $74,665 Maximum exposure to loss3Debt and equity interests$26,974 $62 $— $2,267 $12,097 Derivative and other contracts— — 2,454 — 3,936 Commitments, guarantees and other8,554 — — — 535 Total$35,528 $62 $2,454 $2,267 $16,568 Carrying value of variable interests—AssetsDebt and equity interests$26,974 $62 $— $1,821 $12,067 Derivative and other contracts— — 6 — 1,772 Total$26,974 $62 $6 $1,821 $13,839 Additional VIE assets owned4$15,777 Carrying value of variable interests—LiabilitiesDerivative and other contracts$— $— $4 $— $448 MABS1 Other2"
    },
    {
      "status": "ADDED",
      "current_title": "Maximum exposure to loss3",
      "prior_title": null,
      "current_body": "Additional VIE assets owned4 At December 31, 2023$ in millionsMABS1CDOMTOBOSFOther2VIE assets (UPB)$144,906 $1,526 $3,152 $3,102 $50,052 Maximum exposure to loss3Debt and equity interests$21,203 $52 $— $2,049 $9,076 Derivative and other contracts— — 2,092 — 4,452 Commitments, guarantees and other3,439 — — — 55 Total$24,642 $52 $2,092 $2,049 $13,583 Carrying value of variable interests—AssetsDebt and equity interests$21,203 $52 $— $1,682 $9,075 Derivative and other contracts— — 2 — 1,330 Total$21,203 $52 $2 $1,682 $10,405 Additional VIE assets owned4$15,002 Carrying value of variable interests—LiabilitiesDerivative and other contracts$— $— $3 $— $452 MABS1 Other2"
    },
    {
      "status": "ADDED",
      "current_title": "Maximum exposure to loss3",
      "prior_title": null,
      "current_body": "Additional VIE assets owned4 At December 31, 2023$ in millionsMABS1CDOMTOBOSFOther2VIE assets (UPB)$144,906 $1,526 $3,152 $3,102 $50,052 Maximum exposure to loss3Debt and equity interests$21,203 $52 $— $2,049 $9,076 Derivative and other contracts— — 2,092 — 4,452 Commitments, guarantees and other3,439 — — — 55 Total$24,642 $52 $2,092 $2,049 $13,583 Carrying value of variable interests—AssetsDebt and equity interests$21,203 $52 $— $1,682 $9,075 Derivative and other contracts— — 2 — 1,330 Total$21,203 $52 $2 $1,682 $10,405 Additional VIE assets owned4$15,002 Carrying value of variable interests—LiabilitiesDerivative and other contracts$— $— $3 $— $452 MABS1 Other2"
    },
    {
      "status": "ADDED",
      "current_title": "Detail of Mortgage- and Asset-Backed Securitization Assets",
      "prior_title": null,
      "current_body": "At December 31, 2024At December 31, 2023$ in millionsUPBDebt andEquityInterestsUPBDebt andEquityInterestsResidential mortgages$17,316 $2,497 $17,346 $3,355 Commercial mortgages82,730 8,445 74,590 8,342 U.S. agency collateralized mortgage obligations39,317 6,260 42,917 6,675 Other consumer or commercial loans40,323 9,772 10,053 2,831 Total$179,686 $26,974 $144,906 $21,203"
    },
    {
      "status": "ADDED",
      "current_title": "Securitization Activities",
      "prior_title": null,
      "current_body": "In a securitization transaction, the Firm transfers assets (generally commercial or residential mortgage loans or securities) to an SPE; sells to investors most of the beneficial interests, such as notes or certificates, issued by the SPE; and, in many cases, retains other beneficial interests. The purchase of the transferred assets by the SPE is financed through the sale of these interests. In many securitization transactions involving commercial mortgage loans, the Firm transfers a portion of the assets to the SPE with unrelated parties transferring the remaining assets. In addition, mainly in securitization transactions involving residential mortgage loans, the Firm may also enter into derivative transactions, primarily interest rate swaps or interest rate caps, with the SPE. Although not obligated, the Firm generally makes a market in the securities issued by SPEs in securitization transactions. As a market maker, the Firm offers to buy these securities from, and sell these securities to, investors. Securities purchased through these market-making activities are not considered to be retained interests; these beneficial interests generally are included in Trading assets—Corporate and other debt and are measured at fair value. The Firm enters into derivatives, generally interest rate swaps and interest rate caps, with a senior payment priority in many securitization transactions. The risks associated with these and similar derivatives with SPEs are essentially the same as similar derivatives with non-SPE counterparties and are December 2024 Form 10-K128 December 2024 Form 10-K128 December 2024 Form 10-K128 128"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Investment Securities",
      "prior_title": null,
      "current_body": "The Firm holds securities issued by VIEs within the Investment securities portfolio. These securities are composed of those related to transactions sponsored by the federal mortgage agencies and predominantly the most senior securities issued by VIEs backed by student loans and commercial mortgage loans. Transactions sponsored by the federal mortgage agencies include an explicit or implicit guarantee provided by the U.S. government. Additionally, the Firm holds certain commercial mortgage-backed securities issued by VIEs retained as a result of the Firm’s securitization activities. See Note 7 for further information on the Investment securities portfolio."
    },
    {
      "status": "ADDED",
      "current_title": "Municipal Tender Option Bond Trusts",
      "prior_title": null,
      "current_body": "In a municipal tender option bond trust transaction, the client transfers a municipal bond to a trust. The trust issues short-term securities that the Firm, as the remarketing agent, sells to investors. The client generally retains a residual interest. The short-term securities are supported by a liquidity facility pursuant to which the investors may put their short-term interests. In most programs, a third-party provider will provide such liquidity facility; in some programs, the Firm provides this liquidity facility. The Firm may, in lieu of purchasing short-term securities for remarketing, decide to extend a temporary loan to the trust. The client can generally terminate the transaction at any time. The liquidity provider can generally terminate the transaction upon the occurrence of certain events. When the transaction is terminated, the municipal bond is generally sold or returned to the client. Any losses suffered by the liquidity provider upon the sale of the bond are the responsibility of the client. This obligation is generally collateralized. Liquidity facilities provided to municipal tender option bond trusts are classified as derivatives. The Firm consolidates any municipal tender option bond trusts in which it holds the residual interest."
    },
    {
      "status": "ADDED",
      "current_title": "Credit Protection Purchased through Credit-Linked Notes",
      "prior_title": null,
      "current_body": "CLN transactions are designed to provide investors with exposure to certain credit risk on referenced assets. In these transactions, the Firm transfers assets (generally high-quality securities or money-market investments) to an SPE, enters into a derivative transaction in which the SPE sells protection on an unrelated referenced asset or group of assets, through a credit derivative, and sells the securities issued by the SPE to investors. In some transactions, the Firm may also enter into interest rate or currency swaps with the SPE. Depending on the structure, the assets and liabilities of the SPE may be consolidated and recognized in the Firm’s balance sheet or accounted for as a sale of assets. Upon the occurrence of a credit event related to the referenced asset, the SPE will deliver securities collateral as payment to the Firm, which exposes the Firm to changes in the collateral’s value.Derivative payments by the SPE are collateralized. The risks associated with these and similar derivatives with SPEs are essentially the same as those with non-SPE counterparties and are managed as part of the Firm’s overall exposure.Other Structured FinancingsThe Firm invests in tax equity investment interests issued by entities that develop and own low-income communities (including low-income housing projects) and entities that construct and own facilities that will generate energy from renewable resources. The interests entitle the Firm to a share of tax credits and tax losses generated by these projects. In addition, the Firm has issued guarantees to investors in certain low-income housing funds. The guarantees are designed to return an investor’s contribution to a fund and the investor’s share of tax losses and tax credits expected to be generated by the fund. The Firm is also involved with entities designed to provide tax-efficient yields to the Firm or its clients.Collateralized Loan and Debt ObligationsCLOs and CDOs are SPEs that purchase a pool of assets consisting of corporate loans, corporate bonds, ABS or synthetic exposures on similar assets through derivatives and issue multiple tranches of debt and equity securities to investors. The Firm underwrites the securities issued in certain CLO transactions on behalf of unaffiliated sponsors and provides advisory services to these unaffiliated sponsors. The Firm sells corporate loans to many of these SPEs, in some cases representing a significant portion of the total assets purchased. Although not obligated, the Firm generally makes a market in the securities issued by SPEs in these transactions and may retain unsold securities. These beneficial interests are included in Trading assets and are measured at fair value.Equity-Linked NotesELN transactions are designed to provide investors with exposure to certain risks related to the specific equity security, equity index or other index. In an ELN transaction, the Firm typically transfers to an SPE either a note issued by the Firm, the payments on which are linked to the performance of a specific equity security, equity index or other index, or debt securities issued by other companies and a derivative contract, the terms of which will relate to the performance of a specific equity security, equity index or other index. These ELN transactions with SPEs were not consolidated at December 31, 2024 or December 31, 2023. Upon the occurrence of a credit event related to the referenced asset, the SPE will deliver securities collateral as payment to the Firm, which exposes the Firm to changes in the collateral’s value. Derivative payments by the SPE are collateralized. The risks associated with these and similar derivatives with SPEs are essentially the same as those with non-SPE counterparties and are managed as part of the Firm’s overall exposure."
    },
    {
      "status": "ADDED",
      "current_title": "Other Structured Financings",
      "prior_title": null,
      "current_body": "The Firm invests in tax equity investment interests issued by entities that develop and own low-income communities (including low-income housing projects) and entities that construct and own facilities that will generate energy from renewable resources. The interests entitle the Firm to a share of tax credits and tax losses generated by these projects. In addition, the Firm has issued guarantees to investors in certain low-income housing funds. The guarantees are designed to return an investor’s contribution to a fund and the investor’s share of tax losses and tax credits expected to be generated by the fund. The Firm is also involved with entities designed to provide tax-efficient yields to the Firm or its clients."
    },
    {
      "status": "ADDED",
      "current_title": "Collateralized Loan and Debt Obligations",
      "prior_title": null,
      "current_body": "CLOs and CDOs are SPEs that purchase a pool of assets consisting of corporate loans, corporate bonds, ABS or synthetic exposures on similar assets through derivatives and issue multiple tranches of debt and equity securities to investors. The Firm underwrites the securities issued in certain CLO transactions on behalf of unaffiliated sponsors and provides advisory services to these unaffiliated sponsors. The Firm sells corporate loans to many of these SPEs, in some cases representing a significant portion of the total assets purchased. Although not obligated, the Firm generally makes a market in the securities issued by SPEs in these transactions and may retain unsold securities. These beneficial interests are included in Trading assets and are measured at fair value."
    },
    {
      "status": "ADDED",
      "current_title": "Equity-Linked Notes",
      "prior_title": null,
      "current_body": "ELN transactions are designed to provide investors with exposure to certain risks related to the specific equity security, equity index or other index. In an ELN transaction, the Firm typically transfers to an SPE either a note issued by the Firm, the payments on which are linked to the performance of a specific equity security, equity index or other index, or debt securities issued by other companies and a derivative contract, the terms of which will relate to the performance of a specific equity security, equity index or other index. These ELN transactions with SPEs were not consolidated at December 31, 2024 or December 31, 2023. 129December 2024 Form 10-K 129December 2024 Form 10-K 129December 2024 Form 10-K 129"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Transferred Assets with Continuing Involvement",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsRMLCMLU.S. AgencyCMOCLN andOther1SPE assets (UPB)2, 3$6,989 $78,232 $18,174 $12,725 Retained interestsInvestment grade$198 $543 $967 $— Non-investment grade175 923 — 71 Total$373 $1,466 $967 $71 Interests purchased in the secondary market3 Investment grade$45 $34 $79 $— Non-investment grade5 24 — — Total$50 $58 $79 $— Derivative assets $— $— $— $1,408 Derivative liabilities — — — 400 CLN and Other1 SPE assets (UPB)2, 3"
    },
    {
      "status": "ADDED",
      "current_title": "Interests purchased in the secondary market3",
      "prior_title": null,
      "current_body": "At December 31, 2023$ in millionsRMLCMLU.S. AgencyCMOCLN andOther1SPE assets (UPB)2, 3$4,333 $73,818 $12,083 $12,438 Retained interestsInvestment grade$149 $653 $460 $— Non-investment grade83 788 — 69 Total$232 $1,441 $460 $69 Interests purchased in the secondary market3 Investment grade$20 $22 $42 $— Non-investment grade— 16 — — Total$20 $38 $42 $— Derivative assets $— $— $— $1,073 Derivative liabilities — — — 426 CLN and Other1 SPE assets (UPB)2, 3"
    },
    {
      "status": "ADDED",
      "current_title": "Interests purchased in the secondary market3",
      "prior_title": null,
      "current_body": "At December 31, 2023$ in millionsRMLCMLU.S. AgencyCMOCLN andOther1SPE assets (UPB)2, 3$4,333 $73,818 $12,083 $12,438 Retained interestsInvestment grade$149 $653 $460 $— Non-investment grade83 788 — 69 Total$232 $1,441 $460 $69 Interests purchased in the secondary market3 Investment grade$20 $22 $42 $— Non-investment grade— 16 — — Total$20 $38 $42 $— Derivative assets $— $— $— $1,073 Derivative liabilities — — — 426 CLN and Other1 SPE assets (UPB)2, 3"
    },
    {
      "status": "ADDED",
      "current_title": "Interests purchased in the secondary market3",
      "prior_title": null,
      "current_body": "At December 31, 2023$ in millionsRMLCMLU.S. AgencyCMOCLN andOther1SPE assets (UPB)2, 3$4,333 $73,818 $12,083 $12,438 Retained interestsInvestment grade$149 $653 $460 $— Non-investment grade83 788 — 69 Total$232 $1,441 $460 $69 Interests purchased in the secondary market3 Investment grade$20 $22 $42 $— Non-investment grade— 16 — — Total$20 $38 $42 $— Derivative assets $— $— $— $1,073 Derivative liabilities — — — 426 CLN and Other1 SPE assets (UPB)2, 3"
    },
    {
      "status": "ADDED",
      "current_title": "Interests purchased in the secondary market3",
      "prior_title": null,
      "current_body": "At December 31, 2023$ in millionsRMLCMLU.S. AgencyCMOCLN andOther1SPE assets (UPB)2, 3$4,333 $73,818 $12,083 $12,438 Retained interestsInvestment grade$149 $653 $460 $— Non-investment grade83 788 — 69 Total$232 $1,441 $460 $69 Interests purchased in the secondary market3 Investment grade$20 $22 $42 $— Non-investment grade— 16 — — Total$20 $38 $42 $— Derivative assets $— $— $— $1,073 Derivative liabilities — — — 426 CLN and Other1 SPE assets (UPB)2, 3"
    },
    {
      "status": "ADDED",
      "current_title": "Proceeds from New Securitization Transactions and Sales of Loans",
      "prior_title": null,
      "current_body": "$ in millions202420232022New transactions1$36,326 $21,051 $22,136 Retained interests7,956 4,311 4,862 Sales of corporate loans to CLO SPEs1, 2— 24 62 New transactions1 Sales of corporate loans to CLO SPEs1, 2 1.Net gains on new transactions and sales of corporate loans to CLO entities at the time of the sale were not material for all periods presented. 2.Sponsored by non-affiliates. The Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 14)."
    },
    {
      "status": "ADDED",
      "current_title": "Assets Sold with Retained Exposure",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Gross cash proceeds from sale of assets1$92,229 $60,766 Fair valueAssets sold$92,580 $62,221 Derivative assets recognized in the balance sheet998 1,546 Derivative liabilities recognized in the balance sheet648 93 Gross cash proceeds from sale of assets1 1.The carrying value of assets derecognized at the time of sale approximates gross cash proceeds. The Firm enters into transactions in which it sells securities, primarily equities, and contemporaneously enters into bilateral OTC derivatives with the purchasers of the securities, through which it retains exposure to the sold securities. December 2024 Form 10-K130 December 2024 Form 10-K130 December 2024 Form 10-K130 130"
    },
    {
      "status": "ADDED",
      "current_title": "Regulatory Capital Framework",
      "prior_title": null,
      "current_body": "We are an FHC under the BHC Act and are subject to the regulation and oversight of the Federal Reserve. The Federal Reserve establishes capital requirements for us, including “well-capitalized” standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and standards for our U.S. Bank Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 16 to the financial statements."
    },
    {
      "status": "ADDED",
      "current_title": "Regulatory Capital Requirements",
      "prior_title": null,
      "current_body": "We are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For additional information on TLAC, see “Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” herein. Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 (“CET1”) 49December 2024 Form 10-K 49December 2024 Form 10-K 49December 2024 Form 10-K 49 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer RequirementsAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB16.0%5.4%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement9.0%8.4%5.5%1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein.2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein.3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero.The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB. Risk-Based Regulatory Capital Ratio RequirementsRegulatory MinimumAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedRequired ratios1CET1 capital ratio4.5 %13.5%12.9%10.0%Tier 1 capital ratio6.0 %15.0%14.4%11.5%Total capital ratio8.0 %17.0%16.4%13.5%1.Required ratios represent the regulatory minimum plus the capital buffer requirement.Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following:•Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us;•Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and•Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets).Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2024 and December 31, 2023, the differences between the actual and required ratios were lower under the Standardized Approach.Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%.CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024. The deferral impacts were fully phased-in from January 1, 2025. capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer RequirementsAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB16.0%5.4%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement9.0%8.4%5.5%1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein.2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein.3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero.The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB. Risk-Based Regulatory Capital Ratio RequirementsRegulatory MinimumAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedRequired ratios1CET1 capital ratio4.5 %13.5%12.9%10.0%Tier 1 capital ratio6.0 %15.0%14.4%11.5%Total capital ratio8.0 %17.0%16.4%13.5%1.Required ratios represent the regulatory minimum plus the capital buffer requirement.Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following:•Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us;•Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer RequirementsAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB16.0%5.4%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement9.0%8.4%5.5% At December 31, 2024 and December 31, 2023 SCB1 G-SIB capital surcharge2 CCyB3 1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein. 2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein. 3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero. The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB."
    },
    {
      "status": "ADDED",
      "current_title": "Capital Buffer Requirements",
      "prior_title": null,
      "current_body": "AtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB6.0%5.4%N/AG-SIB capital surcharge3.0%3.0%3.0%CCyB10%0%0%Capital buffer requirement9.0%8.4%5.5% At December 31, 2024 and December 31, 2023 CCyB1 1.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero. The capital buffer requirement represents the amount of CET1 capital the Firm must maintain above the minimum risk-based capital requirements in order to avoid restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. The Firm’s capital buffer requirement computed under the standardized approaches for calculating credit risk and market risk RWA (“Standardized Approach”) is equal to the sum of the SCB, G-SIB capital surcharge and CCyB, and the capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWA (“Advanced Approach”) is equal to the sum of the 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB."
    },
    {
      "status": "ADDED",
      "current_title": "Risk-Based Regulatory Capital Ratio Requirements",
      "prior_title": null,
      "current_body": "Regulatory MinimumAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedRequired ratios1CET1 capital ratio4.5 %13.5%12.9%10.0%Tier 1 capital ratio6.0 %15.0%14.4%11.5%Total capital ratio8.0 %17.0%16.4%13.5% At December 31, 2024 and December 31, 2023"
    },
    {
      "status": "ADDED",
      "current_title": "Required ratios1",
      "prior_title": null,
      "current_body": "CET1 capital ratio 1.Required ratios represent the regulatory minimum plus the capital buffer requirement. Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following: •Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us; •Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and•Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets).Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2024 and December 31, 2023, the differences between the actual and required ratios were lower under the Standardized Approach.Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%.CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024. The deferral impacts were fully phased-in from January 1, 2025. correlations or other market factors, such as market liquidity; and •Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets). Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2024 and December 31, 2023, the differences between the actual and required ratios were lower under the Standardized Approach. Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%. CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024. The deferral impacts were fully phased-in from January 1, 2025. December 2024 Form 10-K50 December 2024 Form 10-K50 December 2024 Form 10-K50 50 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Regulatory Capital RatiosRisk-based capitalStandardizedAdvanced$ in millionsAt December 31, 2024At December 31, 2023At December 31, 2024At December 31, 2023Risk-based capitalCET1 capital$75,095 $69,448 $75,095 $69,448 Tier 1 capital84,790 78,183 84,790 78,183 Total capital95,567 88,874 94,846 88,190 Total RWA471,834 456,053 477,331 448,154 Risk-based capital ratiosCET1 capital15.9 %15.2 %15.7 %15.5 %Tier 1 capital18.0 %17.1 %17.8 %17.4 %Total capital20.3 %19.5 %19.9 %19.7 %Required ratios1CET1 capital13.5 %12.9 %10.0 %10.0 %Tier 1 capital15.0 %14.4 %11.5 %11.5 %Total capital17.0 %16.4 %13.5 %13.5 %1.Required ratios are inclusive of any buffers applicable as of the date presented.Leveraged-based capital$ in millionsAt December 31, 2024At December 31, 2023Leveraged-based capitalAdjusted average assets1$1,223,779 $1,159,626 Supplementary leverage exposure21,517,687 1,429,552 Leveraged-based capital ratiosTier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %Required ratios3Tier 1 leverage4.0 %4.0 %SLR5.0 %5.0 %1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.2.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.3.Required ratios are inclusive of any buffers applicable as of the date presented. Regulatory Capital$ in millionsAtDecember 31,2024AtDecember 31,2023 ChangeCET1 capitalCommon shareholders’ equity$94,761 $90,288 $4,473 Regulatory adjustments and deductions:Net goodwill(16,354)(16,394)40 Net intangible assets(5,003)(5,509)506 Impact of CECL transition62 124 (61)Other adjustments and deductions11,629 939 690 Total CET1 capital$75,095 $69,448 $5,647 Additional Tier 1 capitalPreferred stock$9,750 $8,750 $1,000 Noncontrolling interests807 758 49 Additional Tier 1 capital$10,557 $9,508 $1,049 Deduction for investments in covered funds(862)(773)(89)Total Tier 1 capital$84,790 $78,183 $6,607 Standardized Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible ACL2,065 2,051 14 Other adjustments and deductions(139)(120)(19)Total Standardized Tier 2 capital$10,777 $10,691 $86 Total Standardized capital$95,567 $88,874 $6,693 Advanced Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible credit reserves1,344 1,367 (23)Other adjustments and deductions(139)(120)(19)Total Advanced Tier 2 capital$10,056 $10,007 $49 Total Advanced capital$94,846 $88,190 $6,656 1.Other adjustments and deductions used in the calculation of CET1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets. Regulatory Capital RatiosRisk-based capitalStandardizedAdvanced$ in millionsAt December 31, 2024At December 31, 2023At December 31, 2024At December 31, 2023Risk-based capitalCET1 capital$75,095 $69,448 $75,095 $69,448 Tier 1 capital84,790 78,183 84,790 78,183 Total capital95,567 88,874 94,846 88,190 Total RWA471,834 456,053 477,331 448,154 Risk-based capital ratiosCET1 capital15.9 %15.2 %15.7 %15.5 %Tier 1 capital18.0 %17.1 %17.8 %17.4 %Total capital20.3 %19.5 %19.9 %19.7 %Required ratios1CET1 capital13.5 %12.9 %10.0 %10.0 %Tier 1 capital15.0 %14.4 %11.5 %11.5 %Total capital17.0 %16.4 %13.5 %13.5 %1.Required ratios are inclusive of any buffers applicable as of the date presented.Leveraged-based capital$ in millionsAt December 31, 2024At December 31, 2023Leveraged-based capitalAdjusted average assets1$1,223,779 $1,159,626 Supplementary leverage exposure21,517,687 1,429,552 Leveraged-based capital ratiosTier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %Required ratios3Tier 1 leverage4.0 %4.0 %SLR5.0 %5.0 %1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.2.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.3.Required ratios are inclusive of any buffers applicable as of the date presented."
    },
    {
      "status": "ADDED",
      "current_title": "Risk-Weighted Assets",
      "prior_title": null,
      "current_body": "RWA reflects both the Firm’s on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following: •Credit Risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to the Firm; •Market Risk: Adverse changes in the level of one or more market prices, rates, indices, volatilities, correlations or other market factors, such as market liquidity; and •Operational Risk: Inadequate or failed processes or systems from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyberattacks or damage to physical assets). 131December 2024 Form 10-K 131December 2024 Form 10-K 131December 2024 Form 10-K 131"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Risk-based capital",
      "prior_title": null,
      "current_body": "StandardizedAdvanced$ in millionsAt December 31, 2024At December 31, 2023At December 31, 2024At December 31, 2023Risk-based capitalCET1 capital$75,095 $69,448 $75,095 $69,448 Tier 1 capital84,790 78,183 84,790 78,183 Total capital95,567 88,874 94,846 88,190 Total RWA471,834 456,053 477,331 448,154 Risk-based capital ratiosCET1 capital15.9 %15.2 %15.7 %15.5 %Tier 1 capital18.0 %17.1 %17.8 %17.4 %Total capital20.3 %19.5 %19.9 %19.7 %Required ratios1CET1 capital13.5 %12.9 %10.0 %10.0 %Tier 1 capital15.0 %14.4 %11.5 %11.5 %Total capital17.0 %16.4 %13.5 %13.5 %"
    },
    {
      "status": "ADDED",
      "current_title": "Required ratio1",
      "prior_title": null,
      "current_body": "1.Required ratios are inclusive of any buffers applicable as of the date presented."
    },
    {
      "status": "ADDED",
      "current_title": "Leveraged-based capital",
      "prior_title": null,
      "current_body": "$ in millionsAt December 31, 2024At December 31, 2023Leveraged-based capitalAdjusted average assets1$1,223,779 $1,159,626 Supplementary leverage exposure21,517,687 1,429,552 Leveraged-based capital ratiosTier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %Required ratios3Tier 1 leverage4.0 %4.0 %SLR5.0 %5.0 %"
    },
    {
      "status": "ADDED",
      "current_title": "U.S. Bank Subsidiaries’ Regulatory Capital and Capital Ratios",
      "prior_title": null,
      "current_body": "The OCC establishes capital requirements for the U.S. Bank Subsidiaries, and evaluates their compliance with such capital requirements. Regulatory capital requirements for the U.S. Bank Subsidiaries are calculated in a similar manner to the Firm’s regulatory capital requirements, although G-SIB capital surcharge and SCB requirements do not apply to the U.S. Bank Subsidiaries. The OCC’s regulatory capital framework includes Prompt Corrective Action (“PCA”) standards, including “well-capitalized” PCA standards that are based on specified regulatory capital ratio minimums. For the Firm to remain an FHC, its U.S. Bank Subsidiaries must remain well-capitalized in accordance with the OCC’s PCA standards. In addition, failure by the U.S. Bank Subsidiaries to meet minimum capital requirements may result in certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the U.S. Bank Subsidiaries’ and the Firm’s financial statements. At December 31, 2024 and December 31, 2023, MSBNA and MSPBNA risk-based capital ratios are based on the Standardized Approach rules. Beginning on January 1, 2020, MSBNA and MSPBNA elected to defer the effect of the adoption of CECL on risk-based capital amounts and ratios, as well as RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024. The deferral impacts were fully phased-in from January 1, 2025."
    },
    {
      "status": "ADDED",
      "current_title": "MSBNA’s Regulatory Capital",
      "prior_title": null,
      "current_body": "Well-Capitalized RequirementRequiredRatio1At December 31, 2024At December 31, 2023$ in millionsAmountRatioAmount RatioRisk-based capitalCET1 capital6.5 %7.0 %$22,165 20.1 %$21,925 21.7 %Tier 1 capital8.0 %8.5 %22,165 20.1 %21,925 21.7 %Total capital10.0 %10.5 %22,993 20.9 %22,833 22.6 %Leverage-based capitalTier 1 leverage5.0 %4.0 %$22,165 9.7 %$21,925 10.6 %SLR6.0 %3.0 %22,165 7.4 %21,925 8.2 % Required Ratio1 CET1 capital December 2024 Form 10-K132 December 2024 Form 10-K132 December 2024 Form 10-K132 132"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "MSPBNA’s Regulatory Capital",
      "prior_title": null,
      "current_body": "Well-Capitalized RequirementRequiredRatio1At December 31, 2024At December 31, 2023$ in millionsAmountRatioAmountRatioRisk-based capitalCET1 capital6.5 %7.0 %$16,672 26.1 %$15,388 25.8 %Tier 1 capital8.0 %8.5 %16,672 26.1 %15,388 25.8 %Total capital10.0 %10.5 %17,004 26.6 %15,675 26.3 %Leverage-based capitalTier 1 leverage5.0 %4.0 %$16,672 7.7 %$15,388 7.5 %SLR6.0 %3.0 %16,672 7.5 %15,388 7.2 % Required Ratio1 1.Required ratios are inclusive of any buffers applicable as of the date presented. Failure to maintain the buffers would result in restrictions on the ability to make capital distributions, including the payment of dividends. Additionally, MSBNA is conditionally registered with the SEC as a security-based swap dealer and is registered with the CFTC as a swap dealer. However, as MSBNA is prudentially regulated as a bank, its capital requirements continue to be determined by the OCC."
    },
    {
      "status": "ADDED",
      "current_title": "MS&Co. Regulatory Capital",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31, 2024AtDecember 31, 2023Net capital$18,483 $18,121 Excess net capital13,883 13,676 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31, 2023 Trading assets at fair value ($148,945 and $162,698 were pledged to various parties) Investment securities: Available-for-sale at fair value (amortized cost of $101,960 and $92,149) Held-to-maturity (fair value of $51,203 and $57,453) Securities purchased under agreements to resell (includes $— and $7 at fair value) Held for investment (net of allowance for credit losses of $1,066 and $1,169) Intangible assets (net of accumulated amortization of $5,445 and $4,847) Deposits (includes $6,499 and $6,472 at fair value) Securities sold under agreements to repurchase (includes $956 and $1,020 at fair value) Other secured financings (includes $14,088 and $9,899 at fair value) Borrowings (includes $103,332 and $93,900 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K See Notes to Consolidated Financial Statements79December 2024 Form 10-K 79"
    },
    {
      "status": "ADDED",
      "current_title": "Other Regulated Subsidiaries",
      "prior_title": null,
      "current_body": "Certain other subsidiaries are also subject to various regulatory capital requirements. Such subsidiaries include the following, each of which operated with capital in excess of their respective regulatory capital requirements as of December 31, 2024 and December 31, 2023, as applicable: •MSSB, a registered U.S. broker-dealer and introducing broker for the futures business, is subject to, respectively, the minimum net capital requirements of the SEC and CFTC. •MSIP, a London-based broker-dealer subsidiary, is subject to the capital requirements of the Prudential Regulation Authority (“PRA”). MSIP is also conditionally registered with the SEC as a security-based swap dealer and registered with the CFTC as a swap dealer. It currently complies with home-country capital requirements in lieu of SEC and CFTC capital requirements pursuant to applicable substituted compliance rules.•Morgan Stanley Europe Holdings SE Group (“MSEHSE Group”), including MSESE, a Germany-based broker-dealer, is subject to the capital requirements of the European Central Bank, BaFin and the German Central Bank. MSESE is also conditionally registered with the SEC as a security-based swap dealer and registered with the CFTC as a swap dealer. It currently complies with home-country capital requirements in lieu of SEC and CFTC capital requirements pursuant to applicable substituted compliance rules.•MSMS, a Tokyo-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Agency. MSMS is also registered with the CFTC as a swap dealer but is currently complying with home-country capital requirements in lieu of CFTC capital requirements pursuant to applicable substituted compliance rules. •MSCS, a U.S. entity and the Firm’s primary non-bank security-based swap dealer, is conditionally registered with the SEC as a security-based swap dealer, registered with the SEC as an OTC derivatives dealer and registered with the CFTC as a swap dealer. MSCS is subject to the capital requirements of both regulators.•MSCG, a U.S. entity, is registered with the CFTC as a swap dealer and is subject to its capital requirements.Certain other U.S. and non-U.S. subsidiaries of the Firm are subject to various securities, commodities and banking regulations, and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsidiaries have also consistently operated with capital in excess of their local capital adequacy requirements.Restrictions on PaymentsThe regulatory capital requirements referred to above, and certain covenants contained in various agreements governing indebtedness of the Firm, may restrict the Firm’s ability to withdraw capital from its subsidiaries. The following table represents net assets of consolidated subsidiaries that may be restricted as to the payment of cash dividends and advances to the Parent Company.$ in millionsAtDecember 31,2024 AtDecember 31,2023 Restricted net assets$49,914 $49,008 •MSIP, a London-based broker-dealer subsidiary, is subject to the capital requirements of the Prudential Regulation Authority (“PRA”). MSIP is also conditionally registered with the SEC as a security-based swap dealer and registered with the CFTC as a swap dealer. It currently complies with home-country capital requirements in lieu of SEC and CFTC capital requirements pursuant to applicable substituted compliance rules. •Morgan Stanley Europe Holdings SE Group (“MSEHSE Group”), including MSESE, a Germany-based broker-dealer, is subject to the capital requirements of the European Central Bank, BaFin and the German Central Bank. MSESE is also conditionally registered with the SEC as a security-based swap dealer and registered with the CFTC as a swap dealer. It currently complies with home-country capital requirements in lieu of SEC and CFTC capital requirements pursuant to applicable substituted compliance rules. •MSMS, a Tokyo-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Agency. MSMS is also registered with the CFTC as a swap dealer but is currently complying with home-country capital requirements in lieu of CFTC capital requirements pursuant to applicable substituted compliance rules. •MSCS, a U.S. entity and the Firm’s primary non-bank security-based swap dealer, is conditionally registered with the SEC as a security-based swap dealer, registered with the SEC as an OTC derivatives dealer and registered with the CFTC as a swap dealer. MSCS is subject to the capital requirements of both regulators. •MSCG, a U.S. entity, is registered with the CFTC as a swap dealer and is subject to its capital requirements. Certain other U.S. and non-U.S. subsidiaries of the Firm are subject to various securities, commodities and banking regulations, and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsidiaries have also consistently operated with capital in excess of their local capital adequacy requirements."
    },
    {
      "status": "ADDED",
      "current_title": "Restrictions on Payments",
      "prior_title": null,
      "current_body": "The regulatory capital requirements referred to above, and certain covenants contained in various agreements governing indebtedness of the Firm, may restrict the Firm’s ability to withdraw capital from its subsidiaries. The following table represents net assets of consolidated subsidiaries that may be restricted as to the payment of cash dividends and advances to the Parent Company. $ in millionsAtDecember 31,2024 AtDecember 31,2023 Restricted net assets$49,914 $49,008 133December 2024 Form 10-K 133December 2024 Form 10-K 133December 2024 Form 10-K 133"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Preferred Stock",
      "prior_title": null,
      "current_body": "SharesOutstanding Carrying Value$ in millions, except per share dataAtDecember 31,2024 LiquidationPreferenceper ShareAtDecember 31,2024 AtDecember 31,2023 SeriesA44,000 $25,000 $1,100 $1,100 C1519,882 1,000 408 408 E34,500 25,000 862 862 F34,000 25,000 850 850 I40,000 25,000 1,000 1,000 K40,000 25,000 1,000 1,000 L20,000 25,000 500 500 M400,000 1,000 430 430 N3,000 100,000 300 300 O52,000 25,000 1,300 1,300 P40,000 25,000 1,000 1,000 Q40,000 25,000 1,000 — Total$9,750 $8,750 Shares authorized30,000,000 C1 Q 1.Series C preferred stock is held by MUFG. The Firm’s preferred stock has a preference over its common stock upon liquidation. The Firm’s preferred stock qualifies as and is included in Tier 1 capital in accordance with regulatory capital requirements (see Note 16). Description of Preferred Stock as of December 31, 2024 DepositarySharesper ShareRedemptionSeries1, 2SharesIssuedPriceper Share3Date4A44,000 1,000 $25,000 Currently redeemableC51,160,791 N/A1,100 Currently redeemableE34,500 1,000 25,000 Currently redeemableF34,000 1,000 25,000 Currently redeemableI40,000 1,000 25,000 Currently redeemableK40,000 1,000 25,000 April 15, 2027L20,000 1,000 25,000 January 15, 2025M400,000 N/A1,000 September 15, 2026N3,000 100 100,000 October 2, 2025O52,000 1,000 25,000 January 15, 2027P640,000 1,000 25,000 October 15, 2027Q740,000 1,000 25,000 October 15, 20291.All shares issued are non-cumulative. Each share has a par value of $0.01.2.Dividends on Series A are based on a floating rate, and dividends on Series C, L, O, P and Q are based on a fixed rate. Dividends on all other Series are based on a fixed-to-floating rate.3.Series A and C are redeemable at the redemption price plus accrued and unpaid dividends, regardless of whether dividends are actually declared, up to but excluding the date of redemption. All other Series are redeemable at the redemption price plus any declared and unpaid dividends, up to but excluding the date fixed for redemption.4.Series A and C are currently redeemable at the Firm’s option, in whole or in part, from time to time. Series E, F and I are currently redeemable, and all other Series are redeemable, at the Firm’s option (i) in whole or in part, from time to time, on any dividend payment date on or after the redemption date or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as described in the terms of that series).5.Series C is non-voting perpetual preferred stock. Dividends on the Series C preferred stock are payable, on a non-cumulative basis, as and if declared by the Board of Directors, in cash, at the rate of 10% per annum of the liquidation preference of $1,000 per share.6.The Firm issued Series P Preferred Stock on August 2, 2022.7.The Firm issued Series Q Preferred Stock on July 30, 2024.Common StockRollforward of Common Stock Outstandingin millions20242023Shares outstanding at beginning of period1,627 1,675 Treasury stock purchases1(43)(71)Other223 23 Shares outstanding at end of period1,607 1,627 1.The Firm’s Board of Directors has authorized the repurchase of the Firm’s outstanding stock under a share repurchase program (“Share Repurchase Program”). In addition to the Firm’s Share Repurchase Program, Treasury stock purchases include repurchases of common stock for employee tax withholding.2.Other includes net shares issued to and forfeited from employee stock trusts and issued for RSU conversions.Share Repurchases$ in millions20242023Repurchases of common stock under the Firm’s Share Repurchase Program$3,250 $5,300 On June 28, 2024, the Firm announced that its Board of Directors reauthorized a multi-year repurchase program of up to $20 billion of outstanding common stock (the “Share Repurchase Authorization”), without a set expiration date, beginning in the third quarter of 2024, which will be exercised from time to time as conditions warrant. Pursuant to the Share Repurchase Program, the Firm considers, among other things, business segment capital needs, as well as stock-based compensation and benefit plan"
    },
    {
      "status": "ADDED",
      "current_title": "Description of Preferred Stock as of December 31, 2024",
      "prior_title": null,
      "current_body": "DepositarySharesper ShareRedemptionSeries1, 2SharesIssuedPriceper Share3Date4A44,000 1,000 $25,000 Currently redeemableC51,160,791 N/A1,100 Currently redeemableE34,500 1,000 25,000 Currently redeemableF34,000 1,000 25,000 Currently redeemableI40,000 1,000 25,000 Currently redeemableK40,000 1,000 25,000 April 15, 2027L20,000 1,000 25,000 January 15, 2025M400,000 N/A1,000 September 15, 2026N3,000 100 100,000 October 2, 2025O52,000 1,000 25,000 January 15, 2027P640,000 1,000 25,000 October 15, 2027Q740,000 1,000 25,000 October 15, 2029 Series1, 2 Price per Share3 Date4 C5 M N O P6 Q7 1.All shares issued are non-cumulative. Each share has a par value of $0.01. 2.Dividends on Series A are based on a floating rate, and dividends on Series C, L, O, P and Q are based on a fixed rate. Dividends on all other Series are based on a fixed-to-floating rate. 3.Series A and C are redeemable at the redemption price plus accrued and unpaid dividends, regardless of whether dividends are actually declared, up to but excluding the date of redemption. All other Series are redeemable at the redemption price plus any declared and unpaid dividends, up to but excluding the date fixed for redemption. 4.Series A and C are currently redeemable at the Firm’s option, in whole or in part, from time to time. Series E, F and I are currently redeemable, and all other Series are redeemable, at the Firm’s option (i) in whole or in part, from time to time, on any dividend payment date on or after the redemption date or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as described in the terms of that series). 5.Series C is non-voting perpetual preferred stock. Dividends on the Series C preferred stock are payable, on a non-cumulative basis, as and if declared by the Board of Directors, in cash, at the rate of 10% per annum of the liquidation preference of $1,000 per share. 6.The Firm issued Series P Preferred Stock on August 2, 2022. 7.The Firm issued Series Q Preferred Stock on July 30, 2024."
    },
    {
      "status": "ADDED",
      "current_title": "Rollforward of Common Stock Outstanding",
      "prior_title": null,
      "current_body": "in millions20242023Shares outstanding at beginning of period1,627 1,675 Treasury stock purchases1(43)(71)Other223 23 Shares outstanding at end of period1,607 1,627 Treasury stock purchases1 Other2 1.The Firm’s Board of Directors has authorized the repurchase of the Firm’s outstanding stock under a share repurchase program (“Share Repurchase Program”). In addition to the Firm’s Share Repurchase Program, Treasury stock purchases include repurchases of common stock for employee tax withholding. 2.Other includes net shares issued to and forfeited from employee stock trusts and issued for RSU conversions."
    },
    {
      "status": "ADDED",
      "current_title": "Share Repurchases",
      "prior_title": null,
      "current_body": "$ in millions20242023Repurchases of common stock under the Firm’s Share Repurchase Program$3,250 $5,300 Repurchases of common stock under the Firm’s Share Repurchase Program On June 28, 2024, the Firm announced that its Board of Directors reauthorized a multi-year repurchase program of up to $20 billion of outstanding common stock (the “Share Repurchase Authorization”), without a set expiration date, beginning in the third quarter of 2024, which will be exercised from time to time as conditions warrant. Pursuant to the Share Repurchase Program, the Firm considers, among other things, business segment capital needs, as well as stock-based compensation and benefit plan December 2024 Form 10-K134 December 2024 Form 10-K134 December 2024 Form 10-K134 134"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Common Shares Outstanding for Basic and Diluted EPS",
      "prior_title": null,
      "current_body": "in millions202420232022Weighted average common shares outstanding, basic1,591 1,628 1,691 Effect of dilutive RSUs and PSUs20 18 22 Weighted average common shares outstanding and common stock equivalents, diluted1,611 1,646 1,713 Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS)— 2 3 Dividends $ in millions, except per share data202420232022Per Share1TotalPerShare1TotalPerShare1TotalPreferred Stock SeriesA$1,548 $68 $1,522 $67 $1,061 $47 C100 52 100 52 100 52 E1,806 62 1,791 62 1,781 60 F1,747 60 1,719 58 1,719 59 I1,603 64 1,594 64 1,594 64 K1,463 59 1,463 59 1,463 59 L1,219 24 1,219 24 1,219 24 M259 24 59 24 59 24 N38,841 27 9,160 27 5,300 16 O1,063 55 1,063 55 1,063 55 P1,625 65 1,625 65 739 29 Q759 30 — — — — Total Preferred stock$590 $557 $489 Common stock$3.55 $5,745 $3.25 $5,393 $2.95 $5,108 Per Share1 Per Share1 Per Share1 M2 N3 O Q 1.Common and Preferred Stock dividends are payable quarterly unless otherwise noted. 2.Series M is payable semiannually until September 15, 2026 and thereafter will be payable quarterly. 3.Series N was payable semiannually until March 15, 2023 and thereafter is payable quarterly."
    },
    {
      "status": "ADDED",
      "current_title": "Accumulated Other Comprehensive Income (Loss)1",
      "prior_title": null,
      "current_body": "$ in millionsCTAAFS SecuritiesPensionand OtherDVACash Flow HedgesTotalDecember 31, 2021$(1,002)$245 $(551)$(1,794)$— $(3,102)OCI during the period(202)(4,437)43 1,449 (4)(3,151)December 31, 2022(1,204)(4,192)(508)(345)(4)(6,253)OCI during the period51 1,098 (87)(1,250)20 (168)December 31, 2023(1,153)(3,094)(595)(1,595)16 (6,421)OCI during the period(324)521 12 (551)(51)(393)December 31, 2024$(1,477)$(2,573)$(583)$(2,146)$(35)$(6,814) CTA—Cumulative foreign currency translation adjustments 1.Amounts are net of tax and noncontrolling interests. Components of Period Changes in OCI 2024$ in millionsPre-taxGain(Loss)Income Tax Benefit (Provision)After-taxGain(Loss)Non-controllingInterestsNetCTAOCI activity$(117)$(305)$(422)$(98)$(324)Reclassified to earnings— — — — — Net OCI$(117)$(305)$(422)$(98)$(324)Change in net unrealized gains (losses) on AFS securitiesOCI activity$736 $(175)$561 $— $561 Reclassified to earnings(52)12 (40)— (40)Net OCI$684 $(163)$521 $— $521 Pension and otherOCI activity$(8)$5 $(3)$— $(3)Reclassified to earnings20 (5)15 — 15 Net OCI$12 $— $12 $— $12 Change in net DVAOCI activity$(729)$174 $(555)$17 $(572)Reclassified to earnings27 (6)21 — 21 Net OCI$(702)$168 $(534)$17 $(551)Change in fair value of cash flow hedge derivatives OCI activity$(99)$24 $(75)$— $(75)Reclassified to earnings32 (8)24 — $24 Net OCI$(67)$16 $(51)$— $(51) 2023$ in millionsPre-taxGain(Loss)Income Tax Benefit (Provision)After-taxGain(Loss)Non-controllingInterestsNetCTAOCI activity$(73)$53 $(20)$(71)$51 Reclassified to earnings— — — — — Net OCI$(73)$53 $(20)$(71)$51 Change in net unrealized gains (losses) on AFS securitiesOCI activity$1,488 $(353)$1,135 $— $1,135 Reclassified to earnings(49)12 (37)— (37)Net OCI$1,439 $(341)$1,098 $— $1,098 Pension and otherOCI activity$(96)$24 $(72)$— $(72)Reclassified to earnings(18)3 (15)— (15)Net OCI$(114)$27 $(87)$— $(87)Change in net DVAOCI activity$(1,728)$424 $(1,304)$(40)$(1,264)Reclassified to earnings19 (5)14 — 14 Net OCI$(1,709)$419 $(1,290)$(40)$(1,250)Change in fair value of cash flow hedge derivativesOCI activity$9 $(1)$8 $— $8 Reclassified to earnings16 (4)12 — 12 Net OCI$25 $(5)$20 $— $20"
    },
    {
      "status": "ADDED",
      "current_title": "Components of Period Changes in OCI",
      "prior_title": null,
      "current_body": "2024$ in millionsPre-taxGain(Loss)Income Tax Benefit (Provision)After-taxGain(Loss)Non-controllingInterestsNetCTAOCI activity$(117)$(305)$(422)$(98)$(324)Reclassified to earnings— — — — — Net OCI$(117)$(305)$(422)$(98)$(324)Change in net unrealized gains (losses) on AFS securitiesOCI activity$736 $(175)$561 $— $561 Reclassified to earnings(52)12 (40)— (40)Net OCI$684 $(163)$521 $— $521 Pension and otherOCI activity$(8)$5 $(3)$— $(3)Reclassified to earnings20 (5)15 — 15 Net OCI$12 $— $12 $— $12 Change in net DVAOCI activity$(729)$174 $(555)$17 $(572)Reclassified to earnings27 (6)21 — 21 Net OCI$(702)$168 $(534)$17 $(551)Change in fair value of cash flow hedge derivatives OCI activity$(99)$24 $(75)$— $(75)Reclassified to earnings32 (8)24 — $24 Net OCI$(67)$16 $(51)$— $(51) 2023$ in millionsPre-taxGain(Loss)Income Tax Benefit (Provision)After-taxGain(Loss)Non-controllingInterestsNetCTAOCI activity$(73)$53 $(20)$(71)$51 Reclassified to earnings— — — — — Net OCI$(73)$53 $(20)$(71)$51 Change in net unrealized gains (losses) on AFS securitiesOCI activity$1,488 $(353)$1,135 $— $1,135 Reclassified to earnings(49)12 (37)— (37)Net OCI$1,439 $(341)$1,098 $— $1,098 Pension and otherOCI activity$(96)$24 $(72)$— $(72)Reclassified to earnings(18)3 (15)— (15)Net OCI$(114)$27 $(87)$— $(87)Change in net DVAOCI activity$(1,728)$424 $(1,304)$(40)$(1,264)Reclassified to earnings19 (5)14 — 14 Net OCI$(1,709)$419 $(1,290)$(40)$(1,250)Change in fair value of cash flow hedge derivativesOCI activity$9 $(1)$8 $— $8 Reclassified to earnings16 (4)12 — 12 Net OCI$25 $(5)$20 $— $20"
    },
    {
      "status": "ADDED",
      "current_title": "Change in fair value of cash flow hedge derivatives",
      "prior_title": null,
      "current_body": "OCI activity 135December 2024 Form 10-K 135December 2024 Form 10-K 135December 2024 Form 10-K 135"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Cumulative Foreign Currency Translation Adjustments",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Associated with net investments in subsidiaries with a non-U.S. dollar functional currency$(4,326)$(2,917)Hedges, net of tax2,849 1,764 Total$(1,477)$(1,153)Carrying value of net investments in non-U.S. dollar functional currency subsidiaries subject to hedges$18,303 $18,761 Cumulative foreign currency translation adjustments include gains or losses resulting from translating foreign currency financial statements from their respective functional currencies to U.S. dollars, net of hedge gains or losses and related tax effects. The Firm uses foreign currency contracts to manage the currency exposure relating to its net investments in non-U.S. dollar functional currency subsidiaries and determines the amount of exposure to hedge on a pre-tax basis. The Firm may also elect not to hedge its net investments in certain foreign operations due to market conditions or other reasons, including the availability of various currency contracts at acceptable costs. Information relating to the effects on cumulative foreign currency translation adjustments that resulted from the translation of foreign currency financial statements and from gains and losses from hedges of the Firm’s net investments in non-U.S. dollar functional currency subsidiaries is summarized in the previous table. 18. Interest Income and Interest Expense $ in millions202420232022Interest incomeCash and cash equivalents1$3,068 $3,408 $914 Investment securities5,161 3,992 3,066 Loans13,771 12,424 6,988 Securities purchased under agreements to resell212,416 7,762 2,188 Securities borrowed35,391 5,191 1,020 Trading assets, net of Trading liabilities5,924 4,488 2,484 Customer receivables and Other1,48,404 8,584 4,935 Total interest income$54,135 $45,849 $21,595 Interest expenseDeposits$10,368 $8,216 $1,825 Borrowings13,242 11,437 5,054 Securities sold under agreements to repurchase510,787 6,737 1,760 Securities loaned61,036 784 503 Customer payables and Other4,710,091 10,445 3,126 Total interest expense$45,524 $37,619 $12,268 Net interest$8,611 $8,230 $9,327 1.In 2023, interest-bearing Cash and cash equivalents and related interest were presented separately for the first time. The prior year amounts for Customer receivables and Other have been disaggregated to exclude Cash and cash equivalents to align with the current presentation.2.Includes interest paid on Securities purchased under agreements to resell. 3.Includes fees paid on Securities borrowed. 4.Certain prior-period amounts have been adjusted to conform with the current-period presentation. This adjustment resulted in a decrease to both interest income and interest expense of $4,432 million for the year ended December 31, 2023, and no effect on net interest income, with the entire impact to the Firm recorded within the Institutional Securities segment. See Note 2 for additional information. 5.Includes interest received on Securities sold under agreements to repurchase. 6.Includes fees received on Securities loaned. 7.Includes fees received from Equity Financing customers related to their short transactions, which can be under either margin or securities lending arrangements.Interest income and Interest expense are classified in the income statement based on the nature of the instrument and related market conventions. When included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense.Accrued Interest$ in millionsAtDecember 31,2024 AtDecember 31,2023 Customer and other receivables$3,322 $4,206 Customer and other payables3,938 4,360 19. Deferred Compensation Plans and Carried Interest Compensation Stock-Based Compensation PlansCertain current and former employees of the Firm participate in the Firm’s stock-based compensation plans. These plans include RSUs, PSUs and an ESPP."
    },
    {
      "status": "ADDED",
      "current_title": "18. Interest Income and Interest Expense",
      "prior_title": null,
      "current_body": "$ in millions202420232022Interest incomeCash and cash equivalents1$3,068 $3,408 $914 Investment securities5,161 3,992 3,066 Loans13,771 12,424 6,988 Securities purchased under agreements to resell212,416 7,762 2,188 Securities borrowed35,391 5,191 1,020 Trading assets, net of Trading liabilities5,924 4,488 2,484 Customer receivables and Other1,48,404 8,584 4,935 Total interest income$54,135 $45,849 $21,595 Interest expenseDeposits$10,368 $8,216 $1,825 Borrowings13,242 11,437 5,054 Securities sold under agreements to repurchase510,787 6,737 1,760 Securities loaned61,036 784 503 Customer payables and Other4,710,091 10,445 3,126 Total interest expense$45,524 $37,619 $12,268 Net interest$8,611 $8,230 $9,327 Cash and cash equivalents1 Securities purchased under agreements to resell2 Securities borrowed3 Customer receivables and Other1,4 Securities sold under agreements to repurchase5 Securities loaned6 Customer payables and Other4,7 1.In 2023, interest-bearing Cash and cash equivalents and related interest were presented separately for the first time. The prior year amounts for Customer receivables and Other have been disaggregated to exclude Cash and cash equivalents to align with the current presentation. 2.Includes interest paid on Securities purchased under agreements to resell. 3.Includes fees paid on Securities borrowed. 4.Certain prior-period amounts have been adjusted to conform with the current-period presentation. This adjustment resulted in a decrease to both interest income and interest expense of $4,432 million for the year ended December 31, 2023, and no effect on net interest income, with the entire impact to the Firm recorded within the Institutional Securities segment. See Note 2 for additional information. 5.Includes interest received on Securities sold under agreements to repurchase. 6.Includes fees received on Securities loaned. 7.Includes fees received from Equity Financing customers related to their short transactions, which can be under either margin or securities lending arrangements. Interest income and Interest expense are classified in the income statement based on the nature of the instrument and related market conventions. When included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense."
    },
    {
      "status": "ADDED",
      "current_title": "Accrued Interest",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Customer and other receivables$3,322 $4,206 Customer and other payables3,938 4,360"
    },
    {
      "status": "ADDED",
      "current_title": "Stock-Based Compensation Plans",
      "prior_title": null,
      "current_body": "Certain current and former employees of the Firm participate in the Firm’s stock-based compensation plans. These plans include RSUs, PSUs and an ESPP. December 2024 Form 10-K136 December 2024 Form 10-K136 December 2024 Form 10-K136 136"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Stock-Based Compensation Expense",
      "prior_title": null,
      "current_body": "$ in millions202420232022RSUs$1,464 $1,607 $1,827 PSUs148 91 40 ESPP10 11 8 Total$1,622 $1,709 $1,875 Retirement-eligible awards1$202 $178 $176 Retirement-eligible awards1 1.Total expense includes stock-based compensation anticipated to be awarded in January of the following year that does not contain a future service requirement."
    },
    {
      "status": "ADDED",
      "current_title": "Tax Benefit Related to Stock-Based Compensation Expense",
      "prior_title": null,
      "current_body": "$ in millions202420232022Tax benefit1$343 $382 $427 Tax benefit1 1.Excludes income tax consequences related to employee share-based award conversions."
    },
    {
      "status": "ADDED",
      "current_title": "Unrecognized Compensation Cost Related to Stock-Based Awards Granted",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,20241 To be recognized in:2025$510 2026230 Thereafter38 Total$778 At"
    },
    {
      "status": "ADDED",
      "current_title": "December 31,",
      "prior_title": null,
      "current_body": "20241 1.Amounts do not include forfeitures or 2024 performance year compensation awarded in January 2025 which will begin to be amortized in 2025. In connection with awards under its stock-based compensation plans, the Firm is authorized to issue shares of common stock held in treasury or newly issued shares. The Firm generally uses treasury shares, if available, to deliver shares to employees or employee stock trusts and has an ongoing repurchase authorization that includes repurchases in connection with awards under its stock-based compensation plans."
    },
    {
      "status": "ADDED",
      "current_title": "Common Shares Available for Future Awards under Stock-Based Compensation Plans",
      "prior_title": null,
      "current_body": "in millionsAtDecember 31,2024 Shares109 See Note 17 for additional information on the Firm’s Share Repurchase Program."
    },
    {
      "status": "ADDED",
      "current_title": "Restricted Stock Units",
      "prior_title": null,
      "current_body": "RSUs are subject to vesting over time, generally one to seven years from the date of award, contingent upon continued employment and subject to restrictions on sale, transfer or assignment until conversion to common stock. All or a portion of an award may be forfeited if employment is terminated before the end of the relevant vesting period or canceled after the relevant vesting period in certain situations. Recipients of RSUs may have voting rights, at the Firm’s discretion, and generally receive dividend equivalents if the awards vest. one Vested and Unvested RSU Activity 2024shares in millionsNumber ofSharesWeightedAverageAward DateFair ValueRSUs at beginning of period59 $86.92 Awarded20 85.46 Conversions to common stock(23)77.11 Forfeited(2)90.84 RSUs at end of period154 $90.53 Weighted average award date fair valueRSUs awarded in 202393.55 RSUs awarded in 202296.61 1.At December 31, 2024, the weighted average remaining term until delivery for the outstanding RSUs was approximately 1.2 years.Unvested RSU Activity 2024shares in millionsNumber ofSharesWeightedAverageAward DateFair ValueUnvested RSUs at beginning of period28 $89.16 Awarded20 85.46 Vested(19)85.96 Forfeited(2)90.51 Unvested RSUs at end of period127 $88.64 1.Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. Fair Value of RSU Activity1$ in millions202420232022Conversions to common stock$2,065 $2,019 $2,301 Vested1,723 2,260 2,433 1. Fair value of converted stock is based on the share price at conversion. Fair value of vested stock is based on the share price at the date of vesting. Performance-Based Stock UnitsPSUs vest and convert to shares of common stock only if the Firm satisfies, over a three-year performance period, performance goals that are determined on the award date. The number of PSUs that may vest ranges from 0% to 150% of the target award, based on the Firm’s level of achievement of the specified performance goals. One-half of a PSU award is earned based on the Firm’s average return on tangible common equity (“MS Average ROTCE”) over the performance period. The other half of a PSU award is earned based on the Firm’s total shareholder return, relative to the total shareholder return of the S&P 500 Financials Sector Index (“MS Relative TSR”) for awards granted prior to 2023, or for PSU awards granted from 2023 onwards based on the MS Average ROTCE relative to the Return on Tangible Common Equity of each member of the defined comparison group (“MS Relative ROTCE”). PSUs have vesting, conversion and cancellation provisions that are generally similar to those of RSUs. Dividend equivalents that accrue on these awards are paid in cash when the awards convert. At December 31, 2024, approximately 2.8 million PSUs at target were outstanding."
    },
    {
      "status": "ADDED",
      "current_title": "Vested and Unvested RSU Activity",
      "prior_title": null,
      "current_body": "2024shares in millionsNumber ofSharesWeightedAverageAward DateFair ValueRSUs at beginning of period59 $86.92 Awarded20 85.46 Conversions to common stock(23)77.11 Forfeited(2)90.84 RSUs at end of period154 $90.53 Weighted average award date fair valueRSUs awarded in 202393.55 RSUs awarded in 202296.61"
    },
    {
      "status": "ADDED",
      "current_title": "RSUs at end of period1",
      "prior_title": null,
      "current_body": "1.At December 31, 2024, the weighted average remaining term until delivery for the outstanding RSUs was approximately 1.2 years."
    },
    {
      "status": "ADDED",
      "current_title": "Unvested RSU Activity",
      "prior_title": null,
      "current_body": "2024shares in millionsNumber ofSharesWeightedAverageAward DateFair ValueUnvested RSUs at beginning of period28 $89.16 Awarded20 85.46 Vested(19)85.96 Forfeited(2)90.51 Unvested RSUs at end of period127 $88.64"
    },
    {
      "status": "ADDED",
      "current_title": "Unvested RSUs at end of period1",
      "prior_title": null,
      "current_body": "1.Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. 1."
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value of RSU Activity1",
      "prior_title": null,
      "current_body": "$ in millions202420232022Conversions to common stock$2,065 $2,019 $2,301 Vested1,723 2,260 2,433 Conversions to common stock 1. Fair value of converted stock is based on the share price at conversion. Fair value of vested stock is based on the share price at the date of vesting."
    },
    {
      "status": "ADDED",
      "current_title": "Performance-Based Stock Units",
      "prior_title": null,
      "current_body": "PSUs vest and convert to shares of common stock only if the Firm satisfies, over a three-year performance period, performance goals that are determined on the award date. The number of PSUs that may vest ranges from 0% to 150% of the target award, based on the Firm’s level of achievement of the specified performance goals. One-half of a PSU award is earned based on the Firm’s average return on tangible common equity (“MS Average ROTCE”) over the performance period. The other half of a PSU award is earned based on the Firm’s total shareholder return, relative to the total shareholder return of the S&P 500 Financials Sector Index (“MS Relative TSR”) for awards granted prior to 2023, or for PSU awards granted from 2023 onwards based on the MS Average ROTCE relative to the Return on Tangible Common Equity of each member of the defined comparison group (“MS Relative ROTCE”). PSUs have vesting, conversion and cancellation provisions that are generally similar to those of RSUs. Dividend equivalents that accrue on these awards are paid in cash when the awards convert. At December 31, 2024, approximately 2.8 million PSUs at target were outstanding. 137December 2024 Form 10-K 137December 2024 Form 10-K 137December 2024 Form 10-K 137"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "PSU Awards - Fair Value on Award Date",
      "prior_title": null,
      "current_body": "202420232022MS Average ROTCE/ Relative ROTCE1$83.86 $85.76 $100.12 MS Relative TSR— — 102.17 MS Average ROTCE/ Relative ROTCE1 MS Relative TSR 1. Weighted average price on award date The MS Relative TSR fair values on the award date were estimated using a Monte Carlo simulation and the following assumptions."
    },
    {
      "status": "ADDED",
      "current_title": "Monte Carlo Simulation Assumptions",
      "prior_title": null,
      "current_body": "Risk-FreeInterest RateExpectedStock PriceVolatilityCorrelationCoefficientAward year20221.3 %38.9 %0.91 The risk-free interest rate was determined based on the yields available on U.S. Treasury zero-coupon issues. The expected stock price volatility was determined using historical volatility. The correlation coefficient was developed based on historical price data of the Firm and the S&P 500 Financials Sector Index. The model uses an expected dividend yield equivalent to reinvesting dividends."
    },
    {
      "status": "ADDED",
      "current_title": "Deferred Cash-Based Compensation Plans",
      "prior_title": null,
      "current_body": "DCP generally provide a return to the plan participants based upon the performance of each participant’s referenced investments."
    },
    {
      "status": "ADDED",
      "current_title": "Deferred Cash-Based Compensation Expense",
      "prior_title": null,
      "current_body": "$ in millions202420232022Deferred cash-based awards$770 $693 $761 Return on referenced investments672 668 (716)Total$1,442 $1,361 $45 Retirement-eligible awards1$287 $259 $264 Retirement-eligible awards1 1.Total expense includes deferred cash-based compensation anticipated to be awarded in January of the following year that does not contain a future service requirement."
    },
    {
      "status": "ADDED",
      "current_title": "Carried Interest Compensation",
      "prior_title": null,
      "current_body": "The Firm generally recognizes compensation expense for any portion of carried interest (both realized and unrealized) that is allocated to employees. For information on performance-based fees in the form of carried interest, which are directly related to carried interest compensation, see “Revenue Recognition—Carried Interest” herein."
    },
    {
      "status": "ADDED",
      "current_title": "Carried Interest Compensation Expense",
      "prior_title": null,
      "current_body": "$ in millions202420232022Expense$114 $44 $225 20. Employee Benefit PlansPension PlansNet Periodic Benefit Expense (Income) Pension Plans$ in millions202420232022Service cost, benefits earned during the period$20 $20 $19 Interest cost on projected benefit obligation137 140 111 Expected return on plan assets(99)(99)(56)Net amortization of prior service cost1 1 1 Amortization of net (gains) losses21 (9)25 Plan settlements— 2 — Net periodic benefit expense$80 $55 $100 Certain current and former U.S. employees of the Firm and its U.S. affiliates who were hired before July 1, 2007 are covered by the U.S. pension plan, a non-contributory defined benefit pension plan that is qualified under Section 401(a) of the Internal Revenue Code (“U.S. Qualified Plan”). The U.S. Qualified Plan has ceased future benefit accruals.The Morgan Stanley Supplemental Executive Retirement and Excess Plan (“SEREP”), is a non-contributory defined benefit plan that is not qualified under Section 401(a) of the Internal Revenue Code, has ceased future benefit accruals.Certain of the Firm’s non-U.S. subsidiaries also have defined benefit pension plans covering their eligible current and former employees.The Firm’s pension plans generally provide pension benefits that are based on each employee’s years of credited service and on compensation levels specified in the plans.Rollforward of Pre-tax AOCI Pension Plans$ in millions202420232022Beginning balance$(821)$(716)$(768)Net gain (loss)(12)(100)26 Amortization of prior service cost1 1 1 Amortization of net (gains) losses 21 (9)25 Plan settlements, curtailments and amendments(1)3 — Changes recognized in OCI9 (105)52 Ending balance$(812)$(821)$(716)The Firm generally amortizes into net periodic benefit expense (income) the unrecognized net gains and losses exceeding 10% of the greater of the projected benefit obligation or the market-related value of plan assets. The U.S. pension plans amortize the unrecognized net gains and losses over the average life expectancy of participants. The remaining plans generally amortize the unrecognized net gains and losses and prior service credit over the average remaining service period of active participants."
    },
    {
      "status": "ADDED",
      "current_title": "Net Periodic Benefit Expense (Income)",
      "prior_title": null,
      "current_body": "Pension Plans$ in millions202420232022Service cost, benefits earned during the period$20 $20 $19 Interest cost on projected benefit obligation137 140 111 Expected return on plan assets(99)(99)(56)Net amortization of prior service cost1 1 1 Amortization of net (gains) losses21 (9)25 Plan settlements— 2 — Net periodic benefit expense$80 $55 $100 Amortization of net (gains) losses Plan settlements Certain current and former U.S. employees of the Firm and its U.S. affiliates who were hired before July 1, 2007 are covered by the U.S. pension plan, a non-contributory defined benefit pension plan that is qualified under Section 401(a) of the Internal Revenue Code (“U.S. Qualified Plan”). The U.S. Qualified Plan has ceased future benefit accruals. The Morgan Stanley Supplemental Executive Retirement and Excess Plan (“SEREP”), is a non-contributory defined benefit plan that is not qualified under Section 401(a) of the Internal Revenue Code, has ceased future benefit accruals. Certain of the Firm’s non-U.S. subsidiaries also have defined benefit pension plans covering their eligible current and former employees. The Firm’s pension plans generally provide pension benefits that are based on each employee’s years of credited service and on compensation levels specified in the plans."
    },
    {
      "status": "ADDED",
      "current_title": "Rollforward of Pre-tax AOCI",
      "prior_title": null,
      "current_body": "Pension Plans$ in millions202420232022Beginning balance$(821)$(716)$(768)Net gain (loss)(12)(100)26 Amortization of prior service cost1 1 1 Amortization of net (gains) losses 21 (9)25 Plan settlements, curtailments and amendments(1)3 — Changes recognized in OCI9 (105)52 Ending balance$(812)$(821)$(716) Amortization of net (gains) losses Plan settlements, curtailments and amendments The Firm generally amortizes into net periodic benefit expense (income) the unrecognized net gains and losses exceeding 10% of the greater of the projected benefit obligation or the market-related value of plan assets. The U.S. pension plans amortize the unrecognized net gains and losses over the average life expectancy of participants. The remaining plans generally amortize the unrecognized net gains and losses and prior service credit over the average remaining service period of active participants. December 2024 Form 10-K138 December 2024 Form 10-K138 December 2024 Form 10-K138 138"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income)",
      "prior_title": null,
      "current_body": "Pension Plans202420232022Discount rate4.75 %4.93 %2.80 %Expected long-term rate of return on plan assets4.18 %3.54 %1.71 % Expected long-term rate of return on plan assets The accounting for pension plans involves certain assumptions and estimates. The expected long-term rate of return for the U.S. Qualified Plan was estimated by computing a weighted average of the underlying long-term expected returns based on the investment managers’ target allocations."
    },
    {
      "status": "ADDED",
      "current_title": "Rollforward of the Projected Benefit Obligation and Fair Value of Plan Assets",
      "prior_title": null,
      "current_body": "Pension Plans$ in millions20242023Rollforward of projected benefit obligationBenefit obligation at beginning of year$2,975 $2,907 Service cost20 20 Interest cost137 140 Actuarial (gain) loss1(201)79 Plan amendments1 — Plan settlements(1)(13)Benefits paid(149)(164)Other2(18)6 Projected benefit obligation at end of year$2,764 $2,975 Rollforward of fair value of plan assetsFair value of plan assets at beginning of year$2,422 $2,416 Actual return on plan assets(114)78 Employer contributions38 89 Benefits paid(149)(164)Plan settlements(1)(13)Other2(10)16 Fair value of plan assets at end of year$2,186 $2,422 Funded (unfunded) status$(578)$(553)Amounts recognized in the balance sheetAssets$71 $84 Liabilities(649)(637)Net amount recognized$(578)$(553) Actuarial (gain) loss1 Other2 Other2 1.Primarily reflects the impact of year-over-year discount rate fluctuations. 2.Primarily includes the impact of foreign currency exchange rate changes."
    },
    {
      "status": "ADDED",
      "current_title": "Accumulated Benefit Obligation",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Pension plans$2,740 $2,956"
    },
    {
      "status": "ADDED",
      "current_title": "Pension Plans with Projected Benefit Obligations in Excess of the Fair Value of Plan Assets",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Projected benefit obligation$2,616 $2,821 Accumulated benefit obligation2,594 2,803 Fair value of plan assets1,967 2,184 The pension plans included in the table above may differ based on their funding status as of December 31 of each year. Weighted Average Assumptions Used to Determine Projected Benefit Obligation Pension PlansAtDecember 31,2024 AtDecember 31,2023 Discount rate5.39 %4.75 %The discount rates used to determine the benefit obligation were selected by the Firm, in consultation with its independent actuary. The U.S. pension plans use a pension discount yield curve based on the characteristics of the plans, each determined independently. The pension discount yield curve represents spot discount yields based on duration implicit in a representative broad-based Aa-rated corporate bond universe of high-quality fixed income investments. For all non-U.S. pension plans, the assumed discount rates are based on the nature of liabilities, local economic environments and available bond indices.Plan AssetsFair Value of Plan AssetsAt December 31, 2024$ in millionsLevel 1Level 2Level 3TotalAssetsCash and cash equivalents$7 $— $— $7 U.S. government and agency securities1,638 213 — 1,851 Derivative contracts— 1 — 1 Other investments— — 70 70 Other receivables1— 10 — 10 Total$1,645 $224 $70 $1,939 Assets Measured at NAVCommingled trust funds:Money market27 Foreign funds:Fixed income25 Liquidity13 Targeted cash flow184 Total$249 LiabilitiesOther payables1— (2)— (2)Total liabilities$— $(2)$— $(2)Fair value of plan assets$2,186 The pension plans included in the table above may differ based on their funding status as of December 31 of each year."
    },
    {
      "status": "ADDED",
      "current_title": "Weighted Average Assumptions Used to Determine Projected Benefit Obligation",
      "prior_title": null,
      "current_body": "Pension PlansAtDecember 31,2024 AtDecember 31,2023 Discount rate5.39 %4.75 % The discount rates used to determine the benefit obligation were selected by the Firm, in consultation with its independent actuary. The U.S. pension plans use a pension discount yield curve based on the characteristics of the plans, each determined independently. The pension discount yield curve represents spot discount yields based on duration implicit in a representative broad-based Aa-rated corporate bond universe of high-quality fixed income investments. For all non-U.S. pension plans, the assumed discount rates are based on the nature of liabilities, local economic environments and available bond indices."
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value of Plan Assets",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsLevel 1Level 2Level 3TotalAssetsCash and cash equivalents$7 $— $— $7 U.S. government and agency securities1,638 213 — 1,851 Derivative contracts— 1 — 1 Other investments— — 70 70 Other receivables1— 10 — 10 Total$1,645 $224 $70 $1,939 Assets Measured at NAVCommingled trust funds:Money market27 Foreign funds:Fixed income25 Liquidity13 Targeted cash flow184 Total$249 LiabilitiesOther payables1— (2)— (2)Total liabilities$— $(2)$— $(2)Fair value of plan assets$2,186 Other receivables1 Other payables1 139December 2024 Form 10-K 139December 2024 Form 10-K 139December 2024 Form 10-K 139"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Rollforward of Level 3 Plan Assets",
      "prior_title": null,
      "current_body": "$ in millions20242023Balance at beginning of period$71 $64 Realized and unrealized gains2 2 Purchases, sales and settlements, net(3)5 Balance at end of period$70 $71 There were no transfers between levels during 2024 and 2023. The U.S. Qualified Plan assets represent 86% and 87% of the Firm’s total pension plan assets at December 31, 2024 and December 31, 2023, respectively. The U.S. Qualified Plan uses a combination of active and risk-controlled fixed income investment strategies. The fixed income asset allocation consists primarily of fixed income securities and related derivative instruments designed to approximate the expected cash flows of the plan’s liabilities to help reduce plan exposure to interest rate variation and to better align assets with the obligation. The longer-duration fixed income allocation is expected to help protect the plan’s funded status and maintain the stability of plan contributions over the long run. The investment portfolio performance is assessed by comparing actual investment performance with changes in the estimated present value of the U.S. Qualified Plan’s benefit obligation. Derivative instruments are permitted in the U.S. Qualified Plan’s investment portfolio only to the extent that they comply with all of the plan’s investment policy guidelines and are consistent with the plan’s risk and return objectives. As a fundamental operating principle, any restrictions on the underlying assets apply to the respective derivative product. This includes percentage allocations and credit quality. Derivatives are used solely for the purpose of enhancing investment returns in the underlying assets and not to circumvent portfolio restrictions.Plan assets are measured at fair value using valuation techniques that are consistent with the valuation techniques applied to the Firm’s major categories of assets and liabilities as described in Notes 2 and 4. OTC derivative contracts consist of investments in interest rate swaps and total return swaps. Other investments consist of insurance contracts held by non-U.S.-based plans. The insurance contracts are valued based on the premium reserve of the insurer for a guarantee that the insurer has given to the employee benefit plan that approximates fair value. The insurance contracts are categorized in Level 3 of the fair value hierarchy.Commingled trust funds are privately offered funds regulated, supervised and subject to periodic examination by a U.S. federal or state agency and available to institutional clients. The trust must be maintained for the collective investment or reinvestment of assets contributed to it from U.S. tax-qualified employee benefit plans maintained by more than one employer or controlled group of corporations. The sponsor of the commingled trust funds values the funds based on the fair value of the underlying securities. Commingled trust funds are redeemable at NAV at the measurement date or in the near future.Some non-U.S.-based plans hold foreign funds that consist of investments in fixed income funds and liquidity funds. Fixed income funds and targeted cash flow funds are designed to provide a series of fixed annual cash flows achieved by primarily investing in government bonds. Liquidity funds place a high priority on capital preservation, stable value and a high liquidity of assets. Foreign funds are readily redeemable at NAV.The Firm generally considers the NAV of commingled trust funds and foreign funds provided by the fund manager to be the best estimate of fair value.Expected ContributionsThe Firm’s policy is to fund at least the amount sufficient to meet minimum funding requirements under applicable employee benefit and tax laws. At December 31, 2024, the Firm expected to contribute approximately $40 million to its pension plans in 2025 based upon the plans’ current funded status and expected asset return assumptions for 2025.Expected Future Benefit Payments At December 31, 2024$ in millionsPension Plans2025$161 2026167 2027174 2028179 2029183 2030-2034968 investment returns in the underlying assets and not to circumvent portfolio restrictions. Plan assets are measured at fair value using valuation techniques that are consistent with the valuation techniques applied to the Firm’s major categories of assets and liabilities as described in Notes 2 and 4. OTC derivative contracts consist of investments in interest rate swaps and total return swaps. Other investments consist of insurance contracts held by non-U.S.-based plans. The insurance contracts are valued based on the premium reserve of the insurer for a guarantee that the insurer has given to the employee benefit plan that approximates fair value. The insurance contracts are categorized in Level 3 of the fair value hierarchy. Commingled trust funds are privately offered funds regulated, supervised and subject to periodic examination by a U.S. federal or state agency and available to institutional clients. The trust must be maintained for the collective investment or reinvestment of assets contributed to it from U.S. tax-qualified employee benefit plans maintained by more than one employer or controlled group of corporations. The sponsor of the commingled trust funds values the funds based on the fair value of the underlying securities. Commingled trust funds are redeemable at NAV at the measurement date or in the near future. Some non-U.S.-based plans hold foreign funds that consist of investments in fixed income funds and liquidity funds. Fixed income funds and targeted cash flow funds are designed to provide a series of fixed annual cash flows achieved by primarily investing in government bonds. Liquidity funds place a high priority on capital preservation, stable value and a high liquidity of assets. Foreign funds are readily redeemable at NAV. The Firm generally considers the NAV of commingled trust funds and foreign funds provided by the fund manager to be the best estimate of fair value."
    },
    {
      "status": "ADDED",
      "current_title": "Expected Contributions",
      "prior_title": null,
      "current_body": "The Firm’s policy is to fund at least the amount sufficient to meet minimum funding requirements under applicable employee benefit and tax laws. At December 31, 2024, the Firm expected to contribute approximately $40 million to its pension plans in 2025 based upon the plans’ current funded status and expected asset return assumptions for 2025."
    },
    {
      "status": "ADDED",
      "current_title": "Expected Future Benefit Payments",
      "prior_title": null,
      "current_body": "At December 31, 2024$ in millionsPension Plans2025$161 2026167 2027174 2028179 2029183 2030-2034968 December 2024 Form 10-K140 December 2024 Form 10-K140 December 2024 Form 10-K140 140"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "401(k) Plan",
      "prior_title": null,
      "current_body": "$ in millions202420232022Expense$400 $397 $355 U.S. employees meeting certain eligibility requirements may participate in the Firm’s 401(k) plan. Eligible employees receive discretionary 401(k) matching cash contributions as determined annually by the Firm. The Firm generally matched eligible employee contributions up to the IRS limit at 4%, or 5% up to a certain compensation level, in 2024 and 2023. Eligible employees with eligible pay less than or equal to $100,001 also received a fixed contribution equal to 2% of eligible pay. Contributions are invested among available funds according to each participant’s investment direction and are included in the Firm’s 401(k) expense."
    },
    {
      "status": "ADDED",
      "current_title": "Non-U.S. Defined Contribution Pension Plans",
      "prior_title": null,
      "current_body": "$ in millions202420232022Expense$181 $173 $163 The Firm maintains separate defined contribution pension plans that cover eligible employees of certain non-U.S. subsidiaries. Under such plans, contributions are generally determined based on a fixed rate of base salary with certain vesting requirements. 21. Income Taxes Components of Provision for Income Taxes$ in millions202420232022CurrentU.S.:Federal$2,011 $1,190 $2,518 State and local660 542 442 Non-U.S.:U.K.487 267 405 India1243 127 17 Japan115 139 105 Brazil257 437 24 Other3342 344 248 Total$3,915 $3,046 $3,759 DeferredU.S.:Federal$8 $(295)$(803)State and local(6)(59)(142)Non-U.S.:U.K.42 12 55 India155 (12)— Japan9 (13)20 Brazil26 (43)25 Other338 (53)(4)Total$152 $(463)$(849)Provision for income taxes$4,067 $2,583 $2,910 1.In 2024, India was presented separately for the first time. The prior period amounts for Other have been disaggregated to exclude India to align with the current presentation. 2.In 2023, Brazil was presented separately for the first time. The prior period amounts for Other have been disaggregated to exclude Brazil to align with the current presentation.3.Other Non-U.S. tax provisions for 2024, 2023 and 2022 primarily include Germany, Hong Kong and Singapore.Reconciliation of the U.S. Federal Statutory Income Tax Rate to the Effective Income Tax Rate202420232022U.S. federal statutory income tax rate21.0 %21.0 %21.0 %U.S. state and local income taxes, net of U.S. federal income tax benefits3.0 3.4 1.8 Domestic tax credits and tax exempt income(0.6)(1.3)(0.9)Non-U.S. earnings1.8 1.9 0.6 Employee share-based awards(0.6)(1.5)(1.7)Non-taxable income1(1.9)(2.3)(0.8)Other0.4 0.7 0.7 Effective income tax rate23.1 %21.9 %20.7 %1.In 2023, Non-taxable income was presented separately for the first time. The prior period amounts for Non-U.S. earnings and Other have been disaggregated to exclude Non-taxable income to align with the current presentation."
    },
    {
      "status": "ADDED",
      "current_title": "Components of Provision for Income Taxes",
      "prior_title": null,
      "current_body": "$ in millions202420232022CurrentU.S.:Federal$2,011 $1,190 $2,518 State and local660 542 442 Non-U.S.:U.K.487 267 405 India1243 127 17 Japan115 139 105 Brazil257 437 24 Other3342 344 248 Total$3,915 $3,046 $3,759 DeferredU.S.:Federal$8 $(295)$(803)State and local(6)(59)(142)Non-U.S.:U.K.42 12 55 India155 (12)— Japan9 (13)20 Brazil26 (43)25 Other338 (53)(4)Total$152 $(463)$(849)Provision for income taxes$4,067 $2,583 $2,910 India1 Brazil2 Other3 India1 Brazil2 Other3 1.In 2024, India was presented separately for the first time. The prior period amounts for Other have been disaggregated to exclude India to align with the current presentation. 2.In 2023, Brazil was presented separately for the first time. The prior period amounts for Other have been disaggregated to exclude Brazil to align with the current presentation. 3.Other Non-U.S. tax provisions for 2024, 2023 and 2022 primarily include Germany, Hong Kong and Singapore."
    },
    {
      "status": "ADDED",
      "current_title": "Reconciliation of the U.S. Federal Statutory Income Tax Rate to the Effective Income Tax Rate",
      "prior_title": null,
      "current_body": "202420232022U.S. federal statutory income tax rate21.0 %21.0 %21.0 %U.S. state and local income taxes, net of U.S. federal income tax benefits3.0 3.4 1.8 Domestic tax credits and tax exempt income(0.6)(1.3)(0.9)Non-U.S. earnings1.8 1.9 0.6 Employee share-based awards(0.6)(1.5)(1.7)Non-taxable income1(1.9)(2.3)(0.8)Other0.4 0.7 0.7 Effective income tax rate23.1 %21.9 %20.7 % U.S. state and local income taxes, net of U.S. federal income tax benefits Non-taxable income1 1.In 2023, Non-taxable income was presented separately for the first time. The prior period amounts for Non-U.S. earnings and Other have been disaggregated to exclude Non-taxable income to align with the current presentation. 141December 2024 Form 10-K 141December 2024 Form 10-K 141December 2024 Form 10-K 141"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Deferred Tax Assets and Liabilities",
      "prior_title": null,
      "current_body": "$ in millionsAtDec 31,2024 AtDec 31,2023Gross deferred tax assetsNet operating loss and tax credit carryforwards$236 $255 Employee compensation and benefit plans2,565 2,636 Allowance for credit losses and other reserves796 755 Valuation of net trading inventory, investments and receivables1,808 1,897 Other223 78 Total deferred tax assets5,628 5,621 Less: Deferred tax assets valuation allowance214 211 Deferred tax assets after valuation allowance$5,414 $5,410 Gross deferred tax liabilitiesFixed assets801 772 Intangibles and goodwill1,931 2,003 Total deferred tax liabilities$2,732 $2,775 Net deferred tax assets$2,682 $2,635 At Dec 31, 2024 At Dec 31, 2023 Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The Firm believes the recognized net deferred tax assets (after valuation allowance) at December 31, 2024 are more likely than not to be realized based on expectations as to future taxable income in the jurisdictions in which it operates. The earnings of certain foreign subsidiaries and affiliates are indefinitely reinvested due to regulatory and other capital requirements in foreign jurisdictions. As of December 31, 2024 and December 31, 2023, the unrecognized deferred tax liability attributable to indefinitely reinvested earnings is $405 million and $302 million, respectively."
    },
    {
      "status": "ADDED",
      "current_title": "Rollforward of Unrecognized Tax Benefits",
      "prior_title": null,
      "current_body": "$ in millions202420232022Balance at beginning of period$1,244 $1,129 $971 Increases based on tax positions related to the current period202 147 256 Increases based on tax positions related to prior periods132 141 64 Decreases based on tax positions related to prior periods(52)(73)(134)Decreases related to settlements with taxing authorities(174)(79)(6)Decreases related to lapse of statute of limitations(47)(21)(22)Balance at end of period$1,305 $1,244 $1,129 Net unrecognized tax benefits1$1,159 $1,090 $1,007 Net unrecognized tax benefits1 1.Represent ending unrecognized tax benefits adjusted for the impact of the federal benefit of state issues, competent authority arrangements and foreign tax credit offsets. If recognized, these net benefits would favorably impact the effective tax rate in future periods. It is reasonably possible that significant changes in the balance of unrecognized tax benefits may occur within the next 12 months. At this time, however, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits and the impact on the Firm’s effective tax rate over the next 12 months. Interest Expense (Benefit) and Penalties Associated with Unrecognized Tax Benefits, Net of Federal and State Income Tax Benefits$ in millions202420232022Recognized in income statement$92 $65 $39 Accrued at end of period255 237 175 Interest and penalties related to unrecognized tax benefits are recognized as a component of the provision for income taxes. Earliest Tax Year Subject to Examination in Major Tax JurisdictionsJurisdictionTax YearU.S.2017New York State and New York City2010U.K.2014Japan2020Hong Kong2018The Firm is routinely under examination by the IRS and other tax authorities in certain countries, such as Japan and the U.K., and in states and localities in which it has significant business operations, such as New York.The Firm believes that the resolution of these tax examinations will not have a material effect on the annual financial statements, although a resolution could have a material impact in the income statement and on the effective tax rate for any period in which such resolutions occur.22. Segment, Geographic and Revenue Information The Firm structures its segments primarily based upon the nature of the financial products and services provided to customers and its management organization, which is consistent with the approach used by the Firm’s chief operating decision maker (“CODM”) to assess the Firm’s financial performance. The Firm provides a wide range of financial products and services to its customers in each of its business segments: Institutional Securities, Wealth Management and Investment Management. For a further discussion of the business segments, see Note 1.Revenues and expenses directly associated with each respective business segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular business segment are generally allocated based on each business segment’s respective net revenues, non-interest expenses or other relevant measures.As a result of revenues and expenses from transactions with other operating segments being treated as transactions with external parties for purposes of segment disclosures, the Firm includes an Intersegment Eliminations category to reconcile the business segment results to the consolidated results."
    },
    {
      "status": "ADDED",
      "current_title": "Interest Expense (Benefit) and Penalties Associated with Unrecognized Tax Benefits, Net of Federal and State Income Tax Benefits",
      "prior_title": null,
      "current_body": "$ in millions202420232022Recognized in income statement$92 $65 $39 Accrued at end of period255 237 175 Interest and penalties related to unrecognized tax benefits are recognized as a component of the provision for income taxes."
    },
    {
      "status": "ADDED",
      "current_title": "Earliest Tax Year Subject to Examination in Major Tax Jurisdictions",
      "prior_title": null,
      "current_body": "JurisdictionTax YearU.S.2017New York State and New York City2010U.K.2014Japan2020Hong Kong2018 Tax Year The Firm is routinely under examination by the IRS and other tax authorities in certain countries, such as Japan and the U.K., and in states and localities in which it has significant business operations, such as New York. The Firm believes that the resolution of these tax examinations will not have a material effect on the annual financial statements, although a resolution could have a material impact in the income statement and on the effective tax rate for any period in which such resolutions occur."
    },
    {
      "status": "ADDED",
      "current_title": "22. Segment, Geographic and Revenue Information",
      "prior_title": null,
      "current_body": "The Firm structures its segments primarily based upon the nature of the financial products and services provided to customers and its management organization, which is consistent with the approach used by the Firm’s chief operating decision maker (“CODM”) to assess the Firm’s financial performance. The Firm provides a wide range of financial products and services to its customers in each of its business segments: Institutional Securities, Wealth Management and Investment Management. For a further discussion of the business segments, see Note 1. Revenues and expenses directly associated with each respective business segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular business segment are generally allocated based on each business segment’s respective net revenues, non-interest expenses or other relevant measures. As a result of revenues and expenses from transactions with other operating segments being treated as transactions with external parties for purposes of segment disclosures, the Firm includes an Intersegment Eliminations category to reconcile the business segment results to the consolidated results. December 2024 Form 10-K142 December 2024 Form 10-K142 December 2024 Form 10-K142 142"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Selected Financial Information by Business Segment",
      "prior_title": null,
      "current_body": "2024$ in millionsISWMIMI/ETotalInvestment banking$6,170 $653 $— $(118)$6,705 Trading15,967 733 9 54 16,763 Investments406 85 333 — 824 Commissions and fees12,905 2,478 — (289)5,094 Asset management1, 2646 16,501 5,627 (275)22,499 Other607 657 14 (13)1,265 Total non-interest revenues26,701 21,107 5,983 (641)53,150 Interest income39,332 16,247 112 (1,556)54,135 Interest expense37,953 8,934 234 (1,597)45,524 Net interest1,379 7,313 (122)41 8,611 Net revenues$28,080 $28,420 $5,861 $(600)$61,761 Provision for credit losses$202 $62 $— $— $264 Compensation and benefits38,669 15,207 2,302 — 26,178 Non-compensation expenses310,460 5,411 2,422 (570)17,723 Total non-interest expenses$19,129 $20,618 $4,724 $(570)$43,901 Income before provision for income taxes$8,749 $7,740 $1,137 $(30)$17,596 Provision for income taxes1,947 1,852 275 (7)4,067 Net income6,802 5,888 862 (23)13,529 Net income applicable to noncontrolling interests136 — 3 — 139 Net income applicable to Morgan Stanley$6,666 $5,888 $859 $(23)$13,390 Pre-tax margin431 %27 %19 %N/M28 % Commissions and fees1 Asset management1, 2 Compensation and benefits3 Non-compensation expenses3 Pre-tax margin4 2023$ in millionsISWMIMI/ETotalInvestment banking$4,578 $454 $— $(84)$4,948 Trading14,468 823 (59)31 15,263 Investments177 62 334 — 573 Commissions and fees12,540 2,279 — (282)4,537 Asset management1, 2596 14,019 5,231 (229)19,617 Other480 513 (7)(11)975 Total non-interest revenues22,839 18,150 5,499 (575)45,913 Interest income532,383 15,015 135 (1,684)45,849 Interest expense532,162 6,897 264 (1,704)37,619 Net interest221 8,118 (129)20 8,230 Net revenues$23,060 $26,268 $5,370 $(555)$54,143 Provision for credit losses$401 $131 $— $— $532 Compensation and benefits38,369 13,972 2,217 — 24,558 Non-compensation expenses39,814 5,635 2,311 (520)17,240 Total non-interest expenses$18,183 $19,607 $4,528 $(520)$41,798 Income before provision for income taxes$4,476 $6,530 $842 $(35)$11,813 Provision for income taxes884 1,508 199 (8)2,583 Net income3,592 5,022 643 (27)9,230 Net income applicable to noncontrolling interests139 — 4 — 143 Net income applicable to Morgan Stanley$3,453 $5,022 $639 $(27)$9,087 Pre-tax margin419 %25 %16 %N/M22 % 2022$ in millionsISWMIMI/ETotalInvestment banking$5,235 $438 $— $(74)$5,599 Trading14,318 (432)(11)53 13,928 Investments(156)51 120 — 15 Commissions and fees12,756 2,467 — (285)4,938 Asset management1,2580 13,872 5,332 (206)19,578 Other(295)592 (2)(12)283 Total non-interest revenues22,438 16,988 5,439 (524)44,341 Interest income13,276 9,579 56 (1,316)21,595 Interest expense11,321 2,150 120 (1,323)12,268 Net interest1,955 7,429 (64)7 9,327 Net revenues$24,393 $24,417 $5,375 $(517)$53,668 Provision for credit losses$211 $69 $— $— $280 Compensation and benefits38,246 12,534 2,273 — 23,053 Non-compensation expenses39,221 5,231 2,295 (501)16,246 Total non-interest expenses$17,467 $17,765 $4,568 $(501)$39,299 Income before provision for income taxes$6,715 $6,583 $807 $(16)$14,089 Provision for income taxes1,308 1,444 162 (4)2,910 Net income5,407 5,139 645 (12)11,179 Net income applicable to noncontrolling interests165 — (15)— 150 Net income applicable to Morgan Stanley$5,242 $5,139 $660 $(12)$11,029 Pre-tax margin428 %27 %15 %N/M26 %1.Substantially all revenues are from contracts with customers.2.Includes certain fees that may relate to services performed in prior periods.3.The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.5.Certain prior-period amounts have been adjusted to conform with the current-period presentation. This adjustment resulted in a decrease to both interest income and interest expense of $4,432 million for the year ended December 31, 2023, and no effect on net interest income, with the entire impact to the Firm recorded within the Institutional Securities segment. See Note 2 for additional information. 2023$ in millionsISWMIMI/ETotalInvestment banking$4,578 $454 $— $(84)$4,948 Trading14,468 823 (59)31 15,263 Investments177 62 334 — 573 Commissions and fees12,540 2,279 — (282)4,537 Asset management1, 2596 14,019 5,231 (229)19,617 Other480 513 (7)(11)975 Total non-interest revenues22,839 18,150 5,499 (575)45,913 Interest income532,383 15,015 135 (1,684)45,849 Interest expense532,162 6,897 264 (1,704)37,619 Net interest221 8,118 (129)20 8,230 Net revenues$23,060 $26,268 $5,370 $(555)$54,143 Provision for credit losses$401 $131 $— $— $532 Compensation and benefits38,369 13,972 2,217 — 24,558 Non-compensation expenses39,814 5,635 2,311 (520)17,240 Total non-interest expenses$18,183 $19,607 $4,528 $(520)$41,798 Income before provision for income taxes$4,476 $6,530 $842 $(35)$11,813 Provision for income taxes884 1,508 199 (8)2,583 Net income3,592 5,022 643 (27)9,230 Net income applicable to noncontrolling interests139 — 4 — 143 Net income applicable to Morgan Stanley$3,453 $5,022 $639 $(27)$9,087 Pre-tax margin419 %25 %16 %N/M22 % Commissions and fees1 Asset management1, 2 Interest income5 Interest expense5 Compensation and benefits3 Non-compensation expenses3 Pre-tax margin4 2022$ in millionsISWMIMI/ETotalInvestment banking$5,235 $438 $— $(74)$5,599 Trading14,318 (432)(11)53 13,928 Investments(156)51 120 — 15 Commissions and fees12,756 2,467 — (285)4,938 Asset management1,2580 13,872 5,332 (206)19,578 Other(295)592 (2)(12)283 Total non-interest revenues22,438 16,988 5,439 (524)44,341 Interest income13,276 9,579 56 (1,316)21,595 Interest expense11,321 2,150 120 (1,323)12,268 Net interest1,955 7,429 (64)7 9,327 Net revenues$24,393 $24,417 $5,375 $(517)$53,668 Provision for credit losses$211 $69 $— $— $280 Compensation and benefits38,246 12,534 2,273 — 23,053 Non-compensation expenses39,221 5,231 2,295 (501)16,246 Total non-interest expenses$17,467 $17,765 $4,568 $(501)$39,299 Income before provision for income taxes$6,715 $6,583 $807 $(16)$14,089 Provision for income taxes1,308 1,444 162 (4)2,910 Net income5,407 5,139 645 (12)11,179 Net income applicable to noncontrolling interests165 — (15)— 150 Net income applicable to Morgan Stanley$5,242 $5,139 $660 $(12)$11,029 Pre-tax margin428 %27 %15 %N/M26 % Commissions and fees1 Asset management1,2 Compensation and benefits3 Non-compensation expenses3 Pre-tax margin4 1.Substantially all revenues are from contracts with customers. 2.Includes certain fees that may relate to services performed in prior periods. 3.The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. 4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues. 5.Certain prior-period amounts have been adjusted to conform with the current-period presentation. This adjustment resulted in a decrease to both interest income and interest expense of $4,432 million for the year ended December 31, 2023, and no effect on net interest income, with the entire impact to the Firm recorded within the Institutional Securities segment. See Note 2 for additional information. 5. 143December 2024 Form 10-K 143December 2024 Form 10-K 143December 2024 Form 10-K 143"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Detail of Investment Banking Revenues",
      "prior_title": null,
      "current_body": "$ in millions202420232022Institutional Securities—Advisory$2,378 $2,244 $2,946 Institutional Securities—Underwriting3,792 2,334 2,289 Firm Investment banking revenues from contracts with customers90 %91 %90 %"
    },
    {
      "status": "ADDED",
      "current_title": "Trading Revenues by Product Type",
      "prior_title": null,
      "current_body": "$ in millions202420232022Interest rate$5,901 $4,646 $2,808 Foreign exchange1,170 1,054 1,585 Equity19,005 8,929 7,515 Commodity and other2,003 1,624 1,466 Credit(1,316)(990)554 Total$16,763 $15,263 $13,928 Equity1 1.Dividend income is included within equity contracts. The previous table summarizes realized and unrealized gains and losses primarily related to the Firm’s Trading assets and liabilities, from derivative and non-derivative financial instruments, included in Trading revenues in the income statement. The Firm generally utilizes financial instruments across a variety of product types in connection with its market-making and related risk management strategies. The trading revenues presented in the table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes."
    },
    {
      "status": "ADDED",
      "current_title": "Investment Management Investments Revenues—Net Cumulative Unrealized Carried Interest",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Net cumulative unrealized performance-based fees at risk of reversing$796 $787 The Firm’s portion of net cumulative performance-based fees in the form of unrealized carried interest, for which the Firm is not obligated to pay compensation, is at risk of reversing when the returns in certain funds fall below specified performance targets. See Note 14 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received."
    },
    {
      "status": "ADDED",
      "current_title": "Investment Management Asset Management Revenues—Reduction of Fees Due to Fee Waivers",
      "prior_title": null,
      "current_body": "$ in millions202420232022Fee waivers$99 $93 $211 The Firm waives a portion of its fees in the Investment Management business segment from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940. Certain Other Fee WaiversSeparately, the Firm’s employees, including its senior officers, may participate on the same terms and conditions as other investors in certain funds that the Firm sponsors primarily for client investment, and the Firm may waive or lower applicable fees and charges for its employees.Other Expenses—Transaction Taxes$ in millions202420232022Transaction taxes$926 $866 $910 Transaction taxes are composed of securities transaction taxes and stamp duties, which are levied on the sale or purchase of securities listed on recognized stock exchanges in certain markets. These taxes are imposed mainly on trades of equity securities in Asia and EMEA. Similar transaction taxes are levied on trades of listed derivative instruments in certain countries.Net Revenues by Region$ in millions202420232022Americas$46,929 $41,651 $40,117 EMEA7,197 6,058 6,811 Asia7,635 6,434 6,740 Total$61,761 $54,143 $53,668 Income before Provision for Income Taxes$ in millions202420232022U.S.$12,526 $8,334 $9,363 Non-U.S.15,070 3,479 4,726 Total$17,596 $11,813 $14,089 1.Non-U.S. income is defined as income generated from operations located outside the U.S.The Firm operates in both U.S. and non-U.S. markets. The Firm’s non-U.S. business activities are principally conducted and managed through EMEA and Asia locations. The net revenues disclosed in the previous table reflect the regional view of the Firm’s consolidated net revenues on a managed basis, based on the following methodology:Institutional Securities: Client location for advisory and equity underwriting, syndicate desk location for debt underwriting, trading desk location for sales and trading.Wealth Management: Americas, where representatives operate.Investment Management: Client location, except certain closed-end funds, which are based on asset location.Revenues Recognized from Prior Services$ in millions202420232022Non-interest revenues$1,870 $1,778 $2,538 The previous table includes revenues from contracts with customers recognized where some or all services were"
    },
    {
      "status": "ADDED",
      "current_title": "Certain Other Fee Waivers",
      "prior_title": null,
      "current_body": "Separately, the Firm’s employees, including its senior officers, may participate on the same terms and conditions as other investors in certain funds that the Firm sponsors primarily for client investment, and the Firm may waive or lower applicable fees and charges for its employees."
    },
    {
      "status": "ADDED",
      "current_title": "Other Expenses—Transaction Taxes",
      "prior_title": null,
      "current_body": "$ in millions202420232022Transaction taxes$926 $866 $910 Transaction taxes are composed of securities transaction taxes and stamp duties, which are levied on the sale or purchase of securities listed on recognized stock exchanges in certain markets. These taxes are imposed mainly on trades of equity securities in Asia and EMEA. Similar transaction taxes are levied on trades of listed derivative instruments in certain countries."
    },
    {
      "status": "ADDED",
      "current_title": "Net Revenues by Region",
      "prior_title": null,
      "current_body": "$ in millions202420232022Americas$46,929 $41,651 $40,117 EMEA7,197 6,058 6,811 Asia7,635 6,434 6,740 Total$61,761 $54,143 $53,668"
    },
    {
      "status": "ADDED",
      "current_title": "Income before Provision for Income Taxes",
      "prior_title": null,
      "current_body": "$ in millions202420232022U.S.$12,526 $8,334 $9,363 Non-U.S.15,070 3,479 4,726 Total$17,596 $11,813 $14,089 Non-U.S.1 1.Non-U.S. income is defined as income generated from operations located outside the U.S. The Firm operates in both U.S. and non-U.S. markets. The Firm’s non-U.S. business activities are principally conducted and managed through EMEA and Asia locations. The net revenues disclosed in the previous table reflect the regional view of the Firm’s consolidated net revenues on a managed basis, based on the following methodology: Institutional Securities: Client location for advisory and equity underwriting, syndicate desk location for debt underwriting, trading desk location for sales and trading. Wealth Management: Americas, where representatives operate. Investment Management: Client location, except certain closed-end funds, which are based on asset location."
    },
    {
      "status": "ADDED",
      "current_title": "Revenues Recognized from Prior Services",
      "prior_title": null,
      "current_body": "$ in millions202420232022Non-interest revenues$1,870 $1,778 $2,538 The previous table includes revenues from contracts with customers recognized where some or all services were December 2024 Form 10-K144 December 2024 Form 10-K144 December 2024 Form 10-K144 144"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Receivables from Contracts with Customers",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Customer and other receivables$2,628 $2,339 Receivables from contracts with customers, which are included within Customer and other receivables in the balance sheet, arise when the Firm has both recorded revenues and the right per the contract to bill the customer."
    },
    {
      "status": "ADDED",
      "current_title": "Assets by Business Segment",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Institutional Securities$796,608 $810,506 Wealth Management400,848 365,168 Investment Management17,615 18,019 Total1$1,215,071 $1,193,693 Total1 1. Parent assets have been fully allocated to the business segments."
    },
    {
      "status": "ADDED",
      "current_title": "Total Assets by Region",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Americas893,170 $832,714 EMEA179,187 218,923 Asia142,714 142,056 Total$1,215,071 $1,193,693 23. Parent Company Parent Company Only—Condensed Income Statement and Comprehensive Income Statement$ in millions202420232022RevenuesDividends from bank subsidiaries$5,571 $5,770 $2,875 Dividends from BHC and non-bank subsidiaries5,229 6,812 8,661 Total dividends from subsidiaries10,800 12,582 11,536 Trading(827)(775)(1,143)Other36 (31)170 Total non-interest revenues10,009 11,776 10,563 Interest income15,739 13,596 5,805 Interest expense15,377 13,618 6,162 Net interest362 (22)(357)Net revenues10,371 11,754 10,206 Non-interest expenses358 287 252 Income before income taxes10,013 11,467 9,954 Provision for (benefit from) income taxes(499)(520)(456)Net income before undistributed gain of subsidiaries10,512 11,987 10,410 Undistributed (loss) gain of subsidiaries2,878 (2,900)619 Net income13,390 9,087 11,029 Other comprehensive income (loss), net of tax:Foreign currency translation adjustments(324)51 (202)Change in net unrealized gains (losses) on available-for-sale securities521 1,098 (4,437)Pensions and other12 (87)43 Change in net debt valuation adjustment(551)(1,250)1,449 Net change in cash flow hedges(51)20 (4)Comprehensive income$12,997 $8,919 $7,878 Net income$13,390 $9,087 $11,029 Preferred stock dividends and other590 557 489 Earnings applicable to Morgan Stanley common shareholders$12,800 $8,530 $10,540"
    },
    {
      "status": "ADDED",
      "current_title": "Parent Company Only—Condensed Income Statement and Comprehensive Income Statement",
      "prior_title": null,
      "current_body": "$ in millions202420232022RevenuesDividends from bank subsidiaries$5,571 $5,770 $2,875 Dividends from BHC and non-bank subsidiaries5,229 6,812 8,661 Total dividends from subsidiaries10,800 12,582 11,536 Trading(827)(775)(1,143)Other36 (31)170 Total non-interest revenues10,009 11,776 10,563 Interest income15,739 13,596 5,805 Interest expense15,377 13,618 6,162 Net interest362 (22)(357)Net revenues10,371 11,754 10,206 Non-interest expenses358 287 252 Income before income taxes10,013 11,467 9,954 Provision for (benefit from) income taxes(499)(520)(456)Net income before undistributed gain of subsidiaries10,512 11,987 10,410 Undistributed (loss) gain of subsidiaries2,878 (2,900)619 Net income13,390 9,087 11,029 Other comprehensive income (loss), net of tax:Foreign currency translation adjustments(324)51 (202)Change in net unrealized gains (losses) on available-for-sale securities521 1,098 (4,437)Pensions and other12 (87)43 Change in net debt valuation adjustment(551)(1,250)1,449 Net change in cash flow hedges(51)20 (4)Comprehensive income$12,997 $8,919 $7,878 Net income$13,390 $9,087 $11,029 Preferred stock dividends and other590 557 489 Earnings applicable to Morgan Stanley common shareholders$12,800 $8,530 $10,540 Dividends from BHC and non-bank subsidiaries Undistributed (loss) gain of subsidiaries"
    },
    {
      "status": "ADDED",
      "current_title": "Earnings applicable to Morgan Stanley common shareholders",
      "prior_title": null,
      "current_body": "145December 2024 Form 10-K 145December 2024 Form 10-K 145December 2024 Form 10-K 145"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Parent Company Only—Condensed Balance Sheet",
      "prior_title": null,
      "current_body": "$ in millions, except share dataAtDecember 31,2024 AtDecember 31,2023 AssetsCash and cash equivalents$19,343 $16,881 Trading assets at fair value3,944 4,160 Investment securities:Available-for-sale at fair value (amortized cost of $22,557 and $22,164; $11,816 and $10,179 were pledged to various parties)22,100 21,515 Held-to-maturity (fair value of $12,050 and $14,093; $1,715 and $10,010 were pledged to various parties)13,160 15,284 Securities purchased under agreement to resell to affiliates26,730 24,693 Advances to subsidiaries:Bank and BHC37,370 38,550 Non-bank154,100 139,250 Equity investments in subsidiaries:Bank and BHC60,904 58,949 Non-bank51,100 50,291 Other assets1,886 2,595 Total assets$390,637 $372,168 LiabilitiesTrading liabilities at fair value$100 $44 Securities sold under agreements to repurchase from affiliates13,764 20,293 Payables to and advances from subsidiaries87,124 73,370 Other liabilities and accrued expenses3,011 2,539 Borrowings (includes $12,814 and $13,404 at fair value)182,127 176,884 Total liabilities286,126 273,130 Commitments and contingent liabilities (see Note 14)EquityPreferred stock9,750 8,750 Common stock, $0.01 par value:Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,43720 20 Additional paid-in capital30,179 29,832 Retained earnings104,989 97,996 Employee stock trusts5,103 5,314 Accumulated other comprehensive income (loss)(6,814)(6,421)Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares)(33,613)(31,139)Common stock issued to employee stock trusts(5,103)(5,314)Total shareholders’ equity104,511 99,038 Total liabilities and equity$390,637 $372,168 Investment securities: Available-for-sale at fair value (amortized cost of $22,557 and $22,164; $11,816 and $10,179 were pledged to various parties) Held-to-maturity (fair value of $12,050 and $14,093; $1,715 and $10,010 were pledged to various parties) Borrowings (includes $12,814 and $13,404 at fair value) Common stock, $0.01 par value: Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,606,653,706 and 1,626,828,437 Common stock held in treasury at cost, $0.01 par value (432,240,273 and 412,065,542 shares) Common stock issued to employee stock trusts Parent Company Only—Condensed Cash Flow Statement$ in millions202420232022Net cash provided by (used for) operating activities$10,688 $24,914 $(13,064)Cash flows from investing activitiesProceeds from (payments for):AFS securities:Purchases(7,806)(9,362)(1,855)Proceeds from sales— 300 676 Proceeds from paydowns and maturities7,444 5,479 3,814 HTM securities:Purchases(1,729)— (4,228)Proceeds from paydowns and maturities4,402 4,003 3,434 Securities purchased under agreements to resell with affiliates(2,037)(1,706)(1,871)Securities sold under agreements to repurchase with affiliates(6,529)(8,389)11,755 Advances to and investments in subsidiaries(15,191)(10,097)(10,574)Net cash provided by (used for) investing activities(21,446)(19,772)1,151 Cash flows from financing activitiesProceeds from:Issuance of preferred stock, net of issuance costs995 — 994 Issuance of Borrowings33,385 23,783 34,431 Payments for:Borrowings(24,500)(22,554)(14,441)Repurchases of common stock and employee tax withholdings(4,161)(6,178)(10,871)Cash dividends(6,138)(5,763)(5,401)Net change in advances from subsidiaries13,839 (3,029)16,707 Net cash provided by (used for) financing activities13,420 (13,741)21,419 Effect of exchange rate changes on cash and cash equivalents(200)147 485 Net increase (decrease) in cash and cash equivalents2,462 (8,452)9,991 Cash and cash equivalents, at beginning of period16,881 25,333 15,342 Cash and cash equivalents, at end of period$19,343 $16,881 $25,333 Cash and cash equivalents:Cash and due from banks$66 $107 $75 Deposits with bank subsidiaries19,277 16,774 25,258 Cash and cash equivalents, at end of period$19,343 $16,881 $25,333 Restricted cash$1,086 $1,086 $836 Supplemental Disclosure of Cash Flow InformationCash payments for:Interest$15,971 $14,437 $5,955 Income taxes, net of refunds1798 599 3,132 1.Represents total payments, net of refunds, made to various tax authorities and includes taxes paid on behalf of certain subsidiaries that are subsequently settled between the Parent Company and these subsidiaries. The settlements received from subsidiaries were $1.6 billion, $1.6 billion and $2.6 billion for 2024, 2023 and 2022, respectively. For information on the Parent Company’s preferred stock, see Note 17."
    },
    {
      "status": "ADDED",
      "current_title": "Parent Company Only—Condensed Cash Flow Statement",
      "prior_title": null,
      "current_body": "$ in millions202420232022Net cash provided by (used for) operating activities$10,688 $24,914 $(13,064)Cash flows from investing activitiesProceeds from (payments for):AFS securities:Purchases(7,806)(9,362)(1,855)Proceeds from sales— 300 676 Proceeds from paydowns and maturities7,444 5,479 3,814 HTM securities:Purchases(1,729)— (4,228)Proceeds from paydowns and maturities4,402 4,003 3,434 Securities purchased under agreements to resell with affiliates(2,037)(1,706)(1,871)Securities sold under agreements to repurchase with affiliates(6,529)(8,389)11,755 Advances to and investments in subsidiaries(15,191)(10,097)(10,574)Net cash provided by (used for) investing activities(21,446)(19,772)1,151 Cash flows from financing activitiesProceeds from:Issuance of preferred stock, net of issuance costs995 — 994 Issuance of Borrowings33,385 23,783 34,431 Payments for:Borrowings(24,500)(22,554)(14,441)Repurchases of common stock and employee tax withholdings(4,161)(6,178)(10,871)Cash dividends(6,138)(5,763)(5,401)Net change in advances from subsidiaries13,839 (3,029)16,707 Net cash provided by (used for) financing activities13,420 (13,741)21,419 Effect of exchange rate changes on cash and cash equivalents(200)147 485 Net increase (decrease) in cash and cash equivalents2,462 (8,452)9,991 Cash and cash equivalents, at beginning of period16,881 25,333 15,342 Cash and cash equivalents, at end of period$19,343 $16,881 $25,333 Cash and cash equivalents:Cash and due from banks$66 $107 $75 Deposits with bank subsidiaries19,277 16,774 25,258 Cash and cash equivalents, at end of period$19,343 $16,881 $25,333 Restricted cash$1,086 $1,086 $836 Supplemental Disclosure of Cash Flow InformationCash payments for:Interest$15,971 $14,437 $5,955 Income taxes, net of refunds1798 599 3,132"
    },
    {
      "status": "ADDED",
      "current_title": "Net cash provided by (used for) operating",
      "prior_title": null,
      "current_body": "activities AFS securities: HTM securities: Income taxes, net of refunds1 1.Represents total payments, net of refunds, made to various tax authorities and includes taxes paid on behalf of certain subsidiaries that are subsequently settled between the Parent Company and these subsidiaries. The settlements received from subsidiaries were $1.6 billion, $1.6 billion and $2.6 billion for 2024, 2023 and 2022, respectively. For information on the Parent Company’s preferred stock, see Note 17. December 2024 Form 10-K146 December 2024 Form 10-K146 December 2024 Form 10-K146 146"
    },
    {
      "status": "ADDED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,"
    },
    {
      "status": "ADDED",
      "current_title": "Parent Company’s Borrowings with Original Maturities Greater than One Year",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Senior$168,413 $164,514 Subordinated13,713 12,370 Total$182,126 $176,884"
    },
    {
      "status": "ADDED",
      "current_title": "Transactions with Subsidiaries",
      "prior_title": null,
      "current_body": "The Parent Company has transactions with its consolidated subsidiaries determined on an agreed-upon basis and has guaranteed certain unsecured lines of credit and contractual obligations on certain of its consolidated subsidiaries. Guarantees In the normal course of its business, the Parent Company guarantees certain of its subsidiaries’ obligations on a transaction-by-transaction basis under various financial arrangements. The Parent Company has issued guarantees on behalf of its subsidiaries to various U.S. and non-U.S. exchanges and clearinghouses that trade and clear securities and/or futures contracts. Under these guarantee arrangements, the Parent Company may be required to pay the financial obligations of its subsidiaries related to business transacted on or with the exchanges and clearinghouses in the event of a subsidiary’s default on its obligations to the exchange or the clearinghouse. The Parent Company has not recorded any contingent liability in its condensed financial statements for these arrangements and believes that any potential requirements to make payments under these arrangements are remote. The Parent Company also, in the normal course of business, provides standard indemnities to counterparties on behalf of its subsidiaries for taxes, including U.S. and foreign withholding taxes, on interest and other payments made on derivatives, securities and stock-lending transactions, and certain annuity products, and may also provide indemnities to or on behalf of affiliates from time to time for other arrangements. These indemnity payments could be required, as applicable, based on a change in the tax laws, change in interpretation of applicable tax rulings or claims arising from contractual relationships between affiliates. Certain contracts contain provisions that enable the Parent Company to terminate the agreement upon the occurrence of such events. The maximum potential amount of future payments that the Parent Company could be required to make under these indemnifications cannot be estimated. The Parent Company has not recorded any contingent liability in its condensed financial statements for these indemnifications and believes that the occurrence of any events that would trigger payments under these contracts is remote. Guarantees of Debt Instruments and Warrants Issued by Subsidiaries$ in millionsAtDecember 31,2024 AtDecember 31,2023 Aggregate balance$70,662 $60,942 Guarantees under Subsidiary Lease Obligations$ in millionsAtDecember 31,2024 AtDecember 31,2023 Aggregate balance1$628 $632 1.Amounts primarily relate to the U.K.Finance SubsidiaryThe Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a wholly owned finance subsidiary. No other subsidiary of the Parent Company guarantees these securities.Resolution and Recovery PlanningAs indicated in the Firm’s 2023 resolution plan submitted to the Federal Reserve and the FDIC, the Parent Company has entered into an amended and restated support agreement with its material entities (including its wholly owned, direct subsidiary Morgan Stanley Holdings LLC (the “Funding IHC”)) and certain other subsidiaries. Under the amended and restated secured support agreement, in the event of a resolution scenario, the Parent Company would be obligated to contribute all of its contributable assets to its supported entities and/or the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to its supported entities. The obligations of the Parent Company and the Funding IHC under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets) and the assets of the Funding IHC."
    },
    {
      "status": "ADDED",
      "current_title": "Guarantees of Debt Instruments and Warrants Issued by Subsidiaries",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Aggregate balance$70,662 $60,942"
    },
    {
      "status": "ADDED",
      "current_title": "Guarantees under Subsidiary Lease Obligations",
      "prior_title": null,
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Aggregate balance1$628 $632 Aggregate balance1 1.Amounts primarily relate to the U.K."
    },
    {
      "status": "ADDED",
      "current_title": "Finance Subsidiary",
      "prior_title": null,
      "current_body": "The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a wholly owned finance subsidiary. No other subsidiary of the Parent Company guarantees these securities."
    },
    {
      "status": "ADDED",
      "current_title": "Resolution and Recovery Planning",
      "prior_title": null,
      "current_body": "We are required to submit once every two years to the Federal Reserve and the FDIC (“Agencies”) a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of our material financial distress or failure. We submitted our 2023 full resolution plan on June 30, 2023. In June 2024, we received joint feedback on our 2023 resolution plan from the Agencies, with no shortcomings or deficiencies identified. Our next resolution plan submission will be a targeted resolution plan in July 2025. For more information about resolution planning requirements, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning.” As described in our most recent resolution plan, our preferred resolution strategy is an SPOE strategy. In line with our SPOE strategy, the Parent Company has transferred, and has agreed to transfer on an ongoing basis, certain assets to its wholly owned, direct subsidiary Morgan Stanley Holdings LLC (the “Funding IHC”). In addition, the Parent Company has entered into an amended and restated support agreement with its material entities (including the Funding IHC) and certain other subsidiaries. In the event of a resolution scenario, the Parent Company would be obligated to contribute all of its contributable assets to our supported entities and/or the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to our supported entities. The combined implication of the SPOE resolution strategy and the requirement to maintain certain levels of TLAC is that losses in resolution would be imposed on the holders of eligible LTD and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on creditors of our supported entities and without requiring taxpayer or government financial support.The obligations of the Parent Company and the Funding IHC under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets) and the assets of the Funding IHC. As a result, claims of our supported entities, including the Funding IHC, with respect to the secured assets, are effectively senior to unsecured obligations of the Parent Company.For more information about resolution and recovery planning requirements and our activities in these areas, including the implications of such activities in a resolution scenario, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk.”Regulatory Developments and Other MattersBasel III Endgame and G-SIB Surcharge ProposalsOn July 27, 2023, U.S. banking agencies proposed revisions to risk-based capital and related standards applicable to us and our U.S. Bank Subsidiaries (“Basel III Endgame Proposal”). We continue to monitor developments related to this rulemaking as well as the proposed revisions to the G-SIB capital surcharge framework. SPOE strategy, the Parent Company has transferred, and has agreed to transfer on an ongoing basis, certain assets to its wholly owned, direct subsidiary Morgan Stanley Holdings LLC (the “Funding IHC”). In addition, the Parent Company has entered into an amended and restated support agreement with its material entities (including the Funding IHC) and certain other subsidiaries. In the event of a resolution scenario, the Parent Company would be obligated to contribute all of its contributable assets to our supported entities and/or the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to our supported entities. The combined implication of the SPOE resolution strategy and the requirement to maintain certain levels of TLAC is that losses in resolution would be imposed on the holders of eligible LTD and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on creditors of our supported entities and without requiring taxpayer or government financial support. The obligations of the Parent Company and the Funding IHC under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets) and the assets of the Funding IHC. As a result, claims of our supported entities, including the Funding IHC, with respect to the secured assets, are effectively senior to unsecured obligations of the Parent Company. For more information about resolution and recovery planning requirements and our activities in these areas, including the implications of such activities in a resolution scenario, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk.”"
    },
    {
      "status": "ADDED",
      "current_title": "Interest earning assets",
      "prior_title": null,
      "current_body": "Cash and cash equivalents1: Investment securities2 Loans2 Securities purchased under agreements to resell3: Securities borrowed4: Trading assets, net of Trading liabilities: U.S. Non-U.S. Customer receivables and Other1,10: U.S. Non-U.S. Deposits2 Borrowings2,5 Securities sold under agreements to repurchase6,8: Securities loaned7,8: Customer payables and Other9,10: Effect of Volume and Rate Changes on Net Interest Income 2024 versus 2023 Increase (Decrease)Due to Change in: $ in millionsVolumeRateNet ChangeInterest earning assetsCash and cash equivalents1:U.S.$(384)$2 $(382)Non-U.S.(105)147 42 Investment securities294 1,075 1,169 Loans2624 723 1,347 Securities purchased under agreements to resell3:U.S.1,745 873 2,618 Non-U.S.(692)2,728 2,036 Securities borrowed4:U.S.(219)410 191 Non-U.S.(6)15 9 Trading assets, net of Trading liabilities:U.S.514 710 1,224 Non-U.S.87 125 212 Customer receivables and Other1,10:U.S.923 (1,014)(91)Non-U.S.220 (309)(89)Change in interest income$2,801 $5,485 $8,286 Interest bearing liabilitiesDeposits2$190 $1,962 $2,152 Borrowings2,51,311 494 1,805 Securities sold under agreements to repurchase6,8:U.S.(676)2,421 1,745 Non-U.S.389 1,916 2,305 Securities loaned7,8:U.S.83 (42)41 Non-U.S.(198)409 211 Customer payables and Other9,10:U.S.(220)(256)(476)Non-U.S.(146)268 122 Change in interest expense$733 $7,172 $7,905 Change in net interest income$2,068 $(1,687)$381"
    },
    {
      "status": "ADDED",
      "current_title": "Effect of Volume and Rate Changes on Net Interest Income",
      "prior_title": null,
      "current_body": "2024 versus 2023 Increase (Decrease)Due to Change in: $ in millionsVolumeRateNet ChangeInterest earning assetsCash and cash equivalents1:U.S.$(384)$2 $(382)Non-U.S.(105)147 42 Investment securities294 1,075 1,169 Loans2624 723 1,347 Securities purchased under agreements to resell3:U.S.1,745 873 2,618 Non-U.S.(692)2,728 2,036 Securities borrowed4:U.S.(219)410 191 Non-U.S.(6)15 9 Trading assets, net of Trading liabilities:U.S.514 710 1,224 Non-U.S.87 125 212 Customer receivables and Other1,10:U.S.923 (1,014)(91)Non-U.S.220 (309)(89)Change in interest income$2,801 $5,485 $8,286 Interest bearing liabilitiesDeposits2$190 $1,962 $2,152 Borrowings2,51,311 494 1,805 Securities sold under agreements to repurchase6,8:U.S.(676)2,421 1,745 Non-U.S.389 1,916 2,305 Securities loaned7,8:U.S.83 (42)41 Non-U.S.(198)409 211 Customer payables and Other9,10:U.S.(220)(256)(476)Non-U.S.(146)268 122 Change in interest expense$733 $7,172 $7,905 Change in net interest income$2,068 $(1,687)$381"
    },
    {
      "status": "ADDED",
      "current_title": "2024 versus 2023",
      "prior_title": null,
      "current_body": "Cash and cash equivalents1: Investment securities2 Loans2 Securities purchased under agreements to resell3: Securities borrowed4: Trading assets, net of Trading liabilities: Customer receivables and Other1,10: Deposits2 Borrowings2,5 Securities sold under agreements to repurchase6,8: Securities loaned7,8: Customer payables and Other9,10: December 2024 Form 10-K148 December 2024 Form 10-K148 December 2024 Form 10-K148 148 Table of Contents Financial Data Supplement (Unaudited) Table of Contents Financial Data Supplement (Unaudited) Table of Contents Average Balances and Interest Rates and Net Interest Income 2022$ in millionsAverageDailyBalanceInterestAverageRateInterest earning assetsCash and cash equivalents1:U.S.$57,889 $692 1.2 %Non-U.S.58,052 222 0.4 %Investment securities2167,494 3,066 1.8 %Loans2205,069 6,988 3.4 %Securities purchased under agreements to resell3:U.S.57,565 1,643 2.9 %Non-U.S.62,585 545 0.9 %Securities borrowed4:U.S.123,288 1,039 0.8 %Non-U.S.19,345 (19)(0.1)%Trading assets, net of Trading liabilities:U.S.74,932 2,068 2.8 %Non-U.S.14,748 416 2.8 %Customer receivables and Other1:U.S.56,040 3,798 6.8 %Non-U.S.15,891 1,137 7.2 %Total$912,898 $21,595 2.4 %Interest bearing liabilitiesDeposits2$340,741 $1,825 0.5 %Borrowings2,5229,255 5,054 2.2 %Securities sold under agreements to repurchase6,8:U.S.21,481 1,086 5.1 %Non-U.S.39,631 674 1.7 %Securities loaned7,9:U.S.6,277 37 0.6 %Non-U.S.7,669 466 6.1 %Customer payables and Other9:U.S.143,448 1,991 1.4 %Non-U.S.73,291 1,135 1.5 %Total$861,793 $12,268 1.4 %Net interest income and net interest rate spread$9,327 1.0 %Effect of Volume and Rate Changes on Net Interest Income 2023 versus 2022 Increase (Decrease)Due to Change in: $ in millionsVolumeRateNet ChangeInterest earning assetsCash and cash equivalents1:U.S.$(12)$1,706 $1,694 Non-U.S.(37)837 800 Investment securities2(260)1,186 926 Loans2360 5,076 5,436 Securities purchased under agreements to resell3:U.S.(284)3,355 3,071 Non-U.S.(7)2,510 2,503 Securities borrowed4:U.S.(67)3,822 3,755 Non-U.S.1 415 416 Trading assets, net of Trading liabilities:U.S.510 1,214 1,724 Non-U.S.(55)335 280 Customer receivables and Other1,10:U.S.(693)3,209 2,516 Non-U.S.(101)1,234 1,133 Change in interest income$(645)$24,899 $24,254 Interest bearing liabilitiesDeposits2$10 $6,381 $6,391 Borrowings2,5196 6,187 6,383 Securities sold under agreements to repurchase6,8:U.S.63 2,442 2,505 Non-U.S.115 2,357 2,472 Securities loaned7,9:U.S.(12)42 30 Non-U.S.109 142 251 Customer payables and Other9,10:U.S.(144)5,107 4,963 Non-U.S.(145)2,501 2,356 Change in interest expense$192 $25,159 $25,351 Change in net interest income$(837)$(260)$(1,097)1.In 2023, interest-bearing Cash and cash equivalents and related interest were presented separately for the first time. The prior year amounts for Customer receivables and Other have been disaggregated to exclude Cash and cash equivalents to align with the current presentation.2.Amounts include primarily U.S. balances. 3.Includes interest paid on Securities purchased under agreements to resell. 4.Includes fees paid on Securities borrowed.5.Average daily balance includes borrowings carried at fair value but, for certain borrowings, interest expense is considered part of fair value and is recorded in Trading revenues.6.Includes interest received on Securities sold under agreements to repurchase.7.Includes fees received on Securities loaned.8.The annualized average rate was calculated using (a) interest expense incurred on all securities sold under agreements to repurchase and securities-loaned transactions, whether or not such transactions were reported in the balance sheet and (b) net average on-balance sheet balances, which exclude certain securities-for-securities transactions.9.Includes fees received from Equity Financing customers related to their short transactions, which can be under either margin or securities-lending arrangements.10.Certain prior-period amounts have been adjusted to conform with the current-period presentation. This adjustment resulted in a decrease to both interest income and interest expense of $4,432 million for the year ended December 31, 2023, and no effect on net interest income, with the entire impact to the Firm recorded within the Institutional Securities segment. See Note 2 for additional information. Average Balances and Interest Rates and Net Interest Income 2022$ in millionsAverageDailyBalanceInterestAverageRateInterest earning assetsCash and cash equivalents1:U.S.$57,889 $692 1.2 %Non-U.S.58,052 222 0.4 %Investment securities2167,494 3,066 1.8 %Loans2205,069 6,988 3.4 %Securities purchased under agreements to resell3:U.S.57,565 1,643 2.9 %Non-U.S.62,585 545 0.9 %Securities borrowed4:U.S.123,288 1,039 0.8 %Non-U.S.19,345 (19)(0.1)%Trading assets, net of Trading liabilities:U.S.74,932 2,068 2.8 %Non-U.S.14,748 416 2.8 %Customer receivables and Other1:U.S.56,040 3,798 6.8 %Non-U.S.15,891 1,137 7.2 %Total$912,898 $21,595 2.4 %Interest bearing liabilitiesDeposits2$340,741 $1,825 0.5 %Borrowings2,5229,255 5,054 2.2 %Securities sold under agreements to repurchase6,8:U.S.21,481 1,086 5.1 %Non-U.S.39,631 674 1.7 %Securities loaned7,9:U.S.6,277 37 0.6 %Non-U.S.7,669 466 6.1 %Customer payables and Other9:U.S.143,448 1,991 1.4 %Non-U.S.73,291 1,135 1.5 %Total$861,793 $12,268 1.4 %Net interest income and net interest rate spread$9,327 1.0 %"
    },
    {
      "status": "ADDED",
      "current_title": "Average Balances and Interest Rates and Net Interest Income",
      "prior_title": null,
      "current_body": "2022$ in millionsAverageDailyBalanceInterestAverageRateInterest earning assetsCash and cash equivalents1:U.S.$57,889 $692 1.2 %Non-U.S.58,052 222 0.4 %Investment securities2167,494 3,066 1.8 %Loans2205,069 6,988 3.4 %Securities purchased under agreements to resell3:U.S.57,565 1,643 2.9 %Non-U.S.62,585 545 0.9 %Securities borrowed4:U.S.123,288 1,039 0.8 %Non-U.S.19,345 (19)(0.1)%Trading assets, net of Trading liabilities:U.S.74,932 2,068 2.8 %Non-U.S.14,748 416 2.8 %Customer receivables and Other1:U.S.56,040 3,798 6.8 %Non-U.S.15,891 1,137 7.2 %Total$912,898 $21,595 2.4 %Interest bearing liabilitiesDeposits2$340,741 $1,825 0.5 %Borrowings2,5229,255 5,054 2.2 %Securities sold under agreements to repurchase6,8:U.S.21,481 1,086 5.1 %Non-U.S.39,631 674 1.7 %Securities loaned7,9:U.S.6,277 37 0.6 %Non-U.S.7,669 466 6.1 %Customer payables and Other9:U.S.143,448 1,991 1.4 %Non-U.S.73,291 1,135 1.5 %Total$861,793 $12,268 1.4 %Net interest income and net interest rate spread$9,327 1.0 % Cash and cash equivalents1: Investment securities2 Loans2 Securities purchased under agreements to resell3: Securities borrowed4: Trading assets, net of Trading liabilities: Customer receivables and Other1: Deposits2 Borrowings2,5 Securities sold under agreements to repurchase6,8: Securities loaned7,9: Customer payables and Other9: Effect of Volume and Rate Changes on Net Interest Income 2023 versus 2022 Increase (Decrease)Due to Change in: $ in millionsVolumeRateNet ChangeInterest earning assetsCash and cash equivalents1:U.S.$(12)$1,706 $1,694 Non-U.S.(37)837 800 Investment securities2(260)1,186 926 Loans2360 5,076 5,436 Securities purchased under agreements to resell3:U.S.(284)3,355 3,071 Non-U.S.(7)2,510 2,503 Securities borrowed4:U.S.(67)3,822 3,755 Non-U.S.1 415 416 Trading assets, net of Trading liabilities:U.S.510 1,214 1,724 Non-U.S.(55)335 280 Customer receivables and Other1,10:U.S.(693)3,209 2,516 Non-U.S.(101)1,234 1,133 Change in interest income$(645)$24,899 $24,254 Interest bearing liabilitiesDeposits2$10 $6,381 $6,391 Borrowings2,5196 6,187 6,383 Securities sold under agreements to repurchase6,8:U.S.63 2,442 2,505 Non-U.S.115 2,357 2,472 Securities loaned7,9:U.S.(12)42 30 Non-U.S.109 142 251 Customer payables and Other9,10:U.S.(144)5,107 4,963 Non-U.S.(145)2,501 2,356 Change in interest expense$192 $25,159 $25,351 Change in net interest income$(837)$(260)$(1,097)1.In 2023, interest-bearing Cash and cash equivalents and related interest were presented separately for the first time. The prior year amounts for Customer receivables and Other have been disaggregated to exclude Cash and cash equivalents to align with the current presentation.2.Amounts include primarily U.S. balances. 3.Includes interest paid on Securities purchased under agreements to resell. 4.Includes fees paid on Securities borrowed.5.Average daily balance includes borrowings carried at fair value but, for certain borrowings, interest expense is considered part of fair value and is recorded in Trading revenues.6.Includes interest received on Securities sold under agreements to repurchase.7.Includes fees received on Securities loaned.8.The annualized average rate was calculated using (a) interest expense incurred on all securities sold under agreements to repurchase and securities-loaned transactions, whether or not such transactions were reported in the balance sheet and (b) net average on-balance sheet balances, which exclude certain securities-for-securities transactions.9.Includes fees received from Equity Financing customers related to their short transactions, which can be under either margin or securities-lending arrangements.10.Certain prior-period amounts have been adjusted to conform with the current-period presentation. This adjustment resulted in a decrease to both interest income and interest expense of $4,432 million for the year ended December 31, 2023, and no effect on net interest income, with the entire impact to the Firm recorded within the Institutional Securities segment. See Note 2 for additional information."
    },
    {
      "status": "ADDED",
      "current_title": "Effect of Volume and Rate Changes on Net Interest Income",
      "prior_title": null,
      "current_body": "2024 versus 2023 Increase (Decrease)Due to Change in: $ in millionsVolumeRateNet ChangeInterest earning assetsCash and cash equivalents1:U.S.$(384)$2 $(382)Non-U.S.(105)147 42 Investment securities294 1,075 1,169 Loans2624 723 1,347 Securities purchased under agreements to resell3:U.S.1,745 873 2,618 Non-U.S.(692)2,728 2,036 Securities borrowed4:U.S.(219)410 191 Non-U.S.(6)15 9 Trading assets, net of Trading liabilities:U.S.514 710 1,224 Non-U.S.87 125 212 Customer receivables and Other1,10:U.S.923 (1,014)(91)Non-U.S.220 (309)(89)Change in interest income$2,801 $5,485 $8,286 Interest bearing liabilitiesDeposits2$190 $1,962 $2,152 Borrowings2,51,311 494 1,805 Securities sold under agreements to repurchase6,8:U.S.(676)2,421 1,745 Non-U.S.389 1,916 2,305 Securities loaned7,8:U.S.83 (42)41 Non-U.S.(198)409 211 Customer payables and Other9,10:U.S.(220)(256)(476)Non-U.S.(146)268 122 Change in interest expense$733 $7,172 $7,905 Change in net interest income$2,068 $(1,687)$381"
    },
    {
      "status": "ADDED",
      "current_title": "Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures",
      "prior_title": null,
      "current_body": "Under the supervision and with the participation of the Firm’s management, including the Chief Executive Officer and Chief Financial Officer, the Firm conducted an evaluation of the effectiveness of the Firm’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Firm’s disclosure controls and procedures were effective as of the end of the period covered by this annual report."
    },
    {
      "status": "ADDED",
      "current_title": "Management’s Report on Internal Control Over Financial Reporting",
      "prior_title": null,
      "current_body": "The Firm’s management is responsible for establishing and maintaining adequate internal control over financial reporting. The Firm’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The internal control over financial reporting includes those policies and procedures that:•Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Firm;•Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP and that receipts and expenditures are being made only in accordance with authorizations of the Firm’s management and directors; and•Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of Firm assets that could have a material effect on the Firm’s financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.Management assessed the effectiveness of the Firm’s internal control over financial reporting as of December 31, 2024. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control—Integrated Framework (2013). Based on management’s assessment and those criteria, management believes that the Firm maintained effective internal control over financial reporting as of December 31, 2024.The Firm’s independent registered public accounting firm has audited and issued a report on the Firm’s internal control over financial reporting, which appears below. The internal control over financial reporting includes those policies and procedures that: •Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Firm; •Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP and that receipts and expenditures are being made only in accordance with authorizations of the Firm’s management and directors; and •Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of Firm assets that could have a material effect on the Firm’s financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of the Firm’s internal control over financial reporting as of December 31, 2024. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control—Integrated Framework (2013). Based on management’s assessment and those criteria, management believes that the Firm maintained effective internal control over financial reporting as of December 31, 2024. The Firm’s independent registered public accounting firm has audited and issued a report on the Firm’s internal control over financial reporting, which appears below. December 2024 Form 10-K152 December 2024 Form 10-K152 December 2024 Form 10-K152 152 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "Report of Independent Registered Public Accounting Firm",
      "prior_title": null,
      "current_body": "To the Shareholders and the Board of Directors of Morgan Stanley: Opinion on Internal Control over Financial ReportingWe have audited the internal control over financial reporting of Morgan Stanley and subsidiaries (the “Firm”) as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Firm maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the financial statements of the Firm as of and for the year ended December 31, 2024 and our report dated February 21, 2025 expressed an unqualified opinion on those financial statements.Basis for OpinionThe Firm’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Firm’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.Definition and Limitations of Internal Control over Financial ReportingA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion on Internal Control over Financial ReportingWe have audited the internal control over financial reporting of Morgan Stanley and subsidiaries (the “Firm”) as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Firm maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the financial statements of the Firm as of and for the year ended December 31, 2024 and our report dated February 21, 2025 expressed an unqualified opinion on those financial statements.Basis for OpinionThe Firm’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Firm’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting,"
    },
    {
      "status": "ADDED",
      "current_title": "Opinion on Internal Control over Financial Reporting",
      "prior_title": null,
      "current_body": "We have audited the internal control over financial reporting of Morgan Stanley and subsidiaries (the “Firm”) as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Firm maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the financial statements of the Firm as of and for the year ended December 31, 2024 and our report dated February 21, 2025 expressed an unqualified opinion on those financial statements."
    },
    {
      "status": "ADDED",
      "current_title": "Basis for Opinion",
      "prior_title": null,
      "current_body": "These financial statements are the responsibility of the Firm’s management. Our responsibility is to express an opinion on the Firm’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.Valuation of Level 3 Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis and Level 3 Loans Held for Sale — Refer to Note 4 to the financial statementsCritical Audit Matter DescriptionThe Firm’s trading and financing activities result in the Firm carrying material financial instruments having limited price transparency. These financial instruments can span a broad array of product types and generally include derivatives, securities, loans, and borrowings. As described in Note 4, these Level 3 financial assets and liabilities carried at fair value on a recurring basis approximate $6.8 billion and $4.1 billion, respectively, and the Level 3 loans held for sale approximate $6.1 billion at December 31, 2024. Unlike financial instruments whose inputs are readily observable and, therefore, more easily independently corroborated, the valuation of these financial instruments is inherently subjective and often involves the use of unobservable inputs and proprietary valuation models whose underlying algorithms and valuation methodologies are complex.We identified the valuation of Level 3 financial assets and liabilities carried at fair value on a recurring basis and Level 3 loans held for sale as a critical audit matter given the Firm uses complex valuation models and/or valuation inputs that are not observable in the marketplace to determine the respective carrying values. Performing our audit procedures to evaluate the appropriateness of these models and inputs involved a high degree of auditor judgment, professionals with specialized skills and knowledge, and an increased extent of testing.How the Critical Audit Matter Was Addressed in the AuditOur audit procedures related to the valuation of Level 3 financial assets and liabilities carried at fair value on a recurring basis and Level 3 loans held for sale included the following, among others:•We tested the design and operating effectiveness of the Firm’s model review and price verification controls. The Firm maintains these internal controls to assess the appropriateness"
    },
    {
      "status": "ADDED",
      "current_title": "Definition and Limitations of Internal Control over Financial Reporting",
      "prior_title": null,
      "current_body": "A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Deloitte & Touche LLPNew York, New YorkFebruary 21, 2025 /s/ Deloitte & Touche LLPNew York, New YorkFebruary 21, 2025 /s/ Deloitte & Touche LLP New York, New York February 21, 2025 153December 2024 Form 10-K 153December 2024 Form 10-K 153December 2024 Form 10-K 153 Table of Contents Table of Contents Table of Contents Changes in Internal Control Over Financial ReportingNo change in the Firm’s internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) occurred during the quarter ended December 31, 2024 that materially affected, or is reasonably likely to materially affect, the Firm’s internal control over financial reporting.Other InformationNoneDisclosure Regarding Foreign Jurisdictions That Prevent InspectionsNot applicable.Unresolved Staff CommentsThe Firm from time to time receives written comments from the staff of the SEC regarding its periodic or current reports under the Exchange Act. There are no comments that remain unresolved that the Firm received not less than 180 days before the end of the year to which this report relates that the Firm believes are material.PropertiesWe have offices, operations and data centers located around the world. Our global headquarters and principal executive offices are located at 1585 Broadway, New York, New York. Our other principal offices include locations in Manhattan and the greater New York metropolitan area, London, Frankfurt, Hong Kong and Tokyo. Our current facilities are adequate for our present and future operations for each of our business segments, although we may add offices, depending upon our future operations.Legal ProceedingsSee “Contingencies—Legal” in Note 14 to the Financial Statements for information about our material legal proceedings.Mine Safety DisclosuresNot applicable.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesMorgan Stanley’s common stock trades under the symbol “MS” on the New York Stock Exchange. As of January 31, 2025, the Firm had 44,836 holders of record; however, the Firm believes the number of beneficial owners of the Firm’s common stock exceeds this number.The table below sets forth the information with respect to purchases made by or on behalf of the Firm of its common stock during the fourth quarter of the year ended December 31, 2024.Issuer Purchases of Equity Securities$ in millions, except per share dataTotal Number of Shares Purchased1Average Price Paid per Share2Total Shares Purchased as Part of Share Repurchase Program3, 4Dollar Value of Remaining Authorized RepurchaseOctober1,584,771 $118.58 1,372,300 $19,087 November2,662,760 $129.24 2,525,000 $18,761 December2,194,830 $128.23 2,034,498 $18,500 Three Months Ended December 31, 20246,442,361 $126.27 5,931,798 1.Includes 510,563 shares acquired by the Firm in satisfaction of the tax withholding obligations on stock-based awards granted under the Firm’s stock-based compensation plans during the three months ended December 31, 2024.2.Excludes excise tax of $7 million levied on share repurchases, net of issuances, payable in April 2025.3.Share purchases under publicly announced authorizations are made pursuant to open-market purchases, Rule 10b5-1 plans or privately negotiated transactions (including with employee benefit plans) as market conditions warrant and at prices the Firm deems appropriate and may be suspended at any time.4.The Firm announced that its Board of Directors reauthorized a multi-year repurchase authorization of up to $20 billion of outstanding common stock (the “Share Repurchase Authorization”) from time to time as conditions warrant and subject to limitations on distributions from the Federal Reserve. The Share Repurchase Authorization is for capital management purposes and considers, among other things, business segment capital needs, as well as equity-based compensation and benefit plan requirements. The Share Repurchase Authorization has no set expiration or termination date. On June 28, 2024, the Firm announced that its Board of Directors reauthorized a multi-year repurchase authorization of up to $20 billion of outstanding common stock, without a set expiration date, beginning in the third quarter of 2024, which will be exercised from time to time as conditions warrant. For further information, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer.” Changes in Internal Control Over Financial ReportingNo change in the Firm’s internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) occurred during the quarter ended December 31, 2024 that materially affected, or is reasonably likely to materially affect, the Firm’s internal control over financial reporting.Other InformationNoneDisclosure Regarding Foreign Jurisdictions That Prevent InspectionsNot applicable.Unresolved Staff CommentsThe Firm from time to time receives written comments from the staff of the SEC regarding its periodic or current reports under the Exchange Act. There are no comments that remain unresolved that the Firm received not less than 180 days before the end of the year to which this report relates that the Firm believes are material.PropertiesWe have offices, operations and data centers located around the world. Our global headquarters and principal executive offices are located at 1585 Broadway, New York, New York. Our other principal offices include locations in Manhattan and the greater New York metropolitan area, London, Frankfurt, Hong Kong and Tokyo. Our current facilities are adequate for our present and future operations for each of our business segments, although we may add offices, depending upon our future operations.Legal ProceedingsSee “Contingencies—Legal” in Note 14 to the Financial Statements for information about our material legal proceedings.Mine Safety DisclosuresNot applicable."
    },
    {
      "status": "ADDED",
      "current_title": "Changes in Internal Control Over Financial Reporting",
      "prior_title": null,
      "current_body": "No change in the Firm’s internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) occurred during the quarter ended December 31, 2024 that materially affected, or is reasonably likely to materially affect, the Firm’s internal control over financial reporting."
    },
    {
      "status": "ADDED",
      "current_title": "Unresolved Staff Comments",
      "prior_title": null,
      "current_body": "The Firm from time to time receives written comments from the staff of the SEC regarding its periodic or current reports under the Exchange Act. There are no comments that remain unresolved that the Firm received not less than 180 days before the end of the year to which this report relates that the Firm believes are material. Properties We have offices, operations and data centers located around the world. Our global headquarters and principal executive offices are located at 1585 Broadway, New York, New York. Our other principal offices include locations in Manhattan and the greater New York metropolitan area, London, Frankfurt, Hong Kong and Tokyo. Our current facilities are adequate for our present and future operations for each of our business segments, although we may add offices, depending upon our future operations."
    },
    {
      "status": "ADDED",
      "current_title": "Legal Proceedings",
      "prior_title": null,
      "current_body": "See “Contingencies—Legal” in Note 14 to the Financial Statements for information about our material legal proceedings."
    },
    {
      "status": "ADDED",
      "current_title": "Mine Safety Disclosures",
      "prior_title": null,
      "current_body": "Not applicable. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesMorgan Stanley’s common stock trades under the symbol “MS” on the New York Stock Exchange. As of January 31, 2025, the Firm had 44,836 holders of record; however, the Firm believes the number of beneficial owners of the Firm’s common stock exceeds this number.The table below sets forth the information with respect to purchases made by or on behalf of the Firm of its common stock during the fourth quarter of the year ended December 31, 2024.Issuer Purchases of Equity Securities$ in millions, except per share dataTotal Number of Shares Purchased1Average Price Paid per Share2Total Shares Purchased as Part of Share Repurchase Program3, 4Dollar Value of Remaining Authorized RepurchaseOctober1,584,771 $118.58 1,372,300 $19,087 November2,662,760 $129.24 2,525,000 $18,761 December2,194,830 $128.23 2,034,498 $18,500 Three Months Ended December 31, 20246,442,361 $126.27 5,931,798 1.Includes 510,563 shares acquired by the Firm in satisfaction of the tax withholding obligations on stock-based awards granted under the Firm’s stock-based compensation plans during the three months ended December 31, 2024.2.Excludes excise tax of $7 million levied on share repurchases, net of issuances, payable in April 2025.3.Share purchases under publicly announced authorizations are made pursuant to open-market purchases, Rule 10b5-1 plans or privately negotiated transactions (including with employee benefit plans) as market conditions warrant and at prices the Firm deems appropriate and may be suspended at any time.4.The Firm announced that its Board of Directors reauthorized a multi-year repurchase authorization of up to $20 billion of outstanding common stock (the “Share Repurchase Authorization”) from time to time as conditions warrant and subject to limitations on distributions from the Federal Reserve. The Share Repurchase Authorization is for capital management purposes and considers, among other things, business segment capital needs, as well as equity-based compensation and benefit plan requirements. The Share Repurchase Authorization has no set expiration or termination date. On June 28, 2024, the Firm announced that its Board of Directors reauthorized a multi-year repurchase authorization of up to $20 billion of outstanding common stock, without a set expiration date, beginning in the third quarter of 2024, which will be exercised from time to time as conditions warrant. For further information, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer.”"
    },
    {
      "status": "ADDED",
      "current_title": "Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities",
      "prior_title": null,
      "current_body": "Morgan Stanley’s common stock trades under the symbol “MS” on the New York Stock Exchange. As of January 31, 2025, the Firm had 44,836 holders of record; however, the Firm believes the number of beneficial owners of the Firm’s common stock exceeds this number. The table below sets forth the information with respect to purchases made by or on behalf of the Firm of its common stock during the fourth quarter of the year ended December 31, 2024."
    },
    {
      "status": "ADDED",
      "current_title": "Issuer Purchases of Equity Securities",
      "prior_title": null,
      "current_body": "$ in millions, except per share dataTotal Number of Shares Purchased1Average Price Paid per Share2Total Shares Purchased as Part of Share Repurchase Program3, 4Dollar Value of Remaining Authorized RepurchaseOctober1,584,771 $118.58 1,372,300 $19,087 November2,662,760 $129.24 2,525,000 $18,761 December2,194,830 $128.23 2,034,498 $18,500 Three Months Ended December 31, 20246,442,361 $126.27 5,931,798 Total Number of Shares Purchased1 Average Price Paid per Share2 Total Shares Purchased as Part of Share Repurchase Program3, 4"
    },
    {
      "status": "ADDED",
      "current_title": "Three Months Ended December 31, 2024",
      "prior_title": null,
      "current_body": "1.Includes 510,563 shares acquired by the Firm in satisfaction of the tax withholding obligations on stock-based awards granted under the Firm’s stock-based compensation plans during the three months ended December 31, 2024. 2.Excludes excise tax of $7 million levied on share repurchases, net of issuances, payable in April 2025. 3.Share purchases under publicly announced authorizations are made pursuant to open-market purchases, Rule 10b5-1 plans or privately negotiated transactions (including with employee benefit plans) as market conditions warrant and at prices the Firm deems appropriate and may be suspended at any time. 4.The Firm announced that its Board of Directors reauthorized a multi-year repurchase authorization of up to $20 billion of outstanding common stock (the “Share Repurchase Authorization”) from time to time as conditions warrant and subject to limitations on distributions from the Federal Reserve. The Share Repurchase Authorization is for capital management purposes and considers, among other things, business segment capital needs, as well as equity-based compensation and benefit plan requirements. The Share Repurchase Authorization has no set expiration or termination date. On June 28, 2024, the Firm announced that its Board of Directors reauthorized a multi-year repurchase authorization of up to $20 billion of outstanding common stock, without a set expiration date, beginning in the third quarter of 2024, which will be exercised from time to time as conditions warrant. For further information, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer.” December 2024 Form 10-K154 December 2024 Form 10-K154 December 2024 Form 10-K154 154 Table of Contents Table of Contents Table of Contents Stock Performance GraphThe following graph compares the cumulative total shareholder return (rounded to the nearest whole dollar) of the Firm’s common stock, the S&P 500 Stock Index and the S&P 500 Financials Sector Index for the last five years. The graph assumes a $100 investment at the closing price on December 31, 2019 and reinvestment of dividends on the respective dividend payment dates without commissions. This graph does not forecast future performance of the Firm’s common stock.Cumulative Total ReturnDecember 31, 2019 – December 31, 2024 At December 31,201920202021202220232024Morgan Stanley$100.00 $138.06 $202.40 $181.35 $206.57 $288.62 S&P 500 Stock Index100.00 118.39 152.34 124.73 157.48 196.84 S&P 500 Financials Sector Index100.00 98.24 132.50 118.49 132.83 173.35 Directors, Executive Officers and Corporate GovernanceInformation relating to the Firm’s directors and nominees in the Firm’s definitive proxy statement for its 2025 annual meeting of shareholders (“Morgan Stanley’s proxy statement”) is incorporated by reference herein.Information relating to the Firm’s executive officers is contained in the “Business” section of this report under “Information about Our Executive Officers.” Morgan Stanley’s Code of Ethics and Business Conduct applies to all directors, officers and employees, including its Chief Executive Officer, Chief Financial Officer and Deputy Chief Financial Officer. You can find the Code of Ethics and Business Conduct on the webpage, www.morganstanley.com/content/dam/msdotcom/en/about-us-governance/pdf/MS_Code_of_Ethics_and_Business_Conduct_2024.pdf. The Firm will post any amendments to the Code of Ethics and Business Conduct, and any waivers that are required to be disclosed by the rules of either the U.S. Securities and Exchange Commission or the New York Stock Exchange LLC, on the webpage.Information regarding Morgan Stanley’s Global Policy for Transactions in Morgan Stanley Securities in Morgan Stanley’s proxy statement is incorporated by reference herein. The full text of Morgan Stanley’s Global Policy for Transactions in Morgan Stanley Securities is filed hereto as Exhibit 19.Executive CompensationInformation relating to director and executive officer compensation in Morgan Stanley’s proxy statement is incorporated by reference herein.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersInformation relating to equity compensation plans and security ownership of certain beneficial owners and management in Morgan Stanley’s proxy statement is incorporated by reference herein.Certain Relationships and Related Transactions and Director IndependenceInformation regarding certain relationships and related transactions in Morgan Stanley’s proxy statement is incorporated by reference herein.Information regarding director independence in Morgan Stanley’s proxy statement is incorporated by reference herein.Principal Accountant Fees and ServicesInformation regarding principal accountant fees and services in Morgan Stanley’s proxy statement is incorporated by reference herein.Exhibits and Financial Statement SchedulesDocuments filed as part of this report•The financial statements required to be filed in this annual report on Form 10-K are included in the section titled “Financial Statements and Supplementary Data.”Exhibit Index1Certain of the following exhibits, as indicated parenthetically, were previously filed as exhibits to registration statements filed by Morgan Stanley or its predecessor companies under the Securities Act or to reports or registration statements filed by Morgan Stanley or its predecessor companies under the Exchange Act and are hereby incorporated by reference to such statements or reports. Morgan Stanley’s Exchange Act file number is 1-11758. The Exchange Act file number of Stock Performance GraphThe following graph compares the cumulative total shareholder return (rounded to the nearest whole dollar) of the Firm’s common stock, the S&P 500 Stock Index and the S&P 500 Financials Sector Index for the last five years. The graph assumes a $100 investment at the closing price on December 31, 2019 and reinvestment of dividends on the respective dividend payment dates without commissions. This graph does not forecast future performance of the Firm’s common stock.Cumulative Total ReturnDecember 31, 2019 – December 31, 2024 At December 31,201920202021202220232024Morgan Stanley$100.00 $138.06 $202.40 $181.35 $206.57 $288.62 S&P 500 Stock Index100.00 118.39 152.34 124.73 157.48 196.84 S&P 500 Financials Sector Index100.00 98.24 132.50 118.49 132.83 173.35 Directors, Executive Officers and Corporate GovernanceInformation relating to the Firm’s directors and nominees in the Firm’s definitive proxy statement for its 2025 annual meeting of shareholders (“Morgan Stanley’s proxy statement”) is incorporated by reference herein.Information relating to the Firm’s executive officers is contained in the “Business” section of this report under “Information about Our Executive Officers.” Morgan Stanley’s Code of Ethics and Business Conduct applies to all directors, officers and employees, including its Chief Executive Officer, Chief Financial Officer and Deputy Chief Financial Officer. You can find the Code of Ethics and Business Conduct on the webpage, www.morganstanley.com/content/dam/msdotcom/en/about-us-governance/pdf/MS_Code_of_Ethics_and_Business_Conduct_2024.pdf. The Firm will post any amendments to the Code of Ethics and Business Conduct, and any waivers that are required to be disclosed by the rules of either the U.S. Securities and"
    },
    {
      "status": "ADDED",
      "current_title": "Stock Performance Graph",
      "prior_title": null,
      "current_body": "The following graph compares the cumulative total shareholder return (rounded to the nearest whole dollar) of the Firm’s common stock, the S&P 500 Stock Index and the S&P 500 Financials Sector Index for the last five years. The graph assumes a $100 investment at the closing price on December 31, 2019 and reinvestment of dividends on the respective dividend payment dates without commissions. This graph does not forecast future performance of the Firm’s common stock."
    },
    {
      "status": "ADDED",
      "current_title": "December 31, 2019 – December 31, 2024",
      "prior_title": null,
      "current_body": "At December 31,201920202021202220232024Morgan Stanley$100.00 $138.06 $202.40 $181.35 $206.57 $288.62 S&P 500 Stock Index100.00 118.39 152.34 124.73 157.48 196.84 S&P 500 Financials Sector Index100.00 98.24 132.50 118.49 132.83 173.35 S&P 500 Stock Index S&P 500 Financials Sector Index"
    },
    {
      "status": "ADDED",
      "current_title": "Directors, Executive Officers and Corporate Governance",
      "prior_title": null,
      "current_body": "Information relating to the Firm’s directors and nominees in the Firm’s definitive proxy statement for its 2025 annual meeting of shareholders (“Morgan Stanley’s proxy statement”) is incorporated by reference herein. Information relating to the Firm’s executive officers is contained in the “Business” section of this report under “Information about Our Executive Officers.” Morgan Stanley’s Code of Ethics and Business Conduct applies to all directors, officers and employees, including its Chief Executive Officer, Chief Financial Officer and Deputy Chief Financial Officer. You can find the Code of Ethics and Business Conduct on the webpage, www.morganstanley.com/content/dam/msdotcom/en/about-us-governance/pdf/MS_Code_of_Ethics_and_Business_Conduct_2024.pdf. The Firm will post any amendments to the Code of Ethics and Business Conduct, and any waivers that are required to be disclosed by the rules of either the U.S. Securities and Exchange Commission or the New York Stock Exchange LLC, on the webpage.Information regarding Morgan Stanley’s Global Policy for Transactions in Morgan Stanley Securities in Morgan Stanley’s proxy statement is incorporated by reference herein. The full text of Morgan Stanley’s Global Policy for Transactions in Morgan Stanley Securities is filed hereto as Exhibit 19.Executive CompensationInformation relating to director and executive officer compensation in Morgan Stanley’s proxy statement is incorporated by reference herein.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersInformation relating to equity compensation plans and security ownership of certain beneficial owners and management in Morgan Stanley’s proxy statement is incorporated by reference herein.Certain Relationships and Related Transactions and Director IndependenceInformation regarding certain relationships and related transactions in Morgan Stanley’s proxy statement is incorporated by reference herein.Information regarding director independence in Morgan Stanley’s proxy statement is incorporated by reference herein.Principal Accountant Fees and ServicesInformation regarding principal accountant fees and services in Morgan Stanley’s proxy statement is incorporated by reference herein.Exhibits and Financial Statement SchedulesDocuments filed as part of this report•The financial statements required to be filed in this annual report on Form 10-K are included in the section titled “Financial Statements and Supplementary Data.”Exhibit Index1Certain of the following exhibits, as indicated parenthetically, were previously filed as exhibits to registration statements filed by Morgan Stanley or its predecessor companies under the Securities Act or to reports or registration statements filed by Morgan Stanley or its predecessor companies under the Exchange Act and are hereby incorporated by reference to such statements or reports. Morgan Stanley’s Exchange Act file number is 1-11758. The Exchange Act file number of Exchange Commission or the New York Stock Exchange LLC, on the webpage. Information regarding Morgan Stanley’s Global Policy for Transactions in Morgan Stanley Securities in Morgan Stanley’s proxy statement is incorporated by reference herein. The full text of Morgan Stanley’s Global Policy for Transactions in Morgan Stanley Securities is filed hereto as Exhibit 19."
    },
    {
      "status": "ADDED",
      "current_title": "Executive Compensation",
      "prior_title": null,
      "current_body": "Information relating to director and executive officer compensation in Morgan Stanley’s proxy statement is incorporated by reference herein."
    },
    {
      "status": "ADDED",
      "current_title": "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters",
      "prior_title": null,
      "current_body": "Information relating to equity compensation plans and security ownership of certain beneficial owners and management in Morgan Stanley’s proxy statement is incorporated by reference herein."
    },
    {
      "status": "ADDED",
      "current_title": "Certain Relationships and Related Transactions and Director Independence",
      "prior_title": null,
      "current_body": "Information regarding certain relationships and related transactions in Morgan Stanley’s proxy statement is incorporated by reference herein. Information regarding director independence in Morgan Stanley’s proxy statement is incorporated by reference herein."
    },
    {
      "status": "ADDED",
      "current_title": "Principal Accountant Fees and Services",
      "prior_title": null,
      "current_body": "Information regarding principal accountant fees and services in Morgan Stanley’s proxy statement is incorporated by reference herein."
    },
    {
      "status": "ADDED",
      "current_title": "Documents filed as part of this report",
      "prior_title": null,
      "current_body": "•The financial statements required to be filed in this annual report on Form 10-K are included in the section titled “Financial Statements and Supplementary Data.”"
    },
    {
      "status": "ADDED",
      "current_title": "Exhibit Index1",
      "prior_title": null,
      "current_body": "Certain of the following exhibits, as indicated parenthetically, were previously filed as exhibits to registration statements filed by Morgan Stanley or its predecessor companies under the Securities Act or to reports or registration statements filed by Morgan Stanley or its predecessor companies under the Exchange Act and are hereby incorporated by reference to such statements or reports. Morgan Stanley’s Exchange Act file number is 1-11758. The Exchange Act file number of 155December 2024 Form 10-K 155December 2024 Form 10-K 155December 2024 Form 10-K 155 Table of Contents Table of Contents Table of Contents Morgan Stanley Group Inc., a predecessor company (“MSG”), was 1-9085.Exhibit No.Description3.1Amended and Restated Certificate of Incorporation of Morgan Stanley, as amended to date (Exhibit 3.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2024).3.2Amended and Restated Bylaws of Morgan Stanley, as amended to date (Exhibit 3.1 to Morgan Stanley’s current report on Form 8-K dated December 8, 2023).4.1*Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. 4.2Amended and Restated Senior Indenture dated as of May 1, 1999 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4e to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-75289) as amended by Fourth Supplemental Senior Indenture dated as of October 8, 2007 (Exhibit 4.3 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007).4.3Senior Indenture dated as of November 1, 2004 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-f to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-117752), as amended by First Supplemental Senior Indenture dated as of September 4, 2007 (Exhibit 4.5 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007), Second Supplemental Senior Indenture dated as of January 4, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 4, 2008), Third Supplemental Senior Indenture dated as of September 10, 2008 (Exhibit 4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended August 31, 2008), Fourth Supplemental Senior Indenture dated as of December 1, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated December 1, 2008), Fifth Supplemental Senior Indenture dated as of April 1, 2009 (Exhibit 4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009), Sixth Supplemental Senior Indenture dated as of September 16, 2011 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2011), Seventh Supplemental Senior Indenture dated as of November 21, 2011 (Exhibit 4.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2011), Eighth Supplemental Senior Indenture dated as of May 4, 2012 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2012), Ninth Supplemental Senior Indenture dated as of March 10, 2014 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2014), Tenth Supplemental Senior Indenture dated as of January 11, 2017 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 11, 2017) and Eleventh Supplemental Senior Indenture dated as of March 24, 2021 (Exhibit 4.4 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2021).Exhibit No.Description4.4The Unit Agreement Without Holders’ Obligations, dated as of August 29, 2008, between Morgan Stanley and The Bank of New York Mellon, as Unit Agent, as Trustee and Paying Agent under the Senior Indenture referred to therein and as Warrant Agent under the Warrant Agreement referred to therein (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated August 29, 2008).4.5Subordinated Indenture dated as of October 1, 2004 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-g to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-117752)).4.6Junior Subordinated Indenture dated as of October 12, 2006 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated October 12, 2006).4.7Deposit Agreement dated as of July 6, 2006 among Morgan Stanley, JPMorgan Chase Bank, N.A. and the holders from time to time of the depositary receipts described therein (Exhibit 4.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended May 31, 2006).4.8Form of Deposit Agreement among Morgan Stanley, JPMorgan Chase Bank, N.A. and the holders from time to time of the depositary receipts representing interests in the Series A Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated July 5, 2006).4.9Depositary Receipt for Depositary Shares, representing Floating Rate Non-Cumulative Preferred Stock, Series A (included in Exhibit 4.8 hereto).4.10Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series E Preferred Stock described therein (Exhibit 2.6 to Morgan Stanley’s Registration Statement on Form 8-A dated September 27, 2013).4.11Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E (included in Exhibit 4.10 hereto).4.12Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series F Preferred stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated December 9, 2013).4.13Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F (included in Exhibit 4.12 hereto). Morgan Stanley Group Inc., a predecessor company (“MSG”), was 1-9085.Exhibit No.Description3.1Amended and Restated Certificate of Incorporation of Morgan Stanley, as amended to date (Exhibit 3.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2024).3.2Amended and Restated Bylaws of Morgan Stanley, as amended to date (Exhibit 3.1 to Morgan Stanley’s current report on Form 8-K dated December 8, 2023).4.1*Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. 4.2Amended and Restated Senior Indenture dated as of May 1, 1999 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4e to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-75289) as amended by Fourth Supplemental Senior Indenture dated as of October 8, 2007 (Exhibit 4.3 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007).4.3Senior Indenture dated as of November 1, 2004 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-f to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-117752), as amended by First Supplemental Senior Indenture dated as of September 4, 2007 (Exhibit 4.5 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007), Second Supplemental Senior Indenture dated as of January 4, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 4, 2008), Third Supplemental Senior Indenture dated as of September 10, 2008 (Exhibit 4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended August 31, 2008), Fourth Supplemental Senior Indenture dated as of December 1, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated December 1, 2008), Fifth Supplemental Senior Indenture dated as of April 1, 2009 (Exhibit 4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009), Sixth Supplemental Senior Indenture dated as of September 16, 2011 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2011), Seventh Supplemental Senior Indenture dated as of November 21, 2011 (Exhibit 4.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2011), Eighth Supplemental Senior Indenture dated as of May 4, 2012 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2012), Ninth Supplemental Senior Indenture dated as of March 10, 2014 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2014), Tenth Supplemental Senior Indenture dated as of January 11, 2017 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 11, 2017) and Eleventh Supplemental Senior Indenture dated as of March 24, 2021 (Exhibit 4.4 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2021). Morgan Stanley Group Inc., a predecessor company (“MSG”), was 1-9085. Exhibit No.Description3.1Amended and Restated Certificate of Incorporation of Morgan Stanley, as amended to date (Exhibit 3.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2024).3.2Amended and Restated Bylaws of Morgan Stanley, as amended to date (Exhibit 3.1 to Morgan Stanley’s current report on Form 8-K dated December 8, 2023).4.1*Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. 4.2Amended and Restated Senior Indenture dated as of May 1, 1999 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4e to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-75289) as amended by Fourth Supplemental Senior Indenture dated as of October 8, 2007 (Exhibit 4.3 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007).4.3Senior Indenture dated as of November 1, 2004 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-f to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-117752), as amended by First Supplemental Senior Indenture dated as of September 4, 2007 (Exhibit 4.5 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007), Second Supplemental Senior Indenture dated as of January 4, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 4, 2008), Third Supplemental Senior Indenture dated as of September 10, 2008 (Exhibit 4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended August 31, 2008), Fourth Supplemental Senior Indenture dated as of December 1, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated December 1, 2008), Fifth Supplemental Senior Indenture dated as of April 1, 2009 (Exhibit 4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009), Sixth Supplemental Senior Indenture dated as of September 16, 2011 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2011), Seventh Supplemental Senior Indenture dated as of November 21, 2011 (Exhibit 4.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2011), Eighth Supplemental Senior Indenture dated as of May 4, 2012 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2012), Ninth Supplemental Senior Indenture dated as of March 10, 2014 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2014), Tenth Supplemental Senior Indenture dated as of January 11, 2017 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 11, 2017) and Eleventh Supplemental Senior Indenture dated as of March 24, 2021 (Exhibit 4.4 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2021). Amended and Restated Certificate of Incorporation of Morgan Stanley, as amended to date (Exhibit 3.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2024). Amended and Restated Bylaws of Morgan Stanley, as amended to date (Exhibit 3.1 to Morgan Stanley’s current report on Form 8-K dated December 8, 2023). Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. Amended and Restated Senior Indenture dated as of May 1, 1999 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4e to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-75289) as amended by Fourth Supplemental Senior Indenture dated as of October 8, 2007 (Exhibit 4.3 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007). Senior Indenture dated as of November 1, 2004 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-f to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-117752), as amended by First Supplemental Senior Indenture dated as of September 4, 2007 (Exhibit 4.5 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007), Second Supplemental Senior Indenture dated as of January 4, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 4, 2008), Third Supplemental Senior Indenture dated as of September 10, 2008 (Exhibit 4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended August 31, 2008), Fourth Supplemental Senior Indenture dated as of December 1, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated December 1, 2008), Fifth Supplemental Senior Indenture dated as of April 1, 2009 (Exhibit 4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009), Sixth Supplemental Senior Indenture dated as of September 16, 2011 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2011), Seventh Supplemental Senior Indenture dated as of November 21, 2011 (Exhibit 4.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2011), Eighth Supplemental Senior Indenture dated as of May 4, 2012 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2012), Ninth Supplemental Senior Indenture dated as of March 10, 2014 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2014), Tenth Supplemental Senior Indenture dated as of January 11, 2017 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 11, 2017) and Eleventh Supplemental Senior Indenture dated as of March 24, 2021 (Exhibit 4.4 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2021). Exhibit No.Description4.4The Unit Agreement Without Holders’ Obligations, dated as of August 29, 2008, between Morgan Stanley and The Bank of New York Mellon, as Unit Agent, as Trustee and Paying Agent under the Senior Indenture referred to therein and as Warrant Agent under the Warrant Agreement referred to therein (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated August 29, 2008).4.5Subordinated Indenture dated as of October 1, 2004 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-g to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-117752)).4.6Junior Subordinated Indenture dated as of October 12, 2006 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated October 12, 2006).4.7Deposit Agreement dated as of July 6, 2006 among Morgan Stanley, JPMorgan Chase Bank, N.A. and the holders from time to time of the depositary receipts described therein (Exhibit 4.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended May 31, 2006).4.8Form of Deposit Agreement among Morgan Stanley, JPMorgan Chase Bank, N.A. and the holders from time to time of the depositary receipts representing interests in the Series A Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated July 5, 2006).4.9Depositary Receipt for Depositary Shares, representing Floating Rate Non-Cumulative Preferred Stock, Series A (included in Exhibit 4.8 hereto).4.10Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series E Preferred Stock described therein (Exhibit 2.6 to Morgan Stanley’s Registration Statement on Form 8-A dated September 27, 2013).4.11Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E (included in Exhibit 4.10 hereto).4.12Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series F Preferred stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated December 9, 2013).4.13Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F (included in Exhibit 4.12 hereto). Exhibit No.Description4.4The Unit Agreement Without Holders’ Obligations, dated as of August 29, 2008, between Morgan Stanley and The Bank of New York Mellon, as Unit Agent, as Trustee and Paying Agent under the Senior Indenture referred to therein and as Warrant Agent under the Warrant Agreement referred to therein (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated August 29, 2008).4.5Subordinated Indenture dated as of October 1, 2004 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-g to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-117752)).4.6Junior Subordinated Indenture dated as of October 12, 2006 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated October 12, 2006).4.7Deposit Agreement dated as of July 6, 2006 among Morgan Stanley, JPMorgan Chase Bank, N.A. and the holders from time to time of the depositary receipts described therein (Exhibit 4.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended May 31, 2006).4.8Form of Deposit Agreement among Morgan Stanley, JPMorgan Chase Bank, N.A. and the holders from time to time of the depositary receipts representing interests in the Series A Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated July 5, 2006).4.9Depositary Receipt for Depositary Shares, representing Floating Rate Non-Cumulative Preferred Stock, Series A (included in Exhibit 4.8 hereto).4.10Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series E Preferred Stock described therein (Exhibit 2.6 to Morgan Stanley’s Registration Statement on Form 8-A dated September 27, 2013).4.11Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E (included in Exhibit 4.10 hereto).4.12Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series F Preferred stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated December 9, 2013).4.13Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F (included in Exhibit 4.12 hereto). The Unit Agreement Without Holders’ Obligations, dated as of August 29, 2008, between Morgan Stanley and The Bank of New York Mellon, as Unit Agent, as Trustee and Paying Agent under the Senior Indenture referred to therein and as Warrant Agent under the Warrant Agreement referred to therein (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated August 29, 2008). Subordinated Indenture dated as of October 1, 2004 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-g to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-117752)). Junior Subordinated Indenture dated as of October 12, 2006 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated October 12, 2006). Deposit Agreement dated as of July 6, 2006 among Morgan Stanley, JPMorgan Chase Bank, N.A. and the holders from time to time of the depositary receipts described therein (Exhibit 4.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended May 31, 2006). Form of Deposit Agreement among Morgan Stanley, JPMorgan Chase Bank, N.A. and the holders from time to time of the depositary receipts representing interests in the Series A Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated July 5, 2006). Depositary Receipt for Depositary Shares, representing Floating Rate Non-Cumulative Preferred Stock, Series A (included in Exhibit 4.8 hereto). Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series E Preferred Stock described therein (Exhibit 2.6 to Morgan Stanley’s Registration Statement on Form 8-A dated September 27, 2013). Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E (included in Exhibit 4.10 hereto). Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series F Preferred stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated December 9, 2013). Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F (included in Exhibit 4.12 hereto). December 2024 Form 10-K156 December 2024 Form 10-K156 December 2024 Form 10-K156 156 Table of Contents Table of Contents Table of Contents Exhibit No.Description4.14Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series I Preferred stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated September 17, 2014).4.15Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I (included in Exhibit 4.14 hereto).4.16Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series K Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated January 30, 2017).4.17Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K (included in Exhibit 4.16 hereto).4.18Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series L Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated November 22, 2019).4.19Depositary Receipt for Depositary Shares, representing 4.875% Non-Cumulative Preferred Stock, Series L (included in Exhibit 4.18 hereto).4.20Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series N Preferred Stock described therein (Exhibit 4.5 to Morgan Stanley’s current report on Form 8-K dated October 2, 2020).4.21Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series N (included in Exhibit 4.20 hereto).4.22Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series O Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated October 22, 2021).4.23Depositary Receipt for Depositary Shares, representing 4.250% Non-Cumulative Preferred Stock, Series O (included in Exhibit 4.22 hereto).4.24Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series P Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated August 1, 2022).Exhibit No.Description4.25Depositary Receipt for Depositary Shares, representing 6.500% Non-Cumulative Preferred Stock, Series P (included in Exhibit 4.24 hereto).4.26Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series Q Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated July 29, 2024).4.27Depositary Receipt for Depositary Shares, representing 6.625% Non-Cumulative Preferred Stock, Series Q (included in Exhibit 4.26 hereto).10.1Amended and Restated Trust Agreement dated as of January 1, 2018 by and between Morgan Stanley and State Street Bank and Trust Company (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2018).10.2Amended and Restated Investor Agreement dated as of June 30, 2011 by and between Morgan Stanley and Mitsubishi UFJ Financial Group, Inc. (Exhibit 10.1 to Morgan Stanley’s current report on Form 8-K dated June 30, 2011), as amended by Third Amendment, dated October 3, 2013 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2013), Fourth Amendment, dated April 6, 2016 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2016), Fifth Amendment, dated October 4, 2018 (Exhibit 10.3 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2020), Sixth Amendment, dated April 13, 2021 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2021) and Seventh Amendment, dated October 13, 2023 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2023).10.3†Morgan Stanley 401(k) Plan, amended and restated as of January 1, 2018 (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2018), as amended by Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2019), Amendment (Exhibit 10.6 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2020), Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2021), Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2022) and Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).10.4†*Amendment to Morgan Stanley 401(k) Plan, dated December 16, 2024.10.5†Tax Deferred Equity Participation Plan as amended and restated as of November 26, 2007 (Exhibit 10.9 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007).10.6†*Directors’ Equity Capital Accumulation Plan as amended and restated as of November 1, 2024 . Exhibit No.Description4.14Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series I Preferred stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated September 17, 2014).4.15Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I (included in Exhibit 4.14 hereto).4.16Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series K Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated January 30, 2017).4.17Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K (included in Exhibit 4.16 hereto).4.18Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series L Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated November 22, 2019).4.19Depositary Receipt for Depositary Shares, representing 4.875% Non-Cumulative Preferred Stock, Series L (included in Exhibit 4.18 hereto).4.20Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series N Preferred Stock described therein (Exhibit 4.5 to Morgan Stanley’s current report on Form 8-K dated October 2, 2020).4.21Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series N (included in Exhibit 4.20 hereto).4.22Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series O Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated October 22, 2021).4.23Depositary Receipt for Depositary Shares, representing 4.250% Non-Cumulative Preferred Stock, Series O (included in Exhibit 4.22 hereto).4.24Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series P Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated August 1, 2022). Exhibit No.Description4.14Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series I Preferred stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated September 17, 2014).4.15Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I (included in Exhibit 4.14 hereto).4.16Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series K Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated January 30, 2017).4.17Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K (included in Exhibit 4.16 hereto).4.18Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series L Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated November 22, 2019).4.19Depositary Receipt for Depositary Shares, representing 4.875% Non-Cumulative Preferred Stock, Series L (included in Exhibit 4.18 hereto).4.20Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series N Preferred Stock described therein (Exhibit 4.5 to Morgan Stanley’s current report on Form 8-K dated October 2, 2020).4.21Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series N (included in Exhibit 4.20 hereto).4.22Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series O Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated October 22, 2021).4.23Depositary Receipt for Depositary Shares, representing 4.250% Non-Cumulative Preferred Stock, Series O (included in Exhibit 4.22 hereto).4.24Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series P Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated August 1, 2022). Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series I Preferred stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated September 17, 2014). Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I (included in Exhibit 4.14 hereto). Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series K Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated January 30, 2017). Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K (included in Exhibit 4.16 hereto). Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series L Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated November 22, 2019). Depositary Receipt for Depositary Shares, representing 4.875% Non-Cumulative Preferred Stock, Series L (included in Exhibit 4.18 hereto). Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series N Preferred Stock described therein (Exhibit 4.5 to Morgan Stanley’s current report on Form 8-K dated October 2, 2020). Depositary Receipt for Depositary Shares, representing Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series N (included in Exhibit 4.20 hereto). Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series O Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated October 22, 2021). Depositary Receipt for Depositary Shares, representing 4.250% Non-Cumulative Preferred Stock, Series O (included in Exhibit 4.22 hereto). Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series P Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated August 1, 2022). Exhibit No.Description4.25Depositary Receipt for Depositary Shares, representing 6.500% Non-Cumulative Preferred Stock, Series P (included in Exhibit 4.24 hereto).4.26Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series Q Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated July 29, 2024).4.27Depositary Receipt for Depositary Shares, representing 6.625% Non-Cumulative Preferred Stock, Series Q (included in Exhibit 4.26 hereto).10.1Amended and Restated Trust Agreement dated as of January 1, 2018 by and between Morgan Stanley and State Street Bank and Trust Company (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2018).10.2Amended and Restated Investor Agreement dated as of June 30, 2011 by and between Morgan Stanley and Mitsubishi UFJ Financial Group, Inc. (Exhibit 10.1 to Morgan Stanley’s current report on Form 8-K dated June 30, 2011), as amended by Third Amendment, dated October 3, 2013 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2013), Fourth Amendment, dated April 6, 2016 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2016), Fifth Amendment, dated October 4, 2018 (Exhibit 10.3 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2020), Sixth Amendment, dated April 13, 2021 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2021) and Seventh Amendment, dated October 13, 2023 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2023).10.3†Morgan Stanley 401(k) Plan, amended and restated as of January 1, 2018 (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2018), as amended by Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2019), Amendment (Exhibit 10.6 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2020), Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2021), Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2022) and Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).10.4†*Amendment to Morgan Stanley 401(k) Plan, dated December 16, 2024.10.5†Tax Deferred Equity Participation Plan as amended and restated as of November 26, 2007 (Exhibit 10.9 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007).10.6†*Directors’ Equity Capital Accumulation Plan as amended and restated as of November 1, 2024 . Exhibit No.Description4.25Depositary Receipt for Depositary Shares, representing 6.500% Non-Cumulative Preferred Stock, Series P (included in Exhibit 4.24 hereto).4.26Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series Q Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated July 29, 2024).4.27Depositary Receipt for Depositary Shares, representing 6.625% Non-Cumulative Preferred Stock, Series Q (included in Exhibit 4.26 hereto).10.1Amended and Restated Trust Agreement dated as of January 1, 2018 by and between Morgan Stanley and State Street Bank and Trust Company (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2018).10.2Amended and Restated Investor Agreement dated as of June 30, 2011 by and between Morgan Stanley and Mitsubishi UFJ Financial Group, Inc. (Exhibit 10.1 to Morgan Stanley’s current report on Form 8-K dated June 30, 2011), as amended by Third Amendment, dated October 3, 2013 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2013), Fourth Amendment, dated April 6, 2016 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2016), Fifth Amendment, dated October 4, 2018 (Exhibit 10.3 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2020), Sixth Amendment, dated April 13, 2021 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2021) and Seventh Amendment, dated October 13, 2023 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2023).10.3†Morgan Stanley 401(k) Plan, amended and restated as of January 1, 2018 (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2018), as amended by Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2019), Amendment (Exhibit 10.6 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2020), Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2021), Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2022) and Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).10.4†*Amendment to Morgan Stanley 401(k) Plan, dated December 16, 2024.10.5†Tax Deferred Equity Participation Plan as amended and restated as of November 26, 2007 (Exhibit 10.9 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007).10.6†*Directors’ Equity Capital Accumulation Plan as amended and restated as of November 1, 2024 . Depositary Receipt for Depositary Shares, representing 6.500% Non-Cumulative Preferred Stock, Series P (included in Exhibit 4.24 hereto). Form of Deposit Agreement among Morgan Stanley, The Bank of New York Mellon and the holders from time to time of the depositary receipts representing interests in the Series Q Preferred Stock described therein (Exhibit 2.4 to Morgan Stanley’s Registration Statement on Form 8-A dated July 29, 2024). Depositary Receipt for Depositary Shares, representing 6.625% Non-Cumulative Preferred Stock, Series Q (included in Exhibit 4.26 hereto). Amended and Restated Trust Agreement dated as of January 1, 2018 by and between Morgan Stanley and State Street Bank and Trust Company (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2018). Amended and Restated Investor Agreement dated as of June 30, 2011 by and between Morgan Stanley and Mitsubishi UFJ Financial Group, Inc. (Exhibit 10.1 to Morgan Stanley’s current report on Form 8-K dated June 30, 2011), as amended by Third Amendment, dated October 3, 2013 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2013), Fourth Amendment, dated April 6, 2016 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2016), Fifth Amendment, dated October 4, 2018 (Exhibit 10.3 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2020), Sixth Amendment, dated April 13, 2021 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2021) and Seventh Amendment, dated October 13, 2023 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2023). Morgan Stanley 401(k) Plan, amended and restated as of January 1, 2018 (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2018), as amended by Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2019), Amendment (Exhibit 10.6 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2020), Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2021), Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2022) and Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023). Amendment to Morgan Stanley 401(k) Plan, dated December 16, 2024. Tax Deferred Equity Participation Plan as amended and restated as of November 26, 2007 (Exhibit 10.9 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007). Directors’ Equity Capital Accumulation Plan as amended and restated as of November 1, 2024 . 157December 2024 Form 10-K 157December 2024 Form 10-K 157December 2024 Form 10-K 157 Table of Contents Table of Contents Table of Contents Exhibit No.Description10.7†Employees’ Equity Accumulation Plan as amended and restated as of November 26, 2007 (Exhibit 10.12 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007).10.8†Employee Stock Purchase Plan as amended and restated as of August 1, 2022 (Exhibit 10.8 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2022).10.9†Morgan Stanley Supplemental Executive Retirement and Excess Plan, amended and restated effective December 31, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009) as amended by Amendment (Exhibit 10.5 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2009), Amendment (Exhibit 10.19 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2010), Amendment (Exhibit 10.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2011) and Amendment (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2014).10.10†Form of Deferred Compensation Agreement under the Pre-Tax Incentive Program 2 (Exhibit 10.12 to MSG’s annual report for the fiscal year ended November 30, 1996).10.11†Morgan Stanley UK Share Ownership Plan (Exhibit 4.1 to Morgan Stanley’s Registration Statement on Form S-8 (No. 333-146954)).10.12†Supplementary Deed of Participation for the Morgan Stanley UK Share Ownership Plan, dated as of November 5, 2009 (Exhibit 10.36 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2009).10.13†Aircraft Time-Sharing Agreement, dated as of January 1, 2010, by and between Corporate Services Support Corp. and James P. Gorman (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010).10.14†Agreement between Morgan Stanley and James P. Gorman, dated August 16, 2005, and amendment dated December 17, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010), as amended by Amendment (Exhibit 10.25 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2013).10.15†Form of Restrictive Covenant Agreement (Exhibit 10 to Morgan Stanley’s current report on Form 8-K dated November 22, 2005).10.16†Equity Incentive Compensation Plan, as amended and restated as of December 14, 2020 (Exhibit 10.19 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2020).10.17†*Morgan Stanley Compensation Incentive Plan, as amended and restated as of December 16, 2024.10.18†*Morgan Stanley Schedule of Non-Employee Directors Annual Compensation, effective as of November 1, 2024.10.19†*Description of Executive Health Coverage.Exhibit No.Description10.20†Form of Award Certificate for Discretionary Retention Awards of Stock Units (Exhibit 10.20 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).10.21†Form of Award Certificate for Discretionary Retention Awards under the Morgan Stanley Compensation Incentive Plan (Exhibit 10.21 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).10.22†*Form of Award Certificate for Performance Stock Unit Awards.10.23†Form of Aircraft Time-Sharing Agreement (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2020).19*Global Policy for Transactions in Morgan Stanley Securities.21*Subsidiaries of Morgan Stanley.22*Guarantor and Subsidiary Issuer of Registered Guaranteed Securities. 23.1*Consent of Deloitte & Touche LLP.24Powers of Attorney (included on signature page).31.1*Rule 13a-14(a) Certification of Chief Executive Officer.31.2*Rule 13a-14(a) Certification of Chief Financial Officer.32.1**Section 1350 Certification of Chief Executive Officer.32.2**Section 1350 Certification of Chief Financial Officer.97Morgan Stanley Compensation Recoupment Policy (Exhibit 97 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).101Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”).104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).1.For purposes of this Exhibit Index, references to “The Bank of New York” mean in some instances the entity successor to JPMorgan Chase Bank, N.A. or J.P. Morgan Trust Company, National Association; references to “JPMorgan Chase Bank, N.A.” mean the entity formerly known as The Chase Manhattan Bank, in some instances as the successor to Chemical Bank; references to “J.P. Morgan Trust Company, N.A.” mean the entity formerly known as Bank One Trust Company, N.A., as successor to The First National Bank of Chicago.*Filed herewith.**Furnished herewith.†Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-K pursuant to Item 15(b).Note: Other instruments defining the rights of holders of long-term debt securities of Morgan Stanley and its subsidiaries are omitted pursuant to Section (b)(4)(iii) of Item 601 of Regulation S-K. Morgan Stanley hereby agrees to furnish copies of these instruments to the U.S. Securities and Exchange Commission upon request. Exhibit No.Description10.7†Employees’ Equity Accumulation Plan as amended and restated as of November 26, 2007 (Exhibit 10.12 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007).10.8†Employee Stock Purchase Plan as amended and restated as of August 1, 2022 (Exhibit 10.8 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2022).10.9†Morgan Stanley Supplemental Executive Retirement and Excess Plan, amended and restated effective December 31, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009) as amended by Amendment (Exhibit 10.5 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2009), Amendment (Exhibit 10.19 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2010), Amendment (Exhibit 10.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2011) and Amendment (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2014).10.10†Form of Deferred Compensation Agreement under the Pre-Tax Incentive Program 2 (Exhibit 10.12 to MSG’s annual report for the fiscal year ended November 30, 1996).10.11†Morgan Stanley UK Share Ownership Plan (Exhibit 4.1 to Morgan Stanley’s Registration Statement on Form S-8 (No. 333-146954)).10.12†Supplementary Deed of Participation for the Morgan Stanley UK Share Ownership Plan, dated as of November 5, 2009 (Exhibit 10.36 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2009).10.13†Aircraft Time-Sharing Agreement, dated as of January 1, 2010, by and between Corporate Services Support Corp. and James P. Gorman (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010).10.14†Agreement between Morgan Stanley and James P. Gorman, dated August 16, 2005, and amendment dated December 17, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010), as amended by Amendment (Exhibit 10.25 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2013).10.15†Form of Restrictive Covenant Agreement (Exhibit 10 to Morgan Stanley’s current report on Form 8-K dated November 22, 2005).10.16†Equity Incentive Compensation Plan, as amended and restated as of December 14, 2020 (Exhibit 10.19 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2020).10.17†*Morgan Stanley Compensation Incentive Plan, as amended and restated as of December 16, 2024.10.18†*Morgan Stanley Schedule of Non-Employee Directors Annual Compensation, effective as of November 1, 2024.10.19†*Description of Executive Health Coverage. Exhibit No.Description10.7†Employees’ Equity Accumulation Plan as amended and restated as of November 26, 2007 (Exhibit 10.12 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007).10.8†Employee Stock Purchase Plan as amended and restated as of August 1, 2022 (Exhibit 10.8 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2022).10.9†Morgan Stanley Supplemental Executive Retirement and Excess Plan, amended and restated effective December 31, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009) as amended by Amendment (Exhibit 10.5 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2009), Amendment (Exhibit 10.19 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2010), Amendment (Exhibit 10.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2011) and Amendment (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2014).10.10†Form of Deferred Compensation Agreement under the Pre-Tax Incentive Program 2 (Exhibit 10.12 to MSG’s annual report for the fiscal year ended November 30, 1996).10.11†Morgan Stanley UK Share Ownership Plan (Exhibit 4.1 to Morgan Stanley’s Registration Statement on Form S-8 (No. 333-146954)).10.12†Supplementary Deed of Participation for the Morgan Stanley UK Share Ownership Plan, dated as of November 5, 2009 (Exhibit 10.36 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2009).10.13†Aircraft Time-Sharing Agreement, dated as of January 1, 2010, by and between Corporate Services Support Corp. and James P. Gorman (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010).10.14†Agreement between Morgan Stanley and James P. Gorman, dated August 16, 2005, and amendment dated December 17, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010), as amended by Amendment (Exhibit 10.25 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2013).10.15†Form of Restrictive Covenant Agreement (Exhibit 10 to Morgan Stanley’s current report on Form 8-K dated November 22, 2005).10.16†Equity Incentive Compensation Plan, as amended and restated as of December 14, 2020 (Exhibit 10.19 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2020).10.17†*Morgan Stanley Compensation Incentive Plan, as amended and restated as of December 16, 2024.10.18†*Morgan Stanley Schedule of Non-Employee Directors Annual Compensation, effective as of November 1, 2024.10.19†*Description of Executive Health Coverage. Employees’ Equity Accumulation Plan as amended and restated as of November 26, 2007 (Exhibit 10.12 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007). Employee Stock Purchase Plan as amended and restated as of August 1, 2022 (Exhibit 10.8 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2022). Morgan Stanley Supplemental Executive Retirement and Excess Plan, amended and restated effective December 31, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009) as amended by Amendment (Exhibit 10.5 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2009), Amendment (Exhibit 10.19 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2010), Amendment (Exhibit 10.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2011) and Amendment (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2014). Form of Deferred Compensation Agreement under the Pre-Tax Incentive Program 2 (Exhibit 10.12 to MSG’s annual report for the fiscal year ended November 30, 1996). Morgan Stanley UK Share Ownership Plan (Exhibit 4.1 to Morgan Stanley’s Registration Statement on Form S-8 (No. 333-146954)). Supplementary Deed of Participation for the Morgan Stanley UK Share Ownership Plan, dated as of November 5, 2009 (Exhibit 10.36 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2009). Aircraft Time-Sharing Agreement, dated as of January 1, 2010, by and between Corporate Services Support Corp. and James P. Gorman (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010). Agreement between Morgan Stanley and James P. Gorman, dated August 16, 2005, and amendment dated December 17, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010), as amended by Amendment (Exhibit 10.25 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2013). Form of Restrictive Covenant Agreement (Exhibit 10 to Morgan Stanley’s current report on Form 8-K dated November 22, 2005). Equity Incentive Compensation Plan, as amended and restated as of December 14, 2020 (Exhibit 10.19 to Morgan Stanley's annual report on Form 10-K for the year ended December 31, 2020). Morgan Stanley Compensation Incentive Plan, as amended and restated as of December 16, 2024. Morgan Stanley Schedule of Non-Employee Directors Annual Compensation, effective as of November 1, 2024. Description of Executive Health Coverage. Exhibit No.Description10.20†Form of Award Certificate for Discretionary Retention Awards of Stock Units (Exhibit 10.20 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).10.21†Form of Award Certificate for Discretionary Retention Awards under the Morgan Stanley Compensation Incentive Plan (Exhibit 10.21 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).10.22†*Form of Award Certificate for Performance Stock Unit Awards.10.23†Form of Aircraft Time-Sharing Agreement (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2020).19*Global Policy for Transactions in Morgan Stanley Securities.21*Subsidiaries of Morgan Stanley.22*Guarantor and Subsidiary Issuer of Registered Guaranteed Securities. 23.1*Consent of Deloitte & Touche LLP.24Powers of Attorney (included on signature page).31.1*Rule 13a-14(a) Certification of Chief Executive Officer.31.2*Rule 13a-14(a) Certification of Chief Financial Officer.32.1**Section 1350 Certification of Chief Executive Officer.32.2**Section 1350 Certification of Chief Financial Officer.97Morgan Stanley Compensation Recoupment Policy (Exhibit 97 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).101Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”).104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).1.For purposes of this Exhibit Index, references to “The Bank of New York” mean in some instances the entity successor to JPMorgan Chase Bank, N.A. or J.P. Morgan Trust Company, National Association; references to “JPMorgan Chase Bank, N.A.” mean the entity formerly known as The Chase Manhattan Bank, in some instances as the successor to Chemical Bank; references to “J.P. Morgan Trust Company, N.A.” mean the entity formerly known as Bank One Trust Company, N.A., as successor to The First National Bank of Chicago.*Filed herewith.**Furnished herewith.†Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-K pursuant to Item 15(b).Note: Other instruments defining the rights of holders of long-term debt securities of Morgan Stanley and its subsidiaries are omitted pursuant to Section (b)(4)(iii) of Item 601 of Regulation S-K. Morgan Stanley hereby agrees to furnish copies of these instruments to the U.S. Securities and Exchange Commission upon request. Exhibit No.Description10.20†Form of Award Certificate for Discretionary Retention Awards of Stock Units (Exhibit 10.20 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).10.21†Form of Award Certificate for Discretionary Retention Awards under the Morgan Stanley Compensation Incentive Plan (Exhibit 10.21 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).10.22†*Form of Award Certificate for Performance Stock Unit Awards.10.23†Form of Aircraft Time-Sharing Agreement (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2020).19*Global Policy for Transactions in Morgan Stanley Securities.21*Subsidiaries of Morgan Stanley.22*Guarantor and Subsidiary Issuer of Registered Guaranteed Securities. 23.1*Consent of Deloitte & Touche LLP.24Powers of Attorney (included on signature page).31.1*Rule 13a-14(a) Certification of Chief Executive Officer.31.2*Rule 13a-14(a) Certification of Chief Financial Officer.32.1**Section 1350 Certification of Chief Executive Officer.32.2**Section 1350 Certification of Chief Financial Officer.97Morgan Stanley Compensation Recoupment Policy (Exhibit 97 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023).101Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”).104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). Form of Award Certificate for Discretionary Retention Awards of Stock Units (Exhibit 10.20 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023). Form of Award Certificate for Discretionary Retention Awards under the Morgan Stanley Compensation Incentive Plan (Exhibit 10.21 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023). Form of Award Certificate for Performance Stock Unit Awards. Form of Aircraft Time-Sharing Agreement (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2020). Global Policy for Transactions in Morgan Stanley Securities. Subsidiaries of Morgan Stanley. Guarantor and Subsidiary Issuer of Registered Guaranteed Securities. Consent of Deloitte & Touche LLP. Powers of Attorney (included on signature page). Rule 13a-14(a) Certification of Chief Executive Officer. Rule 13a-14(a) Certification of Chief Financial Officer. Section 1350 Certification of Chief Executive Officer. Section 1350 Certification of Chief Financial Officer. Morgan Stanley Compensation Recoupment Policy (Exhibit 97 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2023). 1.For purposes of this Exhibit Index, references to “The Bank of New York” mean in some instances the entity successor to JPMorgan Chase Bank, N.A. or J.P. Morgan Trust Company, National Association; references to “JPMorgan Chase Bank, N.A.” mean the entity formerly known as The Chase Manhattan Bank, in some instances as the successor to Chemical Bank; references to “J.P. Morgan Trust Company, N.A.” mean the entity formerly known as Bank One Trust Company, N.A., as successor to The First National Bank of Chicago. *Filed herewith.**Furnished herewith.†Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-K pursuant to Item 15(b). Note: Other instruments defining the rights of holders of long-term debt securities of Morgan Stanley and its subsidiaries are omitted pursuant to Section (b)(4)(iii) of Item 601 of Regulation S-K. Morgan Stanley hereby agrees to furnish copies of these instruments to the U.S. Securities and Exchange Commission upon request. December 2024 Form 10-K158 December 2024 Form 10-K158 December 2024 Form 10-K158 158 Table of Contents Table of Contents Table of Contents Form 10-K SummaryNone.SignaturesPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on February 21, 2025.MORGAN STANLEY(REGISTRANT)By:/s/ EDWARD PICK(Edward Pick)Chairman of the Board and Chief Executive OfficerPOWER OF ATTORNEYWe, the undersigned, hereby severally constitute Sharon Yeshaya, Eric F. Grossman and Martin M. Cohen, and each of them singly, our true and lawful attorneys with full power to them and each of them to sign for us, and in our names in the capacities indicated below, any and all amendments to the annual report on Form 10-K filed with the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be signed by our said attorneys to any and all amendments to said annual report on Form 10-K.Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on the 21st day of February, 2025.SignatureTitle/s/ EDWARD PICKChairman of the Board and Chief Executive Officer(Edward Pick)(Principal Executive Officer)/s/ SHARON YESHAYAExecutive Vice President and Chief Financial Officer(Sharon Yeshaya)(Principal Financial Officer)/s/ RAJA J. AKRAMDeputy Chief Financial Officer(Raja J. Akram)(Chief Accounting Officer and Controller)/s/ MEGAN BUTLERDirector(Megan Butler)/s/ THOMAS H. GLOCERDirector(Thomas H. Glocer)SignatureTitle/s/ ROBERT H. HERZDirector(Robert H. Herz)/s/ ERIKA H. JAMESDirector(Erika H. James)/s/ HIRONORI KAMEZAWADirector(Hironori Kamezawa)/s/ SHELLEY B. LEIBOWITZDirector(Shelley B. Leibowitz)/s/ JAMI MISCIKDirector(Jami Miscik)/s/ MASATO MIYACHIDirector(Masato Miyachi)/s/ DENNIS M. NALLYDirector(Dennis M. Nally)/s/ MARY L. SCHAPIRODirector(Mary L. Schapiro)/s/ PERRY M. TRAQUINADirector(Perry M. Traquina)/s/ RAYFORD WILKINS, JR.Director(Rayford Wilkins, Jr.) Form 10-K SummaryNone.SignaturesPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on February 21, 2025.MORGAN STANLEY(REGISTRANT)By:/s/ EDWARD PICK(Edward Pick)Chairman of the Board and Chief Executive OfficerPOWER OF ATTORNEYWe, the undersigned, hereby severally constitute Sharon Yeshaya, Eric F. Grossman and Martin M. Cohen, and each of them singly, our true and lawful attorneys with full power to them and each of them to sign for us, and in our names in the capacities indicated below, any and all amendments to the annual report on Form 10-K filed with the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be signed by our said attorneys to any and all amendments to said annual report on Form 10-K.Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on the 21st day of February, 2025.SignatureTitle/s/ EDWARD PICKChairman of the Board and Chief Executive Officer(Edward Pick)(Principal Executive Officer)/s/ SHARON YESHAYAExecutive Vice President and Chief Financial Officer(Sharon Yeshaya)(Principal Financial Officer)/s/ RAJA J. AKRAMDeputy Chief Financial Officer(Raja J. Akram)(Chief Accounting Officer and Controller)/s/ MEGAN BUTLERDirector(Megan Butler)/s/ THOMAS H. GLOCERDirector(Thomas H. Glocer)"
    },
    {
      "status": "ADDED",
      "current_title": "Form 10-K Summary",
      "prior_title": null,
      "current_body": "None. Signatures Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on February 21, 2025."
    },
    {
      "status": "ADDED",
      "current_title": "POWER OF ATTORNEY",
      "prior_title": null,
      "current_body": "We, the undersigned, hereby severally constitute Sharon Yeshaya, Eric F. Grossman and Martin M. Cohen, and each of them singly, our true and lawful attorneys with full power to them and each of them to sign for us, and in our names in the capacities indicated below, any and all amendments to the annual report on Form 10-K filed with the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be signed by our said attorneys to any and all amendments to said annual report on Form 10-K. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on the 21st day of February, 2025. SignatureTitle/s/ EDWARD PICKChairman of the Board and Chief Executive Officer(Edward Pick)(Principal Executive Officer)/s/ SHARON YESHAYAExecutive Vice President and Chief Financial Officer(Sharon Yeshaya)(Principal Financial Officer)/s/ RAJA J. AKRAMDeputy Chief Financial Officer(Raja J. Akram)(Chief Accounting Officer and Controller)/s/ MEGAN BUTLERDirector(Megan Butler)/s/ THOMAS H. GLOCERDirector(Thomas H. Glocer) /s/ EDWARD PICK Chairman of the Board and Chief Executive Officer"
    },
    {
      "status": "ADDED",
      "current_title": "(Edward Pick)",
      "prior_title": null,
      "current_body": "/s/ SHARON YESHAYA /s/ RAJA J. AKRAM /s/ MEGAN BUTLER Director"
    },
    {
      "status": "ADDED",
      "current_title": "(Megan Butler)",
      "prior_title": null,
      "current_body": "/s/ THOMAS H. GLOCER SignatureTitle/s/ ROBERT H. HERZDirector(Robert H. Herz)/s/ ERIKA H. JAMESDirector(Erika H. James)/s/ HIRONORI KAMEZAWADirector(Hironori Kamezawa)/s/ SHELLEY B. LEIBOWITZDirector(Shelley B. Leibowitz)/s/ JAMI MISCIKDirector(Jami Miscik)/s/ MASATO MIYACHIDirector(Masato Miyachi)/s/ DENNIS M. NALLYDirector(Dennis M. Nally)/s/ MARY L. SCHAPIRODirector(Mary L. Schapiro)/s/ PERRY M. TRAQUINADirector(Perry M. Traquina)/s/ RAYFORD WILKINS, JR.Director(Rayford Wilkins, Jr.) SignatureTitle/s/ ROBERT H. HERZDirector(Robert H. Herz)/s/ ERIKA H. JAMESDirector(Erika H. James)/s/ HIRONORI KAMEZAWADirector(Hironori Kamezawa)/s/ SHELLEY B. LEIBOWITZDirector(Shelley B. Leibowitz)/s/ JAMI MISCIKDirector(Jami Miscik)/s/ MASATO MIYACHIDirector(Masato Miyachi)/s/ DENNIS M. NALLYDirector(Dennis M. Nally)/s/ MARY L. SCHAPIRODirector(Mary L. Schapiro)/s/ PERRY M. TRAQUINADirector(Perry M. Traquina)/s/ RAYFORD WILKINS, JR.Director(Rayford Wilkins, Jr.) /s/ ROBERT H. HERZ /s/ ERIKA H. JAMES /s/ HIRONORI KAMEZAWA /s/ SHELLEY B. LEIBOWITZ /s/ JAMI MISCIK /s/ MASATO MIYACHI /s/ DENNIS M. NALLY /s/ MARY L. SCHAPIRO /s/ PERRY M. TRAQUINA /s/ RAYFORD WILKINS, JR. 159December 2024 Form 10-K 159December 2024 Form 10-K 159December 2024 Form 10-K 159"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Liquidity is essential to our businesses and we rely on external sources to finance a significant portion of our operations.",
      "prior_body": "Liquidity is essential to our businesses. Our liquidity could be negatively affected by our inability to raise funding in the long-term or short-term debt capital markets, our inability to access the secured lending markets, our inability to attract and retain deposits, or unanticipated outflows of cash or collateral by customers or clients. Factors that we cannot control, such as disruption of the financial markets or negative views about the financial services industry generally, including concerns regarding fiscal matters in the U.S. and other geographic areas, could impair our ability to raise funding. In addition, our ability to raise funding could be impaired if investors, depositors or lenders develop a negative perception of our long-term or short-term financial prospects due to factors such as an incurrence of large trading, credit or operational losses, a downgrade by the rating agencies, a decline in the level of our business activity, if regulatory authorities take significant action against us or our industry, or if we discover significant employee misconduct or illegal activity. If we are unable to raise funding using the methods described above, we would likely need to finance or liquidate unencumbered assets, such as our investment portfolios or trading assets, to meet maturing liabilities or other obligations. We may be unable to sell some of our assets or we may have to sell assets at a discount to market value, either of which could adversely affect our results of operations, cash flows and financial condition."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Legal, Regulatory and Compliance Risk",
      "prior_body": "Legal, regulatory and compliance risk includes the risk of legal or regulatory sanctions; material financial loss, including fines, penalties, judgments, damages and/or settlements; limitations on our business; or loss to reputation we may suffer as a result of our failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing and anti-corruption rules and regulations. For more information on how we monitor and manage legal, regulatory and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk.”"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Replacement or reform of certain interest rate benchmarks could adversely affect our business, securities, financial condition and results of operations.",
      "prior_body": "Central banks around the world, including the Federal Reserve, have sponsored initiatives in recent years to replace LIBOR and replace or reform certain other interest rate benchmarks (collectively, the “IBORs”). A transition away from use of the IBORs to alternative rates and other potential interest rate benchmark reforms has been underway for a number of years. These reforms have caused and may in the future cause such rates to perform differently than in the past, or to cease entirely, or have other consequences that are contrary to market expectations. The ongoing market transition away from these interest rate benchmarks to alternative reference rates is complex and December 2023 Form 10-K22 December 2023 Form 10-K22 December 2023 Form 10-K22 22 Table of Contents Table of Contents Table of Contents could have a range of adverse impacts on our business, securities, financial condition and results of operations, including:•Adversely impacting the pricing, liquidity, value of, return on and trading for a broad array of financial products, including any securities, loans and derivatives that are included in our financial assets and liabilities that are linked to these interest rate benchmarks;•Inquiries, reviews or other actions from regulators in respect of our (or the market’s) preparation, readiness, transition plans and actions regarding the replacement of a legacy interest rate benchmark with one or more alternative reference rates;•Disputes, litigation or other actions with clients, counterparties and investors in various scenarios, such as regarding the interpretation and enforceability of provisions in IBOR-based products such as fallback language or other related provisions, including in the case of fallbacks to the alternative reference rates, any economic, legal, operational or other impact resulting from the fundamental differences between the IBORs and the various alternative reference rates or regarding the interpretation of applicable legislation, regulations or rules; and•Causing us to incur additional costs in relation to any of the above factors.Other factors include the pace of the transition to the alternative reference rates, timing mismatches between cash and derivative markets, the specific terms and parameters for and market acceptance of any alternative reference rate, market conventions for the use of any alternative reference rate in connection with a particular product (including the timing and market adoption of any conventions proposed or recommended by any industry or other group), prices of and the liquidity of trading markets for products based on alternative reference rates, and our ability to further transition and develop appropriate systems and analytics for one or more alternative reference rates.See also “Management's Discussion and Analysis of Financial Condition and Results of Operations—Regulatory Requirements—Regulatory Developments and Other Matters.”Competitive EnvironmentWe face strong competition from financial services firms and others, which could lead to pricing pressures that could materially adversely affect our revenues and profitability.The financial services industry and all aspects of our businesses are intensely competitive, and we expect them to remain so. We compete with commercial banks, investment banking firms, brokerage firms, insurance companies, exchanges, electronic trading and clearing platforms, financial data repositories, investment advisers and sponsors of mutual funds, hedge funds, real assets funds and private credit and equity funds, energy companies, financial technology firms and other companies offering financial and ancillary services in the U.S. and globally, including, in certain instances, through the internet. We also compete with companies that provide online trading and banking services, investment advisory services, robo-advice capabilities, access to digital asset capabilities and services, and other financial products and services. We compete on the basis of several factors, including transaction execution, capital or access to capital, products and services, innovation, technology, reputation, risk appetite and price.Over time, certain sectors of the financial services industry have become more concentrated, as institutions involved in a broad range of financial services have left businesses, been acquired by or merged into other firms, or have declared bankruptcy. Such changes could result in our remaining competitors gaining greater capital and other resources, such as the ability to offer a broader range of products and services and geographic diversity, or new competitors may emerge.We have experienced and may continue to experience pricing pressures as a result of these factors and as some of our competitors seek to obtain market share by reducing prices, eliminating commissions or other fees, or providing more favorable terms of business. In addition, certain of our competitors may be subject to different and, in some cases, less stringent, legal and regulatory regimes than we are, thereby putting us at a competitive disadvantage. Some new competitors in the financial technology sector have sought to target existing segments of our businesses that could be susceptible to disruption by innovative or less regulated business models. For more information regarding the competitive environment in which we operate, see “Business—Competition” and “Business—Supervision and Regulation.”Automated trading markets and the introduction and application of new technologies may adversely affect our business and may increase competition.We continue to experience price competition in some of our businesses. In particular, the ability to execute securities, derivatives and other financial instrument trades electronically on exchanges, swap execution facilities and other automated trading platforms, and the introduction and application of new technologies, including generative artificial intelligence, will likely continue the pressure on revenues. The trend toward direct access to automated, electronic markets will likely continue as additional markets move to more automated trading platforms. We have experienced and will likely continue to experience competitive pressures in these and other areas in the future.Our ability to retain and attract qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance.Our people are our most important asset. We compete with various other companies in attracting and retaining qualified could have a range of adverse impacts on our business, securities, financial condition and results of operations, including:•Adversely impacting the pricing, liquidity, value of, return on and trading for a broad array of financial products, including any securities, loans and derivatives that are included in our financial assets and liabilities that are linked to these interest rate benchmarks;•Inquiries, reviews or other actions from regulators in respect of our (or the market’s) preparation, readiness, transition plans and actions regarding the replacement of a legacy interest rate benchmark with one or more alternative reference rates;•Disputes, litigation or other actions with clients, counterparties and investors in various scenarios, such as regarding the interpretation and enforceability of provisions in IBOR-based products such as fallback language or other related provisions, including in the case of fallbacks to the alternative reference rates, any economic, legal, operational or other impact resulting from the fundamental differences between the IBORs and the various alternative reference rates or regarding the interpretation of applicable legislation, regulations or rules; and•Causing us to incur additional costs in relation to any of the above factors.Other factors include the pace of the transition to the alternative reference rates, timing mismatches between cash and derivative markets, the specific terms and parameters for and market acceptance of any alternative reference rate, market conventions for the use of any alternative reference rate in connection with a particular product (including the timing and market adoption of any conventions proposed or recommended by any industry or other group), prices of and the liquidity of trading markets for products based on alternative reference rates, and our ability to further transition and develop appropriate systems and analytics for one or more alternative reference rates.See also “Management's Discussion and Analysis of Financial Condition and Results of Operations—Regulatory Requirements—Regulatory Developments and Other Matters.”Competitive EnvironmentWe face strong competition from financial services firms and others, which could lead to pricing pressures that could materially adversely affect our revenues and profitability.The financial services industry and all aspects of our businesses are intensely competitive, and we expect them to remain so. We compete with commercial banks, investment banking firms, brokerage firms, insurance companies, exchanges, electronic trading and clearing platforms, financial data repositories, investment advisers and sponsors of mutual funds, hedge funds, real assets funds and private credit and equity funds, energy companies, financial technology firms could have a range of adverse impacts on our business, securities, financial condition and results of operations, including: •Adversely impacting the pricing, liquidity, value of, return on and trading for a broad array of financial products, including any securities, loans and derivatives that are included in our financial assets and liabilities that are linked to these interest rate benchmarks; •Inquiries, reviews or other actions from regulators in respect of our (or the market’s) preparation, readiness, transition plans and actions regarding the replacement of a legacy interest rate benchmark with one or more alternative reference rates; •Disputes, litigation or other actions with clients, counterparties and investors in various scenarios, such as regarding the interpretation and enforceability of provisions in IBOR-based products such as fallback language or other related provisions, including in the case of fallbacks to the alternative reference rates, any economic, legal, operational or other impact resulting from the fundamental differences between the IBORs and the various alternative reference rates or regarding the interpretation of applicable legislation, regulations or rules; and •Causing us to incur additional costs in relation to any of the above factors. Other factors include the pace of the transition to the alternative reference rates, timing mismatches between cash and derivative markets, the specific terms and parameters for and market acceptance of any alternative reference rate, market conventions for the use of any alternative reference rate in connection with a particular product (including the timing and market adoption of any conventions proposed or recommended by any industry or other group), prices of and the liquidity of trading markets for products based on alternative reference rates, and our ability to further transition and develop appropriate systems and analytics for one or more alternative reference rates. See also “Management's Discussion and Analysis of Financial Condition and Results of Operations—Regulatory Requirements—Regulatory Developments and Other Matters.”"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Risk management and strategy",
      "prior_body": "We, our businesses, and the broader financial services industry face an increasingly complex and evolving threat environment. We have made and continue to make substantial investments in cybersecurity and fraud prevention technology, and employ experienced talent to lead our Cybersecurity and Information Security organizations and program under the oversight of our Board of Directors (“Board”) and the Operations and Technology Committee of the Board (“BOTC”). See “Risk Factors—Operational Risk” for information on risks to the Firm from cybersecurity threats. As part of our enterprise risk management (“ERM”) framework, we have implemented and maintain a program to assess, identify and manage risks arising from the cybersecurity threats confronting the Firm (“Cybersecurity Program”). Our Cybersecurity Program helps protect our clients, customers, employees, property, products, services and reputation by seeking to preserve the confidentiality, integrity and availability of information, enable the secure delivery of financial services, and protect the business and the safe operation of our technology systems. We continually adjust our Cybersecurity Program to address the evolving cybersecurity threat landscape and comply with extensive legal and regulatory expectations."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Board of Directors’ oversight of risks from cybersecurity threats",
      "prior_body": "As discussed above, material cybersecurity risks are addressed by management-level ERM committees with escalation to the BOTC and Board, as appropriate. The BOTC has primary responsibility for assisting the Board in its oversight of significant operational risk exposures of the Firm and its business units, including IT, information security, fraud, third-party oversight, business disruption and resilience, and cybersecurity risks (including review of cybersecurity risks against established risk management methodologies) and the steps management has taken to monitor and control such exposures. In accordance with its charter, the BOTC receives quarterly reports from (i) the Technology Department (“Technology”), including the CIO or the CISO; (ii) the Operations Department (“Operations”); and (iii) the Non-Financial Risk Management Department (“NFR”). Such reporting includes updates on our Cybersecurity Program, risks from cybersecurity threats, our programs to address and mitigate the risks associated with the evolving cybersecurity threat environment, and the Operational Risk Department’s assessment of cybersecurity risks. Senior officers in Technology and NFR also provide an annual report to the BOTC on the status of our Cybersecurity Program, including a discussion of risks arising from cybersecurity threats, in compliance with the Gramm-Leach-Bliley Act. At least annually, these senior management representatives discuss the status of the Cybersecurity Program and key cybersecurity risks with the Board. The BOTC also receives an annual independent assessment of key aspects of our Cybersecurity Program from an external party and holds joint meetings with the BAC and Risk Committee of the Board (“BRC”), as necessary and appropriate. In addition, members of the BOTC periodically participate in incident response tabletop exercises and the BOTC periodically receives reports from incident response tabletop exercises performed by and for management.At least annually, the BOTC or the Board reviews and approves the Global Cybersecurity Program Policy, the Global Information Security Program Policy, the Global Third-Party Risk Management Policy, and the Global Technology Policy. The chair of the BOTC regularly reports to the Board on risks from cybersecurity threats and other matters reviewed by the BOTC. In accordance with the Board’s Corporate Governance Policies, all Board members are invited to attend BOTC meetings and have access to meeting materials. Senior management, including the senior officers mentioned above, discuss cybersecurity developments with the chair of the BOTC between Board and committee meetings, as necessary. The BOTC meets regularly in executive session with management, including the Head of NFR, and senior officers from Technology and Operations. Department (“Operations”); and (iii) the Non-Financial Risk Management Department (“NFR”). Such reporting includes updates on our Cybersecurity Program, risks from cybersecurity threats, our programs to address and mitigate the risks associated with the evolving cybersecurity threat environment, and the Operational Risk Department’s assessment of cybersecurity risks. Senior officers in Technology and NFR also provide an annual report to the BOTC on the status of our Cybersecurity Program, including a discussion of risks arising from cybersecurity threats, in compliance with the Gramm-Leach-Bliley Act. At least annually, these senior management representatives discuss the status of the Cybersecurity Program and key cybersecurity risks with the Board. The BOTC also receives an annual independent assessment of key aspects of our Cybersecurity Program from an external party and holds joint meetings with the BAC and Risk Committee of the Board (“BRC”), as necessary and appropriate. In addition, members of the BOTC periodically participate in incident response tabletop exercises and the BOTC periodically receives reports from incident response tabletop exercises performed by and for management. At least annually, the BOTC or the Board reviews and approves the Global Cybersecurity Program Policy, the Global Information Security Program Policy, the Global Third-Party Risk Management Policy, and the Global Technology Policy. The chair of the BOTC regularly reports to the Board on risks from cybersecurity threats and other matters reviewed by the BOTC. In accordance with the Board’s Corporate Governance Policies, all Board members are invited to attend BOTC meetings and have access to meeting materials. Senior management, including the senior officers mentioned above, discuss cybersecurity developments with the chair of the BOTC between Board and committee meetings, as necessary. The BOTC meets regularly in executive session with management, including the Head of NFR, and senior officers from Technology and Operations. 27December 2023 Form 10-K 27December 2023 Form 10-K 27December 2023 Form 10-K 27 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Non-Interest Expenses",
      "prior_body": "($ in millions) •Compensation and benefits expenses of $24,558 million in 2023 increased 7% from the prior year, primarily due to higher expenses related to certain employee deferred cash-based compensation plans linked to investment performance (“DCP”) and higher salary expenses, partially offset by lower expenses related to outstanding deferred equity compensation. 2023 Compensation and benefits expenses included $353 million of severance costs, primarily associated with the employee action recorded in the second quarter of 2023. •Non-compensation expenses of $17,240 million in 2023 increased 6% from the prior year, primarily driven by an FDIC special assessment of $286 million, increased spend on technology, higher costs related to exits of real estate and higher legal expenses, including $249 million related to a specific matter."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Net Revenues by Region1",
      "prior_body": "($ in millions) 1.For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements. •Americas net revenues in 2023 increased 4%, primarily driven by results within the Wealth Management business segment and Other net revenues within the Institutional Securities business segment, partially offset by lower results across businesses within the Institutional Securities business segment. •EMEA net revenues in 2023 decreased 11%, primarily driven by lower results across businesses within the Institutional Securities business segment. •Asia net revenues in 2023 decreased 5%, primarily driven by lower results across businesses within the Institutional Securities business segment."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Business Segments",
      "prior_body": "Substantially all of our operating revenues and operating expenses are directly attributable to our business segments. Certain revenues and expenses have been allocated to each business segment, generally in proportion to its respective net revenues, non-interest expenses or other relevant measures. See Note 22 to the financial statements for segment net revenues by income statement line item and information on intersegment transactions."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Income Statement Information",
      "prior_body": "% Change$ in millions20232022202120232022RevenuesAdvisory$2,244 $2,946 $3,487 (24)%(16)%Equity889 851 4,437 4 %(81)%Fixed income1,445 1,438 2,348 — %(39)%Total Underwriting2,334 2,289 6,785 2 %(66)%Total Investment banking4,578 5,235 10,272 (13)%(49)%Equity9,986 10,769 11,435 (7)%(6)%Fixed income7,673 9,022 7,516 (15)%20 %Other823 (633)610 N/MN/MNet revenues23,060 24,393 29,833 (5)%(18)%Provision for credit losses401 211 (7)90 %N/MCompensation and benefits8,369 8,246 9,165 1 %(10)%Non-compensation expenses9,814 9,221 8,861 6 %4 %Total non-interest expenses18,183 17,467 18,026 4 %(3)%Income before provision for income taxes4,476 6,715 11,814 (33)%(43)%Provision for income taxes884 1,308 2,746 (32)%(52)%Net income3,592 5,407 9,068 (34)%(40)%Net income applicable to noncontrolling interests139 165 111 (16)%49 %Net income applicable to Morgan Stanley$3,453 $5,242 $8,957 (34)%(41)%"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Transactional Revenues",
      "prior_body": "Transactional revenues of $3,556 million in 2023 increased 44% compared with the prior year, primarily due to $282 million of gains on DCP investments compared with $858 million of losses in the prior year, partially offset by lower client activity. For further information on the impact of DCP, see “Selected Non-GAAP Financial Information” herein."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Critical Accounting Estimates",
      "prior_body": "Our financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions (see Note 1 to the financial statements). We believe that of our significant accounting policies (see Note 2 to the financial statements), the following policies involve a higher degree of judgment and complexity. Fair Value"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Balance Sheet",
      "prior_body": "We monitor and evaluate the composition and size of our balance sheet on a regular basis. Our balance sheet management process includes quarterly planning, business-specific thresholds, monitoring of business-specific usage versus key performance metrics and new business impact assessments. We establish balance sheet thresholds at the consolidated and business segment levels. We monitor balance sheet utilization and review variances resulting from business activity and market fluctuations. On a regular basis, we review current performance versus established thresholds and assess the need to re-allocate our balance sheet based on business segment needs. We also monitor key metrics, including asset and liability size and capital usage."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Liquidity Resources by Type of Investment",
      "prior_body": "Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Cash deposits with central banks$64,205 $66,330 Unencumbered HQLA securities1:U.S. government obligations137,635 122,110 U.S. agency and agency mortgage-backed securities83,733 86,628 Non-U.S. sovereign obligations220,117 23,416 Other investment grade securities678 693 Total HQLA1$306,368 $299,177 Cash deposits with banks (non-HQLA)8,136 8,190 Total Liquidity Resources$314,504 $307,367 Unencumbered HQLA securities1: Non-U.S. sovereign obligations2 Total HQLA1 1.HQLA is presented prior to applying weightings and includes all HQLA held in subsidiaries. 2.Primarily composed of unencumbered French, Japanese, U.K., German and Spanish government obligations."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Collateralized Financing Transactions",
      "prior_body": "$ in millionsAtDecember 31,2023 AtDecember 31,2022 Securities purchased under agreements to resell and Securities borrowed$231,831 $247,281 Securities sold under agreements to repurchase and Securities loaned$77,708 $78,213 Securities received as collateral1$6,219 $9,954 Securities received as collateral1 Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2023December 31, 2022Securities purchased under agreements to resell and Securities borrowed$235,928 $261,627 Securities sold under agreements to repurchase and Securities loaned$87,285 $77,268 1.Included within Trading assets in the balance sheet. See “Total Assets by Business Segment” herein for additional information on the assets shown in the previous table and Notes 2 and 8 to the financial statements for additional information on collateralized financing transactions. In addition to the collateralized financing transactions shown in the previous table, we engage in financing transactions collateralized by customer-owned securities, which are segregated in accordance with regulatory requirements. Receivables under these financing transactions, primarily margin loans, are included in Customer and other receivables in the balance sheet, and payables under these financing transactions, primarily to prime brokerage customers, are included in Customer and other payables in the balance sheet. Our risk exposure on these transactions is mitigated by 51December 2023 Form 10-K 51December 2023 Form 10-K 51December 2023 Form 10-K 51 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents collateral maintenance policies and the elements of our Liquidity Risk Management Framework. Unsecured FinancingWe view deposits and borrowings as stable sources of funding for unencumbered securities and non-security assets. Our unsecured financings include borrowings and certificates of deposit carried at fair value, which are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. As part of our asset/liability management strategy, when appropriate, we use derivatives to make adjustments to the interest rate risk profile of our borrowings (see Notes 6 and 13 to the financial statements).Deposits$ in millionsAtDecember 31,2023 AtDecember 31,2022 Savings and demand deposits:Brokerage sweep deposits1$148,274 $202,592 Savings and other139,978 117,356 Total Savings and demand deposits288,252 319,948 Time deposits63,552 36,698 Total2$351,804 $356,646 1.Amounts represent balances swept from client brokerage accounts.2.As of December 31, 2023, there were no off-balance sheet amounts excluded from deposits. As of December 31, 2022, approximately $6 billion of off-balance sheet amounts were excluded from deposits at unaffiliated financial institutions.Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding. Each category of deposits presented above has a different cost profile and clients may respond differently to changes in interest rates and other macroeconomic conditions. The decrease in total deposits in 2023 was primarily driven by a continued reduction in Brokerage sweep deposits, largely due to net outflows to alternative cash equivalent and other products, partially offset by an increase in Time deposits and Savings.Borrowings by Remaining Maturity at December 31, 20231$ in millionsParentCompanySubsidiariesTotalOriginal maturities of one year or less$— $3,188 $3,188 Original maturities greater than one year2024$8,915 $11,236 $20,151 202522,030 13,493 35,523 202624,516 10,907 35,423 202719,282 6,056 25,338 202811,432 9,807 21,239 Thereafter90,635 32,235 122,870 Total greater than one year$176,810 $83,734 $260,544 Total$176,810 $86,922 $263,732 1.Original maturity in the table is generally based on contractual final maturity. For borrowings with put options, remaining maturity represents the earliest put date.Borrowings of $264 billion at December 31, 2023 increased from $238 billion at December 31, 2022, primarily due to issuances net of maturities and redemptions and mark-to-market adjustments on equity-linked borrowings driven by market factors.We believe that accessing debt investors through multiple distribution channels helps provide consistent access to the unsecured markets. In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments. Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types. The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit. We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities.For further information on Borrowings, see Note 13 to the financial statements.Credit RatingsWe rely on external sources to finance a significant portion of our daily operations. Our credit ratings are one of the factors in the cost and availability of financing and can have an impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as certain OTC derivative transactions. When determining credit ratings, rating agencies consider both company-specific and industry-wide factors. See also “Risk Factors—Liquidity Risk.” collateral maintenance policies and the elements of our Liquidity Risk Management Framework. Unsecured FinancingWe view deposits and borrowings as stable sources of funding for unencumbered securities and non-security assets. Our unsecured financings include borrowings and certificates of deposit carried at fair value, which are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. As part of our asset/liability management strategy, when appropriate, we use derivatives to make adjustments to the interest rate risk profile of our borrowings (see Notes 6 and 13 to the financial statements).Deposits$ in millionsAtDecember 31,2023 AtDecember 31,2022 Savings and demand deposits:Brokerage sweep deposits1$148,274 $202,592 Savings and other139,978 117,356 Total Savings and demand deposits288,252 319,948 Time deposits63,552 36,698 Total2$351,804 $356,646 1.Amounts represent balances swept from client brokerage accounts.2.As of December 31, 2023, there were no off-balance sheet amounts excluded from deposits. As of December 31, 2022, approximately $6 billion of off-balance sheet amounts were excluded from deposits at unaffiliated financial institutions.Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding. Each category of deposits presented above has a different cost profile and clients may respond differently to changes in interest rates and other macroeconomic conditions. The decrease in total deposits in 2023 was primarily driven by a continued reduction in Brokerage sweep deposits, largely due to net outflows to alternative cash equivalent and other products, partially offset by an increase in Time deposits and Savings. collateral maintenance policies and the elements of our Liquidity Risk Management Framework."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Incremental Collateral or Terminating Payments",
      "prior_body": "In connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position. See Note 6 to the financial statements for additional information on OTC derivatives that contain such contingent features. While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact it would have on our business and results of operations in future periods is inherently uncertain and would depend on a number of interrelated factors, including, among other things, the magnitude of the downgrade, the rating relative to peers, the rating assigned by the relevant agency before the downgrade, individual client behavior and future mitigating actions we might take. The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Common Stock Dividend Announcement",
      "prior_body": "Announcement dateJanuary 16, 2024Amount per share$0.85Date paidFebruary 15, 2024Shareholders of record as ofJanuary 31, 2024 For additional information on our common stock dividends, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein. For additional information on our common stock and information on our preferred stock, see Note 17 to the financial statements."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Replacement of London Interbank Offered Rate and Replacement or Reform of Other Interest Rate Benchmarks",
      "prior_body": "Central banks around the world, including the Federal Reserve, have sponsored initiatives in recent years to replace LIBOR and replace or reform certain other interest rate benchmarks (collectively, the “IBORs”). With the cessation of publication of U.S. dollar LIBOR rates on a representative basis as of June 30, 2023, all LIBOR publications have ceased on a representative basis. However, the one-, three- and six-month U.S. dollar LIBOR and three-month sterling LIBOR rates are being published for a limited period for use in legacy transactions on the basis of a December 2023 Form 10-K58 December 2023 Form 10-K58 December 2023 Form 10-K58 58 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents synthetic methodology (known as “synthetic LIBOR”). Publication of the three-month synthetic sterling LIBOR will cease at the end of March 2024 and publication of the one-, three- and six-month synthetic U.S. dollar LIBOR will cease at the end of September 2024.As of December 31, 2023, a significant majority of our U.S. dollar LIBOR-referenced contracts contained fallback provisions or otherwise had a path that allowed for the transition to an alternative reference rate following the cessation of the applicable U.S. dollar LIBOR rate. We continue to execute against our Firmwide IBOR transition plan to complete the transition in all relevant markets to alternative reference rates.See also “Risk Factors—Risk Management” for a further discussion of risks related to the planned replacement of the IBORs and/or reform of other interest rate benchmarks and related risks.FDIC Final Rulemaking on Special AssessmentFollowing the failures of certain banks and resulting losses to the FDIC’s Deposit Insurance Fund in the first half of 2023, the FDIC adopted a final rule on November 16, 2023 to implement a special assessment to recover the cost associated with protecting uninsured depositors. Under the final rule, the assessment base for the special assessment is equal to an IDI’s estimated uninsured deposits reported as of December 31, 2022, adjusted to exclude the first $5 billion of uninsured deposits. The $5 billion exclusion is applied once to the aggregate uninsured deposits of our U.S. Bank Subsidiaries. The final rule provides that, starting in 2024, the FDIC will collect the special assessment at a quarterly rate of 3.36 basis points over eight quarterly assessment periods, subject to change depending on any adjustments to the loss estimate, mergers, failures, or amendments to reported estimates of uninsured deposits. We recorded the cost of the entire special assessment of $286 million in Non-interest expenses when the final rule was published in the Federal Register, in the fourth quarter of 2023.Basel III Endgame ProposalOn July 27, 2023, U.S. banking agencies proposed revisions to risk-based capital and related standards applicable to us and our U.S. Bank Subsidiaries (“Basel III Endgame Proposal”). The proposal would introduce a new measure of RWAs known as “Expanded Total RWAs” (the “Expanded Approach”), reflecting new RWA methodologies that generally align with changes to the global Basel Accord adopted by the Basel Committee. The proposal would eliminate the current capital rule’s Advanced Approach and effectively replace it with the Expanded Approach, which more heavily relies on standardized methodologies. As compared with the Standardized Approach, the Expanded Approach includes more granular risk weights for credit risk and introduces a new market risk framework. In addition, unlike the Standardized Approach, the Expanded Approach includes operational risk and credit valuation adjustment RWA components. The Basel III Endgame Proposal, if adopted as a final rule, would maintain the current capital rule’s dual-requirement structure, whereby we and our U.S. Bank Subsidiaries would be required to calculate our risk-based capital ratios under both the Expanded Approach and the Standardized Approach. In addition, the proposal would modify the Standardized Approach by requiring that the new market risk standards from the proposal also be applied in the Standardized Approach. The Basel III Endgame Proposal would apply the SCB and G-SIB surcharge to risk-based capital requirements calculated under both the Expanded Approach and the Standardized Approach. The proposal includes a proposed effective date of July 1, 2025, with three-year transition arrangements until revised standards are fully phased in on July 1, 2028.Based on our current understanding of the Basel III Endgame Proposal, we estimate that, if the Expanded Approach had applied on a fully phased-in basis as of December 31, 2023, and in the absence of taking any actions to mitigate its impact, our Expanded Approach RWAs as of that date would have been approximately 40% higher than our actual Standardized Approach RWAs as of that date.The increase in RWAs resulting from the Expanded Approach would result, assuming all other surcharge elements remained unchanged, in a lower SCB and lower G-SIB Method 2 surcharge as compared with current surcharges, as RWAs are included in the denominators of the relevant calculations for each buffer. Lower surcharges would, therefore, partially decrease the otherwise higher regulatory capital requirements under the Expanded Approach. The proposal would phase in the higher Expanded Approach RWAs on July 1 of each year during the transition, thereby increasing our regulatory capital requirements, with delayed incorporation of the potentially lower SCB and G-SIB Method 2 capital surcharge calculations.Any estimate of how the Expanded Approach may impact us is a forward-looking statement and subject to uncertainty, as actual results may differ from the anticipated results and may be materially affected by and dependent on a range of factors, including business performance, future capital actions, the results of future supervisory stress tests, and potential modifications to the proposal by the U.S. banking agencies in a final rulemaking. The Firm does not undertake to update any forward-looking statement.G-SIB Surcharge ProposalOn July 27, 2023, the Federal Reserve proposed revisions to the G-SIB capital surcharge framework applicable to us (“G-SIB Surcharge Proposal”). The G-SIB Surcharge Proposal includes various technical revisions to the G-SIB capital surcharge methodology and would revise the resulting synthetic methodology (known as “synthetic LIBOR”). Publication of the three-month synthetic sterling LIBOR will cease at the end of March 2024 and publication of the one-, three- and six-month synthetic U.S. dollar LIBOR will cease at the end of September 2024.As of December 31, 2023, a significant majority of our U.S. dollar LIBOR-referenced contracts contained fallback provisions or otherwise had a path that allowed for the transition to an alternative reference rate following the cessation of the applicable U.S. dollar LIBOR rate. We continue to execute against our Firmwide IBOR transition plan to complete the transition in all relevant markets to alternative reference rates.See also “Risk Factors—Risk Management” for a further discussion of risks related to the planned replacement of the IBORs and/or reform of other interest rate benchmarks and related risks.FDIC Final Rulemaking on Special AssessmentFollowing the failures of certain banks and resulting losses to the FDIC’s Deposit Insurance Fund in the first half of 2023, the FDIC adopted a final rule on November 16, 2023 to implement a special assessment to recover the cost associated with protecting uninsured depositors. Under the final rule, the assessment base for the special assessment is equal to an IDI’s estimated uninsured deposits reported as of December 31, 2022, adjusted to exclude the first $5 billion of uninsured deposits. The $5 billion exclusion is applied once to the aggregate uninsured deposits of our U.S. Bank Subsidiaries. The final rule provides that, starting in 2024, the FDIC will collect the special assessment at a quarterly rate of 3.36 basis points over eight quarterly assessment periods, subject to change depending on any adjustments to the loss estimate, mergers, failures, or amendments to reported estimates of uninsured deposits. We recorded the cost of the entire special assessment of $286 million in Non-interest expenses when the final rule was published in the Federal Register, in the fourth quarter of 2023.Basel III Endgame ProposalOn July 27, 2023, U.S. banking agencies proposed revisions to risk-based capital and related standards applicable to us and our U.S. Bank Subsidiaries (“Basel III Endgame Proposal”). The proposal would introduce a new measure of RWAs known as “Expanded Total RWAs” (the “Expanded Approach”), reflecting new RWA methodologies that generally align with changes to the global Basel Accord adopted by the Basel Committee. The proposal would eliminate the current capital rule’s Advanced Approach and effectively replace it with the Expanded Approach, which more heavily relies on standardized methodologies. As compared with the Standardized Approach, the Expanded Approach includes more granular risk weights for credit risk and introduces a new market risk framework. In addition, unlike the Standardized Approach, the Expanded Approach synthetic methodology (known as “synthetic LIBOR”). Publication of the three-month synthetic sterling LIBOR will cease at the end of March 2024 and publication of the one-, three- and six-month synthetic U.S. dollar LIBOR will cease at the end of September 2024. As of December 31, 2023, a significant majority of our U.S. dollar LIBOR-referenced contracts contained fallback provisions or otherwise had a path that allowed for the transition to an alternative reference rate following the cessation of the applicable U.S. dollar LIBOR rate. We continue to execute against our Firmwide IBOR transition plan to complete the transition in all relevant markets to alternative reference rates. See also “Risk Factors—Risk Management” for a further discussion of risks related to the planned replacement of the IBORs and/or reform of other interest rate benchmarks and related risks."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "FDIC Final Rulemaking on Special Assessment",
      "prior_body": "Following the failures of certain banks and resulting losses to the FDIC’s Deposit Insurance Fund in the first half of 2023, the FDIC adopted a final rule on November 16, 2023 to implement a special assessment to recover the cost associated with protecting uninsured depositors. Under the final rule, the assessment base for the special assessment is equal to an IDI’s estimated uninsured deposits reported as of December 31, 2022, adjusted to exclude the first $5 billion of uninsured deposits. The $5 billion exclusion is applied once to the aggregate uninsured deposits of our U.S. Bank Subsidiaries. The final rule provides that, starting in 2024, the FDIC will collect the special assessment at a quarterly rate of 3.36 basis points over eight quarterly assessment periods, subject to change depending on any adjustments to the loss estimate, mergers, failures, or amendments to reported estimates of uninsured deposits. We recorded the cost of the entire special assessment of $286 million in Non-interest expenses when the final rule was published in the Federal Register, in the fourth quarter of 2023."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Basel III Endgame Proposal",
      "prior_body": "On July 27, 2023, U.S. banking agencies proposed revisions to risk-based capital and related standards applicable to us and our U.S. Bank Subsidiaries (“Basel III Endgame Proposal”). The proposal would introduce a new measure of RWAs known as “Expanded Total RWAs” (the “Expanded Approach”), reflecting new RWA methodologies that generally align with changes to the global Basel Accord adopted by the Basel Committee. The proposal would eliminate the current capital rule’s Advanced Approach and effectively replace it with the Expanded Approach, which more heavily relies on standardized methodologies. As compared with the Standardized Approach, the Expanded Approach includes more granular risk weights for credit risk and introduces a new market risk framework. In addition, unlike the Standardized Approach, the Expanded Approach includes operational risk and credit valuation adjustment RWA components. The Basel III Endgame Proposal, if adopted as a final rule, would maintain the current capital rule’s dual-requirement structure, whereby we and our U.S. Bank Subsidiaries would be required to calculate our risk-based capital ratios under both the Expanded Approach and the Standardized Approach. In addition, the proposal would modify the Standardized Approach by requiring that the new market risk standards from the proposal also be applied in the Standardized Approach. The Basel III Endgame Proposal would apply the SCB and G-SIB surcharge to risk-based capital requirements calculated under both the Expanded Approach and the Standardized Approach. The proposal includes a proposed effective date of July 1, 2025, with three-year transition arrangements until revised standards are fully phased in on July 1, 2028.Based on our current understanding of the Basel III Endgame Proposal, we estimate that, if the Expanded Approach had applied on a fully phased-in basis as of December 31, 2023, and in the absence of taking any actions to mitigate its impact, our Expanded Approach RWAs as of that date would have been approximately 40% higher than our actual Standardized Approach RWAs as of that date.The increase in RWAs resulting from the Expanded Approach would result, assuming all other surcharge elements remained unchanged, in a lower SCB and lower G-SIB Method 2 surcharge as compared with current surcharges, as RWAs are included in the denominators of the relevant calculations for each buffer. Lower surcharges would, therefore, partially decrease the otherwise higher regulatory capital requirements under the Expanded Approach. The proposal would phase in the higher Expanded Approach RWAs on July 1 of each year during the transition, thereby increasing our regulatory capital requirements, with delayed incorporation of the potentially lower SCB and G-SIB Method 2 capital surcharge calculations.Any estimate of how the Expanded Approach may impact us is a forward-looking statement and subject to uncertainty, as actual results may differ from the anticipated results and may be materially affected by and dependent on a range of factors, including business performance, future capital actions, the results of future supervisory stress tests, and potential modifications to the proposal by the U.S. banking agencies in a final rulemaking. The Firm does not undertake to update any forward-looking statement.G-SIB Surcharge ProposalOn July 27, 2023, the Federal Reserve proposed revisions to the G-SIB capital surcharge framework applicable to us (“G-SIB Surcharge Proposal”). The G-SIB Surcharge Proposal includes various technical revisions to the G-SIB capital surcharge methodology and would revise the resulting includes operational risk and credit valuation adjustment RWA components. The Basel III Endgame Proposal, if adopted as a final rule, would maintain the current capital rule’s dual-requirement structure, whereby we and our U.S. Bank Subsidiaries would be required to calculate our risk-based capital ratios under both the Expanded Approach and the Standardized Approach. In addition, the proposal would modify the Standardized Approach by requiring that the new market risk standards from the proposal also be applied in the Standardized Approach. The Basel III Endgame Proposal would apply the SCB and G-SIB surcharge to risk-based capital requirements calculated under both the Expanded Approach and the Standardized Approach. The proposal includes a proposed effective date of July 1, 2025, with three-year transition arrangements until revised standards are fully phased in on July 1, 2028. Based on our current understanding of the Basel III Endgame Proposal, we estimate that, if the Expanded Approach had applied on a fully phased-in basis as of December 31, 2023, and in the absence of taking any actions to mitigate its impact, our Expanded Approach RWAs as of that date would have been approximately 40% higher than our actual Standardized Approach RWAs as of that date. The increase in RWAs resulting from the Expanded Approach would result, assuming all other surcharge elements remained unchanged, in a lower SCB and lower G-SIB Method 2 surcharge as compared with current surcharges, as RWAs are included in the denominators of the relevant calculations for each buffer. Lower surcharges would, therefore, partially decrease the otherwise higher regulatory capital requirements under the Expanded Approach. The proposal would phase in the higher Expanded Approach RWAs on July 1 of each year during the transition, thereby increasing our regulatory capital requirements, with delayed incorporation of the potentially lower SCB and G-SIB Method 2 capital surcharge calculations. Any estimate of how the Expanded Approach may impact us is a forward-looking statement and subject to uncertainty, as actual results may differ from the anticipated results and may be materially affected by and dependent on a range of factors, including business performance, future capital actions, the results of future supervisory stress tests, and potential modifications to the proposal by the U.S. banking agencies in a final rulemaking. The Firm does not undertake to update any forward-looking statement."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "G-SIB Surcharge Proposal",
      "prior_body": "On July 27, 2023, the Federal Reserve proposed revisions to the G-SIB capital surcharge framework applicable to us (“G-SIB Surcharge Proposal”). The G-SIB Surcharge Proposal includes various technical revisions to the G-SIB capital surcharge methodology and would revise the resulting 59December 2023 Form 10-K 59December 2023 Form 10-K 59December 2023 Form 10-K 59 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Method 2 G-SIB capital surcharge from 0.5-percentage point increments to 0.1-percentage point increments. The G-SIB Surcharge Proposal includes a proposed effective date two calendar quarters after the date of adoption of a final rule by the Federal Reserve. We continue to evaluate the G-SIB Surcharge Proposal and the potential impacts, if adopted, on our capital requirements and our Required Capital framework. Method 2 G-SIB capital surcharge from 0.5-percentage point increments to 0.1-percentage point increments. The G-SIB Surcharge Proposal includes a proposed effective date two calendar quarters after the date of adoption of a final rule by the Federal Reserve. We continue to evaluate the G-SIB Surcharge Proposal and the potential impacts, if adopted, on our capital requirements and our Required Capital framework. Method 2 G-SIB capital surcharge from 0.5-percentage point increments to 0.1-percentage point increments. The G-SIB Surcharge Proposal includes a proposed effective date two calendar quarters after the date of adoption of a final rule by the Federal Reserve. We continue to evaluate the G-SIB Surcharge Proposal and the potential impacts, if adopted, on our capital requirements and our Required Capital framework. December 2023 Form 10-K60 December 2023 Form 10-K60 December 2023 Form 10-K60 60 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Risk Limits Framework",
      "prior_body": "Risk limits and quantitative metrics provide the basis for monitoring risk-taking activity and avoiding outsized risk taking. Our risk-taking capacity is sized through the Firm’s capital planning process where losses are estimated under the Firm’s BHC Severely Adverse stress testing scenario. We also maintain a comprehensive suite of risk limits and quantitative metrics to support and implement our risk-appetite statement. Our risk limits support linkages between the overall risk appetite, which is reviewed by the Board, and more granular risk-taking decisions and activities. Risk limits, once established, are reviewed and updated on at least an annual basis, with more frequent updates as necessary. Board-level risk limits address the most important Firmwide aggregations of risk. Additional risk limits approved by the FRC address more specific types of risk and are bound by the higher-level Board risk limits."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Lending commitments3",
      "prior_body": "At December 31, 2022$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,589 $10,634 $— $17,223 Secured lending facilities35,606 3,176 6 38,788 Commercial and Residential real estate8,515 926 2,548 11,989 Securities-based lending and Other2,865 39 5,625 8,529 Total Institutional Securities53,575 14,775 8,179 76,529 Wealth Management:Residential real estate54,460 4 — 54,464 Securities-based lending and Other91,797 9 — 91,806 Total Wealth Management146,257 13 — 146,270 Total Investment Management24 — 218 222 Total loans199,836 14,788 8,397 223,021 ACL(839)(839)Total loans, net of ACL$198,997 $14,788 $8,397 $222,182 Lending commitments3$136,960 Total exposure$359,142 FVO1"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Forecasted U.S. Real GDP Growth Rates in Base Scenario",
      "prior_body": "4Q 20244Q 2025Year-over-year growth rate0.9 %2.0 % See Note 2 to the financial statements for a discussion of the Firm’s ACL methodology under CECL."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "commitments",
      "prior_body": "At December 31, 2022 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$66 $— $139 $— $205 A1,331 787 185 — 2,303 BBB5,632 10,712 465 — 16,809 BB11,045 19,219 796 162 31,222 Other NIG7,274 10,249 3,945 139 21,607 Unrated295 924 624 2,066 3,709 Total loans, net of ACL25,443 41,891 6,154 2,367 75,855 Lending commitmentsAAA— 50 — — 50 AA2,515 2,935 11 — 5,461 A5,030 19,717 202 330 25,279 BBB10,263 39,615 566 — 50,444 BB3,691 17,656 1,416 96 22,859 Other NIG1,173 13,872 530 — 15,575 Unrated2— 20 — 3 23 Total lendingcommitments22,672 93,865 2,725 429 119,691 Total exposure$48,115 $135,756 $8,879 $2,796 $195,546 Unrated2 Unrated2"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "commitments",
      "prior_body": "At December 31, 2022 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$66 $— $139 $— $205 A1,331 787 185 — 2,303 BBB5,632 10,712 465 — 16,809 BB11,045 19,219 796 162 31,222 Other NIG7,274 10,249 3,945 139 21,607 Unrated295 924 624 2,066 3,709 Total loans, net of ACL25,443 41,891 6,154 2,367 75,855 Lending commitmentsAAA— 50 — — 50 AA2,515 2,935 11 — 5,461 A5,030 19,717 202 330 25,279 BBB10,263 39,615 566 — 50,444 BB3,691 17,656 1,416 96 22,859 Other NIG1,173 13,872 530 — 15,575 Unrated2— 20 — 3 23 Total lendingcommitments22,672 93,865 2,725 429 119,691 Total exposure$48,115 $135,756 $8,879 $2,796 $195,546 Unrated2 Unrated2"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Institutional Securities Loans and Lending Commitments by Industry",
      "prior_body": "$ in millionsAtDecember 31,2023AtDecember 31,2022Financials$57,804 $54,222 Real estate35,342 32,358 Industrials18,056 14,557 Communications services15,301 15,336 Healthcare14,274 12,353 Information technology12,430 13,790 Consumer discretionary12,190 11,592 Utilities11,522 10,542 Consumer staples9,305 7,823 Energy9,156 9,115 Materials6,503 6,102 Insurance6,486 5,925 Other1,835 1,831 Total exposure$210,204 $195,546"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Institutional Securities Event-Driven Loans and Lending Commitments",
      "prior_body": "At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$1,974 $2,564 $2,580 $7,118 Lending commitments3,564 685 549 4,798 Total exposure$5,538 $3,249 $3,129 $11,916 At December 31, 2022 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$2,385 $1,441 $2,771 $6,597 Lending commitments3,079 861 603 4,543 Total exposure$5,464 $2,302 $3,374 $11,140 Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as merger, acquisition, recapitalization or project finance activities. Balances may fluctuate as such lending is related to transactions that vary in timing and size from period to period."
    },
    {
      "status": "MODIFIED",
      "current_title": "Regulatory Capital Requirements",
      "prior_title": "Regulatory Capital Requirements",
      "similarity_score": 0.918,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Risk-based capital ratio requirements apply to Common Equity Tier 1 (“CET1”) 49December 2024 Form 10-K 49December 2024 Form 10-K 49December 2024 Form 10-K 49 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement.\"",
        "Reworded sentence: \"Capital Buffer RequirementsAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB16.0%5.4%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement9.0%8.4%5.5%1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein.2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein.3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero.The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers.\"",
        "Reworded sentence: \"The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers.\"",
        "Removed sentence: \"Risk-Based Regulatory Capital Ratio RequirementsRegulatory MinimumAtDecember 31,2023 AtDecember 31,2022 At December 31, 2023 and December 31, 2022StandardizedStandardizedAdvancedRequired ratios1Common Equity Tier 1 capital ratio4.5 %12.9%13.3%10.0%Tier 1 capital ratio6.0 %14.4%14.8%11.5%Total capital ratio8.0 %16.4%16.8%13.5%1.Required ratios represent the regulatory minimum plus the capital buffer requirement.Risk-Weighted Assets.\"",
        "Removed sentence: \"RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following:•Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us;•Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and•Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets).Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach.\""
      ],
      "current_body": "We are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For additional information on TLAC, see “Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” herein. Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 (“CET1”) 49December 2024 Form 10-K 49December 2024 Form 10-K 49December 2024 Form 10-K 49 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer RequirementsAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB16.0%5.4%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement9.0%8.4%5.5%1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein.2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein.3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero.The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB. Risk-Based Regulatory Capital Ratio RequirementsRegulatory MinimumAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedRequired ratios1CET1 capital ratio4.5 %13.5%12.9%10.0%Tier 1 capital ratio6.0 %15.0%14.4%11.5%Total capital ratio8.0 %17.0%16.4%13.5%1.Required ratios represent the regulatory minimum plus the capital buffer requirement.Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following:•Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us;•Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and•Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets).Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2024 and December 31, 2023, the differences between the actual and required ratios were lower under the Standardized Approach.Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%.CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024. The deferral impacts were fully phased-in from January 1, 2025. capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer RequirementsAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB16.0%5.4%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement9.0%8.4%5.5%1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein.2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein.3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero.The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB. Risk-Based Regulatory Capital Ratio RequirementsRegulatory MinimumAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedRequired ratios1CET1 capital ratio4.5 %13.5%12.9%10.0%Tier 1 capital ratio6.0 %15.0%14.4%11.5%Total capital ratio8.0 %17.0%16.4%13.5%1.Required ratios represent the regulatory minimum plus the capital buffer requirement.Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following:•Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us;•Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer RequirementsAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB16.0%5.4%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement9.0%8.4%5.5% At December 31, 2024 and December 31, 2023 SCB1 G-SIB capital surcharge2 CCyB3 1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein. 2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein. 3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero. The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB.",
      "prior_body": "We are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For additional information on TLAC, see “Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” herein. Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer RequirementsAtDecember 31,2023 AtDecember 31,2022 At December 31, 2023 and December 31, 2022StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB15.4%5.8%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement8.4%8.8%5.5% At December 31, 2023 and December 31, 2022 SCB1 G-SIB capital surcharge2 CCyB3 1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein. 2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein. 3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero. The capital buffer requirement represents the amount of Common Equity Tier 1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB. Risk-Based Regulatory Capital Ratio RequirementsRegulatory MinimumAtDecember 31,2023 AtDecember 31,2022 At December 31, 2023 and December 31, 2022StandardizedStandardizedAdvancedRequired ratios1Common Equity Tier 1 capital ratio4.5 %12.9%13.3%10.0%Tier 1 capital ratio6.0 %14.4%14.8%11.5%Total capital ratio8.0 %16.4%16.8%13.5%1.Required ratios represent the regulatory minimum plus the capital buffer requirement.Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following:•Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us;•Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and•Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets).Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2023 and December 31, 2022, the differences between the actual and required ratios were lower under the Standardized Approach.Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%.CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and are phased-in at 50% from January 1, 2023. The deferral impacts will become fully phased-in beginning on January 1, 2025. buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB."
    },
    {
      "status": "MODIFIED",
      "current_title": "95%/One-Day Management VaR",
      "prior_title": "95%/One-Day Management VaR",
      "similarity_score": 0.911,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"2024$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$23 $31 $52 $19 Equity price21 23 39 17 Foreign exchange rate10 10 15 6 Commodity price18 15 23 10 Less: Diversification benefit2(37)(37)N/AN/APrimary Risk Categories$35 $42 $59 $32 Credit Portfolio20 24 26 20 Less: Diversification benefit2(16)(17)N/AN/ATotal Management VaR$39 $49 $66 $39 High1 Low1 Less: Diversification benefit2 Less: Diversification benefit2 2023$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$29 $34 $43 $27 Equity price19 24 38 15 Foreign exchange rate6 9 18 5 Commodity price11 17 35 10 Less: Diversification benefit2(27)(40)N/AN/APrimary Risk Categories$38 $44 $60 $33 Credit Portfolio25 21 25 18 Less: Diversification benefit2(22)(15)N/AN/ATotal Management VaR$41 $50 $72 $41 High1 Low1 Less: Diversification benefit2 Less: Diversification benefit2 1.The high and low VaR values for the Total Management VaR and each of the component VaRs might have occurred on different days during the quarter, and, therefore, the diversification benefit is not an applicable measure.\"",
        "Reworded sentence: \"This benefit arises because the simulated one-day losses for each of the components occur on different days.\""
      ],
      "current_body": "2024$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$23 $31 $52 $19 Equity price21 23 39 17 Foreign exchange rate10 10 15 6 Commodity price18 15 23 10 Less: Diversification benefit2(37)(37)N/AN/APrimary Risk Categories$35 $42 $59 $32 Credit Portfolio20 24 26 20 Less: Diversification benefit2(16)(17)N/AN/ATotal Management VaR$39 $49 $66 $39 High1 Low1 Less: Diversification benefit2 Less: Diversification benefit2 2023$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$29 $34 $43 $27 Equity price19 24 38 15 Foreign exchange rate6 9 18 5 Commodity price11 17 35 10 Less: Diversification benefit2(27)(40)N/AN/APrimary Risk Categories$38 $44 $60 $33 Credit Portfolio25 21 25 18 Less: Diversification benefit2(22)(15)N/AN/ATotal Management VaR$41 $50 $72 $41 High1 Low1 Less: Diversification benefit2 Less: Diversification benefit2 1.The high and low VaR values for the Total Management VaR and each of the component VaRs might have occurred on different days during the quarter, and, therefore, the diversification benefit is not an applicable measure. 2.Diversification benefit equals the difference between the total VaR and the sum of the component VaRs. This benefit arises because the simulated one-day losses for each of the components occur on different days. Similar diversification benefits are also taken into account within each component. Average Total Management VaR and average Management VaR for the Primary Risk Categories decreased from 2023, primarily driven by lower market volatility.",
      "prior_body": "2023$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$29 $34 $43 $27 Equity price19 24 38 15 Foreign exchange rate6 9 18 5 Commodity price11 17 35 10 Less: Diversification benefit2(27)(40)N/AN/APrimary Risk Categories$38 $44 $60 $33 Credit Portfolio25 21 25 18 Less: Diversification benefit2(22)(15)N/AN/ATotal Management VaR$41 $50 $72 $41 High1 Low1 Less: Diversification benefit2 Less: Diversification benefit2 2022$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$37 $31 $43 $21 Equity price16 23 41 16 Foreign exchange rate10 8 19 3 Commodity price26 27 41 15 Less: Diversification benefit2(36)(40)N/AN/APrimary Risk Categories$53 $49 $65 $31 Credit Portfolio19 15 19 12 Less: Diversification benefit2(9)(11)N/AN/ATotal Management VaR$63 $53 $74 $32 High1 Low1 Less: Diversification benefit2 Less: Diversification benefit2 1.The high and low VaR values for the Total Management VaR and each of the component VaRs might have occurred on different days during the quarter, and, therefore, the diversification benefit is not an applicable measure. 2.Diversification benefit equals the difference between the total VaR and the sum of the component VaRs. This benefit arises because the simulated one-day losses for each of the components occur on different days; similar diversification benefits also are taken into account within each component. Average Total Management VaR and Average Management VaR for the Primary Risk Categories decreased in 2023 from 2022 primarily due to reduced exposure in the Commodity price risk category and lower market volatility."
    },
    {
      "status": "MODIFIED",
      "current_title": "We are subject to numerous political, economic, legal, tax, operational, franchise and other risks as a result of our international operations that could adversely impact our businesses in many ways.",
      "prior_title": "We are subject to numerous political, economic, legal, tax, operational, franchise and other risks as a result of our international operations that could adversely impact our businesses in many ways.",
      "similarity_score": 0.909,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We are subject to numerous political, economic, legal, tax, operational, franchise and other risks that are inherent in operating in many countries, including risks of possible nationalization, expropriation, price controls, capital controls, exchange controls, increased taxes and levies, cybersecurity, data transfer and outsourcing restrictions, regulatory scrutiny regarding the use of new technologies, prohibitions on certain 23December 2024 Form 10-K 23December 2024 Form 10-K 23December 2024 Form 10-K 23 Table of Contents Table of Contents Table of Contents types of foreign and capital market activities, limitations on cross-border listings and other restrictive governmental actions, as well as the outbreak of hostilities or political and governmental instability, including tensions between China and the U.S., the expansion or escalation of hostilities between Russia and Ukraine or in the Middle East, or the initiation or escalation of hostilities or terrorist activity around the world and the potential associated impacts on global and local economies and our operations.\"",
        "Removed sentence: \"These conditions could adversely impact our businesses and increase volatility in financial markets generally.A disease pandemic, such as COVID-19 and its variants, or other widespread health emergencies, natural disasters, climate-related incidents, terrorist activities or military actions, or social or political tensions, could create economic and financial disruptions in emerging markets or in other areas of the global economy that could adversely affect our businesses, or could lead to operational difficulties, including travel limitations and supply chain complications, that could impair our ability to manage or conduct our businesses around the world.As a U.S.\"",
        "Removed sentence: \"company, we are required to comply with the economic sanctions and embargo programs administered by OFAC and similar multinational bodies and governmental agencies worldwide, which may be inconsistent with local law.\"",
        "Removed sentence: \"We and certain of our subsidiaries are also subject to applicable AML and/or anti-corruption laws in the U.S., as well as in the jurisdictions in which we operate, including the Bank Secrecy Act, the U.S.\"",
        "Removed sentence: \"Foreign Corrupt Practices Act and the U.K.\""
      ],
      "current_body": "We are subject to numerous political, economic, legal, tax, operational, franchise and other risks that are inherent in operating in many countries, including risks of possible nationalization, expropriation, price controls, capital controls, exchange controls, increased taxes and levies, cybersecurity, data transfer and outsourcing restrictions, regulatory scrutiny regarding the use of new technologies, prohibitions on certain 23December 2024 Form 10-K 23December 2024 Form 10-K 23December 2024 Form 10-K 23 Table of Contents Table of Contents Table of Contents types of foreign and capital market activities, limitations on cross-border listings and other restrictive governmental actions, as well as the outbreak of hostilities or political and governmental instability, including tensions between China and the U.S., the expansion or escalation of hostilities between Russia and Ukraine or in the Middle East, or the initiation or escalation of hostilities or terrorist activity around the world and the potential associated impacts on global and local economies and our operations. In many countries, the laws and regulations applicable to the securities and financial services industries and multinational corporations are uncertain, evolving and subject to sudden change or may be inconsistent with U.S. law. It may also be difficult for us to determine the exact requirements of local laws in every market or adapt to changes in law, which could adversely impact our businesses. Our inability to remain in compliance with local laws in a particular market could have a significant and negative effect not only on our business in that market but also on our reputation generally. We are also subject to the risk that transactions we structure might not be legally enforceable in all cases.Various emerging market countries have experienced severe political, economic or financial disruptions, including significant devaluations of their currencies, defaults or potential defaults on sovereign debt, capital and currency exchange controls, high rates of inflation and low or negative growth rates in their economies. Crime and corruption, as well as issues of security and personal safety, also exist in certain of these countries. These conditions could adversely impact our businesses and increase volatility in financial markets generally.A disease pandemic or other widespread health emergencies, natural disasters, climate-related incidents, terrorist activities or military actions, or social or political tensions, could create economic and financial disruptions in emerging markets or in other areas of the global economy that could adversely affect our businesses, or could lead to operational difficulties, including travel limitations and supply chain complications, that could impair our ability to manage or conduct our businesses around the world.As a U.S. company, we are required to comply with the economic sanctions and embargo programs administered by OFAC and similar multinational bodies and governmental agencies worldwide, which may be inconsistent with local law. We and certain of our subsidiaries are also subject to applicable AML and/or anti-corruption laws in the U.S., as well as in the jurisdictions in which we operate, including the Bank Secrecy Act, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. A violation of a sanction, embargo program, AML or anti-corruption law could subject us, and individual employees, to a regulatory enforcement action, as well as significant civil and criminal penalties.Acquisition, Divestiture and Joint Venture RiskWe may be unable to fully capture the expected value from acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances, and certain acquisitions may subject our business to new or increased risk.In connection with past or future acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances (including with Mitsubishi UFJ Financial Group, Inc. (“MUFG”)), we face numerous risks and uncertainties in combining, transferring, separating or integrating the relevant businesses and systems that may present operational and other risks, including the need to combine or separate accounting, data processing, technology and other systems, management controls and legal entities, and to integrate relationships with clients, trading counterparties and business partners. Certain of these strategic initiatives, and integration thereof, may cause us to incur incremental expenses and may also require incremental financial, management and other resources. In the case of joint ventures, partnerships and minority stakes, we are subject to additional risks and uncertainties because we may be dependent upon, and subject to liability, losses or franchise and reputational damage relating to systems, controls and personnel that are not under our control, and conflicts or disagreements between us and any of our partners may negatively impact the benefits to be achieved by the relevant partnerships.There is no assurance that any of our acquisitions, divestitures or investments will be successfully integrated or disaggregated or yield all of the positive benefits and synergies anticipated. If we are not able to integrate or disaggregate successfully our past and future acquisitions or dispositions, including aligning the processes, policies and procedures of the acquired entities with our standards, there is a risk that our results of operations, financial condition and cash flows may be materially and adversely affected.Certain of our business initiatives, including expansions of existing businesses or the introduction of new products, may change our client or account profile or bring us into contact, directly or indirectly, with individuals and entities that are not within our traditional client and counterparty base and may expose us to new asset classes, services, competitors and new markets. These business activities expose us to new and enhanced risks, greater regulatory scrutiny of these activities, increased credit-related, sovereign, compliance and operational risks, as well as franchise and reputational concerns regarding the manner in which these assets are being operated or held, or services are being delivered.For more information regarding the regulatory environment in which we operate, see also “Business—Supervision and Regulation.” types of foreign and capital market activities, limitations on cross-border listings and other restrictive governmental actions, as well as the outbreak of hostilities or political and governmental instability, including tensions between China and the U.S., the expansion or escalation of hostilities between Russia and Ukraine or in the Middle East, or the initiation or escalation of hostilities or terrorist activity around the world and the potential associated impacts on global and local economies and our operations. In many countries, the laws and regulations applicable to the securities and financial services industries and multinational corporations are uncertain, evolving and subject to sudden change or may be inconsistent with U.S. law. It may also be difficult for us to determine the exact requirements of local laws in every market or adapt to changes in law, which could adversely impact our businesses. Our inability to remain in compliance with local laws in a particular market could have a significant and negative effect not only on our business in that market but also on our reputation generally. We are also subject to the risk that transactions we structure might not be legally enforceable in all cases.Various emerging market countries have experienced severe political, economic or financial disruptions, including significant devaluations of their currencies, defaults or potential defaults on sovereign debt, capital and currency exchange controls, high rates of inflation and low or negative growth rates in their economies. Crime and corruption, as well as issues of security and personal safety, also exist in certain of these countries. These conditions could adversely impact our businesses and increase volatility in financial markets generally.A disease pandemic or other widespread health emergencies, natural disasters, climate-related incidents, terrorist activities or military actions, or social or political tensions, could create economic and financial disruptions in emerging markets or in other areas of the global economy that could adversely affect our businesses, or could lead to operational difficulties, including travel limitations and supply chain complications, that could impair our ability to manage or conduct our businesses around the world.As a U.S. company, we are required to comply with the economic sanctions and embargo programs administered by OFAC and similar multinational bodies and governmental agencies worldwide, which may be inconsistent with local law. We and certain of our subsidiaries are also subject to applicable AML and/or anti-corruption laws in the U.S., as well as in the jurisdictions in which we operate, including the Bank Secrecy Act, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. A violation of a sanction, embargo program, AML or anti-corruption law could subject us, and individual employees, to a regulatory enforcement action, as well as significant civil and criminal penalties. types of foreign and capital market activities, limitations on cross-border listings and other restrictive governmental actions, as well as the outbreak of hostilities or political and governmental instability, including tensions between China and the U.S., the expansion or escalation of hostilities between Russia and Ukraine or in the Middle East, or the initiation or escalation of hostilities or terrorist activity around the world and the potential associated impacts on global and local economies and our operations. In many countries, the laws and regulations applicable to the securities and financial services industries and multinational corporations are uncertain, evolving and subject to sudden change or may be inconsistent with U.S. law. It may also be difficult for us to determine the exact requirements of local laws in every market or adapt to changes in law, which could adversely impact our businesses. Our inability to remain in compliance with local laws in a particular market could have a significant and negative effect not only on our business in that market but also on our reputation generally. We are also subject to the risk that transactions we structure might not be legally enforceable in all cases. Various emerging market countries have experienced severe political, economic or financial disruptions, including significant devaluations of their currencies, defaults or potential defaults on sovereign debt, capital and currency exchange controls, high rates of inflation and low or negative growth rates in their economies. Crime and corruption, as well as issues of security and personal safety, also exist in certain of these countries. These conditions could adversely impact our businesses and increase volatility in financial markets generally. A disease pandemic or other widespread health emergencies, natural disasters, climate-related incidents, terrorist activities or military actions, or social or political tensions, could create economic and financial disruptions in emerging markets or in other areas of the global economy that could adversely affect our businesses, or could lead to operational difficulties, including travel limitations and supply chain complications, that could impair our ability to manage or conduct our businesses around the world. As a U.S. company, we are required to comply with the economic sanctions and embargo programs administered by OFAC and similar multinational bodies and governmental agencies worldwide, which may be inconsistent with local law. We and certain of our subsidiaries are also subject to applicable AML and/or anti-corruption laws in the U.S., as well as in the jurisdictions in which we operate, including the Bank Secrecy Act, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. A violation of a sanction, embargo program, AML or anti-corruption law could subject us, and individual employees, to a regulatory enforcement action, as well as significant civil and criminal penalties. Acquisition, Divestiture and Joint Venture RiskWe may be unable to fully capture the expected value from acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances, and certain acquisitions may subject our business to new or increased risk.In connection with past or future acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances (including with Mitsubishi UFJ Financial Group, Inc. (“MUFG”)), we face numerous risks and uncertainties in combining, transferring, separating or integrating the relevant businesses and systems that may present operational and other risks, including the need to combine or separate accounting, data processing, technology and other systems, management controls and legal entities, and to integrate relationships with clients, trading counterparties and business partners. Certain of these strategic initiatives, and integration thereof, may cause us to incur incremental expenses and may also require incremental financial, management and other resources. In the case of joint ventures, partnerships and minority stakes, we are subject to additional risks and uncertainties because we may be dependent upon, and subject to liability, losses or franchise and reputational damage relating to systems, controls and personnel that are not under our control, and conflicts or disagreements between us and any of our partners may negatively impact the benefits to be achieved by the relevant partnerships.There is no assurance that any of our acquisitions, divestitures or investments will be successfully integrated or disaggregated or yield all of the positive benefits and synergies anticipated. If we are not able to integrate or disaggregate successfully our past and future acquisitions or dispositions, including aligning the processes, policies and procedures of the acquired entities with our standards, there is a risk that our results of operations, financial condition and cash flows may be materially and adversely affected.Certain of our business initiatives, including expansions of existing businesses or the introduction of new products, may change our client or account profile or bring us into contact, directly or indirectly, with individuals and entities that are not within our traditional client and counterparty base and may expose us to new asset classes, services, competitors and new markets. These business activities expose us to new and enhanced risks, greater regulatory scrutiny of these activities, increased credit-related, sovereign, compliance and operational risks, as well as franchise and reputational concerns regarding the manner in which these assets are being operated or held, or services are being delivered.For more information regarding the regulatory environment in which we operate, see also “Business—Supervision and Regulation.”",
      "prior_body": "We are subject to numerous political, economic, legal, tax, operational, franchise and other risks that are inherent in operating in many countries, including risks of possible nationalization, expropriation, price controls, capital controls, exchange controls, increased taxes and levies, minimum global tax regimes, cybersecurity, data transfer and outsourcing restrictions, regulatory scrutiny regarding the use of new technologies, prohibitions on certain types of foreign and capital market activities, limitations on cross-border listings and other restrictive governmental actions, as well as the outbreak of hostilities or political and governmental instability, including tensions between China and the U.S., the expansion or escalation of hostilities between Russia and Ukraine or in the Middle East or the initiation or escalation of hostilities or terrorist activity around the world and the potential associated impacts on global and local economies and our operations. In many countries, the laws and regulations applicable to the securities and financial services industries and multinational corporations are uncertain, evolving and subject to sudden change or may be inconsistent with U.S. law. It may also be difficult for us to determine the exact requirements of local laws in every market or adapt to changes in law, which could adversely impact our businesses. Our inability to remain in compliance with local laws in a particular market could have a significant and negative effect not only on our business in that market but also on our reputation generally. We are also subject to the risk that transactions we structure might not be legally enforceable in all cases. Various emerging market countries have experienced severe political, economic or financial disruptions, including significant devaluations of their currencies, defaults or potential defaults on sovereign debt, capital and currency exchange controls, high rates of inflation and low or negative growth rates in their economies. Crime and corruption, as well as issues of security and personal safety, also exist in certain of these countries. These conditions could adversely impact our businesses and increase volatility in financial markets generally.A disease pandemic, such as COVID-19 and its variants, or other widespread health emergencies, natural disasters, climate-related incidents, terrorist activities or military actions, or social or political tensions, could create economic and financial disruptions in emerging markets or in other areas of the global economy that could adversely affect our businesses, or could lead to operational difficulties, including travel limitations and supply chain complications, that could impair our ability to manage or conduct our businesses around the world.As a U.S. company, we are required to comply with the economic sanctions and embargo programs administered by OFAC and similar multinational bodies and governmental agencies worldwide, which may be inconsistent with local law. We and certain of our subsidiaries are also subject to applicable AML and/or anti-corruption laws in the U.S., as well as in the jurisdictions in which we operate, including the Bank Secrecy Act, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. A violation of a sanction, embargo program, AML or anti-corruption law could subject us, and individual employees, to a regulatory enforcement action, as well as significant civil and criminal penalties.Acquisition, Divestiture and Joint Venture RiskWe may be unable to fully capture the expected value from acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances, and certain acquisitions may subject our business to new or increased risk.In connection with past or future acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances (including with Mitsubishi UFJ Financial Group, Inc. (“MUFG”)), we face numerous risks and uncertainties in combining, transferring, separating or integrating the relevant businesses and systems that may present operational and other risks, including the need to combine or separate accounting, data processing and other systems, management controls and legal entities, and to integrate relationships with clients, trading counterparties and business partners. Certain of these strategic initiatives, and integration thereof, may cause us to incur incremental expenses and may also require incremental financial, management and other resources. In the case of joint ventures, partnerships and minority stakes, we are subject to additional risks and uncertainties because Various emerging market countries have experienced severe political, economic or financial disruptions, including significant devaluations of their currencies, defaults or potential defaults on sovereign debt, capital and currency exchange controls, high rates of inflation and low or negative growth rates in their economies. Crime and corruption, as well as issues of security and personal safety, also exist in certain of these countries. These conditions could adversely impact our businesses and increase volatility in financial markets generally. A disease pandemic, such as COVID-19 and its variants, or other widespread health emergencies, natural disasters, climate-related incidents, terrorist activities or military actions, or social or political tensions, could create economic and financial disruptions in emerging markets or in other areas of the global economy that could adversely affect our businesses, or could lead to operational difficulties, including travel limitations and supply chain complications, that could impair our ability to manage or conduct our businesses around the world. As a U.S. company, we are required to comply with the economic sanctions and embargo programs administered by OFAC and similar multinational bodies and governmental agencies worldwide, which may be inconsistent with local law. We and certain of our subsidiaries are also subject to applicable AML and/or anti-corruption laws in the U.S., as well as in the jurisdictions in which we operate, including the Bank Secrecy Act, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. A violation of a sanction, embargo program, AML or anti-corruption law could subject us, and individual employees, to a regulatory enforcement action, as well as significant civil and criminal penalties."
    },
    {
      "status": "MODIFIED",
      "current_title": "Total assets",
      "prior_title": "Institutional Securities Loans2",
      "similarity_score": 0.906,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"2.Represents loans, net of ACL.\"",
        "Reworded sentence: \"At December 31, 2024 and December 31, 2023, substantially all employee-referenced investments that subjected the Firm to price risk were economically hedged.Amounts Recognized in Compensation Expense$ in millions202420232022Deferred cash-based awards$770 $693 $761 Return on referenced investments672 668 (716)Total recognized in compensation expense$1,442 $1,361 $45 Amounts Recognized in Compensation Expense by Segment$ in millions202420232022Institutional Securities$150 $162 $(97)Wealth Management1,100 984 11 Investment Management 192 215 131 Total recognized in compensation expense$1,442 $1,361 $45\""
      ],
      "current_body": "Deposits4 1.Amounts exclude transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates. 2.Represents loans, net of ACL. For a further discussion of loans in the Wealth Management and Institutional Securities business segments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein. 3.Other loans primarily include tailored lending. For a further discussion of Other loans, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein. 4.For further information on deposits, see “Liquidity and Capital Resources—Funding Management—Balance Sheet—Unsecured Financing” herein. Other MattersDeferred Cash-Based CompensationThe Firm sponsors a number of deferred cash-based compensation programs for current and former employees, which generally contain vesting, clawback and cancellation provisions. Employees are permitted to allocate the value of their deferred awards among a menu of notional investments, whereby the value of their awards will track the performance of the referenced notional investments. The menu of investments, which is selected by the Firm, includes fixed income, equity, commodity and money market funds.Compensation expense for DCP awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards.We invest directly, as principal, in financial instruments and other investments to economically hedge certain of our obligations under these DCP awards. Changes in the fair value of such investments, net of financing costs, are recorded in net revenues, and included in Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments recognized in net revenues, there is typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period. While this timing difference may not be material to our Income before provision for income taxes in any individual period, it may impact the Wealth Management business segment reported ratios and operating metrics in certain periods due to potentially significant impacts to net revenues and compensation expenses. At December 31, 2024 and December 31, 2023, substantially all employee-referenced investments that subjected the Firm to price risk were economically hedged.Amounts Recognized in Compensation Expense$ in millions202420232022Deferred cash-based awards$770 $693 $761 Return on referenced investments672 668 (716)Total recognized in compensation expense$1,442 $1,361 $45 Amounts Recognized in Compensation Expense by Segment$ in millions202420232022Institutional Securities$150 $162 $(97)Wealth Management1,100 984 11 Investment Management 192 215 131 Total recognized in compensation expense$1,442 $1,361 $45",
      "prior_body": "Deposits4 1.Amounts exclude transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates. 2.For a further discussion of loans in the Wealth Management and Institutional Securities business segments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein. 3.Other loans primarily include tailored lending. For a further discussion of Other loans, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein. 4.For further information on deposits, see “Liquidity and Capital Resources—Funding Management—Balance Sheet—Unsecured Financing” herein. Other MattersDeferred Cash-Based CompensationThe Firm sponsors a number of deferred cash-based compensation programs for current and former employees, which generally contain vesting, clawback and cancellation provisions. Employees are permitted to allocate the value of their deferred awards among a menu of notional investments, whereby the value of their awards will track the performance of the referenced notional investments. The menu of investments, which is selected by the Firm, includes fixed income, equity, commodity and money market funds.Compensation expense for DCP awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards.We invest directly, as principal, in financial instruments and other investments to economically hedge certain of our obligations under these DCP awards. Changes in the fair value of such investments, net of financing costs, are recorded in net revenues, and included in Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments recognized in net revenues, there is typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period. While this timing difference may not be material to our Income before provision for income taxes in any individual period, it may impact the Wealth Management business segment reported ratios and operating metrics in certain periods due to potentially significant impacts to net revenues and compensation expenses. At December 31, 2023 and December 31, 2022, substantially all employee referenced investments that subjected the Firm to price risk were economically hedged.Amounts Recognized in Compensation Expense$ in millions202320222021Deferred cash-based awards$693 $761 $810 Return on referenced investments668 (716)526 Total recognized in compensation expense$1,361 $45 $1,336 Amounts Recognized in Compensation Expense by Segment$ in millions202320222021Institutional Securities$162 $(97)$372 Wealth Management984 11 798 Investment Management 215 131 166 Total recognized in compensation expense$1,361 $45 $1,336"
    },
    {
      "status": "MODIFIED",
      "current_title": "Intangible Assets",
      "prior_title": "Intangible Assets",
      "similarity_score": 0.905,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Indefinite-lived intangible assets are not amortized but are tested for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist.\"",
        "Removed sentence: \"These inputs include, but are not limited to, forecasted cash flows, revenue growth rates, customer attrition rates and discount rates.For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset.\"",
        "Removed sentence: \"Subsequent reversal of impairment losses is not permitted.\"",
        "Removed sentence: \"For amortizable intangible assets, the new cost basis is amortized over the remaining useful life of that asset.\"",
        "Removed sentence: \"Unanticipated declines in our revenue generating capability, adverse market or economic events, and regulatory actions, could result in material impairment charges in future periods.See Notes 2 and 10 to the financial statements for additional information about goodwill and intangible assets.Legal and Regulatory ContingenciesIn the normal course of business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a global diversified financial services institution.Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages.\""
      ],
      "current_body": "Intangible assets are initially recorded at cost, or in the situation where acquired as part of a business combination, at the fair value determined as part of the acquisition method of accounting. Subsequently, amortizable intangible assets are carried in the balance sheet at amortized cost, where amortization is recognized over their estimated useful lives. Indefinite-lived intangible assets are not amortized but are tested for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist. On a quarterly basis: •All intangible assets are assessed for the presence of impairment indicators. Where such indicators are present, an evaluation for impairment is conducted. •For amortizable intangible assets, an impairment loss exists if the carrying amount of the intangible asset is not recoverable and exceeds its fair value. The carrying amount of the intangible asset is not recoverable if it exceeds the sum of the expected undiscounted cash flows. •For indefinite-lived intangible assets, an impairment exists if the carrying amount of the intangible asset exceeds its fair value. •Amortizable intangible assets are assessed for any indication that the remaining useful life or the finite life classification should be revised. In such cases, the remaining carrying amount is amortized prospectively over the revised useful life, unless it is determined that the life of the intangible asset is indefinite, in which case the intangible asset is not amortized. •Indefinite-lived intangible assets are assessed for any indication that the life of the intangible asset is no longer indefinite; in such cases, the carrying amount of the intangible asset is amortized prospectively over its remaining useful life. The initial valuation of an intangible asset as part of the acquisition method of accounting and the subsequent valuation of intangible assets as part of an impairment assessment are subjective and based, in part, on inputs that are unobservable and can be subject to uncertainty. These inputs include, but are not limited to, forecasted cash flows, revenue growth rates, customer attrition rates and discount rates. For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For amortizable intangible assets, the new cost basis is amortized over the remaining useful life of that asset. Unanticipated declines in our revenue-generating capability, adverse market or economic events, and regulatory actions, could result in material impairment charges in future periods. See Notes 2 and 10 to the financial statements for additional information about goodwill and intangible assets.Legal and Regulatory ContingenciesIn the normal course of business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a global diversified financial services institution.Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our sales and trading businesses and our activities in the capital markets.We are also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding our business, and involving, among other matters, sales, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by us, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief.We contest liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and we can reasonably estimate the amount of that loss or the range of loss, we accrue an estimated loss by a charge to income. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where we have determined that a loss is probable or reasonably possible, or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, we are often unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or See Notes 2 and 10 to the financial statements for additional information about goodwill and intangible assets.",
      "prior_body": "Intangible assets are initially recorded at cost, or in the situation where acquired as part of a business combination, at the fair value determined as part of the acquisition method of accounting. Subsequently, amortizable intangible assets are carried in the balance sheet at amortized cost, where amortization is recognized over their estimated useful lives. Indefinite lived intangible assets are not amortized but are tested for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist. On a quarterly basis: •All intangible assets are assessed for the presence of impairment indicators. Where such indicators are present, an evaluation for impairment is conducted. •For amortizable intangible assets, an impairment loss exists if the carrying amount of the intangible asset is not recoverable and exceeds its fair value. The carrying amount of the intangible asset is not recoverable if it exceeds the sum of the expected undiscounted cash flows. •For indefinite-lived intangible assets, an impairment exists if the carrying amount of the intangible asset exceeds its fair value. •Amortizable intangible assets are assessed for any indication that the remaining useful life or the finite life classification should be revised. In such cases, the remaining carrying amount is amortized prospectively over the revised useful life, unless it is determined that the life of the intangible asset is indefinite, in which case the intangible asset is not amortized. •Indefinite-lived intangible assets are assessed for any indication that the life of the intangible asset is no longer indefinite; in such cases, the carrying amount of the intangible asset is amortized prospectively over its remaining useful life. The initial valuation of an intangible asset as part of the acquisition method of accounting and the subsequent valuation of intangible assets as part of an impairment assessment are subjective and based, in part, on inputs that are unobservable and can be subject to uncertainty. These inputs include, but are not limited to, forecasted cash flows, revenue growth rates, customer attrition rates and discount rates.For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For amortizable intangible assets, the new cost basis is amortized over the remaining useful life of that asset. Unanticipated declines in our revenue generating capability, adverse market or economic events, and regulatory actions, could result in material impairment charges in future periods.See Notes 2 and 10 to the financial statements for additional information about goodwill and intangible assets.Legal and Regulatory ContingenciesIn the normal course of business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a global diversified financial services institution.Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our sales and trading businesses and our activities in the capital markets.We are also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding our business, and involving, among other matters, sales, trading, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by us, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief.We contest liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and we can The initial valuation of an intangible asset as part of the acquisition method of accounting and the subsequent valuation of intangible assets as part of an impairment assessment are subjective and based, in part, on inputs that are unobservable and can be subject to uncertainty. These inputs include, but are not limited to, forecasted cash flows, revenue growth rates, customer attrition rates and discount rates. For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For amortizable intangible assets, the new cost basis is amortized over the remaining useful life of that asset. Unanticipated declines in our revenue generating capability, adverse market or economic events, and regulatory actions, could result in material impairment charges in future periods. See Notes 2 and 10 to the financial statements for additional information about goodwill and intangible assets."
    },
    {
      "status": "MODIFIED",
      "current_title": "Our risk management strategies, models and processes may not be fully effective in mitigating our risk exposures in all market environments or against all types of risk, which could result in unexpected losses.",
      "prior_title": "Our risk management strategies, models and processes may not be fully effective in mitigating our risk exposures in all market environments or against all types of risk, which could result in unexpected losses.",
      "similarity_score": 0.904,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We have devoted significant resources to develop our risk management strategies, models and processes, including our use of various risk models for assessing market, credit, liquidity and operational exposures and hedging strategies, stress testing and other analysis capabilities, and expect to continue to do so in the future.\"",
        "Reworded sentence: \"In addition, many models we use are based on assumptions or inputs regarding correlations among prices of various asset classes or other market indicators and, therefore, cannot anticipate sudden, unanticipated or unidentified market or economic movements, such as the impact of a pandemic or a sudden geopolitical conflict, which could cause us to incur losses.\"",
        "Reworded sentence: \"While we employ a broad and diversified set of risk monitoring and risk mitigation techniques, those techniques and the judgments that accompany their application cannot anticipate every economic and financial outcome or the timing of such outcomes.\""
      ],
      "current_body": "We have devoted significant resources to develop our risk management strategies, models and processes, including our use of various risk models for assessing market, credit, liquidity and operational exposures and hedging strategies, stress testing and other analysis capabilities, and expect to continue to do so in the future. Nonetheless, our risk management capabilities may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk, including risks that are unidentified or unanticipated. 21December 2024 Form 10-K 21December 2024 Form 10-K 21December 2024 Form 10-K 21 Table of Contents Table of Contents Table of Contents As our businesses change and grow, including through acquisitions and the introduction and application of new technologies, such as artificial intelligence, and the markets in which we operate evolve, our risk management strategies, models and processes may not always adapt with those changes. Some of our methods of managing risk are based upon our use of observed historical market behavior and management’s judgment. As a result, these methods may not predict future risk exposures, which could be significantly greater than the historical measures indicate.In addition, many models we use are based on assumptions or inputs regarding correlations among prices of various asset classes or other market indicators and, therefore, cannot anticipate sudden, unanticipated or unidentified market or economic movements, such as the impact of a pandemic or a sudden geopolitical conflict, which could cause us to incur losses. Management of market, credit, liquidity, operational, model, legal, regulatory and compliance risks requires, among other things, policies and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective. Our trading risk management strategies and techniques also seek to balance our ability to profit from trading positions with our exposure to potential losses.While we employ a broad and diversified set of risk monitoring and risk mitigation techniques, those techniques and the judgments that accompany their application cannot anticipate every economic and financial outcome or the timing of such outcomes. For example, to the extent that our trading or investing activities involve less liquid trading markets or are otherwise subject to restrictions on sales or hedging, we may not be able to reduce our positions and, therefore, reduce our risk associated with such positions. We may, therefore, incur losses in the course of our trading or investing activities. For more information on how we monitor and manage market and certain other risks and related strategies, models and processes, see “Quantitative and Qualitative Disclosures about Risk—Market Risk.”Climate change manifesting as physical or transition risks could result in increased costs and risks and adversely affect our operations, businesses and clients.There continues to be increasing concern over the risks of climate change and related sustainability matters. The physical risks of climate change include harm to people and property arising from acute, climate-related events, such as floods, hurricanes, heatwaves, droughts and wildfires, and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. Such events could disrupt our operations or those of our clients or third parties on which we rely, including through direct damage to physical assets and indirect impacts from supply chain disruption and market volatility. These events could impact the ability of certain of our clients or customers to repay their obligations, reduce the value of collateral, increase costs, including the cost or availability of insurance coverage, and result in other adverse effects.The transition risks of climate change include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or regulation of carbon emissions. These risks could increase our expenses and adversely impact our strategies. Negative impacts to certain of our clients, such as decreased profitability and asset write-downs, could also lead to increased credit and liquidity risk to us.In addition, our reputation and client relationships may be adversely impacted as a result of our, or our clients’, involvement in certain practices that may have, or are associated with having, an adverse impact on climate change. Legislative or regulatory change regarding climate-related risks, including inconsistent requirements and uncertainties, could result in loss of revenue, or increased credit, market, liquidity, regulatory, compliance, reputational and other risks and costs.Our ability to achieve our climate-related targets and commitments and the way we go about this could also result in reputational harm as a result of public sentiment, legislative and regulatory scrutiny (including from U.S. federal and state governments and foreign policymakers and regulators), litigation and reduced investor and stakeholder confidence. If we are unable to achieve our objectives relating to climate change or our current response to climate change is perceived to be ineffective or insufficient, or the way we respond is perceived negatively, our business and reputation may suffer.The risks associated with, and the perspective of regulators, governments, shareholders, employees and other stakeholders regarding climate change, as well as geopolitical events, continue to evolve rapidly, making it difficult to assess the ultimate impact on us of climate-related risks and uncertainties. As climate risk is interconnected with other risks, we have developed and continue to enhance processes to embed climate risk considerations into our risk management practices and governance structures. Despite our risk management practices, the unpredictability surrounding the timing and severity of climate-related events, and societal or political changes in reaction to them, make it difficult to predict, identify, monitor and mitigate climate risks.In addition, the methodologies and data used to manage and monitor climate risk continue to evolve. Current approaches utilize information and estimates that have been derived from information or factors released by third-party sources, which may not reflect the latest or most accurate data. Climate-related data, particularly greenhouse gas emissions for clients and counterparties, remains limited in availability and varies in quality. Certain third-party information may also change As our businesses change and grow, including through acquisitions and the introduction and application of new technologies, such as artificial intelligence, and the markets in which we operate evolve, our risk management strategies, models and processes may not always adapt with those changes. Some of our methods of managing risk are based upon our use of observed historical market behavior and management’s judgment. As a result, these methods may not predict future risk exposures, which could be significantly greater than the historical measures indicate.In addition, many models we use are based on assumptions or inputs regarding correlations among prices of various asset classes or other market indicators and, therefore, cannot anticipate sudden, unanticipated or unidentified market or economic movements, such as the impact of a pandemic or a sudden geopolitical conflict, which could cause us to incur losses. Management of market, credit, liquidity, operational, model, legal, regulatory and compliance risks requires, among other things, policies and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective. Our trading risk management strategies and techniques also seek to balance our ability to profit from trading positions with our exposure to potential losses.While we employ a broad and diversified set of risk monitoring and risk mitigation techniques, those techniques and the judgments that accompany their application cannot anticipate every economic and financial outcome or the timing of such outcomes. For example, to the extent that our trading or investing activities involve less liquid trading markets or are otherwise subject to restrictions on sales or hedging, we may not be able to reduce our positions and, therefore, reduce our risk associated with such positions. We may, therefore, incur losses in the course of our trading or investing activities. For more information on how we monitor and manage market and certain other risks and related strategies, models and processes, see “Quantitative and Qualitative Disclosures about Risk—Market Risk.”Climate change manifesting as physical or transition risks could result in increased costs and risks and adversely affect our operations, businesses and clients.There continues to be increasing concern over the risks of climate change and related sustainability matters. The physical risks of climate change include harm to people and property arising from acute, climate-related events, such as floods, hurricanes, heatwaves, droughts and wildfires, and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. Such events could disrupt our operations or those of our clients or third parties on which we rely, including through direct damage to physical assets and indirect impacts from supply chain disruption and market volatility. These events could impact the ability of certain of our clients or As our businesses change and grow, including through acquisitions and the introduction and application of new technologies, such as artificial intelligence, and the markets in which we operate evolve, our risk management strategies, models and processes may not always adapt with those changes. Some of our methods of managing risk are based upon our use of observed historical market behavior and management’s judgment. As a result, these methods may not predict future risk exposures, which could be significantly greater than the historical measures indicate. In addition, many models we use are based on assumptions or inputs regarding correlations among prices of various asset classes or other market indicators and, therefore, cannot anticipate sudden, unanticipated or unidentified market or economic movements, such as the impact of a pandemic or a sudden geopolitical conflict, which could cause us to incur losses. Management of market, credit, liquidity, operational, model, legal, regulatory and compliance risks requires, among other things, policies and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective. Our trading risk management strategies and techniques also seek to balance our ability to profit from trading positions with our exposure to potential losses. While we employ a broad and diversified set of risk monitoring and risk mitigation techniques, those techniques and the judgments that accompany their application cannot anticipate every economic and financial outcome or the timing of such outcomes. For example, to the extent that our trading or investing activities involve less liquid trading markets or are otherwise subject to restrictions on sales or hedging, we may not be able to reduce our positions and, therefore, reduce our risk associated with such positions. We may, therefore, incur losses in the course of our trading or investing activities. For more information on how we monitor and manage market and certain other risks and related strategies, models and processes, see “Quantitative and Qualitative Disclosures about Risk—Market Risk.”",
      "prior_body": "We have devoted significant resources to develop our risk management capabilities and expect to continue to do so in the future. Nonetheless, our risk management strategies, models and processes, including our use of various risk models for assessing market, credit, liquidity and operational exposures and hedging strategies, stress testing and other analysis, may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk, including risks that are unidentified or unanticipated. As our businesses change and grow, including through acquisitions and the introduction and application of new technologies, such as artificial intelligence, and the markets in which we operate evolve, our risk management strategies, models and processes may not always adapt with those changes. Some of our methods of managing risk are based upon our use of observed historical market behavior and management’s judgment. As a result, these methods may not predict future risk exposures, which could be significantly greater than the historical measures indicate. In addition, many models we use are based on assumptions or inputs regarding correlations among prices of various asset classes or other market indicators and, therefore, cannot anticipate sudden, unanticipated, or unidentified market or economic movements, such as the impact of a pandemic or a sudden geopolitical conflict, which could cause us to incur losses. Management of market, credit, liquidity, operational, model, legal, regulatory and compliance risks requires, among other things, policies and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective. Our trading risk management strategies and techniques also seek to balance our ability to profit from trading positions with our exposure to potential losses. While we employ a broad and diversified set of risk monitoring and risk mitigation techniques, those techniques and the judgments that accompany their application cannot 21December 2023 Form 10-K 21December 2023 Form 10-K 21December 2023 Form 10-K 21 Table of Contents Table of Contents Table of Contents anticipate every economic and financial outcome or the timing of such outcomes. For example, to the extent that our trading or investing activities involve less liquid trading markets or are otherwise subject to restrictions on sales or hedging, we may not be able to reduce our positions and, therefore, reduce our risk associated with such positions. We may, therefore, incur losses in the course of our trading or investing activities. For more information on how we monitor and manage market and certain other risks and related strategies, models and processes, see “Quantitative and Qualitative Disclosures about Risk—Market Risk.”Climate change manifesting as physical or transition risks could result in increased costs and risks and adversely affect our operations, businesses and clients.There continues to be increasing concern over the risks of climate change and related environmental sustainability matters. The physical risks of climate change include harm to people and property arising from acute, climate-related events, such as floods, hurricanes, heatwaves, droughts, and wildfires and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. Such events could disrupt our operations or those of our clients or third parties on which we rely, including through direct damage to physical assets and indirect impacts from supply chain disruption and market volatility. These events could impact the ability of certain of our clients or customers to repay their obligations, reduce the value of collateral, increase costs, including the cost or availability of insurance coverage, and result in other adverse effects.The transition risks of climate change include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or carbon taxes. These risks could increase our expenses and adversely impact our strategies, including by limiting our ability to pursue certain business activities or offer certain products and services. Negative impacts to certain of our clients, such as decreased profitability and asset write-downs, could also lead to increased credit, counterparty and liquidity risk to us.In addition, our reputation and client relationships may be adversely impacted as a result of our, or our clients’, involvement in certain practices that may have, or are associated with having, an adverse impact on climate change. Legislative or regulatory change regarding climate-related risks, including inconsistent requirements and uncertainties, could result in loss of revenue, or increased credit, market, liquidity, regulatory, compliance, reputational and other risks and costs.Our ability to achieve our climate-related targets and commitments and the way we go about this could also result in reputational harm as a result of public sentiment, legislative and regulatory scrutiny (including from U.S. federal and state governments and foreign policymakers and regulators), litigation and reduced investor and stakeholder confidence. If we are unable to achieve our objectives relating to climate change or our current response to climate change is perceived to be ineffective or insufficient, or the way we respond is perceived negatively, our business and reputation may suffer.The risks associated with, and the perspective of regulators, governments, shareholders, employees and other stakeholders regarding, climate change, as well as geopolitical events, continue to evolve rapidly, making it difficult to assess the ultimate impact on us of climate-related risks and uncertainties. As climate risk is interconnected with other risks, we have developed and continue to enhance processes to embed climate risk considerations into our risk management practices and governance structures. Despite our risk management practices, the unpredictability surrounding the timing and severity of climate-related events and societal or political changes in reaction to them make it difficult to predict, identify, monitor and mitigate climate risks.In addition, the methodologies and data used to manage and monitor climate risk continue to evolve. Current approaches utilize information and estimates that have been derived from information or factors released by third-party sources, which may not reflect the latest or most accurate data. Climate-related data, particularly greenhouse gas emissions for clients and counterparties, remains limited in availability and varies in quality. Certain third-party information may also change over time as methodologies evolve and are refined. While we believe this information is the best available at the time, we may only be able to complete limited validation. Furthermore, modeling capabilities and methodologies to analyze climate-related risks, although improving, remain nascent and emerging. These and other factors could cause results to differ materially, which could impact our ability to manage climate-related risks.Replacement or reform of certain interest rate benchmarks could adversely affect our business, securities, financial condition and results of operations.Central banks around the world, including the Federal Reserve, have sponsored initiatives in recent years to replace LIBOR and replace or reform certain other interest rate benchmarks (collectively, the “IBORs”). A transition away from use of the IBORs to alternative rates and other potential interest rate benchmark reforms has been underway for a number of years. These reforms have caused and may in the future cause such rates to perform differently than in the past, or to cease entirely, or have other consequences that are contrary to market expectations.The ongoing market transition away from these interest rate benchmarks to alternative reference rates is complex and anticipate every economic and financial outcome or the timing of such outcomes. For example, to the extent that our trading or investing activities involve less liquid trading markets or are otherwise subject to restrictions on sales or hedging, we may not be able to reduce our positions and, therefore, reduce our risk associated with such positions. We may, therefore, incur losses in the course of our trading or investing activities. For more information on how we monitor and manage market and certain other risks and related strategies, models and processes, see “Quantitative and Qualitative Disclosures about Risk—Market Risk.”Climate change manifesting as physical or transition risks could result in increased costs and risks and adversely affect our operations, businesses and clients.There continues to be increasing concern over the risks of climate change and related environmental sustainability matters. The physical risks of climate change include harm to people and property arising from acute, climate-related events, such as floods, hurricanes, heatwaves, droughts, and wildfires and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. Such events could disrupt our operations or those of our clients or third parties on which we rely, including through direct damage to physical assets and indirect impacts from supply chain disruption and market volatility. These events could impact the ability of certain of our clients or customers to repay their obligations, reduce the value of collateral, increase costs, including the cost or availability of insurance coverage, and result in other adverse effects.The transition risks of climate change include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or carbon taxes. These risks could increase our expenses and adversely impact our strategies, including by limiting our ability to pursue certain business activities or offer certain products and services. Negative impacts to certain of our clients, such as decreased profitability and asset write-downs, could also lead to increased credit, counterparty and liquidity risk to us.In addition, our reputation and client relationships may be adversely impacted as a result of our, or our clients’, involvement in certain practices that may have, or are associated with having, an adverse impact on climate change. Legislative or regulatory change regarding climate-related risks, including inconsistent requirements and uncertainties, could result in loss of revenue, or increased credit, market, liquidity, regulatory, compliance, reputational and other risks and costs.Our ability to achieve our climate-related targets and commitments and the way we go about this could also result anticipate every economic and financial outcome or the timing of such outcomes. For example, to the extent that our trading or investing activities involve less liquid trading markets or are otherwise subject to restrictions on sales or hedging, we may not be able to reduce our positions and, therefore, reduce our risk associated with such positions. We may, therefore, incur losses in the course of our trading or investing activities. For more information on how we monitor and manage market and certain other risks and related strategies, models and processes, see “Quantitative and Qualitative Disclosures about Risk—Market Risk.”"
    },
    {
      "status": "MODIFIED",
      "current_title": "Legal and Regulatory Contingencies",
      "prior_title": "Legal and Regulatory Contingencies",
      "similarity_score": 0.902,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We are also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding our business, and involving, among other matters, sales, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by us, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief.\"",
        "Reworded sentence: \"Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and we can reasonably estimate the amount of that loss or the range of loss, we accrue an estimated loss by a charge to income.\"",
        "Reworded sentence: \"In addition, even where we have determined that a loss is probable or reasonably possible, or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, we are often unable to reasonably estimate the amount of the loss or range of loss.\"",
        "Reworded sentence: \"Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or 43December 2024 Form 10-K 43December 2024 Form 10-K 43December 2024 Form 10-K 43 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question.Significant judgment is required in deciding when and if to make these accruals, and the actual cost of a legal claim or regulatory fine/penalty may ultimately be materially different from the recorded accruals.See Note 14 to the financial statements for additional information on legal contingencies.Income TaxesWe are subject to the income tax laws of the U.S., its states and municipalities and those of the foreign jurisdictions in which we have business operations.\"",
        "Reworded sentence: \"These reviews include management’s estimates and assumptions regarding future taxable income and incorporate various tax-planning strategies, including strategies that may be available to tax attribute carryforwards before they expire.Once the deferred tax asset balances have been determined, we may record a valuation allowance against the deferred tax asset balances to reflect the amount we estimate is more likely than not to be realized at a future date.\""
      ],
      "current_body": "In the normal course of business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our sales and trading businesses and our activities in the capital markets. We are also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding our business, and involving, among other matters, sales, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by us, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief. We contest liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and we can reasonably estimate the amount of that loss or the range of loss, we accrue an estimated loss by a charge to income. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where we have determined that a loss is probable or reasonably possible, or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, we are often unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or 43December 2024 Form 10-K 43December 2024 Form 10-K 43December 2024 Form 10-K 43 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question.Significant judgment is required in deciding when and if to make these accruals, and the actual cost of a legal claim or regulatory fine/penalty may ultimately be materially different from the recorded accruals.See Note 14 to the financial statements for additional information on legal contingencies.Income TaxesWe are subject to the income tax laws of the U.S., its states and municipalities and those of the foreign jurisdictions in which we have business operations. These tax laws are complex and subject to interpretation by the taxpayer and the relevant governmental taxing authorities. We must make judgments and interpretations about the application of these inherently complex tax laws and make estimates about certain items affecting taxable income when determining the provision for income taxes in the various tax jurisdictions.Disputes over interpretations of the tax laws may be settled with the taxing authority upon examination or audit. We periodically evaluate the likelihood of assessments in each taxing jurisdiction resulting from current and subsequent years’ examinations, and unrecognized tax benefits related to potential losses that may arise from tax audits are established in accordance with the relevant accounting guidance. Once established, unrecognized tax benefits are adjusted when there is more information available or when an event occurs requiring a change.Our provision for income taxes is composed of current and deferred taxes. Current income taxes approximate taxes to be paid or refunded for the current period. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the applicable enacted tax rates and laws that will be in effect when such differences are expected to reverse.Our deferred tax balances may also include deferred assets related to tax attribute carryforwards, such as net operating losses and tax credits that will be realized through reduction of future tax liabilities and, in some cases, are subject to expiration if not utilized within certain periods. We perform regular reviews to ascertain whether deferred tax assets are realizable. These reviews include management’s estimates and assumptions regarding future taxable income and incorporate various tax-planning strategies, including strategies that may be available to tax attribute carryforwards before they expire.Once the deferred tax asset balances have been determined, we may record a valuation allowance against the deferred tax asset balances to reflect the amount we estimate is more likely than not to be realized at a future date. Both current and deferred income taxes may reflect adjustments related to our unrecognized tax benefits.Significant judgment is required in estimating the consolidated provision for (benefit from) income taxes, current and deferred tax balances (including valuation allowance, if any), accrued interest or penalties and uncertain tax positions. Revisions in estimates and/or the actual costs of a tax assessment may ultimately be materially different from the recorded accruals and unrecognized tax benefits, if any.See Note 2 to the financial statements for additional information on our significant assumptions, judgments and interpretations associated with the accounting for income taxes and Note 21 to the financial statements for additional information on our tax examinations.Liquidity and Capital ResourcesOur liquidity and capital policies are established and maintained by senior management, with oversight by the Asset/Liability Management Committee and our Board of Directors (“Board”). Through various risk and control committees, senior management reviews business performance relative to these policies, monitors the availability of alternative sources of financing, and oversees the liquidity, interest rate and currency sensitivity of our asset and liability position. Our Corporate Treasury department (“Treasury”), Firm Risk Committee, Asset/Liability Management Committee, and other committees and control groups assist in evaluating, monitoring and managing the impact that our business activities have on our balance sheet, liquidity and capital structure. Liquidity and capital matters are reported regularly to the Board and the Risk Committee of the Board. Balance SheetWe monitor and evaluate the composition and size of our balance sheet on a regular basis. Our balance sheet management process includes quarterly planning, business-specific thresholds, monitoring of business-specific usage versus key performance metrics and new business impact assessments.We establish balance sheet thresholds at the consolidated and business segment levels. We monitor balance sheet utilization and review variances resulting from business activity and market fluctuations. On a regular basis, we review current performance versus established thresholds and assess the need to re-allocate our balance sheet based on business segment needs. We also monitor key metrics, including asset and liability size and capital usage. range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question.Significant judgment is required in deciding when and if to make these accruals, and the actual cost of a legal claim or regulatory fine/penalty may ultimately be materially different from the recorded accruals.See Note 14 to the financial statements for additional information on legal contingencies.Income TaxesWe are subject to the income tax laws of the U.S., its states and municipalities and those of the foreign jurisdictions in which we have business operations. These tax laws are complex and subject to interpretation by the taxpayer and the relevant governmental taxing authorities. We must make judgments and interpretations about the application of these inherently complex tax laws and make estimates about certain items affecting taxable income when determining the provision for income taxes in the various tax jurisdictions.Disputes over interpretations of the tax laws may be settled with the taxing authority upon examination or audit. We periodically evaluate the likelihood of assessments in each taxing jurisdiction resulting from current and subsequent years’ examinations, and unrecognized tax benefits related to potential losses that may arise from tax audits are established in accordance with the relevant accounting guidance. Once established, unrecognized tax benefits are adjusted when there is more information available or when an event occurs requiring a change.Our provision for income taxes is composed of current and deferred taxes. Current income taxes approximate taxes to be paid or refunded for the current period. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the applicable enacted tax rates and laws that will be in effect when such differences are expected to reverse.Our deferred tax balances may also include deferred assets related to tax attribute carryforwards, such as net operating losses and tax credits that will be realized through reduction of future tax liabilities and, in some cases, are subject to expiration if not utilized within certain periods. We perform regular reviews to ascertain whether deferred tax assets are realizable. These reviews include management’s estimates and assumptions regarding future taxable income and incorporate various tax-planning strategies, including range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question. Significant judgment is required in deciding when and if to make these accruals, and the actual cost of a legal claim or regulatory fine/penalty may ultimately be materially different from the recorded accruals. See Note 14 to the financial statements for additional information on legal contingencies.",
      "prior_body": "In the normal course of business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our sales and trading businesses and our activities in the capital markets. We are also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding our business, and involving, among other matters, sales, trading, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by us, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief. We contest liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and we can 47December 2023 Form 10-K 47December 2023 Form 10-K 47December 2023 Form 10-K 47 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents reasonably estimate the amount of that loss or the range of loss, we accrue an estimated loss by a charge to income. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where we have determined that a loss is probable or reasonably possible or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, we are often unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question.Significant judgment is required in deciding when and if to make these accruals, and the actual cost of a legal claim or regulatory fine/penalty may ultimately be materially different from the recorded accruals.See Note 14 to the financial statements for additional information on legal contingencies.Income TaxesWe are subject to the income tax laws of the U.S., its states and municipalities and those of the foreign jurisdictions in which we have business operations. These tax laws are complex and subject to interpretation by the taxpayer and the relevant governmental taxing authorities. We must make judgments and interpretations about the application of these inherently complex tax laws and make estimates about certain items affecting taxable income when determining the provision for income taxes in the various tax jurisdictions.Disputes over interpretations of the tax laws may be settled with the taxing authority upon examination or audit. We periodically evaluate the likelihood of assessments in each taxing jurisdiction resulting from current and subsequent years’ examinations, and unrecognized tax benefits related to potential losses that may arise from tax audits are established in accordance with the relevant accounting guidance. Once established, unrecognized tax benefits are adjusted when there is more information available or when an event occurs requiring a change.Our provision for income taxes is composed of current and deferred taxes. Current income taxes approximate taxes to be paid or refunded for the current period. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the applicable enacted tax rates and laws that will be in effect when such differences are expected to reverse.Our deferred tax balances may also include deferred assets related to tax attribute carryforwards, such as net operating losses and tax credits that will be realized through reduction of future tax liabilities and, in some cases, are subject to expiration if not utilized within certain periods. We perform regular reviews to ascertain whether deferred tax assets are realizable. These reviews include management’s estimates and assumptions regarding future taxable income and incorporate various tax planning strategies, including strategies that may be available to tax attribute carryforwards before they expire.Once the deferred tax asset balances have been determined, we may record a valuation allowance against the deferred tax asset balances to reflect the amount we estimate is more likely than not to be realized at a future date. Both current and deferred income taxes may reflect adjustments related to our unrecognized tax benefits.Significant judgment is required in estimating the consolidated provision for (benefit from) income taxes, current and deferred tax balances (including valuation allowance, if any), accrued interest or penalties and uncertain tax positions. Revisions in estimates and/or the actual costs of a tax assessment may ultimately be materially different from the recorded accruals and unrecognized tax benefits, if any.See Note 2 to the financial statements for additional information on our significant assumptions, judgments and interpretations associated with the accounting for income taxes and Note 21 to the financial statements for additional information on our tax examinations.Liquidity and Capital ResourcesOur liquidity and capital policies are established and maintained by senior management, with oversight by the Asset/Liability Management Committee and the Board. Through various risk and control committees, senior management reviews business performance relative to these policies, monitors the availability of alternative sources of financing, and oversees the liquidity, interest rate and currency sensitivity of our asset and liability position. Our Corporate Treasury department (“Treasury”), Firm Risk Committee, Asset/Liability Management Committee, and other committees and control groups assist in evaluating, monitoring and managing the impact that our business activities have on our balance sheet, liquidity and capital structure. Liquidity and capital matters are reported regularly to the Board and the BRC. reasonably estimate the amount of that loss or the range of loss, we accrue an estimated loss by a charge to income. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where we have determined that a loss is probable or reasonably possible or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, we are often unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question.Significant judgment is required in deciding when and if to make these accruals, and the actual cost of a legal claim or regulatory fine/penalty may ultimately be materially different from the recorded accruals.See Note 14 to the financial statements for additional information on legal contingencies.Income TaxesWe are subject to the income tax laws of the U.S., its states and municipalities and those of the foreign jurisdictions in which we have business operations. These tax laws are complex and subject to interpretation by the taxpayer and the relevant governmental taxing authorities. We must make judgments and interpretations about the application of these inherently complex tax laws and make estimates about certain items affecting taxable income when determining the provision for income taxes in the various tax jurisdictions.Disputes over interpretations of the tax laws may be settled with the taxing authority upon examination or audit. We periodically evaluate the likelihood of assessments in each taxing jurisdiction resulting from current and subsequent years’ examinations, and unrecognized tax benefits related to potential losses that may arise from tax audits are established in accordance with the relevant accounting guidance. Once established, unrecognized tax benefits are adjusted when there is more information available or when an event occurs requiring a change. reasonably estimate the amount of that loss or the range of loss, we accrue an estimated loss by a charge to income. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where we have determined that a loss is probable or reasonably possible or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, we are often unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question. Significant judgment is required in deciding when and if to make these accruals, and the actual cost of a legal claim or regulatory fine/penalty may ultimately be materially different from the recorded accruals. See Note 14 to the financial statements for additional information on legal contingencies."
    },
    {
      "status": "MODIFIED",
      "current_title": "The financial services industry faces substantial litigation and is subject to extensive regulatory and law enforcement investigations, and we may face damage to our reputation and legal liability.",
      "prior_title": "The financial services industry faces substantial litigation and is subject to extensive regulatory and law enforcement investigations, and we may face damage to our reputation and legal liability.",
      "similarity_score": 0.893,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"December 2024 Form 10-K20 December 2024 Form 10-K20 December 2024 Form 10-K20 20 Table of Contents Table of Contents Table of Contents As part of the resolution of certain investigations and proceedings, the Firm has been and may in the future be required to undertake certain measures and failure to do so may result in adverse consequences, such as further investigations or proceedings—both civil and criminal—and additional penalties, fines, judgments or other relief.The Dodd-Frank Act also provides compensation to whistleblowers who present the SEC or CFTC with information related to securities or commodities law violations that leads to a successful enforcement action.\"",
        "Reworded sentence: \"Further, the Volcker Rule subjects us to regulatory scrutiny regarding certain transactions between us and our clients.Risk ManagementOur risk management strategies, models and processes may not be fully effective in mitigating our risk exposures in all market environments or against all types of risk, which could result in unexpected losses.We have devoted significant resources to develop our risk management strategies, models and processes, including our use of various risk models for assessing market, credit, liquidity and operational exposures and hedging strategies, stress testing and other analysis capabilities, and expect to continue to do so in the future.\"",
        "Reworded sentence: \"For additional information, see Note 14 to the financial statements.\""
      ],
      "current_body": "As a global financial services firm, we face the risk of investigations and proceedings by governmental and self-regulatory organizations in all countries in which we conduct our business. These investigations and proceedings, as well as the amount of penalties and fines sought, continue to impact the financial services industry. Certain U.S. and international governmental entities have brought criminal actions against, or have sought criminal convictions, pleas, deferred prosecution agreements or non-prosecution agreements from financial institutions. Significant regulatory or law enforcement action against us could materially adversely affect our business, reputation, financial condition or results of operations, and increase our exposure to civil litigation. Investigations and proceedings initiated by these authorities may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions or other relief, and have included and may in the future include requirements that the Firm admit certain conduct, which may result in increased exposure to civil litigation. In addition, these measures have caused and may in the future cause collateral consequences. For example, such matters could impact our ability to engage in, or impose limitations on, certain of our businesses. December 2024 Form 10-K20 December 2024 Form 10-K20 December 2024 Form 10-K20 20 Table of Contents Table of Contents Table of Contents As part of the resolution of certain investigations and proceedings, the Firm has been and may in the future be required to undertake certain measures and failure to do so may result in adverse consequences, such as further investigations or proceedings—both civil and criminal—and additional penalties, fines, judgments or other relief.The Dodd-Frank Act also provides compensation to whistleblowers who present the SEC or CFTC with information related to securities or commodities law violations that leads to a successful enforcement action. As a result of this compensation, it is possible we could face an increased number of investigations by the SEC or CFTC.We have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, as well as investigations or proceedings brought by regulatory agencies, arising in connection with our activities as a global diversified financial services institution. Certain of the actual or threatened legal or regulatory actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages, or may result in material penalties, fines or other results adverse to us.In some cases, the third-party entities that would otherwise be the primary defendants in such cases are bankrupt, in financial distress or may not honor applicable indemnification obligations. In other cases, including antitrust litigation, we may be subject to claims for joint and several liability with other defendants for treble damages or other relief related to alleged conspiracies involving other institutions. Like any large corporation, we are also subject to risk from potential employee misconduct, including noncompliance with policies, laws, rules and regulations, and improper use or disclosure of confidential information, or improper sales practices or other conduct.We may be responsible for representations and warranties associated with commercial and residential real estate loans and may incur losses in excess of our reserves.We originate loans secured by commercial and residential properties. Further, we securitize and trade in a wide range of commercial and residential real estate and real estate-related assets and products. In connection with these activities, we have provided, or otherwise agreed to be responsible for, certain representations and warranties. Under certain circumstances, we may be required to repurchase such assets or make other payments related to such assets if such representations and warranties were breached, and may incur losses as a result. We have also made representations and warranties in connection with our role as an originator of certain loans that we securitized in CMBS and RMBS. For additional information, see Note 14 to the financial statements.A failure to address conflicts of interest appropriately could adversely affect our businesses and reputation.As a global financial services firm that provides products and services to a large and diversified group of clients, including corporations, governments, financial institutions and individuals, we face potential conflicts of interest in the normal course of business. For example, potential conflicts can occur when there is a divergence of interests between us and a client, among clients, between an employee on the one hand and us or a client on the other, or situations in which we may be a creditor of a client. Moreover, we utilize multiple brands and business channels, including those resulting from our acquisitions, and continue to enhance the collaboration across business segments, which may heighten the potential conflicts of interest or the risk of improper sharing of information.We have policies, procedures and controls that are designed to identify and address potential conflicts of interest, and we utilize various measures, such as the use of disclosure, to manage these potential conflicts. However, identifying and mitigating potential conflicts of interest can be complex and challenging and can become the focus of media and regulatory scrutiny. Indeed, actions that merely appear to create a conflict can put our reputation at risk even if the likelihood of an actual conflict has been mitigated. It is possible that potential conflicts could give rise to litigation or enforcement actions, which may lead to our clients being less willing to enter into transactions in which a conflict may occur and could adversely affect our businesses and reputation.Our regulators also have the ability to scrutinize our activities for potential conflicts of interest, including through detailed examinations of specific transactions. For example, our status as a BHC supervised by the Federal Reserve subjects us to direct Federal Reserve scrutiny with respect to transactions between our U.S. Bank Subsidiaries and their affiliates. Further, the Volcker Rule subjects us to regulatory scrutiny regarding certain transactions between us and our clients.Risk ManagementOur risk management strategies, models and processes may not be fully effective in mitigating our risk exposures in all market environments or against all types of risk, which could result in unexpected losses.We have devoted significant resources to develop our risk management strategies, models and processes, including our use of various risk models for assessing market, credit, liquidity and operational exposures and hedging strategies, stress testing and other analysis capabilities, and expect to continue to do so in the future. Nonetheless, our risk management capabilities may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk, including risks that are unidentified or unanticipated. As part of the resolution of certain investigations and proceedings, the Firm has been and may in the future be required to undertake certain measures and failure to do so may result in adverse consequences, such as further investigations or proceedings—both civil and criminal—and additional penalties, fines, judgments or other relief.The Dodd-Frank Act also provides compensation to whistleblowers who present the SEC or CFTC with information related to securities or commodities law violations that leads to a successful enforcement action. As a result of this compensation, it is possible we could face an increased number of investigations by the SEC or CFTC.We have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, as well as investigations or proceedings brought by regulatory agencies, arising in connection with our activities as a global diversified financial services institution. Certain of the actual or threatened legal or regulatory actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages, or may result in material penalties, fines or other results adverse to us.In some cases, the third-party entities that would otherwise be the primary defendants in such cases are bankrupt, in financial distress or may not honor applicable indemnification obligations. In other cases, including antitrust litigation, we may be subject to claims for joint and several liability with other defendants for treble damages or other relief related to alleged conspiracies involving other institutions. Like any large corporation, we are also subject to risk from potential employee misconduct, including noncompliance with policies, laws, rules and regulations, and improper use or disclosure of confidential information, or improper sales practices or other conduct.We may be responsible for representations and warranties associated with commercial and residential real estate loans and may incur losses in excess of our reserves.We originate loans secured by commercial and residential properties. Further, we securitize and trade in a wide range of commercial and residential real estate and real estate-related assets and products. In connection with these activities, we have provided, or otherwise agreed to be responsible for, certain representations and warranties. Under certain circumstances, we may be required to repurchase such assets or make other payments related to such assets if such representations and warranties were breached, and may incur losses as a result. We have also made representations and warranties in connection with our role as an originator of certain loans that we securitized in CMBS and RMBS. For additional information, see Note 14 to the financial statements. As part of the resolution of certain investigations and proceedings, the Firm has been and may in the future be required to undertake certain measures and failure to do so may result in adverse consequences, such as further investigations or proceedings—both civil and criminal—and additional penalties, fines, judgments or other relief. The Dodd-Frank Act also provides compensation to whistleblowers who present the SEC or CFTC with information related to securities or commodities law violations that leads to a successful enforcement action. As a result of this compensation, it is possible we could face an increased number of investigations by the SEC or CFTC. We have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, as well as investigations or proceedings brought by regulatory agencies, arising in connection with our activities as a global diversified financial services institution. Certain of the actual or threatened legal or regulatory actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages, or may result in material penalties, fines or other results adverse to us. In some cases, the third-party entities that would otherwise be the primary defendants in such cases are bankrupt, in financial distress or may not honor applicable indemnification obligations. In other cases, including antitrust litigation, we may be subject to claims for joint and several liability with other defendants for treble damages or other relief related to alleged conspiracies involving other institutions. Like any large corporation, we are also subject to risk from potential employee misconduct, including noncompliance with policies, laws, rules and regulations, and improper use or disclosure of confidential information, or improper sales practices or other conduct.",
      "prior_body": "As a global financial services firm, we face the risk of investigations and proceedings by governmental and self-regulatory organizations in all countries in which we conduct our business. These investigations and proceedings, as well as the amount of penalties and fines sought, continue to impact the financial services industry. Certain U.S. and international governmental entities have brought criminal actions against, or have sought criminal convictions, pleas, deferred prosecution agreements or non-prosecution agreements from financial institutions. Significant regulatory or law enforcement action against us could materially adversely affect our business, reputation, financial condition or results of operations, and increase our exposure to civil litigation. Investigations and proceedings initiated by these authorities may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions or other relief, and have included and may in the future include requirements that the Firm admit certain conduct, which may result in increased exposure to civil litigation. In addition, these measures have caused and may in the future cause collateral consequences. For example, such matters could impact our ability to engage in, or impose limitations on, certain of our businesses. As part of the resolution of certain investigations and proceedings, the Firm has been and may in the future be required to undertake certain measures and failure to do so may result in adverse consequences, such as further investigations or proceedings—both civil and criminal—and additional penalties, fines, judgments or other relief. The Dodd-Frank Act also provides compensation to whistleblowers who present the SEC or CFTC with information related to securities or commodities law violations that leads to a successful enforcement action. As a result of this compensation, it is possible we could face an increased number of investigations by the SEC or CFTC. We have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, as well as investigations or proceedings brought by regulatory agencies, arising in connection with our activities as a global diversified financial services institution. Certain of the actual or threatened legal or regulatory actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages, or may result in material penalties, fines or other results adverse to us. In some cases, the third-party entities that would otherwise be the primary defendants in such cases are bankrupt, in financial distress or may not honor applicable indemnification December 2023 Form 10-K20 December 2023 Form 10-K20 December 2023 Form 10-K20 20 Table of Contents Table of Contents Table of Contents obligations. In other cases, including antitrust litigation, we may be subject to claims for joint and several liability with other defendants for treble damages or other relief related to alleged conspiracies involving other institutions. Like any large corporation, we are also subject to risk from potential employee misconduct, including noncompliance with policies, laws, rules and regulations, and improper use or disclosure of confidential information, or improper sales practices or other conduct.We may be responsible for representations and warranties associated with commercial and residential real estate loans and may incur losses in excess of our reserves.We originate loans secured by commercial and residential properties. Further, we securitize and trade in a wide range of commercial and residential real estate and real estate-related assets and products. In connection with these activities, we have provided, or otherwise agreed to be responsible for, certain representations and warranties. Under certain circumstances, we may be required to repurchase such assets or make other payments related to such assets if such representations and warranties were breached, and may incur losses as a result. We have also made representations and warranties in connection with our role as an originator of certain loans that we securitized in CMBS and RMBS. For additional information, see Note 14 to the financial statements.A failure to address conflicts of interest appropriately could adversely affect our businesses and reputation.As a global financial services firm that provides products and services to a large and diversified group of clients, including corporations, governments, financial institutions and individuals, we face potential conflicts of interest in the normal course of business. For example, potential conflicts can occur when there is a divergence of interests between us and a client, among clients, between an employee on the one hand and us or a client on the other, or situations in which we may be a creditor of a client. Moreover, we utilize multiple brands and business channels, including those resulting from our acquisitions, and continue to enhance the collaboration across business segments, which may heighten the potential conflicts of interest or the risk of improper sharing of information.We have policies, procedures and controls that are designed to identify and address potential conflicts of interest, and we utilize various measures, such as the use of disclosure, to manage these potential conflicts. However, identifying and mitigating potential conflicts of interest can be complex and challenging and can become the focus of media and regulatory scrutiny. Indeed, actions that merely appear to create a conflict can put our reputation at risk even if the likelihood of an actual conflict has been mitigated. It is possible that potential conflicts could give rise to litigation or enforcement actions, which may lead to our clients being less willing to enter into transactions in which a conflict may occur and could adversely affect our businesses and reputation.Our regulators also have the ability to scrutinize our activities for potential conflicts of interest, including through detailed examinations of specific transactions. For example, our status as a BHC supervised by the Federal Reserve subjects us to direct Federal Reserve scrutiny with respect to transactions between our U.S. Bank Subsidiaries and their affiliates. Further, the Volcker Rule subjects us to regulatory scrutiny regarding certain transactions between us and our clients.Risk ManagementOur risk management strategies, models and processes may not be fully effective in mitigating our risk exposures in all market environments or against all types of risk, which could result in unexpected losses.We have devoted significant resources to develop our risk management capabilities and expect to continue to do so in the future. Nonetheless, our risk management strategies, models and processes, including our use of various risk models for assessing market, credit, liquidity and operational exposures and hedging strategies, stress testing and other analysis, may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk, including risks that are unidentified or unanticipated.As our businesses change and grow, including through acquisitions and the introduction and application of new technologies, such as artificial intelligence, and the markets in which we operate evolve, our risk management strategies, models and processes may not always adapt with those changes. Some of our methods of managing risk are based upon our use of observed historical market behavior and management’s judgment. As a result, these methods may not predict future risk exposures, which could be significantly greater than the historical measures indicate.In addition, many models we use are based on assumptions or inputs regarding correlations among prices of various asset classes or other market indicators and, therefore, cannot anticipate sudden, unanticipated, or unidentified market or economic movements, such as the impact of a pandemic or a sudden geopolitical conflict, which could cause us to incur losses. Management of market, credit, liquidity, operational, model, legal, regulatory and compliance risks requires, among other things, policies and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective. Our trading risk management strategies and techniques also seek to balance our ability to profit from trading positions with our exposure to potential losses.While we employ a broad and diversified set of risk monitoring and risk mitigation techniques, those techniques and the judgments that accompany their application cannot obligations. In other cases, including antitrust litigation, we may be subject to claims for joint and several liability with other defendants for treble damages or other relief related to alleged conspiracies involving other institutions. Like any large corporation, we are also subject to risk from potential employee misconduct, including noncompliance with policies, laws, rules and regulations, and improper use or disclosure of confidential information, or improper sales practices or other conduct.We may be responsible for representations and warranties associated with commercial and residential real estate loans and may incur losses in excess of our reserves.We originate loans secured by commercial and residential properties. Further, we securitize and trade in a wide range of commercial and residential real estate and real estate-related assets and products. In connection with these activities, we have provided, or otherwise agreed to be responsible for, certain representations and warranties. Under certain circumstances, we may be required to repurchase such assets or make other payments related to such assets if such representations and warranties were breached, and may incur losses as a result. We have also made representations and warranties in connection with our role as an originator of certain loans that we securitized in CMBS and RMBS. For additional information, see Note 14 to the financial statements.A failure to address conflicts of interest appropriately could adversely affect our businesses and reputation.As a global financial services firm that provides products and services to a large and diversified group of clients, including corporations, governments, financial institutions and individuals, we face potential conflicts of interest in the normal course of business. For example, potential conflicts can occur when there is a divergence of interests between us and a client, among clients, between an employee on the one hand and us or a client on the other, or situations in which we may be a creditor of a client. Moreover, we utilize multiple brands and business channels, including those resulting from our acquisitions, and continue to enhance the collaboration across business segments, which may heighten the potential conflicts of interest or the risk of improper sharing of information.We have policies, procedures and controls that are designed to identify and address potential conflicts of interest, and we utilize various measures, such as the use of disclosure, to manage these potential conflicts. However, identifying and mitigating potential conflicts of interest can be complex and challenging and can become the focus of media and regulatory scrutiny. Indeed, actions that merely appear to create a conflict can put our reputation at risk even if the likelihood of an actual conflict has been mitigated. It is possible that potential conflicts could give rise to litigation or enforcement actions, which may lead to our clients being less willing to enter into transactions in which a conflict may obligations. In other cases, including antitrust litigation, we may be subject to claims for joint and several liability with other defendants for treble damages or other relief related to alleged conspiracies involving other institutions. Like any large corporation, we are also subject to risk from potential employee misconduct, including noncompliance with policies, laws, rules and regulations, and improper use or disclosure of confidential information, or improper sales practices or other conduct."
    },
    {
      "status": "MODIFIED",
      "current_title": "Monitoring and Control",
      "prior_title": "Monitoring and Control",
      "similarity_score": 0.892,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The Credit Limits Framework is calibrated within our risk December 2024 Form 10-K62 December 2024 Form 10-K62 December 2024 Form 10-K62 62 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents tolerance and includes single-name limits and portfolio concentration limits by country, industry and product type.The CRM helps ensure timely and transparent communication of material credit risks, compliance with established limits and escalation of risk concentrations to appropriate senior management.\"",
        "Reworded sentence: \"The stress tests shock market factors (e.g., interest rates, commodity prices, credit spreads), risk parameters (e.g., probability of default and loss given default), recovery rates and expected losses in order to assess the impact of stresses on exposures, profit and loss, and our capital position.\"",
        "Reworded sentence: \"The CRM also evaluates strategy, market position, industry dynamics, exposure to changes in international trade policies and supply chain constraints, management and other factors such as country risks and legal and contingent risks that could affect the obligor’s risk profile.\"",
        "Reworded sentence: \"Hedging activities consist of the purchase, sale or transfer of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options).\"",
        "Reworded sentence: \"See Note 8 to the financial statements for additional information about our collateralized transactions.Loans and Lending Commitments At December 31, 2024$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,889 $9,183 $— $16,072 Secured lending facilities48,842 2,507 — 51,349 Commercial and Residential real estate8,412 628 2,420 11,460 Securities-based lending and Other2,876 — 6,041 8,917 Total Institutional Securities67,019 12,318 8,461 87,798 Wealth Management:Residential real estate66,738 — — 66,738 Securities-based lending and Other93,139 1 — 93,140 Total Wealth Management159,877 1 — 159,878 Total Investment Management24 — 200 204 Total loans226,900 12,319 8,661 247,880 ACL(1,066)(1,066)Total loans, net of ACL$225,834 $12,319 $8,661 $246,814 Lending commitments3$148,818 $26,955 $758 $176,531 Total exposure$374,652 $39,274 $9,419 $423,345 tolerance and includes single-name limits and portfolio concentration limits by country, industry and product type.The CRM helps ensure timely and transparent communication of material credit risks, compliance with established limits and escalation of risk concentrations to appropriate senior management.\""
      ],
      "current_body": "The Credit Risk Management Department (“CRM”) establishes Firmwide practices to evaluate, monitor and control credit risk at the transaction, obligor and portfolio levels. The CRM approves extensions of credit, evaluates the creditworthiness of the counterparties and borrowers on a regular basis, and helps ensure that credit exposure is actively monitored and managed. The evaluation of counterparties and borrowers includes an assessment of the probability that an obligor will default on its financial obligations and any losses that may occur when an obligor defaults. In addition, credit risk exposure is actively managed by credit professionals and committees within the CRM and through various risk committees, whose membership includes individuals from the CRM. A comprehensive and global Credit Limits Framework is utilized to manage credit risk levels across the Firm. The Credit Limits Framework is calibrated within our risk December 2024 Form 10-K62 December 2024 Form 10-K62 December 2024 Form 10-K62 62 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents tolerance and includes single-name limits and portfolio concentration limits by country, industry and product type.The CRM helps ensure timely and transparent communication of material credit risks, compliance with established limits and escalation of risk concentrations to appropriate senior management. The CRM also works closely with the Market Risk Department and applicable business units to monitor risk exposures and to perform stress tests to identify, analyze and control credit risk concentrations arising from lending and trading activities. The stress tests shock market factors (e.g., interest rates, commodity prices, credit spreads), risk parameters (e.g., probability of default and loss given default), recovery rates and expected losses in order to assess the impact of stresses on exposures, profit and loss, and our capital position. Stress tests are conducted in accordance with our established policies and procedures.Credit EvaluationThe evaluation of corporate and institutional counterparties and borrowers includes assigning credit ratings, which reflect an assessment of an obligor’s probability of default and loss given default. Credit evaluations typically involve the assessment of financial statements; leverage; liquidity; capital strength; asset composition and quality; market capitalization; access to capital markets; adequacy of collateral, if applicable; and, in the case of certain loans, cash flow projections and debt service requirements. The CRM also evaluates strategy, market position, industry dynamics, exposure to changes in international trade policies and supply chain constraints, management and other factors such as country risks and legal and contingent risks that could affect the obligor’s risk profile. Additionally, the CRM evaluates the relative position of our exposure in the borrower’s capital structure and relative recovery prospects, as well as other structural elements of the particular transaction. The underwriting of commercial real estate loans includes, but is not limited to, review of the property type, LTV ratio, occupancy levels, debt service ratio, prevailing capitalization rates and market dynamics.The evaluation of consumer borrowers is tailored to the specific type of lending. Securities-based loans are evaluated based on factors that include, but are not limited to, the amount of the loan and the amount, quality, diversification, price volatility and liquidity of the collateral. The underwriting of residential real estate loans includes, but is not limited to, review of the obligor’s debt-to-income ratio, net worth, liquidity, collateral, LTV ratio and industry standard credit-scoring models (e.g., FICO scores). Subsequent credit monitoring for individual loans is performed at the portfolio level, and collateral values are monitored on an ongoing basis.Credit risk metrics assigned to our borrowers during the evaluation process are incorporated into the CRM maintenance of the allowance for credit losses. Such allowance serves as a reserve for expected inherent losses, as well as expected losses related to loans identified as impaired. For more information on the allowance for credit losses, see Notes 2 and 9 to the financial statements.Risk MitigationWe may seek to mitigate credit risk from our lending and trading activities in multiple ways, including collateral provisions, guarantees and hedges. At the transaction level, we seek to mitigate risk through management of key risk elements such as size, tenor, financial covenants, seniority and collateral. We actively hedge our lending and derivatives exposures. Hedging activities consist of the purchase, sale or transfer of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). Additionally, we may sell, assign or syndicate loans and lending commitments to other financial institutions in the primary and secondary loan markets.In connection with our derivatives trading activities, we generally enter into master netting agreements and collateral arrangements with counterparties. These agreements provide us with the ability to demand collateral, as well as to liquidate collateral and offset receivables and payables covered under the same master agreement in the event of a counterparty default. A collateral management group monitors collateral levels against requirements and oversees the administration of the collateral function. See Note 8 to the financial statements for additional information about our collateralized transactions.Loans and Lending Commitments At December 31, 2024$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,889 $9,183 $— $16,072 Secured lending facilities48,842 2,507 — 51,349 Commercial and Residential real estate8,412 628 2,420 11,460 Securities-based lending and Other2,876 — 6,041 8,917 Total Institutional Securities67,019 12,318 8,461 87,798 Wealth Management:Residential real estate66,738 — — 66,738 Securities-based lending and Other93,139 1 — 93,140 Total Wealth Management159,877 1 — 159,878 Total Investment Management24 — 200 204 Total loans226,900 12,319 8,661 247,880 ACL(1,066)(1,066)Total loans, net of ACL$225,834 $12,319 $8,661 $246,814 Lending commitments3$148,818 $26,955 $758 $176,531 Total exposure$374,652 $39,274 $9,419 $423,345 tolerance and includes single-name limits and portfolio concentration limits by country, industry and product type.The CRM helps ensure timely and transparent communication of material credit risks, compliance with established limits and escalation of risk concentrations to appropriate senior management. The CRM also works closely with the Market Risk Department and applicable business units to monitor risk exposures and to perform stress tests to identify, analyze and control credit risk concentrations arising from lending and trading activities. The stress tests shock market factors (e.g., interest rates, commodity prices, credit spreads), risk parameters (e.g., probability of default and loss given default), recovery rates and expected losses in order to assess the impact of stresses on exposures, profit and loss, and our capital position. Stress tests are conducted in accordance with our established policies and procedures.Credit EvaluationThe evaluation of corporate and institutional counterparties and borrowers includes assigning credit ratings, which reflect an assessment of an obligor’s probability of default and loss given default. Credit evaluations typically involve the assessment of financial statements; leverage; liquidity; capital strength; asset composition and quality; market capitalization; access to capital markets; adequacy of collateral, if applicable; and, in the case of certain loans, cash flow projections and debt service requirements. The CRM also evaluates strategy, market position, industry dynamics, exposure to changes in international trade policies and supply chain constraints, management and other factors such as country risks and legal and contingent risks that could affect the obligor’s risk profile. Additionally, the CRM evaluates the relative position of our exposure in the borrower’s capital structure and relative recovery prospects, as well as other structural elements of the particular transaction. The underwriting of commercial real estate loans includes, but is not limited to, review of the property type, LTV ratio, occupancy levels, debt service ratio, prevailing capitalization rates and market dynamics.The evaluation of consumer borrowers is tailored to the specific type of lending. Securities-based loans are evaluated based on factors that include, but are not limited to, the amount of the loan and the amount, quality, diversification, price volatility and liquidity of the collateral. The underwriting of residential real estate loans includes, but is not limited to, review of the obligor’s debt-to-income ratio, net worth, liquidity, collateral, LTV ratio and industry standard credit-scoring models (e.g., FICO scores). Subsequent credit monitoring for individual loans is performed at the portfolio level, and collateral values are monitored on an ongoing basis.Credit risk metrics assigned to our borrowers during the evaluation process are incorporated into the CRM maintenance of the allowance for credit losses. Such allowance serves as a reserve for expected inherent losses, as well as expected losses related to loans identified as impaired. tolerance and includes single-name limits and portfolio concentration limits by country, industry and product type. The CRM helps ensure timely and transparent communication of material credit risks, compliance with established limits and escalation of risk concentrations to appropriate senior management. The CRM also works closely with the Market Risk Department and applicable business units to monitor risk exposures and to perform stress tests to identify, analyze and control credit risk concentrations arising from lending and trading activities. The stress tests shock market factors (e.g., interest rates, commodity prices, credit spreads), risk parameters (e.g., probability of default and loss given default), recovery rates and expected losses in order to assess the impact of stresses on exposures, profit and loss, and our capital position. Stress tests are conducted in accordance with our established policies and procedures.",
      "prior_body": "The Credit Risk Management Department (“CRM”) establishes Firmwide practices to evaluate, monitor and control credit risk at the transaction, obligor and portfolio levels. The CRM approves extensions of credit, evaluates the creditworthiness of the counterparties and borrowers on a regular basis, and helps ensure that credit exposure is actively monitored and managed. The evaluation of counterparties and borrowers includes an assessment of the probability that an obligor will default on its financial obligations and any losses that may occur when an obligor defaults. In addition, credit risk exposure is actively managed by credit professionals and committees within the CRM and through various risk committees, whose membership includes individuals from the CRM. A comprehensive and global Credit Limits Framework is utilized to manage credit risk levels across the Firm. The Credit Limits Framework is calibrated within our risk tolerance and includes single-name limits and portfolio concentration limits by country, industry and product type. The CRM helps ensure timely and transparent communication of material credit risks, compliance with established limits and escalation of risk concentrations to appropriate senior management. The CRM also works closely with the Market Risk Department and applicable business units to monitor risk exposures and to perform stress tests to identify, analyze and control credit risk concentrations arising from lending and trading activities. The stress tests shock market factors (e.g., interest rates, commodity prices, credit spreads), risk December 2023 Form 10-K68 December 2023 Form 10-K68 December 2023 Form 10-K68 68 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents parameters (e.g., probability of default and loss given default), recovery rates and expected losses in order to assess the impact of stresses on exposures, profit and loss, and our capital position. Stress tests are conducted in accordance with our established policies and procedures.Credit EvaluationThe evaluation of corporate and institutional counterparties and borrowers includes assigning credit ratings, which reflect an assessment of an obligor’s probability of default and loss given default. Credit evaluations typically involve the assessment of financial statements; leverage; liquidity; capital strength; asset composition and quality; market capitalization; access to capital markets; adequacy of collateral, if applicable; and, in the case of certain loans, cash flow projections and debt service requirements. The CRM also evaluates strategy, market position, industry dynamics, management and other factors such as country risks and legal and contingent risks that could affect the obligor’s risk profile. Additionally, the CRM evaluates the relative position of our exposure in the borrower’s capital structure and relative recovery prospects, as well as other structural elements of the particular transaction. The underwriting of commercial real estate loans includes, but is not limited to, review of the property type, LTV ratio, occupancy levels, debt service ratio, prevailing capitalization rates and market dynamics.The evaluation of consumer borrowers is tailored to the specific type of lending. Securities-based loans are evaluated based on factors that include, but are not limited to, the amount of the loan and the amount, quality, diversification, price volatility and liquidity of the collateral. The underwriting of residential real estate loans includes, but is not limited to, review of the obligor’s debt-to-income ratio, net worth, liquidity, collateral, LTV ratio and industry standard credit-scoring models (e.g., FICO scores). Subsequent credit monitoring for individual loans is performed at the portfolio level, and collateral values are monitored on an ongoing basis.Credit risk metrics assigned to our borrowers during the evaluation process are incorporated into the CRM maintenance of the allowance for credit losses. Such allowance serves as a reserve for expected inherent losses, as well as expected losses related to loans identified as impaired. For more information on the allowance for credit losses, see Notes 2 and 9 to the financial statements.Risk MitigationWe may seek to mitigate credit risk from our lending and trading activities in multiple ways, including collateral provisions, guarantees and hedges. At the transaction level, we seek to mitigate risk through management of key risk elements such as size, tenor, financial covenants, seniority and collateral. We actively hedge our lending and derivatives exposures. Hedging activities consist of the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). Additionally, we may sell, assign or syndicate loans and lending commitments to other financial institutions in the primary and secondary loan markets.In connection with our derivatives trading activities, we generally enter into master netting agreements and collateral arrangements with counterparties. These agreements provide us with the ability to demand collateral, as well as to liquidate collateral and offset receivables and payables covered under the same master agreement in the event of a counterparty default. A collateral management group monitors collateral levels against requirements and oversees the administration of the collateral function. See Note 8 to the financial statements for additional information about our collateralized transactions.Loans and Lending Commitments At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$149,973 Total exposure$376,801 At December 31, 2022$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,589 $10,634 $— $17,223 Secured lending facilities35,606 3,176 6 38,788 Commercial and Residential real estate8,515 926 2,548 11,989 Securities-based lending and Other2,865 39 5,625 8,529 Total Institutional Securities53,575 14,775 8,179 76,529 Wealth Management:Residential real estate54,460 4 — 54,464 Securities-based lending and Other91,797 9 — 91,806 Total Wealth Management146,257 13 — 146,270 Total Investment Management24 — 218 222 Total loans199,836 14,788 8,397 223,021 ACL(839)(839)Total loans, net of ACL$198,997 $14,788 $8,397 $222,182 Lending commitments3$136,960 Total exposure$359,142 Total exposure—consists of Total loans, net of ACL, and Lending commitments1.FVO includes the fair value of certain unfunded lending commitments.2.Investment Management business segment loans are related to certain of our activities as an investment adviser and manager. Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by parameters (e.g., probability of default and loss given default), recovery rates and expected losses in order to assess the impact of stresses on exposures, profit and loss, and our capital position. Stress tests are conducted in accordance with our established policies and procedures.Credit EvaluationThe evaluation of corporate and institutional counterparties and borrowers includes assigning credit ratings, which reflect an assessment of an obligor’s probability of default and loss given default. Credit evaluations typically involve the assessment of financial statements; leverage; liquidity; capital strength; asset composition and quality; market capitalization; access to capital markets; adequacy of collateral, if applicable; and, in the case of certain loans, cash flow projections and debt service requirements. The CRM also evaluates strategy, market position, industry dynamics, management and other factors such as country risks and legal and contingent risks that could affect the obligor’s risk profile. Additionally, the CRM evaluates the relative position of our exposure in the borrower’s capital structure and relative recovery prospects, as well as other structural elements of the particular transaction. The underwriting of commercial real estate loans includes, but is not limited to, review of the property type, LTV ratio, occupancy levels, debt service ratio, prevailing capitalization rates and market dynamics.The evaluation of consumer borrowers is tailored to the specific type of lending. Securities-based loans are evaluated based on factors that include, but are not limited to, the amount of the loan and the amount, quality, diversification, price volatility and liquidity of the collateral. The underwriting of residential real estate loans includes, but is not limited to, review of the obligor’s debt-to-income ratio, net worth, liquidity, collateral, LTV ratio and industry standard credit-scoring models (e.g., FICO scores). Subsequent credit monitoring for individual loans is performed at the portfolio level, and collateral values are monitored on an ongoing basis.Credit risk metrics assigned to our borrowers during the evaluation process are incorporated into the CRM maintenance of the allowance for credit losses. Such allowance serves as a reserve for expected inherent losses, as well as expected losses related to loans identified as impaired. For more information on the allowance for credit losses, see Notes 2 and 9 to the financial statements.Risk MitigationWe may seek to mitigate credit risk from our lending and trading activities in multiple ways, including collateral provisions, guarantees and hedges. At the transaction level, we seek to mitigate risk through management of key risk elements such as size, tenor, financial covenants, seniority and collateral. We actively hedge our lending and derivatives exposures. Hedging activities consist of the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, parameters (e.g., probability of default and loss given default), recovery rates and expected losses in order to assess the impact of stresses on exposures, profit and loss, and our capital position. Stress tests are conducted in accordance with our established policies and procedures."
    },
    {
      "status": "MODIFIED",
      "current_title": "Average Fee Rates1",
      "prior_title": "Average Fee Rates1",
      "similarity_score": 0.891,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Fee rate in bps202420232022Separately managed12 12 12 Unified managed91 92 94 Advisor79 80 81 Portfolio manager89 91 92 Subtotal65 65 66 Cash management6 6 6 Total fee-based client assets63 64 65 1.Based on Asset management revenues related to advisory services associated with fee-based assets.\"",
        "Reworded sentence: \"37December 2024 Form 10-K 37December 2024 Form 10-K 37December 2024 Form 10-K 37 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Investment ManagementIncome Statement Information % Change$ in millions20242023202220242023RevenuesAsset management and related fees$5,627 $5,231 $5,332 8 %(2)%Performance-based income and other1234 139 43 68 %N/MNet revenues5,861 5,370 5,375 9 %— %Compensation and benefits2,302 2,217 2,273 4 %(2)%Non-compensation expenses2,422 2,311 2,295 5 %1 %Total non-interest expenses4,724 4,528 4,568 4 %(1)%Income before provision for income taxes1,137 842 807 35 %4 %Provision for income taxes275 199 162 38 %23 %Net income862 643 645 34 %— %Net income applicable to noncontrolling interests3 4 (15)(25)%127 %Net income applicable to Morgan Stanley$859 $639 $660 34 %(3)%1.Includes Investments and Trading, Net interest and Other revenues.Net RevenuesAsset Management and Related FeesAsset management and related fees of $5,627 million in 2024 increased 8% compared with the prior year, primarily driven by higher average AUM on higher market levels.Asset management revenues are influenced by the level, relative mix of AUM and related fee rates.\""
      ],
      "current_body": "Fee rate in bps202420232022Separately managed12 12 12 Unified managed91 92 94 Advisor79 80 81 Portfolio manager89 91 92 Subtotal65 65 66 Cash management6 6 6 Total fee-based client assets63 64 65 1.Based on Asset management revenues related to advisory services associated with fee-based assets. Asset management revenues within the Wealth Management segment are primarily generated from the following types of accounts: •Separately managed—accounts by which third party and affiliated asset managers are engaged to manage clients’ assets with investment decisions made by the asset December 2024 Form 10-K36 December 2024 Form 10-K36 December 2024 Form 10-K36 36 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents manager. Only one third-party asset manager strategy can be held per account.•Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client.•Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments.•Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change.•Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. manager. Only one third-party asset manager strategy can be held per account.•Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client.•Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments.•Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change.•Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. manager. Only one third-party asset manager strategy can be held per account. •Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client. •Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments. •Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change. •Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. 37December 2024 Form 10-K 37December 2024 Form 10-K 37December 2024 Form 10-K 37 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Investment ManagementIncome Statement Information % Change$ in millions20242023202220242023RevenuesAsset management and related fees$5,627 $5,231 $5,332 8 %(2)%Performance-based income and other1234 139 43 68 %N/MNet revenues5,861 5,370 5,375 9 %— %Compensation and benefits2,302 2,217 2,273 4 %(2)%Non-compensation expenses2,422 2,311 2,295 5 %1 %Total non-interest expenses4,724 4,528 4,568 4 %(1)%Income before provision for income taxes1,137 842 807 35 %4 %Provision for income taxes275 199 162 38 %23 %Net income862 643 645 34 %— %Net income applicable to noncontrolling interests3 4 (15)(25)%127 %Net income applicable to Morgan Stanley$859 $639 $660 34 %(3)%1.Includes Investments and Trading, Net interest and Other revenues.Net RevenuesAsset Management and Related FeesAsset management and related fees of $5,627 million in 2024 increased 8% compared with the prior year, primarily driven by higher average AUM on higher market levels.Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. While higher market levels drove increases in average AUM in the current year period, there were continued net outflows in the Equity asset class, which may be influenced by the structure and performance of our investment strategies and products relative to their benchmarks, offset by higher net inflows in the Alternatives and Solutions and Fixed Income asset classes reflecting client preferences. To the extent these conditions continue, we would expect our Asset management revenue to continue to be impacted.See “Assets Under Management or Supervision” herein.Performance-based Income and OtherPerformance-based income and other revenues increased to $234 million in 2024, from $139 million in the prior year, primarily due to higher accrued carried interest in infrastructure and real estate funds, partially offset by lower accrued carried interest in certain private equity funds. Non-Interest ExpensesNon-interest expenses of $4,724 million in 2024 increased 4% from the prior year, as a result of higher Non-compensation and Compensation and benefits expenses. •Compensation and benefits expenses increased primarily due to higher compensation associated with carried interest.•Non-compensation expenses increased primarily due to higher distribution expenses on higher AUM. Investment ManagementIncome Statement Information % Change$ in millions20242023202220242023RevenuesAsset management and related fees$5,627 $5,231 $5,332 8 %(2)%Performance-based income and other1234 139 43 68 %N/MNet revenues5,861 5,370 5,375 9 %— %Compensation and benefits2,302 2,217 2,273 4 %(2)%Non-compensation expenses2,422 2,311 2,295 5 %1 %Total non-interest expenses4,724 4,528 4,568 4 %(1)%Income before provision for income taxes1,137 842 807 35 %4 %Provision for income taxes275 199 162 38 %23 %Net income862 643 645 34 %— %Net income applicable to noncontrolling interests3 4 (15)(25)%127 %Net income applicable to Morgan Stanley$859 $639 $660 34 %(3)%1.Includes Investments and Trading, Net interest and Other revenues.",
      "prior_body": "Fee rate in bps202320222021Separately managed12 12 14 Unified managed92 94 95 Advisor80 81 82 Portfolio manager91 92 93 Subtotal65 66 72 Cash management6 6 5 Total fee-based client assets64 65 70 1.Based on Asset management revenues related to advisory services associated with fee-based assets. Asset management revenues within the Wealth Management segment are primarily generated from the following types of accounts: •Separately managed—accounts by which third party and affiliated asset managers are engaged to manage clients’ assets with investment decisions made by the asset December 2023 Form 10-K40 December 2023 Form 10-K40 December 2023 Form 10-K40 40 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents manager. Only one third-party asset manager strategy can be held per account.•Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client.•Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments.•Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change.•Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. manager. Only one third-party asset manager strategy can be held per account.•Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client.•Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments.•Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change.•Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. manager. Only one third-party asset manager strategy can be held per account. •Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client. •Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments. •Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change. •Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. 41December 2023 Form 10-K 41December 2023 Form 10-K 41December 2023 Form 10-K 41 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Investment ManagementIncome Statement Information % Change$ in millions20232022202120232022RevenuesAsset management and related fees$5,231 $5,332 $5,576 (2)%(4)%Performance-based income and other1139 43 644 N/M(93)%Net revenues5,370 5,375 6,220 — %(14)%Compensation and benefits2,217 2,273 2,373 (2)%(4)%Non-compensation expenses2,311 2,295 2,169 1 %6 %Total non-interest expenses4,528 4,568 4,542 (1)%1 %Income before provision for income taxes842 807 1,678 4 %(52)%Provision for income taxes199 162 356 23 %(54)%Net income643 645 1,322 — %(51)%Net income applicable to noncontrolling interests4 (15)(25)127 %40 %Net income applicable to Morgan Stanley$639 $660 $1,347 (3)%(51)%1.Includes Investments, Trading, Commissions and fees, Net interest and Other revenues.Net RevenuesAsset Management and Related FeesAsset management and related fees of $5,231 million in 2023 decreased 2% compared with the prior year, primarily due to a shift in the mix of average AUM, driven by the cumulative effect of net flows.Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. The market environment and client preferences in recent quarters have impacted the mix of our average Long-Term AUM level across certain asset classes. To the extent these conditions continue, we would expect our Asset management revenue to continue to be negatively impacted.See “Assets Under Management or Supervision” herein.Performance-based Income and OtherPerformance-based income and other revenues increased to $139 million in 2023, from $43 million in the prior year, primarily due to mark-to-market gains in 2023 compared with losses in the prior year on DCP investments and investments in public funds, partially offset by lower accrued carried interest in certain private funds. Non-Interest ExpensesNon-interest expenses of $4,528 million in 2023 decreased 1% from the prior year, primarily due to lower Compensation and benefits expenses. •Compensation and benefits expenses decreased primarily due to lower expenses related to compensation associated with carried interest, partially offset by higher expenses related to DCP.•Non-compensation expenses were relatively unchanged for the current year. Investment ManagementIncome Statement Information % Change$ in millions20232022202120232022RevenuesAsset management and related fees$5,231 $5,332 $5,576 (2)%(4)%Performance-based income and other1139 43 644 N/M(93)%Net revenues5,370 5,375 6,220 — %(14)%Compensation and benefits2,217 2,273 2,373 (2)%(4)%Non-compensation expenses2,311 2,295 2,169 1 %6 %Total non-interest expenses4,528 4,568 4,542 (1)%1 %Income before provision for income taxes842 807 1,678 4 %(52)%Provision for income taxes199 162 356 23 %(54)%Net income643 645 1,322 — %(51)%Net income applicable to noncontrolling interests4 (15)(25)127 %40 %Net income applicable to Morgan Stanley$639 $660 $1,347 (3)%(51)%1.Includes Investments, Trading, Commissions and fees, Net interest and Other revenues."
    },
    {
      "status": "MODIFIED",
      "current_title": "Investment Banking Volumes",
      "prior_title": "Investment Banking Volumes",
      "similarity_score": 0.89,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in billions202420232022Completed mergers and acquisitions1$628 $677 $881 Equity and equity-related offerings2, 363 32 23 Fixed income offerings2, 4323 236 229 Completed mergers and acquisitions1 Equity and equity-related offerings2, 3 Fixed income offerings2, 4 Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of January 2, 2025.\""
      ],
      "current_body": "$ in billions202420232022Completed mergers and acquisitions1$628 $677 $881 Equity and equity-related offerings2, 363 32 23 Fixed income offerings2, 4323 236 229 Completed mergers and acquisitions1 Equity and equity-related offerings2, 3 Fixed income offerings2, 4 Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of January 2, 2025. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions. 1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction. 2.Based on full credit for single book managers and equal credit for joint book managers. 3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings. 4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.",
      "prior_body": "$ in billions202320222021Completed mergers and acquisitions1$655 $881 $1,107 Equity and equity-related offerings2, 331 23 117 Fixed income offerings2, 4235 229 371 Completed mergers and acquisitions1 Equity and equity-related offerings2, 3 Fixed income offerings2, 4 Source: Refinitiv data as of January 2, 2024. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions. 1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction. 2.Based on full credit for single book managers and equal credit for joint book managers. 3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings. 4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances."
    },
    {
      "status": "MODIFIED",
      "current_title": "Average Fee Rates1",
      "prior_title": "Average Fee Rates1",
      "similarity_score": 0.889,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Fee rate in bps202420232022Equity71 71 70 Fixed income36 35 35 Alternatives and Solutions28 32 34 Long-Term AUM42 44 46 Liquidity and Overlay Services12 13 11 Total AUM32 34 34 Long-Term AUM 1.Based on Asset management revenues, net of waivers, excluding performance-based fees and other non-management fees.\"",
        "Reworded sentence: \"39December 2024 Form 10-K 39December 2024 Form 10-K 39December 2024 Form 10-K 39 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Supplemental Financial Information U.S.\"",
        "Reworded sentence: \"Bank Subsidiaries’ Supplemental Financial Information1$ in billionsAtDecember 31,2024AtDecember 31,2023 Investment securities:Available-for-sale at fair value$76.5 $66.6 Held-to-maturity47.8 51.4 Total Investment securities$124.3 $118.0 Wealth Management loans2Residential real estate$66.6 $60.3 Securities-based lending and Other392.9 86.2 Total Wealth Management loans$159.5 $146.5 Institutional Securities loans2Corporate$7.1 $10.1 Secured lending facilities50.2 40.8 Commercial and Residential real estate10.5 10.7 Securities-based lending and Other5.6 4.1 Total Institutional Securities loans$73.4 $65.7 Total assets$434.8 $396.1 Deposits4$369.7 $346.1 1.Amounts exclude transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates.\"",
        "Reworded sentence: \"At December 31, 2024 and December 31, 2023, substantially all employee-referenced investments that subjected the Firm to price risk were economically hedged.Amounts Recognized in Compensation Expense$ in millions202420232022Deferred cash-based awards$770 $693 $761 Return on referenced investments672 668 (716)Total recognized in compensation expense$1,442 $1,361 $45 Amounts Recognized in Compensation Expense by Segment$ in millions202420232022Institutional Securities$150 $162 $(97)Wealth Management1,100 984 11 Investment Management 192 215 131 Total recognized in compensation expense$1,442 $1,361 $45 Supplemental Financial Information U.S.\"",
        "Reworded sentence: \"Bank Subsidiaries’ Supplemental Financial Information1$ in billionsAtDecember 31,2024AtDecember 31,2023 Investment securities:Available-for-sale at fair value$76.5 $66.6 Held-to-maturity47.8 51.4 Total Investment securities$124.3 $118.0 Wealth Management loans2Residential real estate$66.6 $60.3 Securities-based lending and Other392.9 86.2 Total Wealth Management loans$159.5 $146.5 Institutional Securities loans2Corporate$7.1 $10.1 Secured lending facilities50.2 40.8 Commercial and Residential real estate10.5 10.7 Securities-based lending and Other5.6 4.1 Total Institutional Securities loans$73.4 $65.7 Total assets$434.8 $396.1 Deposits4$369.7 $346.1 1.Amounts exclude transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates.\""
      ],
      "current_body": "Fee rate in bps202420232022Separately managed12 12 12 Unified managed91 92 94 Advisor79 80 81 Portfolio manager89 91 92 Subtotal65 65 66 Cash management6 6 6 Total fee-based client assets63 64 65 1.Based on Asset management revenues related to advisory services associated with fee-based assets. Asset management revenues within the Wealth Management segment are primarily generated from the following types of accounts: •Separately managed—accounts by which third party and affiliated asset managers are engaged to manage clients’ assets with investment decisions made by the asset December 2024 Form 10-K36 December 2024 Form 10-K36 December 2024 Form 10-K36 36 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents manager. Only one third-party asset manager strategy can be held per account.•Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client.•Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments.•Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change.•Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. manager. Only one third-party asset manager strategy can be held per account.•Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client.•Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments.•Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change.•Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. manager. Only one third-party asset manager strategy can be held per account. •Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client. •Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments. •Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change. •Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. 37December 2024 Form 10-K 37December 2024 Form 10-K 37December 2024 Form 10-K 37 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Investment ManagementIncome Statement Information % Change$ in millions20242023202220242023RevenuesAsset management and related fees$5,627 $5,231 $5,332 8 %(2)%Performance-based income and other1234 139 43 68 %N/MNet revenues5,861 5,370 5,375 9 %— %Compensation and benefits2,302 2,217 2,273 4 %(2)%Non-compensation expenses2,422 2,311 2,295 5 %1 %Total non-interest expenses4,724 4,528 4,568 4 %(1)%Income before provision for income taxes1,137 842 807 35 %4 %Provision for income taxes275 199 162 38 %23 %Net income862 643 645 34 %— %Net income applicable to noncontrolling interests3 4 (15)(25)%127 %Net income applicable to Morgan Stanley$859 $639 $660 34 %(3)%1.Includes Investments and Trading, Net interest and Other revenues.Net RevenuesAsset Management and Related FeesAsset management and related fees of $5,627 million in 2024 increased 8% compared with the prior year, primarily driven by higher average AUM on higher market levels.Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. While higher market levels drove increases in average AUM in the current year period, there were continued net outflows in the Equity asset class, which may be influenced by the structure and performance of our investment strategies and products relative to their benchmarks, offset by higher net inflows in the Alternatives and Solutions and Fixed Income asset classes reflecting client preferences. To the extent these conditions continue, we would expect our Asset management revenue to continue to be impacted.See “Assets Under Management or Supervision” herein.Performance-based Income and OtherPerformance-based income and other revenues increased to $234 million in 2024, from $139 million in the prior year, primarily due to higher accrued carried interest in infrastructure and real estate funds, partially offset by lower accrued carried interest in certain private equity funds. Non-Interest ExpensesNon-interest expenses of $4,724 million in 2024 increased 4% from the prior year, as a result of higher Non-compensation and Compensation and benefits expenses. •Compensation and benefits expenses increased primarily due to higher compensation associated with carried interest.•Non-compensation expenses increased primarily due to higher distribution expenses on higher AUM. Investment ManagementIncome Statement Information % Change$ in millions20242023202220242023RevenuesAsset management and related fees$5,627 $5,231 $5,332 8 %(2)%Performance-based income and other1234 139 43 68 %N/MNet revenues5,861 5,370 5,375 9 %— %Compensation and benefits2,302 2,217 2,273 4 %(2)%Non-compensation expenses2,422 2,311 2,295 5 %1 %Total non-interest expenses4,724 4,528 4,568 4 %(1)%Income before provision for income taxes1,137 842 807 35 %4 %Provision for income taxes275 199 162 38 %23 %Net income862 643 645 34 %— %Net income applicable to noncontrolling interests3 4 (15)(25)%127 %Net income applicable to Morgan Stanley$859 $639 $660 34 %(3)%1.Includes Investments and Trading, Net interest and Other revenues.",
      "prior_body": "Fee rate in bps202320222021Separately managed12 12 14 Unified managed92 94 95 Advisor80 81 82 Portfolio manager91 92 93 Subtotal65 66 72 Cash management6 6 5 Total fee-based client assets64 65 70 1.Based on Asset management revenues related to advisory services associated with fee-based assets. Asset management revenues within the Wealth Management segment are primarily generated from the following types of accounts: •Separately managed—accounts by which third party and affiliated asset managers are engaged to manage clients’ assets with investment decisions made by the asset December 2023 Form 10-K40 December 2023 Form 10-K40 December 2023 Form 10-K40 40 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents manager. Only one third-party asset manager strategy can be held per account.•Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client.•Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments.•Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change.•Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. manager. Only one third-party asset manager strategy can be held per account.•Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client.•Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments.•Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change.•Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. manager. Only one third-party asset manager strategy can be held per account. •Unified managed—accounts that provide the client with the ability to combine separately managed accounts, mutual funds and exchange-traded funds, all in one aggregate account. Investment decisions and discretionary authority may be exercised by the client, financial advisor or portfolio manager. Also includes accounts that give the client the ability to systematically allocate assets across a wide range of mutual funds, for which the investment decisions are made by the client. •Advisor—accounts where the investment decisions must be approved by the client, and the financial advisor must obtain approval each time a change is made to the account or its investments. •Portfolio manager—accounts where a financial advisor has discretion (contractually approved by the client) to make ongoing investment decisions without the client’s approval for each individual change. •Cash management—accounts where the financial advisor provides discretionary cash management services to institutional clients, whereby securities or proceeds are invested and reinvested in accordance with the client’s investment criteria. Generally, the portfolio will be invested in short-term fixed income and cash equivalent investments. 41December 2023 Form 10-K 41December 2023 Form 10-K 41December 2023 Form 10-K 41 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Investment ManagementIncome Statement Information % Change$ in millions20232022202120232022RevenuesAsset management and related fees$5,231 $5,332 $5,576 (2)%(4)%Performance-based income and other1139 43 644 N/M(93)%Net revenues5,370 5,375 6,220 — %(14)%Compensation and benefits2,217 2,273 2,373 (2)%(4)%Non-compensation expenses2,311 2,295 2,169 1 %6 %Total non-interest expenses4,528 4,568 4,542 (1)%1 %Income before provision for income taxes842 807 1,678 4 %(52)%Provision for income taxes199 162 356 23 %(54)%Net income643 645 1,322 — %(51)%Net income applicable to noncontrolling interests4 (15)(25)127 %40 %Net income applicable to Morgan Stanley$639 $660 $1,347 (3)%(51)%1.Includes Investments, Trading, Commissions and fees, Net interest and Other revenues.Net RevenuesAsset Management and Related FeesAsset management and related fees of $5,231 million in 2023 decreased 2% compared with the prior year, primarily due to a shift in the mix of average AUM, driven by the cumulative effect of net flows.Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. The market environment and client preferences in recent quarters have impacted the mix of our average Long-Term AUM level across certain asset classes. To the extent these conditions continue, we would expect our Asset management revenue to continue to be negatively impacted.See “Assets Under Management or Supervision” herein.Performance-based Income and OtherPerformance-based income and other revenues increased to $139 million in 2023, from $43 million in the prior year, primarily due to mark-to-market gains in 2023 compared with losses in the prior year on DCP investments and investments in public funds, partially offset by lower accrued carried interest in certain private funds. Non-Interest ExpensesNon-interest expenses of $4,528 million in 2023 decreased 1% from the prior year, primarily due to lower Compensation and benefits expenses. •Compensation and benefits expenses decreased primarily due to lower expenses related to compensation associated with carried interest, partially offset by higher expenses related to DCP.•Non-compensation expenses were relatively unchanged for the current year. Investment ManagementIncome Statement Information % Change$ in millions20232022202120232022RevenuesAsset management and related fees$5,231 $5,332 $5,576 (2)%(4)%Performance-based income and other1139 43 644 N/M(93)%Net revenues5,370 5,375 6,220 — %(14)%Compensation and benefits2,217 2,273 2,373 (2)%(4)%Non-compensation expenses2,311 2,295 2,169 1 %6 %Total non-interest expenses4,528 4,568 4,542 (1)%1 %Income before provision for income taxes842 807 1,678 4 %(52)%Provision for income taxes199 162 356 23 %(54)%Net income643 645 1,322 — %(51)%Net income applicable to noncontrolling interests4 (15)(25)127 %40 %Net income applicable to Morgan Stanley$639 $660 $1,347 (3)%(51)%1.Includes Investments, Trading, Commissions and fees, Net interest and Other revenues."
    },
    {
      "status": "MODIFIED",
      "current_title": "We are a holding company and depend on payments from our subsidiaries.",
      "prior_title": "We are a holding company and depend on payments from our subsidiaries.",
      "similarity_score": 0.888,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"to protect clients and creditors of such entities.These laws, regulations and rules may hinder our ability to access funds that we may need to make payments on our obligations.\"",
        "Reworded sentence: \"banking agencies have the authority, and under certain circumstances the duty, to prohibit or to limit the payment of dividends or other capital actions by the banking organizations they supervise, including us and our U.S.\"",
        "Reworded sentence: \"For more information on how we monitor and manage legal, regulatory and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk.” subsidiaries, including our bank and broker-dealer subsidiaries, are subject to laws, regulations and self-regulatory organization rules that, in certain circumstances, limit, as well as permit regulatory bodies to block or reduce, the flow of funds to the Parent Company, or that prohibit such transfers or dividends altogether, including steps to “ring fence” entities by regulators outside the U.S.\""
      ],
      "current_body": "The Parent Company has no business operations and depends on dividends, distributions, loans and other payments from its subsidiaries to fund dividend payments and to fund all payments on its obligations, including debt obligations. Regulatory restrictions, tax restrictions or elections and other legal restrictions may limit our ability to transfer funds freely, either to or from our subsidiaries. In particular, many of our subsidiaries, including our bank and broker-dealer subsidiaries, are subject to laws, regulations and self-regulatory organization rules that, in certain circumstances, limit, as well as permit regulatory bodies to block or reduce, the flow of funds to the Parent Company, or that prohibit such transfers or dividends altogether, including steps to “ring fence” entities by regulators outside the U.S. to protect clients and creditors of such entities.These laws, regulations and rules may hinder our ability to access funds that we may need to make payments on our obligations. Furthermore, as a BHC, we may become subject to a prohibition or to limitations on our ability to pay dividends. The U.S. banking agencies have the authority, and under certain circumstances the duty, to prohibit or to limit the payment of dividends or other capital actions by the banking organizations they supervise, including us and our U.S. Bank Subsidiaries. See “We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements” under “Legal, Regulatory and Compliance Risk” herein.Our liquidity and financial condition have in the past been, and in the future could be, adversely affected by U.S. and international markets and economic conditions.Our ability to raise funding in the long-term or short-term debt capital markets or the equity markets, or to access secured lending markets, has in the past been, and could in the future be, adversely affected by conditions in the U.S. and international markets and economies.In particular, our cost and availability of funding in the past have been, and may in the future be, adversely affected by illiquid credit markets, interest rates and wider credit spreads. Significant turbulence in the U.S., the E.U. and other international markets and economies could adversely affect our liquidity and financial condition and the willingness of certain counterparties and customers to do business with us.Legal, Regulatory and Compliance RiskLegal, regulatory and compliance risk includes the risk of legal or regulatory sanctions; material financial loss, including fines, penalties, judgments, damages and/or settlements; limitations on our business; or loss to reputation we may suffer as a result of our failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing and anti-corruption rules and regulations. For more information on how we monitor and manage legal, regulatory and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk.” subsidiaries, including our bank and broker-dealer subsidiaries, are subject to laws, regulations and self-regulatory organization rules that, in certain circumstances, limit, as well as permit regulatory bodies to block or reduce, the flow of funds to the Parent Company, or that prohibit such transfers or dividends altogether, including steps to “ring fence” entities by regulators outside the U.S. to protect clients and creditors of such entities. These laws, regulations and rules may hinder our ability to access funds that we may need to make payments on our obligations. Furthermore, as a BHC, we may become subject to a prohibition or to limitations on our ability to pay dividends. The U.S. banking agencies have the authority, and under certain circumstances the duty, to prohibit or to limit the payment of dividends or other capital actions by the banking organizations they supervise, including us and our U.S. Bank Subsidiaries. See “We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements” under “Legal, Regulatory and Compliance Risk” herein.",
      "prior_body": "The Parent Company has no business operations and depends on dividends, distributions, loans and other payments from its subsidiaries to fund dividend payments and to fund all payments on its obligations, including debt obligations. Regulatory restrictions, tax restrictions or elections and other legal restrictions may limit our ability to transfer funds freely, either to or from our subsidiaries. In particular, many of our subsidiaries, including our bank and broker-dealer subsidiaries, are subject to laws, regulations and self-regulatory organization rules that, in certain circumstances, limit, as well as permit regulatory bodies to block or reduce, the flow of funds to the Parent Company, or that prohibit such transfers or dividends altogether, including steps to “ring fence” entities by regulators outside the U.S. to protect clients and creditors of such entities in the event of financial difficulties involving such entities. These laws, regulations and rules may hinder our ability to access funds that we may need to make payments on our obligations. Furthermore, as a BHC, we may become subject to a prohibition or to limitations on our ability to pay dividends. The Federal Reserve, the OCC and the FDIC have the authority, and under certain circumstances the duty, to prohibit or to limit the payment of dividends or other capital actions by the banking organizations they supervise, including us and our U.S. Bank Subsidiaries. See “We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements” under “Legal, Regulatory and Compliance Risk” herein. Our liquidity and financial condition have in the past been, and in the future could be, adversely affected by U.S. and international markets and economic conditions.Our ability to raise funding in the long-term or short-term debt capital markets or the equity markets, or to access secured lending markets, has in the past been, and could in the future be, adversely affected by conditions in the U.S. and international markets and economies.In particular, our cost and availability of funding in the past have been, and may in the future be, adversely affected by illiquid credit markets, interest rates and wider credit spreads. Significant turbulence in the U.S., the E.U. and other international markets and economies could adversely affect our liquidity and financial condition and the willingness of certain counterparties and customers to do business with us.Legal, Regulatory and Compliance RiskLegal, regulatory and compliance risk includes the risk of legal or regulatory sanctions; material financial loss, including fines, penalties, judgments, damages and/or settlements; limitations on our business; or loss to reputation we may suffer as a result of our failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing and anti-corruption rules and regulations. For more information on how we monitor and manage legal, regulatory and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk.”The financial services industry is subject to extensive regulation, and changes in regulation will impact our business.Like other major financial services firms, we are subject to extensive regulation by U.S. federal and state regulatory agencies and securities exchanges and by regulators and exchanges in each of the major markets where we conduct our business, including an increasing number of complex sanctions and disclosure regimes. These laws and regulations, which continue to increase in volume and complexity, significantly affect the way and costs of doing business and can restrict the scope of our existing businesses and limit our ability to expand our product offerings and pursue certain investments.The Firm and its employees are subject to wide-ranging regulation and supervision, which, among other things, subject us to intensive scrutiny of our businesses and any plans for expansion of those businesses through acquisitions or otherwise, limitations on activities, a systemic risk regime that imposes heightened capital and liquidity and funding requirements and other enhanced prudential standards,"
    },
    {
      "status": "MODIFIED",
      "current_title": "Fee-Based Client Assets Rollforwards",
      "prior_title": "Fee-Based Client Assets Rollforwards",
      "similarity_score": 0.878,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in billionsAtDecember 31,2023 Inflows1Outflows2MarketImpact3AtDecember 31,2024 Separately managed4$589 $69 $(38)$99 $719 Unified managed501 120 (56)48 613 Advisor188 31 (35)23 207 Portfolio manager645 120 (88)73 750 Subtotal$1,923 $340 $(217)$243 $2,289 Cash management60 57 (59)— 58 Total fee-based client assets$1,983 $397 $(276)$243 $2,347 Inflows1 Outflows2 Market Impact3 Separately managed4 $ in billionsAtDecember 31,2022 Inflows1Outflows2MarketImpact3AtDecember 31,2023 Separately managed4$501 $70 $(23)$41 $589 Unified managed408 96 (56)53 501 Advisor167 29 (32)24 188 Portfolio manager552 98 (73)68 645 Subtotal$1,628 $293 $(184)$186 $1,923 Cash management50 60 (50)— 60 Total fee-based client assets$1,678 $353 $(234)$186 $1,983 Inflows1 Outflows2 Market Impact3 Separately managed4 $ in billionsAtDecember 31,2021 Inflows1,5Outflows2MarketImpact3AtDecember 31,2022 Separately managed4$479 $141 $(25)$(94)$501 Unified managed467 76 (50)(85)408 Advisor211 29 (35)(38)167 Portfolio manager636 94 (67)(111)552 Subtotal$1,793 $340 $(177)$(328)$1,628 Cash management46 38 (34)— 50 Total fee-based client assets$1,839 $378 $(211)$(328)$1,678 Inflows1,5 Outflows2 Market Impact3 Separately managed4 1.Inflows include new accounts, account transfers, deposits, dividends and interest.\"",
        "Removed sentence: \"6.Includes $43 billion of fee-based assets acquired in an asset acquisition in the third quarter of 2021, reflected in Separately managed.\""
      ],
      "current_body": "$ in billionsAtDecember 31,2023 Inflows1Outflows2MarketImpact3AtDecember 31,2024 Separately managed4$589 $69 $(38)$99 $719 Unified managed501 120 (56)48 613 Advisor188 31 (35)23 207 Portfolio manager645 120 (88)73 750 Subtotal$1,923 $340 $(217)$243 $2,289 Cash management60 57 (59)— 58 Total fee-based client assets$1,983 $397 $(276)$243 $2,347 Inflows1 Outflows2 Market Impact3 Separately managed4 $ in billionsAtDecember 31,2022 Inflows1Outflows2MarketImpact3AtDecember 31,2023 Separately managed4$501 $70 $(23)$41 $589 Unified managed408 96 (56)53 501 Advisor167 29 (32)24 188 Portfolio manager552 98 (73)68 645 Subtotal$1,628 $293 $(184)$186 $1,923 Cash management50 60 (50)— 60 Total fee-based client assets$1,678 $353 $(234)$186 $1,983 Inflows1 Outflows2 Market Impact3 Separately managed4 $ in billionsAtDecember 31,2021 Inflows1,5Outflows2MarketImpact3AtDecember 31,2022 Separately managed4$479 $141 $(25)$(94)$501 Unified managed467 76 (50)(85)408 Advisor211 29 (35)(38)167 Portfolio manager636 94 (67)(111)552 Subtotal$1,793 $340 $(177)$(328)$1,628 Cash management46 38 (34)— 50 Total fee-based client assets$1,839 $378 $(211)$(328)$1,678 Inflows1,5 Outflows2 Market Impact3 Separately managed4 1.Inflows include new accounts, account transfers, deposits, dividends and interest. 2.Outflows include closed or terminated accounts, account transfers, withdrawals and client fees. 3.Market impact includes realized and unrealized gains and losses on portfolio investments. 4.Includes non-custody account values based on asset values reported on a quarter lag by third-party custodians. 5.Includes $75 billion of fee-based assets acquired in an asset acquisition in the first quarter of 2022, reflected in Separately managed.",
      "prior_body": "$ in billionsAtDecember 31,2022 Inflows1Outflows2MarketImpact3AtDecember 31,2023 Separately managed4$501 $70 $(23)$41 $589 Unified managed408 96 (56)53 501 Advisor167 29 (32)24 188 Portfolio manager552 98 (73)68 645 Subtotal$1,628 $293 $(184)$186 $1,923 Cash management50 60 (50)— 60 Total fee-based client assets$1,678 $353 $(234)$186 $1,983 Inflows1 Outflows2 Market Impact3 Separately managed4 $ in billionsAtDecember 31,2021 Inflows1,5Outflows2MarketImpact3AtDecember 31,2022 Separately managed4$479 $141 $(25)$(94)$501 Unified managed467 76 (50)(85)408 Advisor211 29 (35)(38)167 Portfolio manager636 94 (67)(111)552 Subtotal$1,793 $340 $(177)$(328)$1,628 Cash management46 38 (34)— 50 Total fee-based client assets$1,839 $378 $(211)$(328)$1,678 Inflows1,5 Outflows2 Market Impact3 Separately managed4 $ in billionsAtDecember 31,2020 Inflows1,6Outflows2MarketImpact3AtDecember 31,2021 Separately managed4$359 $86 $(20)$54 $479 Unified managed379 100 (54)42 467 Advisor177 42 (30)22 211 Portfolio manager509 113 (58)72 636 Subtotal$1,424 $341 $(162)$190 $1,793 Cash management48 30 (32)— 46 Total fee-based client assets$1,472 $371 $(194)$190 $1,839 Inflows1,6 Outflows2 Market Impact3 Separately managed4 1.Inflows include new accounts, account transfers, deposits, dividends and interest. 2.Outflows include closed or terminated accounts, account transfers, withdrawals and client fees. 3.Market impact includes realized and unrealized gains and losses on portfolio investments. 4.Includes non-custody account values based on asset values reported on a quarter lag by third-party custodians. 5.Includes $75 billion of fee-based assets acquired in an asset acquisition in the first quarter of 2022, reflected in Separately managed. 6.Includes $43 billion of fee-based assets acquired in an asset acquisition in the third quarter of 2021, reflected in Separately managed."
    },
    {
      "status": "MODIFIED",
      "current_title": "Credit Spread Risk Sensitivity1",
      "prior_title": "Credit Spread Risk Sensitivity1",
      "similarity_score": 0.878,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in millionsAtDecember 31,2024 AtDecember 31,2023 Derivatives$6 $6 Borrowings carried at fair value49 48 1.Amounts represent the potential gain for each 1 bps widening of our credit spread.\""
      ],
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Derivatives$6 $6 Borrowings carried at fair value49 48 1.Amounts represent the potential gain for each 1 bps widening of our credit spread. The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk. Net interest income in the Wealth Management business segment primarily consists of interest income earned on non-trading assets held, including loans and investment securities, as well as margin and other lending on non-bank entities and interest expense incurred on non-trading liabilities, primarily deposits.",
      "prior_body": "$ in millionsAtDecember 31,2023 AtDecember 31,2022 Derivatives$6 $7 Borrowings carried at fair value48 39 1.Amounts represent the potential gain for each 1 bps widening of our credit spread. Credit spread risk sensitivity for borrowings carried at fair value at December 31, 2023 increased from December 31, 2022, primarily driven by debt issuances and credit spread tightening. The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk. Net interest income in the Wealth Management business segment primarily consists of interest income earned on non-trading assets held, including loans and investment securities, as well as margin and other lending on non-bank entities and interest expense incurred on non-trading liabilities, primarily deposits."
    },
    {
      "status": "MODIFIED",
      "current_title": "Liquidity Stress Tests",
      "prior_title": "Liquidity Stress Tests",
      "similarity_score": 0.877,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The assumptions used in our various Liquidity Stress Test scenarios include, but are not limited to, the following: •No government support; •No access to equity and limited access to unsecured debt markets; •Repayment of all unsecured debt maturing within the stress horizon; •Higher haircuts for and significantly lower availability of secured funding; •Additional collateral that would be required by trading counterparties, certain exchanges and clearing organizations related to credit rating downgrades; •Additional collateral that would be required due to collateral substitutions, collateral disputes and uncalled collateral; •Discretionary unsecured debt buybacks; •Drawdowns on lending commitments provided to third parties; and •Client cash withdrawals and reduction in customer short positions that fund long positions.\"",
        "Reworded sentence: \"Liquidity Resources by Type of InvestmentAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Cash deposits with central banks$58,493 $48,848 Unencumbered HQLA securities1:U.S.\"",
        "Reworded sentence: \"The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable funding, which is their projected minimum funding needs, over a one-year time horizon.\"",
        "Reworded sentence: \"Liquidity Resources by Type of InvestmentAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Cash deposits with central banks$58,493 $48,848 Unencumbered HQLA securities1:U.S.\"",
        "Reworded sentence: \"At December 31, 2024 and December 31, 2023, we maintained sufficient Liquidity Resources to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests.\""
      ],
      "current_body": "We use Liquidity Stress Tests to model external and intercompany liquidity flows across multiple scenarios and a range of time horizons. These scenarios contain various combinations of idiosyncratic and systemic stress events of different severity and duration. The methodology, implementation, production and analysis of our Liquidity Stress Tests are important components of the Required Liquidity Framework. The assumptions used in our various Liquidity Stress Test scenarios include, but are not limited to, the following: •No government support; •No access to equity and limited access to unsecured debt markets; •Repayment of all unsecured debt maturing within the stress horizon; •Higher haircuts for and significantly lower availability of secured funding; •Additional collateral that would be required by trading counterparties, certain exchanges and clearing organizations related to credit rating downgrades; •Additional collateral that would be required due to collateral substitutions, collateral disputes and uncalled collateral; •Discretionary unsecured debt buybacks; •Drawdowns on lending commitments provided to third parties; and •Client cash withdrawals and reduction in customer short positions that fund long positions. Liquidity Stress Tests are produced and results are reported at different levels, including major operating subsidiaries and major currencies, to capture specific cash requirements and cash availability across the Firm, including a limited number of asset sales in a stressed environment. The Liquidity Stress 45December 2024 Form 10-K 45December 2024 Form 10-K 45December 2024 Form 10-K 45 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Tests assume that subsidiaries will use their own liquidity first to fund their obligations before drawing liquidity from the Parent Company and that the Parent Company will support its subsidiaries and will not have access to subsidiaries’ liquidity reserves. In addition to the assumptions underpinning the Liquidity Stress Tests, we take into consideration settlement risk related to intraday settlement and clearing of securities and financing activities.At December 31, 2024 and December 31, 2023, we maintained sufficient Liquidity Resources to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests.Liquidity ResourcesWe maintain sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”), to cover daily funding needs and to meet strategic liquidity targets sized by the Required Liquidity Framework and Liquidity Stress Tests. We actively manage the amount of our Liquidity Resources considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements.The amount of Liquidity Resources we hold is based on our risk appetite and is calibrated to meet various internal and regulatory requirements and to fund prospective business activities. The Liquidity Resources are primarily held within the Parent Company and its major operating subsidiaries. The Total HQLA values in the tables immediately following are different from Eligible HQLA, which, in accordance with the LCR rule, also takes into account certain regulatory weightings and other operational considerations. Liquidity Resources by Type of InvestmentAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Cash deposits with central banks$58,493 $48,848 Unencumbered HQLA securities1:U.S. government obligations161,952 171,663 U.S. agency and agency mortgage-backed securities94,512 90,290 Non-U.S. sovereign obligations222,646 24,011 Other investment grade securities600 810 Total HQLA1$338,203 $335,622 Cash deposits with banks (non-HQLA)7,237 6,998 Total Liquidity Resources$345,440 $342,620 1.HQLA is presented prior to applying weightings and includes all HQLA held in subsidiaries.2.Primarily composed of unencumbered French, U.K., Japanese, Italian, German, and Spanish government obligationsLiquidity Resources by Non-Bank and Bank Legal EntitiesAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Non-Bank legal entitiesU.S.:Parent Company$71,981 $76,366 Non-Parent Company61,684 60,537 Total U.S.133,665 136,903 Non-U.S.61,432 63,965 Total Non-Bank legal entities195,097 200,868 Bank legal entitiesU.S.144,735 136,171 Non-U.S.5,608 5,581 Total Bank legal entities150,343 141,752 Total Liquidity Resources$345,440 $342,620 Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and estimates of funding needs in a stressed environment, among other factors.Regulatory Liquidity FrameworkLiquidity Coverage Ratio and Net Stable Funding RatioWe and our U.S. Bank Subsidiaries are required to maintain a minimum LCR and NSFR of 100%. The LCR rule requires large banking organizations to have sufficient Eligible HQLA to cover net cash outflows arising from significant stress over 30 calendar days, thus promoting the short-term resilience of the liquidity risk profile of banking organizations. In determining Eligible HQLA for LCR purposes, weightings (or asset haircuts) are applied to HQLA, and certain HQLA held in subsidiaries is excluded. The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable funding, which is their projected minimum funding needs, over a one-year time horizon. As of December 31, 2024, we and our U.S. Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%. Tests assume that subsidiaries will use their own liquidity first to fund their obligations before drawing liquidity from the Parent Company and that the Parent Company will support its subsidiaries and will not have access to subsidiaries’ liquidity reserves. In addition to the assumptions underpinning the Liquidity Stress Tests, we take into consideration settlement risk related to intraday settlement and clearing of securities and financing activities.At December 31, 2024 and December 31, 2023, we maintained sufficient Liquidity Resources to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests.Liquidity ResourcesWe maintain sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”), to cover daily funding needs and to meet strategic liquidity targets sized by the Required Liquidity Framework and Liquidity Stress Tests. We actively manage the amount of our Liquidity Resources considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements.The amount of Liquidity Resources we hold is based on our risk appetite and is calibrated to meet various internal and regulatory requirements and to fund prospective business activities. The Liquidity Resources are primarily held within the Parent Company and its major operating subsidiaries. The Total HQLA values in the tables immediately following are different from Eligible HQLA, which, in accordance with the LCR rule, also takes into account certain regulatory weightings and other operational considerations. Liquidity Resources by Type of InvestmentAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Cash deposits with central banks$58,493 $48,848 Unencumbered HQLA securities1:U.S. government obligations161,952 171,663 U.S. agency and agency mortgage-backed securities94,512 90,290 Non-U.S. sovereign obligations222,646 24,011 Other investment grade securities600 810 Total HQLA1$338,203 $335,622 Cash deposits with banks (non-HQLA)7,237 6,998 Total Liquidity Resources$345,440 $342,620 1.HQLA is presented prior to applying weightings and includes all HQLA held in subsidiaries.2.Primarily composed of unencumbered French, U.K., Japanese, Italian, German, and Spanish government obligations Tests assume that subsidiaries will use their own liquidity first to fund their obligations before drawing liquidity from the Parent Company and that the Parent Company will support its subsidiaries and will not have access to subsidiaries’ liquidity reserves. In addition to the assumptions underpinning the Liquidity Stress Tests, we take into consideration settlement risk related to intraday settlement and clearing of securities and financing activities. At December 31, 2024 and December 31, 2023, we maintained sufficient Liquidity Resources to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests.",
      "prior_body": "We use Liquidity Stress Tests to model external and intercompany liquidity flows across multiple scenarios and a range of time horizons. These scenarios contain various combinations of idiosyncratic and systemic stress events of different severity and duration. The methodology, implementation, production and analysis of our Liquidity Stress Tests are important components of the Required Liquidity Framework. The assumptions used in our various Liquidity Stress Test scenarios include, but are not limited to, the following: •No government support; •No access to equity and limited access to unsecured debt markets; 49December 2023 Form 10-K 49December 2023 Form 10-K 49December 2023 Form 10-K 49 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents •Repayment of all unsecured debt maturing within the stress horizon;•Higher haircuts for and significantly lower availability of secured funding;•Additional collateral that would be required by trading counterparties, certain exchanges and clearing organizations related to credit rating downgrades;•Additional collateral that would be required due to collateral substitutions, collateral disputes and uncalled collateral;•Discretionary unsecured debt buybacks;•Drawdowns on lending commitments provided to third parties; and•Client cash withdrawals and reduction in customer short positions that fund long positions.Liquidity Stress Tests are produced and results are reported at different levels, including major operating subsidiaries and major currencies, to capture specific cash requirements and cash availability across the Firm, including a limited number of asset sales in a stressed environment. The Liquidity Stress Tests assume that subsidiaries will use their own liquidity first to fund their obligations before drawing liquidity from the Parent Company and that the Parent Company will support its subsidiaries and will not have access to subsidiaries’ liquidity reserves. In addition to the assumptions underpinning the Liquidity Stress Tests, we take into consideration settlement risk related to intraday settlement and clearing of securities and financing activities.At December 31, 2023 and December 31, 2022, we maintained sufficient Liquidity Resources to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests.Liquidity ResourcesWe maintain sufficient Liquidity Resources to cover daily funding needs and to meet strategic liquidity targets sized by the Required Liquidity Framework and Liquidity Stress Tests. We actively manage the amount of our Liquidity Resources considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements.The amount of Liquidity Resources we hold is based on our risk appetite and is calibrated to meet various internal and regulatory requirements and to fund prospective business activities. The Liquidity Resources are primarily held within the Parent Company and its major operating subsidiaries. The Total HQLA values in the tables immediately following are different from Eligible HQLA, which, in accordance with the LCR rule, also takes into account certain regulatory weightings and other operational considerations. Liquidity Resources by Type of InvestmentAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Cash deposits with central banks$64,205 $66,330 Unencumbered HQLA securities1:U.S. government obligations137,635 122,110 U.S. agency and agency mortgage-backed securities83,733 86,628 Non-U.S. sovereign obligations220,117 23,416 Other investment grade securities678 693 Total HQLA1$306,368 $299,177 Cash deposits with banks (non-HQLA)8,136 8,190 Total Liquidity Resources$314,504 $307,367 1.HQLA is presented prior to applying weightings and includes all HQLA held in subsidiaries.2.Primarily composed of unencumbered French, Japanese, U.K., German and Spanish government obligations.Liquidity Resources by Bank and Non-Bank Legal EntitiesAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Bank legal entitiesU.S.$132,870 $132,663 Non-U.S.5,359 6,101 Total Bank legal entities138,229 138,764 Non-Bank legal entitiesU.S.:Parent Company58,494 53,681 Non-Parent Company56,459 58,839 Total U.S.114,953 112,520 Non-U.S.61,322 56,083 Total Non-Bank legal entities176,275 168,603 Total Liquidity Resources$314,504 $307,367 Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and estimates of funding needs in a stressed environment, among other factors.Regulatory Liquidity FrameworkLiquidity Coverage Ratio and Net Stable Funding RatioWe and our U.S. Bank Subsidiaries are required to maintain a minimum LCR and NSFR of 100%. The LCR rule requires large banking organizations to have sufficient Eligible HQLA to cover net cash outflows arising from significant stress over 30 calendar days, thus promoting the short-term resilience of the liquidity risk profile of banking organizations. In determining Eligible HQLA for LCR purposes, weightings (or asset haircuts) are applied to HQLA, and certain HQLA held in subsidiaries is excluded. The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable •Repayment of all unsecured debt maturing within the stress horizon;•Higher haircuts for and significantly lower availability of secured funding;•Additional collateral that would be required by trading counterparties, certain exchanges and clearing organizations related to credit rating downgrades;•Additional collateral that would be required due to collateral substitutions, collateral disputes and uncalled collateral;•Discretionary unsecured debt buybacks;•Drawdowns on lending commitments provided to third parties; and•Client cash withdrawals and reduction in customer short positions that fund long positions.Liquidity Stress Tests are produced and results are reported at different levels, including major operating subsidiaries and major currencies, to capture specific cash requirements and cash availability across the Firm, including a limited number of asset sales in a stressed environment. The Liquidity Stress Tests assume that subsidiaries will use their own liquidity first to fund their obligations before drawing liquidity from the Parent Company and that the Parent Company will support its subsidiaries and will not have access to subsidiaries’ liquidity reserves. In addition to the assumptions underpinning the Liquidity Stress Tests, we take into consideration settlement risk related to intraday settlement and clearing of securities and financing activities.At December 31, 2023 and December 31, 2022, we maintained sufficient Liquidity Resources to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests.Liquidity ResourcesWe maintain sufficient Liquidity Resources to cover daily funding needs and to meet strategic liquidity targets sized by the Required Liquidity Framework and Liquidity Stress Tests. We actively manage the amount of our Liquidity Resources considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements.The amount of Liquidity Resources we hold is based on our risk appetite and is calibrated to meet various internal and regulatory requirements and to fund prospective business activities. The Liquidity Resources are primarily held within the Parent Company and its major operating subsidiaries. The Total HQLA values in the tables immediately following are different from Eligible HQLA, which, in accordance with the LCR rule, also takes into account certain regulatory weightings and other operational considerations. •Repayment of all unsecured debt maturing within the stress horizon; •Higher haircuts for and significantly lower availability of secured funding; •Additional collateral that would be required by trading counterparties, certain exchanges and clearing organizations related to credit rating downgrades; •Additional collateral that would be required due to collateral substitutions, collateral disputes and uncalled collateral; •Discretionary unsecured debt buybacks; •Drawdowns on lending commitments provided to third parties; and •Client cash withdrawals and reduction in customer short positions that fund long positions. Liquidity Stress Tests are produced and results are reported at different levels, including major operating subsidiaries and major currencies, to capture specific cash requirements and cash availability across the Firm, including a limited number of asset sales in a stressed environment. The Liquidity Stress Tests assume that subsidiaries will use their own liquidity first to fund their obligations before drawing liquidity from the Parent Company and that the Parent Company will support its subsidiaries and will not have access to subsidiaries’ liquidity reserves. In addition to the assumptions underpinning the Liquidity Stress Tests, we take into consideration settlement risk related to intraday settlement and clearing of securities and financing activities. At December 31, 2023 and December 31, 2022, we maintained sufficient Liquidity Resources to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests."
    },
    {
      "status": "MODIFIED",
      "current_title": "Parent Company and U.S. Bank Subsidiaries Issuer Ratings at February 14, 2025",
      "prior_title": "Parent Company and U.S. Bank Subsidiaries Issuer Ratings at February 16, 2024",
      "similarity_score": 0.877,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Parent CompanyShort-Term DebtLong-Term DebtRating OutlookDBRS, Inc.R-1 (middle)A (high)PositiveFitch Ratings, Inc.F1A+StableMoody’s Investors Service, Inc.P-1A1StableRating and Investment Information, Inc.a-1A+StableS&P Global RatingsA-2A-Stable MSBNAShort-Term DebtLong-Term DebtRating OutlookFitch Ratings, Inc.F1+AA-StableMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableMSPBNAShort-Term DebtLong-Term DebtRating OutlookMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+Stable\""
      ],
      "current_body": "Parent CompanyShort-Term DebtLong-Term DebtRating OutlookDBRS, Inc.R-1 (middle)A (high)PositiveFitch Ratings, Inc.F1A+StableMoody’s Investors Service, Inc.P-1A1StableRating and Investment Information, Inc.a-1A+StableS&P Global RatingsA-2A-Stable MSBNAShort-Term DebtLong-Term DebtRating OutlookFitch Ratings, Inc.F1+AA-StableMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableMSPBNAShort-Term DebtLong-Term DebtRating OutlookMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+Stable",
      "prior_body": "Parent CompanyShort-Term DebtLong-Term DebtRating OutlookDBRS, Inc.R-1 (middle)A (high)StableFitch Ratings, Inc.F1A+StableMoody’s Investors Service, Inc.P-1A1StableRating and Investment Information, Inc.a-1A+StableS&P Global RatingsA-2A-Stable MSBNAShort-Term DebtLong-Term DebtRating OutlookFitch Ratings, Inc.F1+AA-StableMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableMSPBNAShort-Term DebtLong-Term DebtRating OutlookMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+Stable"
    },
    {
      "status": "MODIFIED",
      "current_title": "Wealth Management Net Interest Income Sensitivity Analysis1",
      "prior_title": "Wealth Management Net Interest Income Sensitivity Analysis",
      "similarity_score": 0.876,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in millionsAtDecember 31,2024 AtDecember 31,2023 Basis point change+200$699 $1,127 +100350 585 -100(371)(609)-200(803)(1,255) +200 -200 1.\"",
        "Reworded sentence: \"Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios.\"",
        "Reworded sentence: \"The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable.\"",
        "Reworded sentence: \"The Credit Limits Framework is calibrated within our risk from other institutions and alternative cash-equivalent products available to depositors.\"",
        "Reworded sentence: \"The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable.\""
      ],
      "current_body": "$ in millionsAtDecember 31,2024 AtDecember 31,2023 Basis point change+200$699 $1,127 +100350 585 -100(371)(609)-200(803)(1,255) +200 -200 1. The prior period has been revised to conform to the current period presentation. The previous table presents an analysis of selected instantaneous upward and downward parallel interest rate shocks (subject to a floor of zero percent in the downward scenario) on net interest income over the next 12 months for our Wealth Management business segment. These shocks are applied to our 12-month forecast for our Wealth Management business segment, which incorporates market expectations of interest rates and our forecasted balance sheet and business activity. The forecast includes modeled prepayment behavior, reinvestment of net cash flows from maturing assets and liabilities, and deposit pricing sensitivity to interest rates. These key assumptions are updated periodically based on historical data and future expectations. We do not manage to any single rate scenario but rather manage net interest income in our Wealth Management business segment across a range of possible outcomes, including non-parallel rate change scenarios. The sensitivity analysis assumes that we take no action in response to these scenarios, assumes there are no changes in other macroeconomic variables normally correlated with changes in interest rates and includes subjective assumptions regarding customer and market re-pricing behavior and other factors. Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios. The level of interest rates may impact the amount of deposits held at the Firm, given competition for deposits 61December 2024 Form 10-K 61December 2024 Form 10-K 61December 2024 Form 10-K 61 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents from other institutions and alternative cash-equivalent products available to depositors. Further, the level of interest rates could also impact client demand for loans. Net interest income sensitivity to interest rates at December 31, 2024 decreased from December 31, 2023, primarily driven by the effects of changes in the mix of our assets and liabilities and changes in market rates.Investments Sensitivity, Including Related Carried Interest Loss from 10% Decline$ in millionsAtDecember 31,2024 AtDecember 31,2023 Investments related to Investment Management activities$571 $481 Other investments:MUMSS122 134 Other Firm investments463 399 We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets. These investments are predominantly equity positions with long investment horizons, a portion of which is for business facilitation purposes. The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable. Investment sensitivity changed between December 31, 2024 and December 31, 2023 primarily due to new investments in the Community Reinvestment Act affordable housing and new private credit funds in Investment Management.Asset Management Revenue SensitivityCertain asset management revenues in the Wealth Management and Investment Management business segments are derived from management fees, which are based on fee-based client assets in Wealth Management or AUM in Investment Management (together, “client holdings”). The assets underlying client holdings are primarily composed of equity, fixed income and alternative investments and are sensitive to changes in related markets. These revenues depend on multiple factors including, but not limited to, the level and duration of a market increase or decline, price volatility, the geographic and industry mix of client assets, and client behavior such as the rate and magnitude of client investments and redemptions. Therefore, overall revenues may not correlate completely with changes in the related markets.Credit RiskCredit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. We are primarily exposed to credit risk from institutions and individuals through our Institutional Securities and Wealth Management business segments. We incur credit risk in our Institutional Securities business segment through a variety of activities, including, but not limited to, the following:•extending credit to clients through loans and lending commitments;•entering into swap or other derivative contracts under which counterparties may have obligations to make payments to us;•acting as clearing broker for listed and over-the-counter derivatives whereby we guarantee client performance to clearinghouses;•providing short- or long-term funding that is secured by physical or financial collateral, including, but not limited to, real estate and marketable securities, whose value may at times be insufficient to fully cover the repayment amount;•posting margin and/or collateral to clearinghouses, clearing agencies, exchanges, banks, securities firms and other financial counterparties;•placing funds on deposit at other financial institutions to support our clearing and settlement obligations; and•investing or trading in securities and loan pools, whereby the value of these assets may fluctuate based on realized or expected defaults on the underlying obligations or loans.We incur credit risk in our Wealth Management business segment, primarily through lending to individuals and entities, including, but not limited to, the following:•margin loans collateralized by securities;•securities-based lending and other forms of secured loans, including tailored lending to ultra-high net worth clients, that are in most cases secured by various types of collateral, including marketable securities, private investments, commercial real estate and other financial assets;•single-family residential mortgage loans in conforming, non-conforming or HELOC form, primarily to existing Wealth Management clients; and•employee loans granted primarily to recruit certain Wealth Management representatives.Monitoring and ControlThe Credit Risk Management Department (“CRM”) establishes Firmwide practices to evaluate, monitor and control credit risk at the transaction, obligor and portfolio levels. The CRM approves extensions of credit, evaluates the creditworthiness of the counterparties and borrowers on a regular basis, and helps ensure that credit exposure is actively monitored and managed. The evaluation of counterparties and borrowers includes an assessment of the probability that an obligor will default on its financial obligations and any losses that may occur when an obligor defaults. In addition, credit risk exposure is actively managed by credit professionals and committees within the CRM and through various risk committees, whose membership includes individuals from the CRM. A comprehensive and global Credit Limits Framework is utilized to manage credit risk levels across the Firm. The Credit Limits Framework is calibrated within our risk from other institutions and alternative cash-equivalent products available to depositors. Further, the level of interest rates could also impact client demand for loans. Net interest income sensitivity to interest rates at December 31, 2024 decreased from December 31, 2023, primarily driven by the effects of changes in the mix of our assets and liabilities and changes in market rates.Investments Sensitivity, Including Related Carried Interest Loss from 10% Decline$ in millionsAtDecember 31,2024 AtDecember 31,2023 Investments related to Investment Management activities$571 $481 Other investments:MUMSS122 134 Other Firm investments463 399 We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets. These investments are predominantly equity positions with long investment horizons, a portion of which is for business facilitation purposes. The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable. Investment sensitivity changed between December 31, 2024 and December 31, 2023 primarily due to new investments in the Community Reinvestment Act affordable housing and new private credit funds in Investment Management.Asset Management Revenue SensitivityCertain asset management revenues in the Wealth Management and Investment Management business segments are derived from management fees, which are based on fee-based client assets in Wealth Management or AUM in Investment Management (together, “client holdings”). The assets underlying client holdings are primarily composed of equity, fixed income and alternative investments and are sensitive to changes in related markets. These revenues depend on multiple factors including, but not limited to, the level and duration of a market increase or decline, price volatility, the geographic and industry mix of client assets, and client behavior such as the rate and magnitude of client investments and redemptions. Therefore, overall revenues may not correlate completely with changes in the related markets.Credit RiskCredit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. We are primarily exposed to credit risk from institutions and individuals through our Institutional Securities and Wealth Management business segments. from other institutions and alternative cash-equivalent products available to depositors. Further, the level of interest rates could also impact client demand for loans. Net interest income sensitivity to interest rates at December 31, 2024 decreased from December 31, 2023, primarily driven by the effects of changes in the mix of our assets and liabilities and changes in market rates.",
      "prior_body": "$ in millionsAtDecember 31,2023 AtDecember 31,2022 Basis point change+100$585 $643 -100(609)(745) The previous table presents an analysis of selected instantaneous upward and downward parallel interest rate shocks (subject to a floor of zero percent in the downward scenario) on net interest income over the next 12 months for our Wealth Management business segment. These shocks are applied to our 12-month forecast for our Wealth Management business segment, which incorporates market expectations of interest rates and our forecasted business activity, including deposit forecasts as a key assumption. We do not manage to any single rate scenario but rather manage net interest income in our Wealth Management business segment across a range of possible outcomes, including non-parallel rate change scenarios. The sensitivity analysis assumes that we take no action in response to these scenarios, assumes there are no changes in other macroeconomic variables normally correlated with changes in interest rates and includes subjective assumptions regarding customer and market re-pricing behavior and other factors. Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in increasing interest rate scenarios. The level of interest rates may impact the amount of deposits held at the Firm, given competition for deposits from other institutions and alternative cash-equivalent products available to depositors. Further, rising interest rates could also impact client demand for loans. Net interest income sensitivity to interest rates at December 31, 2023 decreased from December 31, 2022, primarily driven by the effects of changes in the mix of our assets and liabilities. 67December 2023 Form 10-K 67December 2023 Form 10-K 67December 2023 Form 10-K 67 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Investments Sensitivity, Including Related Carried Interest Loss from 10% Decline$ in millionsAtDecember 31,2023 AtDecember 31,2022 Investments related to Investment Management activities$481 $431 Other investments:MUMSS134 143 Other Firm investments399 378 We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets. These investments are predominantly equity positions with long investment horizons, a portion of which is for business facilitation purposes. The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable.Asset Management Revenue SensitivityCertain asset management revenues in the Wealth Management and Investment Management business segments are derived from management fees, which are based on fee-based client assets in Wealth Management or AUM in Investment Management (together, “client holdings”). The assets underlying client holdings are primarily composed of equity, fixed income and alternative investments and are sensitive to changes in related markets. These revenues depend on multiple factors including, but not limited to, the level and duration of a market increase or decline, price volatility, the geographic and industry mix of client assets, and client behavior such as the rate and magnitude of client investments and redemptions. Therefore, overall revenues may not correlate completely with changes in the related markets.Credit RiskCredit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. We are primarily exposed to credit risk from institutions and individuals through our Institutional Securities and Wealth Management business segments. We incur credit risk in our Institutional Securities business segment through a variety of activities, including, but not limited to, the following:•extending credit to clients through loans and lending commitments;•entering into swap or other derivative contracts under which counterparties may have obligations to make payments to us;•acting as clearing broker for listed and over-the-counter derivatives whereby we guarantee client performance to clearinghouses;•providing short- or long-term funding that is secured by physical or financial collateral, including, but not limited to, real estate and marketable securities, whose value may at times be insufficient to fully cover the repayment amount;•posting margin and/or collateral to clearinghouses, clearing agencies, exchanges, banks, securities firms and other financial counterparties;•placing funds on deposit at other financial institutions to support our clearing and settlement obligations; and•investing or trading in securities and loan pools, whereby the value of these assets may fluctuate based on realized or expected defaults on the underlying obligations or loans.We incur credit risk in our Wealth Management business segment, primarily through lending to individuals and entities, including, but not limited to, the following:•margin loans collateralized by securities;•securities-based lending and other forms of secured loans, including tailored lending to ultra-high net worth clients, that are in most cases secured by various types of collateral, including marketable securities, private investments, commercial real estate and other financial assets;•single-family residential mortgage loans in conforming, non-conforming or HELOC form, primarily to existing Wealth Management clients; and•employee loans granted primarily to recruit certain Wealth Management representatives.Monitoring and ControlThe Credit Risk Management Department (“CRM”) establishes Firmwide practices to evaluate, monitor and control credit risk at the transaction, obligor and portfolio levels. The CRM approves extensions of credit, evaluates the creditworthiness of the counterparties and borrowers on a regular basis, and helps ensure that credit exposure is actively monitored and managed. The evaluation of counterparties and borrowers includes an assessment of the probability that an obligor will default on its financial obligations and any losses that may occur when an obligor defaults. In addition, credit risk exposure is actively managed by credit professionals and committees within the CRM and through various risk committees, whose membership includes individuals from the CRM. A comprehensive and global Credit Limits Framework is utilized to manage credit risk levels across the Firm. The Credit Limits Framework is calibrated within our risk tolerance and includes single-name limits and portfolio concentration limits by country, industry and product type.The CRM helps ensure timely and transparent communication of material credit risks, compliance with established limits and escalation of risk concentrations to appropriate senior management. The CRM also works closely with the Market Risk Department and applicable business units to monitor risk exposures and to perform stress tests to identify, analyze and control credit risk concentrations arising from lending and trading activities. The stress tests shock market factors (e.g., interest rates, commodity prices, credit spreads), risk Investments Sensitivity, Including Related Carried Interest Loss from 10% Decline$ in millionsAtDecember 31,2023 AtDecember 31,2022 Investments related to Investment Management activities$481 $431 Other investments:MUMSS134 143 Other Firm investments399 378 We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets. These investments are predominantly equity positions with long investment horizons, a portion of which is for business facilitation purposes. The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable.Asset Management Revenue SensitivityCertain asset management revenues in the Wealth Management and Investment Management business segments are derived from management fees, which are based on fee-based client assets in Wealth Management or AUM in Investment Management (together, “client holdings”). The assets underlying client holdings are primarily composed of equity, fixed income and alternative investments and are sensitive to changes in related markets. These revenues depend on multiple factors including, but not limited to, the level and duration of a market increase or decline, price volatility, the geographic and industry mix of client assets, and client behavior such as the rate and magnitude of client investments and redemptions. Therefore, overall revenues may not correlate completely with changes in the related markets.Credit RiskCredit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. We are primarily exposed to credit risk from institutions and individuals through our Institutional Securities and Wealth Management business segments. We incur credit risk in our Institutional Securities business segment through a variety of activities, including, but not limited to, the following:•extending credit to clients through loans and lending commitments;•entering into swap or other derivative contracts under which counterparties may have obligations to make payments to us;•acting as clearing broker for listed and over-the-counter derivatives whereby we guarantee client performance to clearinghouses;"
    },
    {
      "status": "MODIFIED",
      "current_title": "Common Stock Repurchases",
      "prior_title": "Common Stock Repurchases",
      "similarity_score": 0.868,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"in millions, except for per share data202420232022Number of shares33 62 113 Average price per share$99.16 $85.35 $87.25 Total$3,250 $5,300 $9,865 For additional information on our common stock repurchases, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein and Note 17 to the financial statements.\""
      ],
      "current_body": "in millions, except for per share data202420232022Number of shares33 62 113 Average price per share$99.16 $85.35 $87.25 Total$3,250 $5,300 $9,865 For additional information on our common stock repurchases, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein and Note 17 to the financial statements. For a description of our capital plan, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.",
      "prior_body": "in millions, except for per share data202320222021Number of shares62 113 126 Average price per share$85.35 $87.25 $91.13 Total$5,300 $9,865 $11,464 For additional information on our common stock repurchases, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein and Note 17 to the financial statements. For a description of our capital plan, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein."
    },
    {
      "status": "MODIFIED",
      "current_title": "Provision for Credit Losses",
      "prior_title": "Provision for Credit Losses",
      "similarity_score": 0.864,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"In 2024, the Provision for credit losses on loans and lending commitments of $202 million was primarily related to growth in the corporate loan portfolio and provisions for certain specific commercial real estate loans, partially offset by improvements in the macroeconomic outlook.\""
      ],
      "current_body": "The Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. For further information on the Provision for credit losses, see “Credit Risk” herein.",
      "prior_body": "The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. The Provision for credit losses on loans and lending commitments of $280 million in 2022 was due to portfolio growth and deterioration in the macroeconomic outlook. For further information on the Provision for credit losses, see “Credit Risk” herein. Business Segment ResultsNet Revenues by Segment1($ in millions)Net Income Applicable to Morgan Stanley by Segment1($ in millions)1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 22 to the financial statements for details of intersegment eliminations. •Institutional Securities net revenues of $23,060 million in 2023 decreased 5% from the prior year, primarily reflecting lower results across businesses.•Wealth Management net revenues of $26,268 million in 2023 increased 8% from the prior year, primarily reflecting gains on DCP investments compared with losses in the prior year and higher Net interest revenues.•Investment Management net revenues of $5,370 million in 2023 were relatively unchanged from the prior year, reflecting a decrease in Asset management and related fees revenues offset by an increase in Performance based income and other revenues."
    },
    {
      "status": "MODIFIED",
      "current_title": "Net New Assets (NNA)",
      "prior_title": "Net New Assets (NNA)",
      "similarity_score": 0.864,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The level of NNA in a given period is influenced by a variety of factors, including macroeconomic factors that impact client investment and spending behaviors, seasonality, our ability to attract and retain financial advisors and clients, capital market and corporate activities which may impact the amount of assets in certain client channels, and large idiosyncratic inflows and outflows.\"",
        "Reworded sentence: \"Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts.3.DARTs represent the total self-directed trades in a period divided by the number of trading days during that period.Workplace Channel1At December 31,2024At December 31,2023Workplace unvested assets (in billions)2$475$416Number of participants (in millions)36.66.61.The workplace channel includes equity compensation solutions for companies, their executives and employees.2.Stock plan unvested assets represent the market value of public company securities at the end of the period.\""
      ],
      "current_body": "NNA represent client asset inflows, inclusive of interest, dividends and asset acquisitions, less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees and commissions. The level of NNA in a given period is influenced by a variety of factors, including macroeconomic factors that impact client investment and spending behaviors, seasonality, our ability to attract and retain financial advisors and clients, capital market and corporate activities which may impact the amount of assets in certain client channels, and large idiosyncratic inflows and outflows. These factors have had an impact on our NNA in recent periods. Should these factors continue, the growth rate of our NNA may be impacted.Advisor-Led Channel$ in billionsAt December 31,2024At December 31,2023Advisor-led client assets1$4,758$3,979Fee-based client assets2$2,347$1,983Fee-based client assets as apercentage of advisor-led clientassets49%50%202420232022Fee-based asset flows3$123.1$109.2$162.81.Advisor-led client assets represent client assets in accounts that have a Wealth Management representative assigned.2.Fee‐based client assets represent the amount of client assets where the basis of payment for services is a fee calculated on those assets.3.Fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers, dividends, interest and client fees, and exclude institutional cash management related activity. For a description of the Inflows and Outflows included in Fee-based asset flows, see Fee-based client assets herein.Self-Directed ChannelAt December 31,2024At December 31,2023Self-directed assets (in billions)1$1,437$1,150Self-directed households (in millions)28.38.1202420232022Daily average revenue trades (“DARTs”) (in thousands)38377598641.Self-directed client assets represent active accounts which are not advisor led. Active accounts are defined as having at least $25 in assets.2.Self-directed households represent the total number of households that include at least one active account with self-directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts.3.DARTs represent the total self-directed trades in a period divided by the number of trading days during that period.Workplace Channel1At December 31,2024At December 31,2023Workplace unvested assets (in billions)2$475$416Number of participants (in millions)36.66.61.The workplace channel includes equity compensation solutions for companies, their executives and employees.2.Stock plan unvested assets represent the market value of public company securities at the end of the period. 3.Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan.Net RevenuesAsset ManagementAsset management revenues of $16,501 million in 2024 increased 18% compared with the prior year, reflecting higher fee-based assets due to higher market levels and the cumulative impact of positive fee-based flows.See “Fee-Based Client Assets Rollforwards” herein.Transactional RevenuesTransactional revenues of $3,864 million in 2024 increased 9% compared with the prior year, reflecting higher client activity particularly in equity-related transactions. outflows. These factors have had an impact on our NNA in recent periods. Should these factors continue, the growth rate of our NNA may be impacted.",
      "prior_body": "NNA represent client asset inflows, inclusive of interest, dividends and asset acquisitions, less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees and commissions. The level of NNA in a given period is influenced by a variety of factors, including macroeconomic factors that impact client investment and spending behaviors, our ability to attract and retain financial advisors and clients, and timing of large idiosyncratic flows. Macroeconomic factors have had an impact on our NNA in recent periods. Should these factors continue, the growth rate of our NNA may be impacted.Advisor-Led Channel$ in billionsAt December 31,2023At December 31,2022Advisor-led client assets1$3,979$3,392Fee-based client assets2$1,983$1,678Fee-based client assets as apercentage of advisor-led clientassets50%49%202320222021Fee-based asset flows3$109.2$162.8$179.31.Advisor-led client assets represent client assets in accounts that have a Wealth Management representative assigned.2.Fee‐based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.3.Fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers, dividends, interest and client fees, and exclude institutional cash management related activity. For a description of the Inflows and Outflows included in Fee-based asset flows, see Fee-based client assets herein.Self-Directed ChannelAt December 31,2023At December 31,2022Self-directed assets (in billions)1$1,150$795Self-directed households (in millions)28.18.0202320222021Daily average revenue trades (“DARTs”) (in thousands)37598641,1611.Self-directed client assets represent active accounts which are not advisor led. Active accounts are defined as having at least $25 in assets.2.Self-directed households represent the total number of households that include at least one active account with self-directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts.3.DARTs represent the total self-directed trades in a period divided by the number of trading days during that period.Workplace Channel1At December 31,2023At December 31,2022Workplace unvested assets (in billions)2$416$302Number of participants (in millions)36.66.31.The workplace channel includes equity compensation solutions for companies, their executives and employees.2.Stock plan unvested assets represent the market value of public company securities at the end of the period. The stock plan vested asset retention rate within the workplace channel, which represents the percentage of stock plan assets retained in either the self-directed or advisor-led channels following vesting, is 29%, 34% and 24% for 2023, 2022 and 2021, respectively. The rate is derived using the stock plan inflows for the previous year, less related outflows for the previous year and reported year, and dividing the result by the previous year inflows.3.Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan.Net RevenuesAsset ManagementAsset management revenues of $14,019 million in 2023 increased 1% compared with the prior year, reflecting the cumulative impact of positive fee-based flows, partially offset by a reduction driven by changes in client and product mix and lower average fee-based client asset levels due to declines in the markets.See “Fee-Based Client Assets Rollforwards” herein. recent periods. Should these factors continue, the growth rate of our NNA may be impacted."
    },
    {
      "status": "MODIFIED",
      "current_title": "Assets Under Management or Supervision Rollforwards",
      "prior_title": "Rollforwards",
      "similarity_score": 0.862,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in billionsAtDec 31,2023Inflows1Outflows2Market Impact3Other4AtDec 31,2024 Equity$295 $44 $(66)$49 $(10)$312 Fixed Income171 69 (49)7 (6)192 Alternatives and Solutions508 140 (108)62 (9)593 Long-Term AUM$974 $253 $(223)$118 $(25)$1,097 Liquidity and Overlay Services485 2,349 (2,268)20 (17)569 Total$1,459 $2,602 $(2,491)$138 $(42)$1,666 At Dec 31, 2023 Inflows1 Outflows2 Market Impact3 Other4 At Dec 31, 2024 Fixed Income Long-Term AUM $ in billionsAtDec 31,2022 Inflows1Outflows2Market Impact3Other4,5AtDec 31,2023 Equity$259 $40 $(57)$57 $(4)$295 Fixed Income173 56 (62)11 (7)171 Alternatives and Solutions431 108 (91)57 3 508 Long-Term AUM$863 $204 $(210)$125 $(8)$974 Liquidity and Overlay Services442 2,282 (2,244)20 (15)485 Total$1,305 $2,486 $(2,454)$145 $(23)$1,459 At Dec 31, 2022 Inflows1 Outflows2 Market Impact3 Other4,5 At Dec 31, 2023 Fixed Income Long-Term AUM $ in billionsAtDec 31,2021Inflows1Outflows2Market Impact3Other4AtDec 31,2022Equity$395 $56 $(74)$(106)$(12)$259 Fixed Income207 66 (78)(16)(6)173 Alternatives and Solutions466 102 (83)(47)(7)431 Long-Term AUM$1,068 $224 $(235)$(169)$(25)$863 Liquidity and Overlay Services497 2,224 (2,268)(6)(5)442 Total$1,565 $2,448 $(2,503)$(175)$(30)$1,305 At Dec 31, 2021 Inflows1 Outflows2 Market Impact3 Other4 At Dec 31, 2022 1.Inflows represent investments or commitments from new and existing clients in new or existing investment products, including reinvestments of client dividends and increases in invested capital.\"",
        "Reworded sentence: \"dollar denominated funds.\"",
        "Reworded sentence: \"Average AUM$ in billions202420232022Equity$305 $279 $298 Fixed income180 170 186 Alternatives and Solutions557 466 435 Long-Term AUM Subtotal1,042 915 919 Liquidity and Overlay Services498 464 462 Total AUM$1,540 $1,379 $1,381 Average Fee Rates1Fee rate in bps202420232022Equity71 71 70 Fixed income36 35 35 Alternatives and Solutions28 32 34 Long-Term AUM42 44 46 Liquidity and Overlay Services12 13 11 Total AUM32 34 34 1.Based on Asset management revenues, net of waivers, excluding performance-based fees and other non-management fees.\""
      ],
      "current_body": "$ in billionsAtDec 31,2023Inflows1Outflows2Market Impact3Other4AtDec 31,2024 Equity$295 $44 $(66)$49 $(10)$312 Fixed Income171 69 (49)7 (6)192 Alternatives and Solutions508 140 (108)62 (9)593 Long-Term AUM$974 $253 $(223)$118 $(25)$1,097 Liquidity and Overlay Services485 2,349 (2,268)20 (17)569 Total$1,459 $2,602 $(2,491)$138 $(42)$1,666 At Dec 31, 2023 Inflows1 Outflows2 Market Impact3 Other4 At Dec 31, 2024 Fixed Income Long-Term AUM $ in billionsAtDec 31,2022 Inflows1Outflows2Market Impact3Other4,5AtDec 31,2023 Equity$259 $40 $(57)$57 $(4)$295 Fixed Income173 56 (62)11 (7)171 Alternatives and Solutions431 108 (91)57 3 508 Long-Term AUM$863 $204 $(210)$125 $(8)$974 Liquidity and Overlay Services442 2,282 (2,244)20 (15)485 Total$1,305 $2,486 $(2,454)$145 $(23)$1,459 At Dec 31, 2022 Inflows1 Outflows2 Market Impact3 Other4,5 At Dec 31, 2023 Fixed Income Long-Term AUM $ in billionsAtDec 31,2021Inflows1Outflows2Market Impact3Other4AtDec 31,2022Equity$395 $56 $(74)$(106)$(12)$259 Fixed Income207 66 (78)(16)(6)173 Alternatives and Solutions466 102 (83)(47)(7)431 Long-Term AUM$1,068 $224 $(235)$(169)$(25)$863 Liquidity and Overlay Services497 2,224 (2,268)(6)(5)442 Total$1,565 $2,448 $(2,503)$(175)$(30)$1,305 At Dec 31, 2021 Inflows1 Outflows2 Market Impact3 Other4 At Dec 31, 2022 1.Inflows represent investments or commitments from new and existing clients in new or existing investment products, including reinvestments of client dividends and increases in invested capital. Inflows exclude the impact of exchanges, whereby a client changes positions within the same asset class. 2.Outflows represent redemptions from clients’ funds, transition of funds from the committed capital period to the invested capital period and decreases in invested capital. Outflows exclude the impact of exchanges, whereby a client changes positions within the same asset class. 3.Market impact includes realized and unrealized gains and losses on portfolio investments. This excludes any funds where market impact does not impact management fees. 4.Other contains both distributions and foreign currency impact for all periods. Distributions represent decreases in invested capital due to returns of capital after the investment period of a fund. It also includes fund dividends that the client has not reinvested. Foreign currency impact reflects foreign currency changes for non-U.S. dollar denominated funds. 5.In 2023, our Retail Municipal and Corporate Fixed Income business (“FIMS”) was combined with our Parametric retail customized solutions business. The impact of the change was a $6 billion movement in AUM from Fixed Income to the Alternatives and Solutions asset class included in Other. Average AUM$ in billions202420232022Equity$305 $279 $298 Fixed income180 170 186 Alternatives and Solutions557 466 435 Long-Term AUM Subtotal1,042 915 919 Liquidity and Overlay Services498 464 462 Total AUM$1,540 $1,379 $1,381 Average Fee Rates1Fee rate in bps202420232022Equity71 71 70 Fixed income36 35 35 Alternatives and Solutions28 32 34 Long-Term AUM42 44 46 Liquidity and Overlay Services12 13 11 Total AUM32 34 34 1.Based on Asset management revenues, net of waivers, excluding performance-based fees and other non-management fees. For certain non-U.S. funds, it includes the portion of advisory fees that the advisor collects on behalf of third-party distributors. The payment of those fees to the distributor is included in Non-compensation expenses in the income statement.Asset management and other related fees within the Investment Management segment are primarily generated from Equity, Fixed Income and the following products:Alternatives and Solutions. Includes products in fund of funds, real estate, infrastructure, private equity and credit strategies and multi-asset portfolios, as well as systematic strategies that create custom investment solutions.Liquidity and Overlay Services. Includes liquidity fund products, as well as overlay services, which represent investment strategies that use passive exposure instruments to obtain, offset or substitute specific portfolio exposures, beyond those provided by the underlying holdings of the fund.",
      "prior_body": "$ in billionsAtDec 31,2022Inflows1Outflows2Market Impact3Other4,5AtDec 31,2023 Equity$259 $40 $(57)$57 $(4)$295 Fixed Income173 56 (62)11 (7)171 Alternatives and Solutions431 108 (91)57 3 508 Long-Term AUM$863 $204 $(210)$125 $(8)$974 Liquidity and Overlay Services442 2,282 (2,244)20 (15)485 Total$1,305 $2,486 $(2,454)$145 $(23)$1,459 At Dec 31, 2022 Inflows1 Outflows2 Market Impact3 Other4,5 At Dec 31, 2023 Fixed Income Long-Term AUM $ in billionsAtDec 31,2021 Inflows1Outflows2Market Impact3Other4AtDec 31,2022 Equity$395 $56 $(74)$(106)$(12)$259 Fixed Income207 66 (78)(16)(6)173 Alternatives and Solutions466 102 (83)(47)(7)431 Long-Term AUM$1,068 $224 $(235)$(169)$(25)$863 Liquidity and Overlay Services497 2,224 (2,268)(6)(5)442 Total$1,565 $2,448 $(2,503)$(175)$(30)$1,305 At Dec 31, 2021 Inflows1 Outflows2 Market Impact3 Other4 At Dec 31, 2022 Fixed Income Long-Term AUM $ in billionsAtDec 31,2020Inflows1Outflows2Market Impact3Other4,6AtDec 31,2021Equity$242 $100 $(85)$34 $104 $395 Fixed Income98 67 (55)— 97 207 Alternatives and Solutions153 95 (78)51 245 466 Long-Term AUM$493 $262 $(218)$85 $446 $1,068 Liquidity and Overlay Services288 1,940 (1,852)6 115 497 Total$781 $2,202 $(2,070)$91 $561 $1,565 At Dec 31, 2020 Inflows1 Outflows2 Market Impact3 Other4,6 At Dec 31, 2021 1.Inflows represent investments or commitments from new and existing clients in new or existing investment products, including reinvestments of client dividends and increases in invested capital. Inflows exclude the impact of exchanges, whereby a client changes positions within the same asset class. 2.Outflows represent redemptions from clients’ funds, transition of funds from the committed capital period to the invested capital period and decreases in invested capital. Outflows exclude the impact of exchanges, whereby a client changes positions within the same asset class. 3.Market impact includes realized and unrealized gains and losses on portfolio investments. This excludes any funds where market impact does not impact management fees. 4.Other contains both distributions and foreign currency impact for all periods. Distributions represent decreases in invested capital due to returns of capital after the investment period of a fund. It also includes fund dividends that the client has not reinvested. Foreign currency impact reflects foreign currency changes for non-U.S. dollar dominated funds. 5.In 2023, our Retail Municipal and Corporate Fixed Income business (“FIMS”) was combined with our Parametric retail customized solutions business. The impact of the change was a $6 billion movement in AUM from Fixed Income to the Alternatives and Solutions asset class included in Other. 6.The 2021 Other amounts primarily include AUM additions related to the Eaton Vance Corp. (“Eaton Vance”) acquisition. Average AUM$ in billions202320222021Equity$279 $298 $362 Fixed income170 186 181 Alternatives and Solutions466 435 380 Long-Term AUM Subtotal915 919 923 Liquidity and Overlay Services464 462 430 Total AUM$1,379 $1,381 $1,353 Average Fee Rates1Fee rate in bps202320222021Equity71 70 74 Fixed income35 35 38 Alternatives and Solutions32 34 36 Long-Term AUM44 46 51 Liquidity and Overlay Services13 11 5 Total AUM34 34 37 1.Based on Asset management revenues, net of waivers, excluding performance-based fees and other non-management fees. For certain non-U.S. funds, it includes the portion of advisory fees that the advisor collects on behalf of third-party distributors. The payment of those fees to the distributor is included in Non-compensation expenses in the income statement.Asset management and other related fees within the Investment Management segment are primarily generated from Equity, Fixed Income and the following products:Alternatives and Solutions. Includes products in fund of funds, real estate, infrastructure, private equity and credit strategies and multi-asset portfolios, as well as systematic strategies that create custom investment solutions.Liquidity and Overlay Services. Includes liquidity fund products, as well as overlay services, which represent investment strategies that use passive exposure instruments to obtain, offset or substitute specific portfolio exposures, beyond those provided by the underlying holdings of the fund."
    },
    {
      "status": "MODIFIED",
      "current_title": "Provision for Credit Losses",
      "prior_title": "Provision for Credit Losses",
      "similarity_score": 0.861,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The Provision for credit losses on loans and lending commitments of $62 million in 2024 was primarily related to certain specific commercial real estate and securities-based loans, and portfolio growth, partially offset by improvements in the macroeconomic outlook.\""
      ],
      "current_body": "The Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. For further information on the Provision for credit losses, see “Credit Risk” herein.",
      "prior_body": "The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. The Provision for credit losses on loans and lending commitments of $280 million in 2022 was due to portfolio growth and deterioration in the macroeconomic outlook. For further information on the Provision for credit losses, see “Credit Risk” herein. Business Segment ResultsNet Revenues by Segment1($ in millions)Net Income Applicable to Morgan Stanley by Segment1($ in millions)1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 22 to the financial statements for details of intersegment eliminations. •Institutional Securities net revenues of $23,060 million in 2023 decreased 5% from the prior year, primarily reflecting lower results across businesses.•Wealth Management net revenues of $26,268 million in 2023 increased 8% from the prior year, primarily reflecting gains on DCP investments compared with losses in the prior year and higher Net interest revenues.•Investment Management net revenues of $5,370 million in 2023 were relatively unchanged from the prior year, reflecting a decrease in Asset management and related fees revenues offset by an increase in Performance based income and other revenues."
    },
    {
      "status": "MODIFIED",
      "current_title": "Distribution of VaR Statistics and Net Revenues",
      "prior_title": "Distribution of VaR Statistics and Net Revenues",
      "similarity_score": 0.859,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"For days where losses exceed the VaR statistic, we examine the drivers of December 2024 Form 10-K60 December 2024 Form 10-K60 December 2024 Form 10-K60 60 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents trading losses to evaluate the VaR model’s accuracy.\"",
        "Reworded sentence: \"The following sensitivity analyses cover substantially all of the non-trading market risk in our portfolio.Credit Spread Risk Sensitivity1$ in millionsAtDecember 31,2024 AtDecember 31,2023 Derivatives$6 $6 Borrowings carried at fair value49 48 1.Amounts represent the potential gain for each 1 bps widening of our credit spread.The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk.\"",
        "Reworded sentence: \"Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios.\"",
        "Reworded sentence: \"The following trading losses to evaluate the VaR model’s accuracy.\""
      ],
      "current_body": "We evaluate the reasonableness of our VaR model by comparing the potential declines in portfolio values generated by the model with corresponding actual trading results for the Firm, as well as individual business units. For days where losses exceed the VaR statistic, we examine the drivers of December 2024 Form 10-K60 December 2024 Form 10-K60 December 2024 Form 10-K60 60 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents trading losses to evaluate the VaR model’s accuracy. There were 11 trading loss days in 2024, none of which exceeded 95% Total Management VaR, compared to 16 trading loss days in 2023, one of which exceeded 95% Total Management VaR.Daily 95%/One-Day Total Management VaR for 2024($ in millions)Daily Net Trading Revenues for 2024($ in millions)Daily net trading revenues include profits and losses from Interest rate and credit spread, Equity price, Foreign exchange rate, Commodity price, and Credit Portfolio positions and intraday trading activities for our trading businesses. Certain items such as fees, commissions, net interest income and counterparty default risk are excluded from daily net trading revenues and the VaR model. Revenues required for Regulatory VaR backtesting further exclude intraday trading.Non-Trading RisksWe believe that sensitivity analysis is an appropriate representation of our non-trading risks. The following sensitivity analyses cover substantially all of the non-trading market risk in our portfolio.Credit Spread Risk Sensitivity1$ in millionsAtDecember 31,2024 AtDecember 31,2023 Derivatives$6 $6 Borrowings carried at fair value49 48 1.Amounts represent the potential gain for each 1 bps widening of our credit spread.The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk. Net interest income in the Wealth Management business segment primarily consists of interest income earned on non-trading assets held, including loans and investment securities, as well as margin and other lending on non-bank entities and interest expense incurred on non-trading liabilities, primarily deposits.Wealth Management Net Interest Income Sensitivity Analysis1$ in millionsAtDecember 31,2024 AtDecember 31,2023 Basis point change+200$699 $1,127 +100350 585 -100(371)(609)-200(803)(1,255)1. The prior period has been revised to conform to the current period presentation.The previous table presents an analysis of selected instantaneous upward and downward parallel interest rate shocks (subject to a floor of zero percent in the downward scenario) on net interest income over the next 12 months for our Wealth Management business segment. These shocks are applied to our 12-month forecast for our Wealth Management business segment, which incorporates market expectations of interest rates and our forecasted balance sheet and business activity. The forecast includes modeled prepayment behavior, reinvestment of net cash flows from maturing assets and liabilities, and deposit pricing sensitivity to interest rates. These key assumptions are updated periodically based on historical data and future expectations.We do not manage to any single rate scenario but rather manage net interest income in our Wealth Management business segment across a range of possible outcomes, including non-parallel rate change scenarios. The sensitivity analysis assumes that we take no action in response to these scenarios, assumes there are no changes in other macroeconomic variables normally correlated with changes in interest rates and includes subjective assumptions regarding customer and market re-pricing behavior and other factors. Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios. The level of interest rates may impact the amount of deposits held at the Firm, given competition for deposits trading losses to evaluate the VaR model’s accuracy. There were 11 trading loss days in 2024, none of which exceeded 95% Total Management VaR, compared to 16 trading loss days in 2023, one of which exceeded 95% Total Management VaR.Daily 95%/One-Day Total Management VaR for 2024($ in millions)Daily Net Trading Revenues for 2024($ in millions)Daily net trading revenues include profits and losses from Interest rate and credit spread, Equity price, Foreign exchange rate, Commodity price, and Credit Portfolio positions and intraday trading activities for our trading businesses. Certain items such as fees, commissions, net interest income and counterparty default risk are excluded from daily net trading revenues and the VaR model. Revenues required for Regulatory VaR backtesting further exclude intraday trading.Non-Trading RisksWe believe that sensitivity analysis is an appropriate representation of our non-trading risks. The following trading losses to evaluate the VaR model’s accuracy. There were 11 trading loss days in 2024, none of which exceeded 95% Total Management VaR, compared to 16 trading loss days in 2023, one of which exceeded 95% Total Management VaR.",
      "prior_body": "We evaluate the reasonableness of our VaR model by comparing the potential declines in portfolio values generated by the model with corresponding actual trading results for the Firm, as well as individual business units. For days where losses exceed the VaR statistic, we examine the drivers of trading losses to evaluate the VaR model’s accuracy. There were 16 trading loss days in 2023, one of which exceeded 95% Total Management VaR, compared to 15 trading loss days in 2022, none of which exceeded 95% Total Management VaR. December 2023 Form 10-K66 December 2023 Form 10-K66 December 2023 Form 10-K66 66 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Daily 95%/One-Day Total Management VaR for 2023($ in millions)Daily Net Trading Revenues for 2023($ in millions)Daily net trading revenues include profits and losses from Interest rate and credit spread, Equity price, Foreign exchange rate, Commodity price, and Credit Portfolio positions and intraday trading activities for our trading businesses. Certain items such as fees, commissions, net interest income and counterparty default risk are excluded from daily net trading revenues and the VaR model. Revenues required for Regulatory VaR backtesting further exclude intraday trading.Non-Trading RisksWe believe that sensitivity analysis is an appropriate representation of our non-trading risks. The following sensitivity analyses cover substantially all of the non-trading risk in our portfolio.Credit Spread Risk Sensitivity1$ in millionsAtDecember 31,2023 AtDecember 31,2022 Derivatives$6 $7 Borrowings carried at fair value48 39 1.Amounts represent the potential gain for each 1 bps widening of our credit spread.Credit spread risk sensitivity for borrowings carried at fair value at December 31, 2023 increased from December 31, 2022, primarily driven by debt issuances and credit spread tightening.The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk. Net interest income in the Wealth Management business segment primarily consists of interest income earned on non-trading assets held, including loans and investment securities, as well as margin and other lending on non-bank entities and interest expense incurred on non-trading liabilities, primarily deposits.Wealth Management Net Interest Income Sensitivity Analysis$ in millionsAtDecember 31,2023 AtDecember 31,2022 Basis point change+100$585 $643 -100(609)(745)The previous table presents an analysis of selected instantaneous upward and downward parallel interest rate shocks (subject to a floor of zero percent in the downward scenario) on net interest income over the next 12 months for our Wealth Management business segment. These shocks are applied to our 12-month forecast for our Wealth Management business segment, which incorporates market expectations of interest rates and our forecasted business activity, including deposit forecasts as a key assumption.We do not manage to any single rate scenario but rather manage net interest income in our Wealth Management business segment across a range of possible outcomes, including non-parallel rate change scenarios. The sensitivity analysis assumes that we take no action in response to these scenarios, assumes there are no changes in other macroeconomic variables normally correlated with changes in interest rates and includes subjective assumptions regarding customer and market re-pricing behavior and other factors. Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in increasing interest rate scenarios. The level of interest rates may impact the amount of deposits held at the Firm, given competition for deposits from other institutions and alternative cash-equivalent products available to depositors. Further, rising interest rates could also impact client demand for loans. Net interest income sensitivity to interest rates at December 31, 2023 decreased from December 31, 2022, primarily driven by the effects of changes in the mix of our assets and liabilities. Daily 95%/One-Day Total Management VaR for 2023($ in millions)Daily Net Trading Revenues for 2023($ in millions)Daily net trading revenues include profits and losses from Interest rate and credit spread, Equity price, Foreign exchange rate, Commodity price, and Credit Portfolio positions and intraday trading activities for our trading businesses. Certain items such as fees, commissions, net interest income and counterparty default risk are excluded from daily net trading revenues and the VaR model. Revenues required for Regulatory VaR backtesting further exclude intraday trading.Non-Trading RisksWe believe that sensitivity analysis is an appropriate representation of our non-trading risks. The following sensitivity analyses cover substantially all of the non-trading risk in our portfolio."
    },
    {
      "status": "MODIFIED",
      "current_title": "Average tangible common equity1",
      "prior_title": "Average tangible common equity2",
      "similarity_score": 0.859,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"ROTCE2 1.Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein).\"",
        "Reworded sentence: \"2.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.\""
      ],
      "current_body": "ROTCE2 1.Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein). The sums of the segments’ Average common equity and Average tangible common equity do not equal the Consolidated measures due to Parent Company equity. 2.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.",
      "prior_body": "ROTCE3 1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment. See “Other Matters” herein for more information. 2.Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein). The sums of the segments’ Average common equity and Average tangible common equity do not equal the Consolidated measures due to Parent Company equity. 3.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment."
    },
    {
      "status": "MODIFIED",
      "current_title": "Liquidity Coverage Ratio and Net Stable Funding Ratio",
      "prior_title": "Liquidity Coverage Ratio and Net Stable Funding Ratio",
      "similarity_score": 0.855,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable funding, which is their projected minimum funding needs, over a one-year time horizon.\"",
        "Reworded sentence: \"As a component of the Liquidity Risk Management Framework, we hold a portion of our Liquidity Resources against the potential disruption to our secured financing capabilities.In general, we maintain a pool of liquid and easily fundable securities, which takes into account HQLA classifications consistent with LCR definitions, and other regulatory requirements, and provides a valuable future source of liquidity.Collateralized Financing Transactions$ in millionsAtDecember 31,2024 AtDecember 31,2023 Securities purchased under agreements to resell and Securities borrowed$242,424 $231,831 Securities sold under agreements to repurchase and Securities loaned$65,293 $77,708 Securities received as collateral1$9,625 $6,219 1.Included within Trading assets in the balance sheet.\"",
        "Reworded sentence: \"Our risk exposure on these transactions is mitigated by collateral maintenance policies and the elements of our Liquidity Risk Management Framework.\"",
        "Reworded sentence: \"Treasury similarly allocates interest income to businesses carrying deposit products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities.Secured FinancingThe liquid nature of the marketable securities and short-term receivables arising principally from sales and trading activities in the Institutional Securities business segment provides us with flexibility in managing the composition of our balance sheet.\""
      ],
      "current_body": "We and our U.S. Bank Subsidiaries are required to maintain a minimum LCR and NSFR of 100%. The LCR rule requires large banking organizations to have sufficient Eligible HQLA to cover net cash outflows arising from significant stress over 30 calendar days, thus promoting the short-term resilience of the liquidity risk profile of banking organizations. In determining Eligible HQLA for LCR purposes, weightings (or asset haircuts) are applied to HQLA, and certain HQLA held in subsidiaries is excluded. The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable funding, which is their projected minimum funding needs, over a one-year time horizon. As of December 31, 2024, we and our U.S. Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%. December 2024 Form 10-K46 December 2024 Form 10-K46 December 2024 Form 10-K46 46 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Liquidity Coverage Ratio Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Eligible HQLA Cash deposits with central banks$53,836 $40,406 Securities1213,394 234,710 Total Eligible HQLA$267,230 $275,116 Net cash outflows$205,780 $205,868 LCR130 %134 %1.Primarily includes U.S. Treasuries, U.S. agency mortgage-backed securities, sovereign bonds and investment grade corporate bonds.Net Stable Funding RatioAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Available stable funding$616,689 $610,727 Required stable funding507,022 502,318 NSFR122 %122 %Funding ManagementWe manage our funding in a manner that reduces the risk of disruption to our operations. We pursue a strategy of diversification of secured and unsecured funding sources (by product, investor and region) and attempt to ensure that the tenor of our liabilities equals or exceeds the expected holding period of the assets being financed. Our goal is to achieve an optimal mix of durable secured and unsecured financing.We fund our balance sheet on a global basis through diverse sources. These sources include our equity capital, borrowings, bank notes, securities sold under agreements to repurchase, securities lending, deposits, letters of credit and lines of credit. We have active financing programs for both standard and structured products targeting global investors and currencies.Treasury allocates interest expense to our businesses based on the tenor and interest rate profile of the assets being funded. Treasury similarly allocates interest income to businesses carrying deposit products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities.Secured FinancingThe liquid nature of the marketable securities and short-term receivables arising principally from sales and trading activities in the Institutional Securities business segment provides us with flexibility in managing the composition of our balance sheet. Secured financing investors principally focus on the quality of the eligible collateral posted. Accordingly, we actively manage our secured financings based on the quality of the assets being funded.We have established longer-tenor secured funding requirements for less liquid asset classes, for which funding may be at risk in the event of a market disruption. We define highly liquid assets as government-issued or government-guaranteed securities with a high degree of fundability and less liquid assets as those that do not meet these criteria. To further minimize the refinancing risk of secured financing for less liquid assets, we have established concentration limits to diversify our investor base and reduce the amount of monthly maturities for secured financing of less liquid assets. As a component of the Liquidity Risk Management Framework, we hold a portion of our Liquidity Resources against the potential disruption to our secured financing capabilities.In general, we maintain a pool of liquid and easily fundable securities, which takes into account HQLA classifications consistent with LCR definitions, and other regulatory requirements, and provides a valuable future source of liquidity.Collateralized Financing Transactions$ in millionsAtDecember 31,2024 AtDecember 31,2023 Securities purchased under agreements to resell and Securities borrowed$242,424 $231,831 Securities sold under agreements to repurchase and Securities loaned$65,293 $77,708 Securities received as collateral1$9,625 $6,219 1.Included within Trading assets in the balance sheet. Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024December 31, 2023Securities purchased under agreements to resell and Securities borrowed$250,354 $235,928 Securities sold under agreements to repurchase and Securities loaned$74,949 $87,285 See “Total Assets by Business Segment” herein for additional information on the assets shown in the previous table and Notes 2 and 8 to the financial statements for additional information on collateralized financing transactions.In addition to the collateralized financing transactions shown in the previous table, we engage in financing transactions collateralized by customer-owned securities, which are segregated in accordance with regulatory requirements. Receivables under these financing transactions, primarily margin loans, are included in Customer and other receivables in the balance sheet, and payables under these financing transactions, primarily to prime brokerage customers, are included in Customer and other payables in the balance sheet. Our risk exposure on these transactions is mitigated by collateral maintenance policies and the elements of our Liquidity Risk Management Framework. Unsecured FinancingWe view deposits and borrowings as stable sources of funding for unencumbered securities and non-security assets. Our unsecured financings include borrowings and certificates of Liquidity Coverage Ratio Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Eligible HQLA Cash deposits with central banks$53,836 $40,406 Securities1213,394 234,710 Total Eligible HQLA$267,230 $275,116 Net cash outflows$205,780 $205,868 LCR130 %134 %1.Primarily includes U.S. Treasuries, U.S. agency mortgage-backed securities, sovereign bonds and investment grade corporate bonds.Net Stable Funding RatioAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Available stable funding$616,689 $610,727 Required stable funding507,022 502,318 NSFR122 %122 %Funding ManagementWe manage our funding in a manner that reduces the risk of disruption to our operations. We pursue a strategy of diversification of secured and unsecured funding sources (by product, investor and region) and attempt to ensure that the tenor of our liabilities equals or exceeds the expected holding period of the assets being financed. Our goal is to achieve an optimal mix of durable secured and unsecured financing.We fund our balance sheet on a global basis through diverse sources. These sources include our equity capital, borrowings, bank notes, securities sold under agreements to repurchase, securities lending, deposits, letters of credit and lines of credit. We have active financing programs for both standard and structured products targeting global investors and currencies.Treasury allocates interest expense to our businesses based on the tenor and interest rate profile of the assets being funded. Treasury similarly allocates interest income to businesses carrying deposit products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities.Secured FinancingThe liquid nature of the marketable securities and short-term receivables arising principally from sales and trading activities in the Institutional Securities business segment provides us with flexibility in managing the composition of our balance sheet. Secured financing investors principally focus on the quality of the eligible collateral posted. Accordingly, we actively manage our secured financings based on the quality of the assets being funded.We have established longer-tenor secured funding requirements for less liquid asset classes, for which funding",
      "prior_body": "We and our U.S. Bank Subsidiaries are required to maintain a minimum LCR and NSFR of 100%. The LCR rule requires large banking organizations to have sufficient Eligible HQLA to cover net cash outflows arising from significant stress over 30 calendar days, thus promoting the short-term resilience of the liquidity risk profile of banking organizations. In determining Eligible HQLA for LCR purposes, weightings (or asset haircuts) are applied to HQLA, and certain HQLA held in subsidiaries is excluded. The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable December 2023 Form 10-K50 December 2023 Form 10-K50 December 2023 Form 10-K50 50 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents funding, which is their projected minimum funding needs, over a one-year time horizon. As of December 31, 2023, we and our U.S. Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%.Liquidity Coverage Ratio Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Eligible HQLA1 Cash deposits with central banks$58,047 $60,163 Securities2194,970 181,010 Total Eligible HQLA1$253,017 $241,173 Net cash outflows$196,488 $190,336 LCR129 %127 %1.Under the LCR rule, Eligible HQLA is calculated using weightings and excluding certain HQLA held in subsidiaries.2.Primarily includes U.S. Treasuries, U.S. agency mortgage-backed securities, sovereign bonds and investment grade corporate bonds.Net Stable Funding RatioAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Available stable funding$555,884 $553,413 Required stable funding465,226 468,290 NSFR120 %118 %Funding ManagementWe manage our funding in a manner that reduces the risk of disruption to our operations. We pursue a strategy of diversification of secured and unsecured funding sources (by product, investor and region) and attempt to ensure that the tenor of our liabilities equals or exceeds the expected holding period of the assets being financed. Our goal is to achieve an optimal mix of durable secured and unsecured financing.We fund our balance sheet on a global basis through diverse sources. These sources include our equity capital, borrowings, bank notes, securities sold under agreements to repurchase, securities lending, deposits, letters of credit and lines of credit. We have active financing programs for both standard and structured products targeting global investors and currencies.Treasury allocates interest expense to our businesses based on the tenor and interest rate profile of the assets being funded. Treasury similarly allocates interest income to businesses carrying deposit products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities.Secured FinancingThe liquid nature of the marketable securities and short-term receivables arising principally from sales and trading activities in the Institutional Securities business segment provides us with flexibility in managing the composition of our balance sheet. Secured financing investors principally focus on the quality of the eligible collateral posted. Accordingly, we actively manage our secured financings based on the quality of the assets being funded.We have established longer-tenor secured funding requirements for less liquid asset classes, for which funding may be at risk in the event of a market disruption. We define highly liquid assets as government-issued or government-guaranteed securities with a high degree of fundability and less liquid assets as those that do not meet these criteria. To further minimize the refinancing risk of secured financing for less liquid assets, we have established concentration limits to diversify our investor base and reduce the amount of monthly maturities for secured financing of less liquid assets. As a component of the Liquidity Risk Management Framework, we hold a portion of our Liquidity Resources against the potential disruption to our secured financing capabilities.In general, we maintain a pool of liquid and easily fundable securities, which takes into account HQLA classifications consistent with LCR definitions, and other regulatory requirements, and provides a valuable future source of liquidity.Collateralized Financing Transactions$ in millionsAtDecember 31,2023 AtDecember 31,2022 Securities purchased under agreements to resell and Securities borrowed$231,831 $247,281 Securities sold under agreements to repurchase and Securities loaned$77,708 $78,213 Securities received as collateral1$6,219 $9,954 Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2023December 31, 2022Securities purchased under agreements to resell and Securities borrowed$235,928 $261,627 Securities sold under agreements to repurchase and Securities loaned$87,285 $77,268 1.Included within Trading assets in the balance sheet.See “Total Assets by Business Segment” herein for additional information on the assets shown in the previous table and Notes 2 and 8 to the financial statements for additional information on collateralized financing transactions.In addition to the collateralized financing transactions shown in the previous table, we engage in financing transactions collateralized by customer-owned securities, which are segregated in accordance with regulatory requirements. Receivables under these financing transactions, primarily margin loans, are included in Customer and other receivables in the balance sheet, and payables under these financing transactions, primarily to prime brokerage customers, are included in Customer and other payables in the balance sheet. Our risk exposure on these transactions is mitigated by funding, which is their projected minimum funding needs, over a one-year time horizon. As of December 31, 2023, we and our U.S. Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%.Liquidity Coverage Ratio Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Eligible HQLA1 Cash deposits with central banks$58,047 $60,163 Securities2194,970 181,010 Total Eligible HQLA1$253,017 $241,173 Net cash outflows$196,488 $190,336 LCR129 %127 %1.Under the LCR rule, Eligible HQLA is calculated using weightings and excluding certain HQLA held in subsidiaries.2.Primarily includes U.S. Treasuries, U.S. agency mortgage-backed securities, sovereign bonds and investment grade corporate bonds.Net Stable Funding RatioAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Available stable funding$555,884 $553,413 Required stable funding465,226 468,290 NSFR120 %118 %Funding ManagementWe manage our funding in a manner that reduces the risk of disruption to our operations. We pursue a strategy of diversification of secured and unsecured funding sources (by product, investor and region) and attempt to ensure that the tenor of our liabilities equals or exceeds the expected holding period of the assets being financed. Our goal is to achieve an optimal mix of durable secured and unsecured financing.We fund our balance sheet on a global basis through diverse sources. These sources include our equity capital, borrowings, bank notes, securities sold under agreements to repurchase, securities lending, deposits, letters of credit and lines of credit. We have active financing programs for both standard and structured products targeting global investors and currencies.Treasury allocates interest expense to our businesses based on the tenor and interest rate profile of the assets being funded. Treasury similarly allocates interest income to businesses carrying deposit products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities.Secured FinancingThe liquid nature of the marketable securities and short-term receivables arising principally from sales and trading activities in the Institutional Securities business segment funding, which is their projected minimum funding needs, over a one-year time horizon. As of December 31, 2023, we and our U.S. Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%."
    },
    {
      "status": "MODIFIED",
      "current_title": "Non-Trading Risks",
      "prior_title": "Non-Trading Risks",
      "similarity_score": 0.845,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The following sensitivity analyses cover substantially all of the non-trading market risk in our portfolio.Credit Spread Risk Sensitivity1$ in millionsAtDecember 31,2024 AtDecember 31,2023 Derivatives$6 $6 Borrowings carried at fair value49 48 1.Amounts represent the potential gain for each 1 bps widening of our credit spread.The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk.\"",
        "Reworded sentence: \"Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios.\""
      ],
      "current_body": "We believe that sensitivity analysis is an appropriate representation of our non-trading risks. The following sensitivity analyses cover substantially all of the non-trading market risk in our portfolio.Credit Spread Risk Sensitivity1$ in millionsAtDecember 31,2024 AtDecember 31,2023 Derivatives$6 $6 Borrowings carried at fair value49 48 1.Amounts represent the potential gain for each 1 bps widening of our credit spread.The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk. Net interest income in the Wealth Management business segment primarily consists of interest income earned on non-trading assets held, including loans and investment securities, as well as margin and other lending on non-bank entities and interest expense incurred on non-trading liabilities, primarily deposits.Wealth Management Net Interest Income Sensitivity Analysis1$ in millionsAtDecember 31,2024 AtDecember 31,2023 Basis point change+200$699 $1,127 +100350 585 -100(371)(609)-200(803)(1,255)1. The prior period has been revised to conform to the current period presentation.The previous table presents an analysis of selected instantaneous upward and downward parallel interest rate shocks (subject to a floor of zero percent in the downward scenario) on net interest income over the next 12 months for our Wealth Management business segment. These shocks are applied to our 12-month forecast for our Wealth Management business segment, which incorporates market expectations of interest rates and our forecasted balance sheet and business activity. The forecast includes modeled prepayment behavior, reinvestment of net cash flows from maturing assets and liabilities, and deposit pricing sensitivity to interest rates. These key assumptions are updated periodically based on historical data and future expectations.We do not manage to any single rate scenario but rather manage net interest income in our Wealth Management business segment across a range of possible outcomes, including non-parallel rate change scenarios. The sensitivity analysis assumes that we take no action in response to these scenarios, assumes there are no changes in other macroeconomic variables normally correlated with changes in interest rates and includes subjective assumptions regarding customer and market re-pricing behavior and other factors. Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios. The level of interest rates may impact the amount of deposits held at the Firm, given competition for deposits sensitivity analyses cover substantially all of the non-trading market risk in our portfolio.",
      "prior_body": "We believe that sensitivity analysis is an appropriate representation of our non-trading risks. The following sensitivity analyses cover substantially all of the non-trading risk in our portfolio. Credit Spread Risk Sensitivity1$ in millionsAtDecember 31,2023 AtDecember 31,2022 Derivatives$6 $7 Borrowings carried at fair value48 39 1.Amounts represent the potential gain for each 1 bps widening of our credit spread.Credit spread risk sensitivity for borrowings carried at fair value at December 31, 2023 increased from December 31, 2022, primarily driven by debt issuances and credit spread tightening.The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk. Net interest income in the Wealth Management business segment primarily consists of interest income earned on non-trading assets held, including loans and investment securities, as well as margin and other lending on non-bank entities and interest expense incurred on non-trading liabilities, primarily deposits.Wealth Management Net Interest Income Sensitivity Analysis$ in millionsAtDecember 31,2023 AtDecember 31,2022 Basis point change+100$585 $643 -100(609)(745)The previous table presents an analysis of selected instantaneous upward and downward parallel interest rate shocks (subject to a floor of zero percent in the downward scenario) on net interest income over the next 12 months for our Wealth Management business segment. These shocks are applied to our 12-month forecast for our Wealth Management business segment, which incorporates market expectations of interest rates and our forecasted business activity, including deposit forecasts as a key assumption.We do not manage to any single rate scenario but rather manage net interest income in our Wealth Management business segment across a range of possible outcomes, including non-parallel rate change scenarios. The sensitivity analysis assumes that we take no action in response to these scenarios, assumes there are no changes in other macroeconomic variables normally correlated with changes in interest rates and includes subjective assumptions regarding customer and market re-pricing behavior and other factors. Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in increasing interest rate scenarios. The level of interest rates may impact the amount of deposits held at the Firm, given competition for deposits from other institutions and alternative cash-equivalent products available to depositors. Further, rising interest rates could also impact client demand for loans. Net interest income sensitivity to interest rates at December 31, 2023 decreased from December 31, 2022, primarily driven by the effects of changes in the mix of our assets and liabilities."
    },
    {
      "status": "MODIFIED",
      "current_title": "Projected Future Compensation Obligation1",
      "prior_title": "Projected Future Compensation Obligation1",
      "similarity_score": 0.845,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in millionsAward liabilities at December 31, 20242, 3$5,658 Fully vested amounts to be distributed by the end of February 20254(772)Unrecognized portion of prior awards at December 31, 202431,590 2024 performance year awards granted in 20253432 Total5$6,908 Award liabilities at December 31, 20242, 3 Fully vested amounts to be distributed by the end of February 20254 Unrecognized portion of prior awards at December 31, 20243 2024 performance year awards granted in 20253 Total5 1.Amounts relate to performance years 2024 and prior.\"",
        "Reworded sentence: \"5.Of the total projected future compensation obligation, approximately 18% relates to Institutional Securities, approximately 74% relates to Wealth Management and approximately 8% relates to Investment Management.\""
      ],
      "current_body": "$ in millionsAward liabilities at December 31, 20242, 3$5,658 Fully vested amounts to be distributed by the end of February 20254(772)Unrecognized portion of prior awards at December 31, 202431,590 2024 performance year awards granted in 20253432 Total5$6,908 Award liabilities at December 31, 20242, 3 Fully vested amounts to be distributed by the end of February 20254 Unrecognized portion of prior awards at December 31, 20243 2024 performance year awards granted in 20253 Total5 1.Amounts relate to performance years 2024 and prior. 2.Balance is reflected in Other liabilities and accrued expenses in the balance sheet as of December 31, 2024. 3.Amounts do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments. 4.Distributions after February of each year are generally immaterial. 5.Of the total projected future compensation obligation, approximately 18% relates to Institutional Securities, approximately 74% relates to Wealth Management and approximately 8% relates to Investment Management. The previous table presents a rollforward of the Firm’s estimated projected future compensation obligation for existing deferred cash-based compensation awards, exclusive of any assumptions about future market conditions with respect to referenced investments.",
      "prior_body": "$ in millionsAward liabilities at December 31, 20232, 3$5,331 Fully vested amounts to be distributed by the end of February 20244(905)Unrecognized portion of prior awards at December 31, 202331,373 2023 performance year awards granted in 20243357 Total5$6,156 Award liabilities at December 31, 20232, 3 Fully vested amounts to be distributed by the end of February 20244 Unrecognized portion of prior awards at December 31, 20233 2023 performance year awards granted in 20243 Total5 1.Amounts relate to performance years 2023 and prior. 2.Balance is reflected in Other liabilities and accrued expenses in the balance sheet as of December 31, 2023. 3.Amounts do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments. 4.Distributions after February of each year are generally immaterial. 5.Of the total projected future compensation obligation, approximately 20% relates to Institutional Securities, approximately 70% relates to Wealth Management and approximately 10% relates to Investment Management. The previous table presents a rollforward of the Firm’s estimated projected future compensation obligation for existing deferred cash-based compensation awards, exclusive of any assumptions about future market conditions with respect to referenced investments."
    },
    {
      "status": "MODIFIED",
      "current_title": "Investments Sensitivity, Including Related Carried Interest",
      "prior_title": "Investments Sensitivity, Including Related Carried Interest",
      "similarity_score": 0.844,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Loss from 10% Decline$ in millionsAtDecember 31,2024 AtDecember 31,2023 Investments related to Investment Management activities$571 $481 Other investments:MUMSS122 134 Other Firm investments463 399 Investments related to Investment Management activities We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets.\"",
        "Added sentence: \"Investment sensitivity changed between December 31, 2024 and December 31, 2023 primarily due to new investments in the Community Reinvestment Act affordable housing and new private credit funds in Investment Management.\""
      ],
      "current_body": "Loss from 10% Decline$ in millionsAtDecember 31,2024 AtDecember 31,2023 Investments related to Investment Management activities$571 $481 Other investments:MUMSS122 134 Other Firm investments463 399 Investments related to Investment Management activities We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets. These investments are predominantly equity positions with long investment horizons, a portion of which is for business facilitation purposes. The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable. Investment sensitivity changed between December 31, 2024 and December 31, 2023 primarily due to new investments in the Community Reinvestment Act affordable housing and new private credit funds in Investment Management.",
      "prior_body": "Loss from 10% Decline$ in millionsAtDecember 31,2023 AtDecember 31,2022 Investments related to Investment Management activities$481 $431 Other investments:MUMSS134 143 Other Firm investments399 378 Investments related to Investment Management activities We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets. These investments are predominantly equity positions with long investment horizons, a portion of which is for business facilitation purposes. The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable."
    },
    {
      "status": "MODIFIED",
      "current_title": "Non-Interest Expenses",
      "prior_title": "Non-Interest Expenses",
      "similarity_score": 0.841,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Non-interest expenses of $4,724 million in 2024 increased 4% from the prior year, as a result of higher Non-compensation and Compensation and benefits expenses.\"",
        "Reworded sentence: \"dollar denominated funds.5.In 2023, our Retail Municipal and Corporate Fixed Income business (“FIMS”) was combined with our Parametric retail customized solutions business.\"",
        "Reworded sentence: \"Average AUM$ in billions202420232022Equity$305 $279 $298 Fixed income180 170 186 Alternatives and Solutions557 466 435 Long-Term AUM Subtotal1,042 915 919 Liquidity and Overlay Services498 464 462 Total AUM$1,540 $1,379 $1,381 Average Fee Rates1Fee rate in bps202420232022Equity71 71 70 Fixed income36 35 35 Alternatives and Solutions28 32 34 Long-Term AUM42 44 46 Liquidity and Overlay Services12 13 11 Total AUM32 34 34 1.Based on Asset management revenues, net of waivers, excluding performance-based fees and other non-management fees.\"",
        "Reworded sentence: \"Assets Under Management or Supervision Rollforwards$ in billionsAtDec 31,2023Inflows1Outflows2Market Impact3Other4AtDec 31,2024 Equity$295 $44 $(66)$49 $(10)$312 Fixed Income171 69 (49)7 (6)192 Alternatives and Solutions508 140 (108)62 (9)593 Long-Term AUM$974 $253 $(223)$118 $(25)$1,097 Liquidity and Overlay Services485 2,349 (2,268)20 (17)569 Total$1,459 $2,602 $(2,491)$138 $(42)$1,666 $ in billionsAtDec 31,2022 Inflows1Outflows2Market Impact3Other4,5AtDec 31,2023 Equity$259 $40 $(57)$57 $(4)$295 Fixed Income173 56 (62)11 (7)171 Alternatives and Solutions431 108 (91)57 3 508 Long-Term AUM$863 $204 $(210)$125 $(8)$974 Liquidity and Overlay Services442 2,282 (2,244)20 (15)485 Total$1,305 $2,486 $(2,454)$145 $(23)$1,459 $ in billionsAtDec 31,2021Inflows1Outflows2Market Impact3Other4AtDec 31,2022Equity$395 $56 $(74)$(106)$(12)$259 Fixed Income207 66 (78)(16)(6)173 Alternatives and Solutions466 102 (83)(47)(7)431 Long-Term AUM$1,068 $224 $(235)$(169)$(25)$863 Liquidity and Overlay Services497 2,224 (2,268)(6)(5)442 Total$1,565 $2,448 $(2,503)$(175)$(30)$1,305 1.Inflows represent investments or commitments from new and existing clients in new or existing investment products, including reinvestments of client dividends and increases in invested capital.\"",
        "Reworded sentence: \"dollar denominated funds.5.In 2023, our Retail Municipal and Corporate Fixed Income business (“FIMS”) was combined with our Parametric retail customized solutions business.\""
      ],
      "current_body": "($ in millions) •Compensation and benefits expenses of $26,178 million in 2024 increased 7% from the prior year, primarily due to an increase in the formulaic payout to Wealth Management representatives and higher discretionary incentive compensation, both on higher revenues, partially offset by lower severance costs. In 2023, Compensation and benefits expenses included severance costs of $353 million, primarily associated with a specific Firmwide reduction in workforce during the second quarter of 2023. We recorded severance costs of $220 million in the Institutional Securities business segment, $105 million in the Wealth Management business segment, and $28 million in the Investment Management business segment for 2023. In 2022, Compensation and benefits expenses included severance costs of $133 million, associated with a specific Firmwide reduction in workforce during the fourth quarter of 2022. We recorded severance costs of $88 million in the Institutional Securities business segment, $30 million in the Wealth Management business segment, and $15 million in the Investment Management business segment for 2022. These specific reductions in workforce occurred across the Firm’s business segments and geographic regions, impacted approximately 4% and 1% of the Firm’s global workforce in 2023 and 2022, respectively, and resulted from the Firm’s review of its global workforce, operating expenses and the business environment following the acquisitions of E*TRADE Financial Corporation (“E*TRADE”) and Eaton Vance Corp. (“Eaton Vance”), rather than a change in strategy or exit of businesses. These costs were primarily incurred in the Americas and EMEA, with the majority in the Americas. •Non-compensation expenses of $17,723 million in 2024 increased 3% from the prior year, primarily driven by higher execution-related expenses and increased technology spend, partially offset by lower legal expenses and lower FDIC special assessment cost. In 2023, integration-related expenses were $293 million, of which $201 million related to the integration of E*TRADE within the Wealth Management business segment and $92 million related to the integration of Eaton Vance within the Investment Management business segment. In 2022, integration-related expenses were $470 million, of which $357 million related to the integration of E*TRADE within the Wealth Management business segment and $113 million related to the integration of Eaton Vance within the Investment Management business segment. Integration-related expenses primarily included non-compensation expenses such as information technology expense related to the consolidation of platforms, and professional fees related to changes in legal entity structures and the integration of clients, within both Wealth Management and Investment Management business segments. Integration-related activities were substantially completed as of December 31, 2023.Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios.For further information on the Provision for credit losses, see “Credit Risk” herein.Business Segment ResultsNet Revenues by Segment1($ in millions) In 2023, integration-related expenses were $293 million, of which $201 million related to the integration of E*TRADE within the Wealth Management business segment and $92 million related to the integration of Eaton Vance within the Investment Management business segment. In 2022, integration-related expenses were $470 million, of which $357 million related to the integration of E*TRADE within the Wealth Management business segment and $113 million related to the integration of Eaton Vance within the Investment Management business segment. Integration-related expenses primarily included non-compensation expenses such as information technology expense related to the consolidation of platforms, and professional fees related to changes in legal entity structures and the integration of clients, within both Wealth Management and Investment Management business segments. Integration-related activities were substantially completed as of December 31, 2023.",
      "prior_body": "($ in millions) •Compensation and benefits expenses of $24,558 million in 2023 increased 7% from the prior year, primarily due to higher expenses related to certain employee deferred cash-based compensation plans linked to investment performance (“DCP”) and higher salary expenses, partially offset by lower expenses related to outstanding deferred equity compensation. 2023 Compensation and benefits expenses included $353 million of severance costs, primarily associated with the employee action recorded in the second quarter of 2023. •Non-compensation expenses of $17,240 million in 2023 increased 6% from the prior year, primarily driven by an FDIC special assessment of $286 million, increased spend on technology, higher costs related to exits of real estate and higher legal expenses, including $249 million related to a specific matter."
    },
    {
      "status": "MODIFIED",
      "current_title": "Liquidity is essential to our businesses and we rely on external sources to finance a significant portion of our operations.",
      "prior_title": "Our borrowing costs and access to the debt capital markets depend on our credit ratings.",
      "similarity_score": 0.837,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Liquidity is essential to our businesses.\"",
        "Reworded sentence: \"These include governance, capital adequacy, the level and quality of earnings, liquidity and funding, risk appetite and management, asset quality, strategic direction, business mix, regulatory or legislative changes, macroeconomic environment and perceived levels of support, and it is possible that the rating agencies could downgrade our ratings and those of similar institutions.Our credit ratings also can have an adverse impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as OTC and other derivative transactions, including credit derivatives and interest rate swaps.\"",
        "Reworded sentence: \"to protect clients and creditors of such entities.These laws, regulations and rules may hinder our ability to access funds that we may need to make payments on our obligations.\"",
        "Reworded sentence: \"banking agencies have the authority, and under certain circumstances the duty, to prohibit or to limit the payment of dividends or other capital actions by the banking organizations they supervise, including us and our U.S.\"",
        "Reworded sentence: \"For more information on how we monitor and manage legal, regulatory and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk.” If we are unable to raise funding using the methods described above, we would likely need to utilize other funding sources or finance or liquidate unencumbered assets, such as our investment portfolios or trading assets, to meet maturing liabilities or other obligations.\""
      ],
      "current_body": "Liquidity is essential to our businesses. Our liquidity could be negatively affected by our inability to raise funding in the long-term or short-term debt capital markets, our inability to access the secured lending markets, our inability to attract and retain deposits, or unanticipated outflows of cash or collateral by customers or clients. Factors that we cannot control, such as volatility and disruption of the financial markets or negative views about the financial services industry generally, including concerns regarding fiscal matters in the U.S. and other geographic areas, could impair our ability to raise funding. In addition, our ability to raise funding could be impaired if investors, depositors or lenders develop a negative perception of our long-term or short-term financial prospects due to factors such as an incurrence of large trading, credit or operational losses, a downgrade by the rating agencies, a decline in the level of our business activity, if regulatory authorities take significant action against us or our industry, or if we discover significant employee misconduct or illegal activity. 17December 2024 Form 10-K 17December 2024 Form 10-K 17December 2024 Form 10-K 17 Table of Contents Table of Contents Table of Contents If we are unable to raise funding using the methods described above, we would likely need to utilize other funding sources or finance or liquidate unencumbered assets, such as our investment portfolios or trading assets, to meet maturing liabilities or other obligations. We may be unable to sell some of our assets or we may have to sell assets at a discount to market value, either of which could adversely affect our results of operations, cash flows and financial condition.Our borrowing costs and access to the debt capital markets depend on our credit ratings.The cost and availability of unsecured financing generally are impacted by (among other things) our long-term and short-term credit ratings. The rating agencies continue to monitor certain Firm-specific and industrywide factors that are important to the determination of our credit ratings. These include governance, capital adequacy, the level and quality of earnings, liquidity and funding, risk appetite and management, asset quality, strategic direction, business mix, regulatory or legislative changes, macroeconomic environment and perceived levels of support, and it is possible that the rating agencies could downgrade our ratings and those of similar institutions.Our credit ratings also can have an adverse impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as OTC and other derivative transactions, including credit derivatives and interest rate swaps. In connection with certain OTC trading agreements and certain other agreements associated with our Institutional Securities business segment, we may be required to provide additional collateral to, or immediately settle any outstanding liability balance with, certain counterparties in the event of a credit rating downgrade.Termination of our trading agreements could cause us to sustain losses and impair our liquidity by requiring us to find other sources of financing or to make significant payments in the form of cash or securities. The additional collateral or termination payments that may occur in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody’s Investors Service, Inc., S&P Global Ratings and/or other rating agencies. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Credit Ratings—Incremental Collateral or Terminating Payments.”We are a holding company and depend on payments from our subsidiaries.The Parent Company has no business operations and depends on dividends, distributions, loans and other payments from its subsidiaries to fund dividend payments and to fund all payments on its obligations, including debt obligations. Regulatory restrictions, tax restrictions or elections and other legal restrictions may limit our ability to transfer funds freely, either to or from our subsidiaries. In particular, many of our subsidiaries, including our bank and broker-dealer subsidiaries, are subject to laws, regulations and self-regulatory organization rules that, in certain circumstances, limit, as well as permit regulatory bodies to block or reduce, the flow of funds to the Parent Company, or that prohibit such transfers or dividends altogether, including steps to “ring fence” entities by regulators outside the U.S. to protect clients and creditors of such entities.These laws, regulations and rules may hinder our ability to access funds that we may need to make payments on our obligations. Furthermore, as a BHC, we may become subject to a prohibition or to limitations on our ability to pay dividends. The U.S. banking agencies have the authority, and under certain circumstances the duty, to prohibit or to limit the payment of dividends or other capital actions by the banking organizations they supervise, including us and our U.S. Bank Subsidiaries. See “We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements” under “Legal, Regulatory and Compliance Risk” herein.Our liquidity and financial condition have in the past been, and in the future could be, adversely affected by U.S. and international markets and economic conditions.Our ability to raise funding in the long-term or short-term debt capital markets or the equity markets, or to access secured lending markets, has in the past been, and could in the future be, adversely affected by conditions in the U.S. and international markets and economies.In particular, our cost and availability of funding in the past have been, and may in the future be, adversely affected by illiquid credit markets, interest rates and wider credit spreads. Significant turbulence in the U.S., the E.U. and other international markets and economies could adversely affect our liquidity and financial condition and the willingness of certain counterparties and customers to do business with us.Legal, Regulatory and Compliance RiskLegal, regulatory and compliance risk includes the risk of legal or regulatory sanctions; material financial loss, including fines, penalties, judgments, damages and/or settlements; limitations on our business; or loss to reputation we may suffer as a result of our failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing and anti-corruption rules and regulations. For more information on how we monitor and manage legal, regulatory and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk.” If we are unable to raise funding using the methods described above, we would likely need to utilize other funding sources or finance or liquidate unencumbered assets, such as our investment portfolios or trading assets, to meet maturing liabilities or other obligations. We may be unable to sell some of our assets or we may have to sell assets at a discount to market value, either of which could adversely affect our results of operations, cash flows and financial condition.Our borrowing costs and access to the debt capital markets depend on our credit ratings.The cost and availability of unsecured financing generally are impacted by (among other things) our long-term and short-term credit ratings. The rating agencies continue to monitor certain Firm-specific and industrywide factors that are important to the determination of our credit ratings. These include governance, capital adequacy, the level and quality of earnings, liquidity and funding, risk appetite and management, asset quality, strategic direction, business mix, regulatory or legislative changes, macroeconomic environment and perceived levels of support, and it is possible that the rating agencies could downgrade our ratings and those of similar institutions.Our credit ratings also can have an adverse impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as OTC and other derivative transactions, including credit derivatives and interest rate swaps. In connection with certain OTC trading agreements and certain other agreements associated with our Institutional Securities business segment, we may be required to provide additional collateral to, or immediately settle any outstanding liability balance with, certain counterparties in the event of a credit rating downgrade.Termination of our trading agreements could cause us to sustain losses and impair our liquidity by requiring us to find other sources of financing or to make significant payments in the form of cash or securities. The additional collateral or termination payments that may occur in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody’s Investors Service, Inc., S&P Global Ratings and/or other rating agencies. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Credit Ratings—Incremental Collateral or Terminating Payments.”We are a holding company and depend on payments from our subsidiaries.The Parent Company has no business operations and depends on dividends, distributions, loans and other payments from its subsidiaries to fund dividend payments and to fund all payments on its obligations, including debt obligations. Regulatory restrictions, tax restrictions or elections and other legal restrictions may limit our ability to transfer funds freely, either to or from our subsidiaries. In particular, many of our If we are unable to raise funding using the methods described above, we would likely need to utilize other funding sources or finance or liquidate unencumbered assets, such as our investment portfolios or trading assets, to meet maturing liabilities or other obligations. We may be unable to sell some of our assets or we may have to sell assets at a discount to market value, either of which could adversely affect our results of operations, cash flows and financial condition.",
      "prior_body": "The cost and availability of unsecured financing generally are impacted by (among other things) our long-term and short-term credit ratings. The rating agencies continue to monitor certain Firm-specific and industrywide factors that are important to the determination of our credit ratings. These include governance, capital adequacy, the level and quality of earnings, liquidity and funding, risk appetite and management, asset quality, strategic direction, business mix, regulatory or legislative changes, macroeconomic environment and perceived levels of support, and it is possible that the rating agencies could downgrade our ratings and those of similar institutions. Our credit ratings also can have an adverse impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, 17December 2023 Form 10-K 17December 2023 Form 10-K 17December 2023 Form 10-K 17 Table of Contents Table of Contents Table of Contents such as OTC and other derivative transactions, including credit derivatives and interest rate swaps. In connection with certain OTC trading agreements and certain other agreements associated with our Institutional Securities business segment, we may be required to provide additional collateral to, or immediately settle any outstanding liability balance with, certain counterparties in the event of a credit rating downgrade.Termination of our trading agreements could cause us to sustain losses and impair our liquidity by requiring us to find other sources of financing or to make significant payments in the form of cash or securities. The additional collateral or termination payments that may occur in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody’s Investors Service, Inc., S&P Global Ratings and/or other rating agencies. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Credit Ratings—Incremental Collateral or Terminating Payments.”We are a holding company and depend on payments from our subsidiaries.The Parent Company has no business operations and depends on dividends, distributions, loans and other payments from its subsidiaries to fund dividend payments and to fund all payments on its obligations, including debt obligations. Regulatory restrictions, tax restrictions or elections and other legal restrictions may limit our ability to transfer funds freely, either to or from our subsidiaries. In particular, many of our subsidiaries, including our bank and broker-dealer subsidiaries, are subject to laws, regulations and self-regulatory organization rules that, in certain circumstances, limit, as well as permit regulatory bodies to block or reduce, the flow of funds to the Parent Company, or that prohibit such transfers or dividends altogether, including steps to “ring fence” entities by regulators outside the U.S. to protect clients and creditors of such entities in the event of financial difficulties involving such entities.These laws, regulations and rules may hinder our ability to access funds that we may need to make payments on our obligations. Furthermore, as a BHC, we may become subject to a prohibition or to limitations on our ability to pay dividends. The Federal Reserve, the OCC and the FDIC have the authority, and under certain circumstances the duty, to prohibit or to limit the payment of dividends or other capital actions by the banking organizations they supervise, including us and our U.S. Bank Subsidiaries. See “We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements” under “Legal, Regulatory and Compliance Risk” herein.Our liquidity and financial condition have in the past been, and in the future could be, adversely affected by U.S. and international markets and economic conditions.Our ability to raise funding in the long-term or short-term debt capital markets or the equity markets, or to access secured lending markets, has in the past been, and could in the future be, adversely affected by conditions in the U.S. and international markets and economies.In particular, our cost and availability of funding in the past have been, and may in the future be, adversely affected by illiquid credit markets, interest rates and wider credit spreads. Significant turbulence in the U.S., the E.U. and other international markets and economies could adversely affect our liquidity and financial condition and the willingness of certain counterparties and customers to do business with us.Legal, Regulatory and Compliance RiskLegal, regulatory and compliance risk includes the risk of legal or regulatory sanctions; material financial loss, including fines, penalties, judgments, damages and/or settlements; limitations on our business; or loss to reputation we may suffer as a result of our failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing and anti-corruption rules and regulations. For more information on how we monitor and manage legal, regulatory and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk.”The financial services industry is subject to extensive regulation, and changes in regulation will impact our business.Like other major financial services firms, we are subject to extensive regulation by U.S. federal and state regulatory agencies and securities exchanges and by regulators and exchanges in each of the major markets where we conduct our business, including an increasing number of complex sanctions and disclosure regimes. These laws and regulations, which continue to increase in volume and complexity, significantly affect the way and costs of doing business and can restrict the scope of our existing businesses and limit our ability to expand our product offerings and pursue certain investments.The Firm and its employees are subject to wide-ranging regulation and supervision, which, among other things, subject us to intensive scrutiny of our businesses and any plans for expansion of those businesses through acquisitions or otherwise, limitations on activities, a systemic risk regime that imposes heightened capital and liquidity and funding requirements and other enhanced prudential standards, such as OTC and other derivative transactions, including credit derivatives and interest rate swaps. In connection with certain OTC trading agreements and certain other agreements associated with our Institutional Securities business segment, we may be required to provide additional collateral to, or immediately settle any outstanding liability balance with, certain counterparties in the event of a credit rating downgrade.Termination of our trading agreements could cause us to sustain losses and impair our liquidity by requiring us to find other sources of financing or to make significant payments in the form of cash or securities. The additional collateral or termination payments that may occur in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody’s Investors Service, Inc., S&P Global Ratings and/or other rating agencies. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Credit Ratings—Incremental Collateral or Terminating Payments.”We are a holding company and depend on payments from our subsidiaries.The Parent Company has no business operations and depends on dividends, distributions, loans and other payments from its subsidiaries to fund dividend payments and to fund all payments on its obligations, including debt obligations. Regulatory restrictions, tax restrictions or elections and other legal restrictions may limit our ability to transfer funds freely, either to or from our subsidiaries. In particular, many of our subsidiaries, including our bank and broker-dealer subsidiaries, are subject to laws, regulations and self-regulatory organization rules that, in certain circumstances, limit, as well as permit regulatory bodies to block or reduce, the flow of funds to the Parent Company, or that prohibit such transfers or dividends altogether, including steps to “ring fence” entities by regulators outside the U.S. to protect clients and creditors of such entities in the event of financial difficulties involving such entities.These laws, regulations and rules may hinder our ability to access funds that we may need to make payments on our obligations. Furthermore, as a BHC, we may become subject to a prohibition or to limitations on our ability to pay dividends. The Federal Reserve, the OCC and the FDIC have the authority, and under certain circumstances the duty, to prohibit or to limit the payment of dividends or other capital actions by the banking organizations they supervise, including us and our U.S. Bank Subsidiaries. See “We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements” under “Legal, Regulatory and Compliance Risk” herein. such as OTC and other derivative transactions, including credit derivatives and interest rate swaps. In connection with certain OTC trading agreements and certain other agreements associated with our Institutional Securities business segment, we may be required to provide additional collateral to, or immediately settle any outstanding liability balance with, certain counterparties in the event of a credit rating downgrade. Termination of our trading agreements could cause us to sustain losses and impair our liquidity by requiring us to find other sources of financing or to make significant payments in the form of cash or securities. The additional collateral or termination payments that may occur in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody’s Investors Service, Inc., S&P Global Ratings and/or other rating agencies. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Credit Ratings—Incremental Collateral or Terminating Payments.”"
    },
    {
      "status": "MODIFIED",
      "current_title": "Amounts Recognized in Compensation Expense by Segment",
      "prior_title": "Amounts Recognized in Compensation Expense by Segment",
      "similarity_score": 0.836,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in millions202420232022Institutional Securities$150 $162 $(97)Wealth Management1,100 984 11 Investment Management 192 215 131 Total recognized in compensation expense$1,442 $1,361 $45 December 2024 Form 10-K40 December 2024 Form 10-K40 December 2024 Form 10-K40 40 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Projected Future Compensation Obligation1$ in millionsAward liabilities at December 31, 20242, 3$5,658 Fully vested amounts to be distributed by the end of February 20254(772)Unrecognized portion of prior awards at December 31, 202431,590 2024 performance year awards granted in 20253432 Total5$6,908 1.Amounts relate to performance years 2024 and prior.2.Balance is reflected in Other liabilities and accrued expenses in the balance sheet as of December 31, 2024.3.Amounts do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.4.Distributions after February of each year are generally immaterial.5.Of the total projected future compensation obligation, approximately 18% relates to Institutional Securities, approximately 74% relates to Wealth Management and approximately 8% relates to Investment Management.The previous table presents a rollforward of the Firm’s estimated projected future compensation obligation for existing deferred cash-based compensation awards, exclusive of any assumptions about future market conditions with respect to referenced investments.Projected Future Compensation Expense1$ in millionsEstimated to be recognized in:2025$623 2026389 Thereafter1,010 Total$2,022 1.Amounts relate to performance years 2024 and prior, and do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.The previous table sets forth an estimate of compensation expense associated with the projected future compensation obligation.\"",
        "Reworded sentence: \"Accounting updates not listed below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption.We are currently evaluating the following accounting updates; however, we do not expect a material impact on our financial condition or results of operations upon adoption:•Disaggregation of Income Statement Expenses.\""
      ],
      "current_body": "$ in millions202420232022Institutional Securities$150 $162 $(97)Wealth Management1,100 984 11 Investment Management 192 215 131 Total recognized in compensation expense$1,442 $1,361 $45 December 2024 Form 10-K40 December 2024 Form 10-K40 December 2024 Form 10-K40 40 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Projected Future Compensation Obligation1$ in millionsAward liabilities at December 31, 20242, 3$5,658 Fully vested amounts to be distributed by the end of February 20254(772)Unrecognized portion of prior awards at December 31, 202431,590 2024 performance year awards granted in 20253432 Total5$6,908 1.Amounts relate to performance years 2024 and prior.2.Balance is reflected in Other liabilities and accrued expenses in the balance sheet as of December 31, 2024.3.Amounts do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.4.Distributions after February of each year are generally immaterial.5.Of the total projected future compensation obligation, approximately 18% relates to Institutional Securities, approximately 74% relates to Wealth Management and approximately 8% relates to Investment Management.The previous table presents a rollforward of the Firm’s estimated projected future compensation obligation for existing deferred cash-based compensation awards, exclusive of any assumptions about future market conditions with respect to referenced investments.Projected Future Compensation Expense1$ in millionsEstimated to be recognized in:2025$623 2026389 Thereafter1,010 Total$2,022 1.Amounts relate to performance years 2024 and prior, and do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.The previous table sets forth an estimate of compensation expense associated with the projected future compensation obligation. Our projected future compensation obligation and expense for DCP for performance years 2024 and prior are forward-looking statements subject to uncertainty. Actual results may be materially affected by various factors, including, among other things: the performance of each participant’s referenced investments; changes in market conditions; participants’ allocation of their deferred awards; and participant cancellations or accelerations. See “Forward-Looking Statements” and “Risk Factors” for additional information.For further information on the Firm’s deferred stock-based plans and carried interest compensation, which are excluded from the previous tables, see Notes 2 and 19 to the financial statements.Accounting Development UpdatesThe Financial Accounting Standards Board has issued certain accounting updates that apply to us. Accounting updates not listed below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption.We are currently evaluating the following accounting updates; however, we do not expect a material impact on our financial condition or results of operations upon adoption:•Disaggregation of Income Statement Expenses. This update requires quantitative and qualitative disclosure of certain expense categories contained within their relevant expense lines in the income statement, including but not limited to: (1) employee compensation; (2) depreciation; and (3) intangible asset amortization. The update requires the disaggregation of these expense lines in a tabular format in the notes to the financial statements, including the separate disclosure of certain other expenses and gains or losses included within these expense lines which are required under existing U.S. GAAP, with all other expenses permitted to be disclosed in an “other items” category. Additionally, the update requires disclosure of the total amount and definition of the Firm’s selling expenses. The update is effective for annual periods beginning January 1, 2027, and interim reporting periods beginning January 1, 2028, with early adoption permitted.•Income Tax Disclosures. This update enhances annual income tax disclosures primarily to further disaggregate disclosures related to the income tax rate reconciliation and income taxes paid. For the income tax rate reconciliation, this update requires (1) disclosure of specific categories of reconciling items (where applicable), and (2) providing additional information for reconciling items that meet a quantitative threshold. For income taxes paid (net of refunds), this update requires disclosure of amounts disaggregated by (1) federal, state, and foreign taxes; and (2) individual jurisdictions that meet a quantitative threshold. Additionally, the update requires disclosure of (1) income (or loss) before income taxes, disaggregated between domestic and foreign; and (2) income tax expense disaggregated by federal, state and foreign. The update is effective for annual periods beginning January 1, 2025, with early adoption permitted. Critical Accounting EstimatesOur financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions (see Note 1 to the financial statements). We believe that of our significant accounting policies (see Note 2 to the financial statements), the following policies involve a higher degree of judgment and complexity. Projected Future Compensation Obligation1$ in millionsAward liabilities at December 31, 20242, 3$5,658 Fully vested amounts to be distributed by the end of February 20254(772)Unrecognized portion of prior awards at December 31, 202431,590 2024 performance year awards granted in 20253432 Total5$6,908 1.Amounts relate to performance years 2024 and prior.2.Balance is reflected in Other liabilities and accrued expenses in the balance sheet as of December 31, 2024.3.Amounts do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.4.Distributions after February of each year are generally immaterial.5.Of the total projected future compensation obligation, approximately 18% relates to Institutional Securities, approximately 74% relates to Wealth Management and approximately 8% relates to Investment Management.The previous table presents a rollforward of the Firm’s estimated projected future compensation obligation for existing deferred cash-based compensation awards, exclusive of any assumptions about future market conditions with respect to referenced investments.Projected Future Compensation Expense1$ in millionsEstimated to be recognized in:2025$623 2026389 Thereafter1,010 Total$2,022 1.Amounts relate to performance years 2024 and prior, and do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.The previous table sets forth an estimate of compensation expense associated with the projected future compensation obligation. Our projected future compensation obligation and expense for DCP for performance years 2024 and prior are forward-looking statements subject to uncertainty. Actual results may be materially affected by various factors, including, among other things: the performance of each participant’s referenced investments; changes in market conditions; participants’ allocation of their deferred awards; and participant cancellations or accelerations. See “Forward-Looking Statements” and “Risk Factors” for additional information.For further information on the Firm’s deferred stock-based plans and carried interest compensation, which are excluded from the previous tables, see Notes 2 and 19 to the financial statements.",
      "prior_body": "$ in millions202320222021Institutional Securities$162 $(97)$372 Wealth Management984 11 798 Investment Management 215 131 166 Total recognized in compensation expense$1,361 $45 $1,336 December 2023 Form 10-K44 December 2023 Form 10-K44 December 2023 Form 10-K44 44 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Projected Future Compensation Obligation1$ in millionsAward liabilities at December 31, 20232, 3$5,331 Fully vested amounts to be distributed by the end of February 20244(905)Unrecognized portion of prior awards at December 31, 202331,373 2023 performance year awards granted in 20243357 Total5$6,156 1.Amounts relate to performance years 2023 and prior.2.Balance is reflected in Other liabilities and accrued expenses in the balance sheet as of December 31, 2023.3.Amounts do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.4.Distributions after February of each year are generally immaterial.5.Of the total projected future compensation obligation, approximately 20% relates to Institutional Securities, approximately 70% relates to Wealth Management and approximately 10% relates to Investment Management.The previous table presents a rollforward of the Firm’s estimated projected future compensation obligation for existing deferred cash-based compensation awards, exclusive of any assumptions about future market conditions with respect to referenced investments.Projected Future Compensation Expense1$ in millionsEstimated to be recognized in:2024$534 2025337 Thereafter859 Total$1,730 1.Amounts relate to performance years 2023 and prior, and do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.The previous table sets forth an estimate of compensation expense associated with the projected future compensation obligation. Our projected future compensation obligation and expense for DCP for performance years 2023 and prior are forward-looking statements subject to uncertainty. Actual results may be materially affected by various factors, including, among other things: the performance of each participant’s referenced investments; changes in market conditions; participants’ allocation of their deferred awards; and participant cancellations or accelerations. See “Forward-Looking Statements” and “Risk Factors” for additional information.For further information on the Firm’s deferred stock-based plans and carried interest compensation, which are excluded from the previous tables, see Notes 2 and 19 to the financial statements.Accounting Development UpdatesThe Financial Accounting Standards Board has issued certain accounting updates that apply to us. Accounting updates not listed below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption.We adopted the following accounting update on January 1, 2024, with no material impact on our financial condition or results of operations upon adoption:•Investments—Tax Credit Structures. This accounting update permits an election to account for tax equity investments using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the income tax credits and other income tax benefits received and recognized net in the income statement as a component of provision for income taxes. The update requires a separate accounting policy election to be made for each tax credit program. Additional disclosures are required regarding (i) the nature of our tax equity investments and (ii) the effect of our tax equity investments and related income tax credits on the financial condition and results of operations. We are currently evaluating the following accounting updates; however, we do not expect a material impact on our financial condition or results of operations upon adoption:•Income Tax Disclosures. This accounting update requires disclosure of additional information in relation to income taxes, including additional disaggregation of the income tax rate reconciliation and income taxes paid. For the income tax rate reconciliation, this update requires (1) disclosure of specific categories of reconciling items; and (2) providing additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). For income taxes paid, this update requires disclosure of information, including (1) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes; and (2) the amount of income taxes paid (net of refunds received), disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). Additionally, the update requires disclosure of (1) income (or loss) before income taxes, disaggregated between domestic and foreign; and (2) income taxes disaggregated by federal, state and foreign. The accounting update is effective for annual periods beginning January 1, 2025, with early adoption permitted.•Segment Reporting. This accounting update requires additional reportable segment disclosures on an annual and interim basis, primarily about significant segment expenses and other segment items that are regularly provided to the Projected Future Compensation Obligation1$ in millionsAward liabilities at December 31, 20232, 3$5,331 Fully vested amounts to be distributed by the end of February 20244(905)Unrecognized portion of prior awards at December 31, 202331,373 2023 performance year awards granted in 20243357 Total5$6,156 1.Amounts relate to performance years 2023 and prior.2.Balance is reflected in Other liabilities and accrued expenses in the balance sheet as of December 31, 2023.3.Amounts do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.4.Distributions after February of each year are generally immaterial.5.Of the total projected future compensation obligation, approximately 20% relates to Institutional Securities, approximately 70% relates to Wealth Management and approximately 10% relates to Investment Management.The previous table presents a rollforward of the Firm’s estimated projected future compensation obligation for existing deferred cash-based compensation awards, exclusive of any assumptions about future market conditions with respect to referenced investments.Projected Future Compensation Expense1$ in millionsEstimated to be recognized in:2024$534 2025337 Thereafter859 Total$1,730 1.Amounts relate to performance years 2023 and prior, and do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.The previous table sets forth an estimate of compensation expense associated with the projected future compensation obligation. Our projected future compensation obligation and expense for DCP for performance years 2023 and prior are forward-looking statements subject to uncertainty. Actual results may be materially affected by various factors, including, among other things: the performance of each participant’s referenced investments; changes in market conditions; participants’ allocation of their deferred awards; and participant cancellations or accelerations. See “Forward-Looking Statements” and “Risk Factors” for additional information.For further information on the Firm’s deferred stock-based plans and carried interest compensation, which are excluded from the previous tables, see Notes 2 and 19 to the financial statements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Processes for assessing, identifying and managing material risks from cybersecurity threats",
      "prior_title": "Management’s role in assessing and managing material risks from cybersecurity threats",
      "similarity_score": 0.834,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Our Cybersecurity Program takes into account industry best practices and addresses risks from cybersecurity threats to our network, infrastructure, computing environment and the third parties that we rely on.\"",
        "Reworded sentence: \"The Head of NFR CTIS has over 20 years of experience in technology, security and compliance roles, including experience in government security agencies.Risk levels and mitigating measures are presented to and monitored by dedicated management-level cybersecurity risk committees.\"",
        "Reworded sentence: \"The CIO and the Head of NFR CTIS report on the status of our Cybersecurity Program, including significant cybersecurity risks; review metrics related to the program; and discuss the status of regulatory and remedial actions and incidents to the FRC, the BOTC and the Board, as appropriate.\"",
        "Reworded sentence: \"In accordance with its charter, the BOTC receives quarterly reports from (i) Technology, including the CIO or the CISO; (ii) Operations; and (iii) NFR.\"",
        "Reworded sentence: \"The Head of NFR CTIS has over 20 years of experience in technology, security and compliance roles, including experience in government security agencies.Risk levels and mitigating measures are presented to and monitored by dedicated management-level cybersecurity risk committees.\""
      ],
      "current_body": "Our Cybersecurity Program takes into account industry best practices and addresses risks from cybersecurity threats to our network, infrastructure, computing environment and the third parties that we rely on. We periodically assess the design of our cybersecurity controls against the Cyber Risk Institute Cyber Profile, which is based on the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework for Improving Critical Infrastructure Cybersecurity, as well as global cybersecurity regulations, and develop improvements to those controls in response to that assessment. Our Cybersecurity Program also includes cybersecurity and information security policies, procedures and technologies that are designed to address regulatory requirements and protect our clients’, employees’ and own data against unauthorized disclosure, modification and misuse. These policies, procedures and technologies cover a broad range of areas, including: identification of internal and external threats, access control, data security, protective controls, detection of malicious or unauthorized activity, incident response and recovery planning. See also “Firm Resilience” herein for a discussion of our resilience program that is designed to mitigate the impacts of cybersecurity events and other risks. Our threat intelligence function within the Cybersecurity Program actively engages in private and public information-sharing communities and leverages both commercial and proprietary products to collect a wide variety of industry and governmental information regarding the latest cybersecurity threats, which informs our cybersecurity risk assessments and strategy. This information is also provided to an internal cyber threat detection team, which develops and implements strategies designed to defend against these cybersecurity threats across our environment. Our vulnerability management team, as well as NFR, also reviews external cybersecurity incidents that may be relevant to the Firm to further inform the design of our Cybersecurity Program. To assess the efficacy of our controls and defenses designed to mitigate cybersecurity risk, we utilize internal and external testing, including penetration testing and red team engagements. The results of these assessments are used to strengthen the Cybersecurity Program. Additionally, we maintain a global training program covering cybersecurity risks and requirements, including heightened security training to specialized employees, and conduct regular phishing email simulations for our employees and consultants as preventative measures. When a threat is identified in our environment, our incident response team follows an incident response plan to evaluate the impact to the Firm and coordinate appropriate remediation. If warranted, the cybersecurity incident will be reported to applicable regulators, authorities, impacted clients or counterparties, as appropriate. The Firm’s cybersecurity incident response and remediation processes, including assessing materiality and reporting requirements, are reviewed through tabletop exercises.Our processes are designed to help oversee, identify and mitigate cybersecurity risks associated with our use of third-party vendors. We maintain a third-party risk management program that evaluates and responds to cybersecurity risks at our third-party vendors. Prior to engaging third-party vendors to provide services to the Firm, we assess the third-party vendors’ cybersecurity programs to identify cybersecurity risks arising from the use of those vendors’ services. Once onboarded, third-party vendors’ cybersecurity programs are subject to risk-based oversight, which may include security questionnaires, submission of independent security audit reports or a Firm audit of the third-party vendor’s security program, and, with limited exceptions, third-party vendors are required to meet our minimum cybersecurity standards. Where a third-party vendor cannot meet those standards, its services, and the residual risk to the Firm, are subject to review, challenge and escalation through our risk management processes and ERM committees, which may ultimately result in requesting increased security measures or ceasing engagement with such third-party vendor.Our Cybersecurity Program is regularly assessed by IAD through various assurance activities, with the results reported to the BAC and the BOTC. Annually, key elements of the Cybersecurity Program are subject to review by an independent third party, the results of which, including opportunities identified for improvement and related remediation plans, are reviewed with the BOTC. Our Cybersecurity Program is also examined regularly by the Firm’s prudential and conduct regulators within the scope of their jurisdiction.GovernanceManagement’s role in assessing and managing material risks from cybersecurity threatsOur Cybersecurity Program is operated and maintained by management, including the Chief Information Officer of Cyber, Data, Risk and Resilience (“CIO”) and the Chief Information Security Officer (“CISO”). These senior officers are responsible for assessing and managing the Firm’s cybersecurity risks. Our Cybersecurity Program strategy, which is set by the CISO and overseen by the Head of Cyber, Technology, and Information Security Non-Financial Risk (“Head of NFR CTIS”), is informed by various risk and control assessments, control testing, external assessments, threat intelligence, and public and private information sharing. Our Cybersecurity Program also includes processes When a threat is identified in our environment, our incident response team follows an incident response plan to evaluate the impact to the Firm and coordinate appropriate remediation. If warranted, the cybersecurity incident will be reported to applicable regulators, authorities, impacted clients or counterparties, as appropriate. The Firm’s cybersecurity incident response and remediation processes, including assessing materiality and reporting requirements, are reviewed through tabletop exercises. Our processes are designed to help oversee, identify and mitigate cybersecurity risks associated with our use of third-party vendors. We maintain a third-party risk management program that evaluates and responds to cybersecurity risks at our third-party vendors. Prior to engaging third-party vendors to provide services to the Firm, we assess the third-party vendors’ cybersecurity programs to identify cybersecurity risks arising from the use of those vendors’ services. Once onboarded, third-party vendors’ cybersecurity programs are subject to risk-based oversight, which may include security questionnaires, submission of independent security audit reports or a Firm audit of the third-party vendor’s security program, and, with limited exceptions, third-party vendors are required to meet our minimum cybersecurity standards. Where a third-party vendor cannot meet those standards, its services, and the residual risk to the Firm, are subject to review, challenge and escalation through our risk management processes and ERM committees, which may ultimately result in requesting increased security measures or ceasing engagement with such third-party vendor. Our Cybersecurity Program is regularly assessed by IAD through various assurance activities, with the results reported to the BAC and the BOTC. Annually, key elements of the Cybersecurity Program are subject to review by an independent third party, the results of which, including opportunities identified for improvement and related remediation plans, are reviewed with the BOTC. Our Cybersecurity Program is also examined regularly by the Firm’s prudential and conduct regulators within the scope of their jurisdiction. Governance Management’s role in assessing and managing material risks from cybersecurity threats Our Cybersecurity Program is operated and maintained by management, including the Chief Information Officer of Cyber, Data, Risk and Resilience (“CIO”) and the Chief Information Security Officer (“CISO”). These senior officers are responsible for assessing and managing the Firm’s cybersecurity risks. Our Cybersecurity Program strategy, which is set by the CISO and overseen by the Head of Cyber, Technology, and Information Security Non-Financial Risk (“Head of NFR CTIS”), is informed by various risk and control assessments, control testing, external assessments, threat intelligence, and public and private information sharing. Our Cybersecurity Program also includes processes December 2024 Form 10-K72 December 2024 Form 10-K72 December 2024 Form 10-K72 72 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents for escalating and considering the materiality of incidents that impact the Firm, including escalation to senior management and the Board.The members of management that lead our Cybersecurity Program and strategy have extensive experience in technology, cybersecurity and information security. The CIO has over 30 years of experience in various engineering, IT, operations and information security roles. The CISO has over 25 years of experience leading cybersecurity teams at financial institutions, including in the areas of IT strategy, risk management and information security. The Head of NFR CTIS has over 20 years of experience in technology, security and compliance roles, including experience in government security agencies.Risk levels and mitigating measures are presented to and monitored by dedicated management-level cybersecurity risk committees. These committees include representatives from Firm management as well as business and control stakeholders who review, challenge and, where appropriate, consider exceptions to our policies and procedures. Significant cybersecurity risks are escalated from these committees to our Non-Financial Risk Committee. The CIO and the Head of NFR CTIS report on the status of our Cybersecurity Program, including significant cybersecurity risks; review metrics related to the program; and discuss the status of regulatory and remedial actions and incidents to the FRC, the BOTC and the Board, as appropriate. For more information regarding the Firm’s ERM framework, see “Quantitative and Qualitative Disclosures about Risk—Risk Management.”Board of Directors’ oversight of risks from cybersecurity threatsAs discussed above, material cybersecurity risks are addressed by management-level ERM committees with escalation to the BOTC and Board, as appropriate. The BOTC has primary responsibility for assisting the Board in its oversight of significant operational risk exposures of the Firm and its business units, including IT, information security, fraud, third-party oversight, business disruption and resilience, and cybersecurity risks (including review of cybersecurity risks against established risk management methodologies) and the steps management has taken to monitor and control such exposures. In accordance with its charter, the BOTC receives quarterly reports from (i) Technology, including the CIO or the CISO; (ii) Operations; and (iii) NFR. Such reporting includes updates on our Cybersecurity Program, risks from cybersecurity threats, our programs to address and mitigate the risks associated with the evolving cybersecurity threat environment, and NFR’s assessment of cybersecurity risks. Senior officers in Technology and NFR also provide an annual report to the BOTC on the status of our broader information security program in compliance with the Gramm-Leach-Bliley Act, which includes a discussion of risks arising from cybersecurity threats. At least annually, senior management representatives in Technology and NFR discuss the status of the Cybersecurity Program and key cybersecurity risks with the Board and, in accordance with the Board’s Corporate Governance Policies, all Board members are invited to attend BOTC meetings and have access to meeting materials. The BOTC, which meets at least quarterly, also reviews and approves significant policies related to cybersecurity, receives an annual independent assessment of key aspects of our Cybersecurity Program from an independent third party and holds joint meetings with the BAC and BRC, as necessary and appropriate. The chair of the BOTC regularly discusses cybersecurity developments with senior management, including the senior officers mentioned above, and reports to the Board on cybersecurity risks and threats and other related matters.Firm ResilienceThe Firm’s critical processes and businesses could be disrupted by events including cyberattacks, failure or loss of access to technology and/or associated data, military conflicts, acts of terror, natural disasters, severe weather events and infectious disease. The Firm maintains a Firmwide resilience program that is designed to provide for operational resilience and enable it to respond to and recover critical processes and supporting assets in the event of a disruption impacting our people, technology, facilities and third parties. The key elements of the Firm’s resilience program include business continuity management, technology disaster recovery, third party resilience and key business service resilience. Resilience testing is performed both internally and with critical third parties to validate recovery capability in accordance with business requirements. Third-Party Risk ManagementIn connection with our ongoing operations, we utilize the products and/or services of third parties, which we anticipate will continue and may increase in the future. These products and/or services include, for example, outsourced processing and support functions and other professional services. Our risk-based approach to managing exposure to our third parties includes the performance of due diligence, implementation of service-level and other contractual agreements, consideration of operational risks and ongoing monitoring of the performance of our third parties. We maintain and continue to enhance our third-party risk management program, which is designed to align with our risk tolerance and meet regulatory requirements. The program includes appropriate governance, policies, procedures and enabling technology. The third-party risk management program includes the adoption of appropriate risk management controls and practices throughout the third-party management life cycle to manage risk of service failure, risk of data loss and reputational risk, among others. for escalating and considering the materiality of incidents that impact the Firm, including escalation to senior management and the Board.The members of management that lead our Cybersecurity Program and strategy have extensive experience in technology, cybersecurity and information security. The CIO has over 30 years of experience in various engineering, IT, operations and information security roles. The CISO has over 25 years of experience leading cybersecurity teams at financial institutions, including in the areas of IT strategy, risk management and information security. The Head of NFR CTIS has over 20 years of experience in technology, security and compliance roles, including experience in government security agencies.Risk levels and mitigating measures are presented to and monitored by dedicated management-level cybersecurity risk committees. These committees include representatives from Firm management as well as business and control stakeholders who review, challenge and, where appropriate, consider exceptions to our policies and procedures. Significant cybersecurity risks are escalated from these committees to our Non-Financial Risk Committee. The CIO and the Head of NFR CTIS report on the status of our Cybersecurity Program, including significant cybersecurity risks; review metrics related to the program; and discuss the status of regulatory and remedial actions and incidents to the FRC, the BOTC and the Board, as appropriate. For more information regarding the Firm’s ERM framework, see “Quantitative and Qualitative Disclosures about Risk—Risk Management.”Board of Directors’ oversight of risks from cybersecurity threatsAs discussed above, material cybersecurity risks are addressed by management-level ERM committees with escalation to the BOTC and Board, as appropriate. The BOTC has primary responsibility for assisting the Board in its oversight of significant operational risk exposures of the Firm and its business units, including IT, information security, fraud, third-party oversight, business disruption and resilience, and cybersecurity risks (including review of cybersecurity risks against established risk management methodologies) and the steps management has taken to monitor and control such exposures. In accordance with its charter, the BOTC receives quarterly reports from (i) Technology, including the CIO or the CISO; (ii) Operations; and (iii) NFR. Such reporting includes updates on our Cybersecurity Program, risks from cybersecurity threats, our programs to address and mitigate the risks associated with the evolving cybersecurity threat environment, and NFR’s assessment of cybersecurity risks. Senior officers in Technology and NFR also provide an annual report to the BOTC on the status of our broader information security program in compliance with the Gramm-Leach-Bliley Act, which includes a discussion of risks arising for escalating and considering the materiality of incidents that impact the Firm, including escalation to senior management and the Board. The members of management that lead our Cybersecurity Program and strategy have extensive experience in technology, cybersecurity and information security. The CIO has over 30 years of experience in various engineering, IT, operations and information security roles. The CISO has over 25 years of experience leading cybersecurity teams at financial institutions, including in the areas of IT strategy, risk management and information security. The Head of NFR CTIS has over 20 years of experience in technology, security and compliance roles, including experience in government security agencies. Risk levels and mitigating measures are presented to and monitored by dedicated management-level cybersecurity risk committees. These committees include representatives from Firm management as well as business and control stakeholders who review, challenge and, where appropriate, consider exceptions to our policies and procedures. Significant cybersecurity risks are escalated from these committees to our Non-Financial Risk Committee. The CIO and the Head of NFR CTIS report on the status of our Cybersecurity Program, including significant cybersecurity risks; review metrics related to the program; and discuss the status of regulatory and remedial actions and incidents to the FRC, the BOTC and the Board, as appropriate. For more information regarding the Firm’s ERM framework, see “Quantitative and Qualitative Disclosures about Risk—Risk Management.” Board of Directors’ oversight of risks from cybersecurity threats As discussed above, material cybersecurity risks are addressed by management-level ERM committees with escalation to the BOTC and Board, as appropriate. The BOTC has primary responsibility for assisting the Board in its oversight of significant operational risk exposures of the Firm and its business units, including IT, information security, fraud, third-party oversight, business disruption and resilience, and cybersecurity risks (including review of cybersecurity risks against established risk management methodologies) and the steps management has taken to monitor and control such exposures. In accordance with its charter, the BOTC receives quarterly reports from (i) Technology, including the CIO or the CISO; (ii) Operations; and (iii) NFR. Such reporting includes updates on our Cybersecurity Program, risks from cybersecurity threats, our programs to address and mitigate the risks associated with the evolving cybersecurity threat environment, and NFR’s assessment of cybersecurity risks. Senior officers in Technology and NFR also provide an annual report to the BOTC on the status of our broader information security program in compliance with the Gramm-Leach-Bliley Act, which includes a discussion of risks arising from cybersecurity threats. At least annually, senior management representatives in Technology and NFR discuss the status of the Cybersecurity Program and key cybersecurity risks with the Board and, in accordance with the Board’s Corporate Governance Policies, all Board members are invited to attend BOTC meetings and have access to meeting materials. The BOTC, which meets at least quarterly, also reviews and approves significant policies related to cybersecurity, receives an annual independent assessment of key aspects of our Cybersecurity Program from an independent third party and holds joint meetings with the BAC and BRC, as necessary and appropriate. The chair of the BOTC regularly discusses cybersecurity developments with senior management, including the senior officers mentioned above, and reports to the Board on cybersecurity risks and threats and other related matters.Firm ResilienceThe Firm’s critical processes and businesses could be disrupted by events including cyberattacks, failure or loss of access to technology and/or associated data, military conflicts, acts of terror, natural disasters, severe weather events and infectious disease. The Firm maintains a Firmwide resilience program that is designed to provide for operational resilience and enable it to respond to and recover critical processes and supporting assets in the event of a disruption impacting our people, technology, facilities and third parties. The key elements of the Firm’s resilience program include business continuity management, technology disaster recovery, third party resilience and key business service resilience. Resilience testing is performed both internally and with critical third parties to validate recovery capability in accordance with business requirements. Third-Party Risk ManagementIn connection with our ongoing operations, we utilize the products and/or services of third parties, which we anticipate will continue and may increase in the future. These products and/or services include, for example, outsourced processing and support functions and other professional services. Our risk-based approach to managing exposure to our third parties includes the performance of due diligence, implementation of service-level and other contractual agreements, consideration of operational risks and ongoing monitoring of the performance of our third parties. We maintain and continue to enhance our third-party risk management program, which is designed to align with our risk tolerance and meet regulatory requirements. The program includes appropriate governance, policies, procedures and enabling technology. The third-party risk management program includes the adoption of appropriate risk management controls and practices throughout the third-party management life cycle to manage risk of service failure, risk of data loss and reputational risk, among others. from cybersecurity threats. At least annually, senior management representatives in Technology and NFR discuss the status of the Cybersecurity Program and key cybersecurity risks with the Board and, in accordance with the Board’s Corporate Governance Policies, all Board members are invited to attend BOTC meetings and have access to meeting materials. The BOTC, which meets at least quarterly, also reviews and approves significant policies related to cybersecurity, receives an annual independent assessment of key aspects of our Cybersecurity Program from an independent third party and holds joint meetings with the BAC and BRC, as necessary and appropriate. The chair of the BOTC regularly discusses cybersecurity developments with senior management, including the senior officers mentioned above, and reports to the Board on cybersecurity risks and threats and other related matters.",
      "prior_body": "Our Cybersecurity Program is operated and maintained by management, including the Chief Information Officer of Cyber, Data, Risk and Resilience (“CIO”) and the Chief Information Security Officer (“CISO”). These senior officers December 2023 Form 10-K26 December 2023 Form 10-K26 December 2023 Form 10-K26 26 Table of Contents Table of Contents Table of Contents are responsible for assessing and managing the Firm’s cybersecurity risks. Our Cybersecurity Program strategy, which is set by the CISO and overseen by the Head of Operational Risk, is informed by various risk and control assessments, control testing, external assessments, threat intelligence, and public and private information sharing. Our Cybersecurity Program also includes processes for escalating and considering the materiality of incidents that impact the Firm, including escalation to senior management and the Board, which are periodically tested through tabletop exercises.The members of management that lead our Cybersecurity Program and strategy have extensive experience in technology, cybersecurity and information security. The CIO has over 30 years of experience in various engineering, IT, operations and information security roles. The CISO has over 25 years of experience leading cybersecurity teams at financial institutions, including in the areas of IT strategy, risk management and information security. The Head of Operational Risk has over 20 years of experience in technology, security and compliance roles, including experience in government security agencies.Risk levels and mitigating measures are presented to and monitored by dedicated management-level cybersecurity risk committees. These committees include representatives from Firm management as well as business and control stakeholders who review, challenge and, where appropriate, consider exceptions to our policies and procedures. Significant cybersecurity risks are escalated from these committees to our Non-Financial Risk Committee. The CIO and the Head of Operational Risk report on the status of our Cybersecurity Program, including significant cybersecurity risks; review metrics related to the program; and discuss the status of regulatory and remedial actions and incidents to the Firm Risk Committee, the BOTC and the Board, as appropriate. For more information regarding the Firm’s ERM framework, see “Quantitative and Qualitative Disclosures about Risk—Risk Management.”Board of Directors’ oversight of risks from cybersecurity threatsAs discussed above, material cybersecurity risks are addressed by management-level ERM committees with escalation to the BOTC and Board, as appropriate. The BOTC has primary responsibility for assisting the Board in its oversight of significant operational risk exposures of the Firm and its business units, including IT, information security, fraud, third-party oversight, business disruption and resilience, and cybersecurity risks (including review of cybersecurity risks against established risk management methodologies) and the steps management has taken to monitor and control such exposures. In accordance with its charter, the BOTC receives quarterly reports from (i) the Technology Department (“Technology”), including the CIO or the CISO; (ii) the Operations Department (“Operations”); and (iii) the Non-Financial Risk Management Department (“NFR”). Such reporting includes updates on our Cybersecurity Program, risks from cybersecurity threats, our programs to address and mitigate the risks associated with the evolving cybersecurity threat environment, and the Operational Risk Department’s assessment of cybersecurity risks. Senior officers in Technology and NFR also provide an annual report to the BOTC on the status of our Cybersecurity Program, including a discussion of risks arising from cybersecurity threats, in compliance with the Gramm-Leach-Bliley Act. At least annually, these senior management representatives discuss the status of the Cybersecurity Program and key cybersecurity risks with the Board. The BOTC also receives an annual independent assessment of key aspects of our Cybersecurity Program from an external party and holds joint meetings with the BAC and Risk Committee of the Board (“BRC”), as necessary and appropriate. In addition, members of the BOTC periodically participate in incident response tabletop exercises and the BOTC periodically receives reports from incident response tabletop exercises performed by and for management.At least annually, the BOTC or the Board reviews and approves the Global Cybersecurity Program Policy, the Global Information Security Program Policy, the Global Third-Party Risk Management Policy, and the Global Technology Policy. The chair of the BOTC regularly reports to the Board on risks from cybersecurity threats and other matters reviewed by the BOTC. In accordance with the Board’s Corporate Governance Policies, all Board members are invited to attend BOTC meetings and have access to meeting materials. Senior management, including the senior officers mentioned above, discuss cybersecurity developments with the chair of the BOTC between Board and committee meetings, as necessary. The BOTC meets regularly in executive session with management, including the Head of NFR, and senior officers from Technology and Operations. are responsible for assessing and managing the Firm’s cybersecurity risks. Our Cybersecurity Program strategy, which is set by the CISO and overseen by the Head of Operational Risk, is informed by various risk and control assessments, control testing, external assessments, threat intelligence, and public and private information sharing. Our Cybersecurity Program also includes processes for escalating and considering the materiality of incidents that impact the Firm, including escalation to senior management and the Board, which are periodically tested through tabletop exercises.The members of management that lead our Cybersecurity Program and strategy have extensive experience in technology, cybersecurity and information security. The CIO has over 30 years of experience in various engineering, IT, operations and information security roles. The CISO has over 25 years of experience leading cybersecurity teams at financial institutions, including in the areas of IT strategy, risk management and information security. The Head of Operational Risk has over 20 years of experience in technology, security and compliance roles, including experience in government security agencies.Risk levels and mitigating measures are presented to and monitored by dedicated management-level cybersecurity risk committees. These committees include representatives from Firm management as well as business and control stakeholders who review, challenge and, where appropriate, consider exceptions to our policies and procedures. Significant cybersecurity risks are escalated from these committees to our Non-Financial Risk Committee. The CIO and the Head of Operational Risk report on the status of our Cybersecurity Program, including significant cybersecurity risks; review metrics related to the program; and discuss the status of regulatory and remedial actions and incidents to the Firm Risk Committee, the BOTC and the Board, as appropriate. For more information regarding the Firm’s ERM framework, see “Quantitative and Qualitative Disclosures about Risk—Risk Management.”Board of Directors’ oversight of risks from cybersecurity threatsAs discussed above, material cybersecurity risks are addressed by management-level ERM committees with escalation to the BOTC and Board, as appropriate. The BOTC has primary responsibility for assisting the Board in its oversight of significant operational risk exposures of the Firm and its business units, including IT, information security, fraud, third-party oversight, business disruption and resilience, and cybersecurity risks (including review of cybersecurity risks against established risk management methodologies) and the steps management has taken to monitor and control such exposures. In accordance with its charter, the BOTC receives quarterly reports from (i) the Technology Department (“Technology”), including the CIO or the CISO; (ii) the Operations are responsible for assessing and managing the Firm’s cybersecurity risks. Our Cybersecurity Program strategy, which is set by the CISO and overseen by the Head of Operational Risk, is informed by various risk and control assessments, control testing, external assessments, threat intelligence, and public and private information sharing. Our Cybersecurity Program also includes processes for escalating and considering the materiality of incidents that impact the Firm, including escalation to senior management and the Board, which are periodically tested through tabletop exercises. The members of management that lead our Cybersecurity Program and strategy have extensive experience in technology, cybersecurity and information security. The CIO has over 30 years of experience in various engineering, IT, operations and information security roles. The CISO has over 25 years of experience leading cybersecurity teams at financial institutions, including in the areas of IT strategy, risk management and information security. The Head of Operational Risk has over 20 years of experience in technology, security and compliance roles, including experience in government security agencies. Risk levels and mitigating measures are presented to and monitored by dedicated management-level cybersecurity risk committees. These committees include representatives from Firm management as well as business and control stakeholders who review, challenge and, where appropriate, consider exceptions to our policies and procedures. Significant cybersecurity risks are escalated from these committees to our Non-Financial Risk Committee. The CIO and the Head of Operational Risk report on the status of our Cybersecurity Program, including significant cybersecurity risks; review metrics related to the program; and discuss the status of regulatory and remedial actions and incidents to the Firm Risk Committee, the BOTC and the Board, as appropriate. For more information regarding the Firm’s ERM framework, see “Quantitative and Qualitative Disclosures about Risk—Risk Management.”"
    },
    {
      "status": "MODIFIED",
      "current_title": "ACL—Lending commitments",
      "prior_title": "ACL—Lending commitments",
      "similarity_score": 0.833,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Beginning balance Provision (release) Ending balance Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance before AllowanceAtDecember 31,2024 AtDecember 31,2023 Corporate2.9 %3.6 %Secured lending facilities0.3 %0.4 %Commercial real estate4.4 %5.3 %Securities-based lending and Other0.6 %0.6 %Total Institutional Securities loans1.1 %1.5 %\""
      ],
      "current_body": "Beginning balance Provision (release) Ending balance Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance before AllowanceAtDecember 31,2024 AtDecember 31,2023 Corporate2.9 %3.6 %Secured lending facilities0.3 %0.4 %Commercial real estate4.4 %5.3 %Securities-based lending and Other0.6 %0.6 %Total Institutional Securities loans1.1 %1.5 %",
      "prior_body": "Beginning balance Provision (release) Ending balance CRE—Commercial real estate Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance before AllowanceAtDecember 31,2023 AtDecember 31,2022 Corporate3.6 %3.6 %Secured lending facilities0.4 %0.4 %Commercial real estate5.3 %3.2 %Securities-based lending and Other0.6 %0.4 %Total Institutional Securities loans1.5 %1.3 %"
    },
    {
      "status": "MODIFIED",
      "current_title": "A failure to address conflicts of interest appropriately could adversely affect our businesses and reputation.",
      "prior_title": "A failure to address conflicts of interest appropriately could adversely affect our businesses and reputation.",
      "similarity_score": 0.829,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"It is possible that potential conflicts could give rise to litigation or enforcement actions, which may lead to our clients being less willing to enter into transactions in which a conflict may occur and could adversely affect our businesses and reputation.\""
      ],
      "current_body": "As a global financial services firm that provides products and services to a large and diversified group of clients, including corporations, governments, financial institutions and individuals, we face potential conflicts of interest in the normal course of business. For example, potential conflicts can occur when there is a divergence of interests between us and a client, among clients, between an employee on the one hand and us or a client on the other, or situations in which we may be a creditor of a client. Moreover, we utilize multiple brands and business channels, including those resulting from our acquisitions, and continue to enhance the collaboration across business segments, which may heighten the potential conflicts of interest or the risk of improper sharing of information. We have policies, procedures and controls that are designed to identify and address potential conflicts of interest, and we utilize various measures, such as the use of disclosure, to manage these potential conflicts. However, identifying and mitigating potential conflicts of interest can be complex and challenging and can become the focus of media and regulatory scrutiny. Indeed, actions that merely appear to create a conflict can put our reputation at risk even if the likelihood of an actual conflict has been mitigated. It is possible that potential conflicts could give rise to litigation or enforcement actions, which may lead to our clients being less willing to enter into transactions in which a conflict may occur and could adversely affect our businesses and reputation. Our regulators also have the ability to scrutinize our activities for potential conflicts of interest, including through detailed examinations of specific transactions. For example, our status as a BHC supervised by the Federal Reserve subjects us to direct Federal Reserve scrutiny with respect to transactions between our U.S. Bank Subsidiaries and their affiliates. Further, the Volcker Rule subjects us to regulatory scrutiny regarding certain transactions between us and our clients.",
      "prior_body": "As a global financial services firm that provides products and services to a large and diversified group of clients, including corporations, governments, financial institutions and individuals, we face potential conflicts of interest in the normal course of business. For example, potential conflicts can occur when there is a divergence of interests between us and a client, among clients, between an employee on the one hand and us or a client on the other, or situations in which we may be a creditor of a client. Moreover, we utilize multiple brands and business channels, including those resulting from our acquisitions, and continue to enhance the collaboration across business segments, which may heighten the potential conflicts of interest or the risk of improper sharing of information. We have policies, procedures and controls that are designed to identify and address potential conflicts of interest, and we utilize various measures, such as the use of disclosure, to manage these potential conflicts. However, identifying and mitigating potential conflicts of interest can be complex and challenging and can become the focus of media and regulatory scrutiny. Indeed, actions that merely appear to create a conflict can put our reputation at risk even if the likelihood of an actual conflict has been mitigated. It is possible that potential conflicts could give rise to litigation or enforcement actions, which may lead to our clients being less willing to enter into transactions in which a conflict may occur and could adversely affect our businesses and reputation.Our regulators also have the ability to scrutinize our activities for potential conflicts of interest, including through detailed examinations of specific transactions. For example, our status as a BHC supervised by the Federal Reserve subjects us to direct Federal Reserve scrutiny with respect to transactions between our U.S. Bank Subsidiaries and their affiliates. Further, the Volcker Rule subjects us to regulatory scrutiny regarding certain transactions between us and our clients.Risk ManagementOur risk management strategies, models and processes may not be fully effective in mitigating our risk exposures in all market environments or against all types of risk, which could result in unexpected losses.We have devoted significant resources to develop our risk management capabilities and expect to continue to do so in the future. Nonetheless, our risk management strategies, models and processes, including our use of various risk models for assessing market, credit, liquidity and operational exposures and hedging strategies, stress testing and other analysis, may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk, including risks that are unidentified or unanticipated.As our businesses change and grow, including through acquisitions and the introduction and application of new technologies, such as artificial intelligence, and the markets in which we operate evolve, our risk management strategies, models and processes may not always adapt with those changes. Some of our methods of managing risk are based upon our use of observed historical market behavior and management’s judgment. As a result, these methods may not predict future risk exposures, which could be significantly greater than the historical measures indicate.In addition, many models we use are based on assumptions or inputs regarding correlations among prices of various asset classes or other market indicators and, therefore, cannot anticipate sudden, unanticipated, or unidentified market or economic movements, such as the impact of a pandemic or a sudden geopolitical conflict, which could cause us to incur losses. Management of market, credit, liquidity, operational, model, legal, regulatory and compliance risks requires, among other things, policies and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective. Our trading risk management strategies and techniques also seek to balance our ability to profit from trading positions with our exposure to potential losses.While we employ a broad and diversified set of risk monitoring and risk mitigation techniques, those techniques and the judgments that accompany their application cannot occur and could adversely affect our businesses and reputation. Our regulators also have the ability to scrutinize our activities for potential conflicts of interest, including through detailed examinations of specific transactions. For example, our status as a BHC supervised by the Federal Reserve subjects us to direct Federal Reserve scrutiny with respect to transactions between our U.S. Bank Subsidiaries and their affiliates. Further, the Volcker Rule subjects us to regulatory scrutiny regarding certain transactions between us and our clients."
    },
    {
      "status": "MODIFIED",
      "current_title": "commitments",
      "prior_title": "Institutional Securities Loans and Lending Commitments1",
      "similarity_score": 0.825,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"At December 31, 2023 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$3 $11 $216 $— $230 A1,054 950 182 — 2,186 BBB7,117 10,076 346 — 17,539 BB11,723 16,367 1,775 277 30,142 Other NIG9,586 12,961 2,924 156 25,627 Unrated2111 1,036 62 2,910 4,119 Total loans, net of ACL29,594 41,401 5,505 3,343 79,843 Lending commitmentsAAA— 50 — — 50 AA2,610 3,064 154 — 5,828 A7,704 21,256 593 — 29,553 BBB9,161 46,304 106 — 55,571 BB4,069 16,431 1,594 414 22,508 Other NIG1,916 13,842 1,077 3 16,838 Unrated26 7 — — 13 Total lendingcommitments25,466 100,954 3,524 417 130,361 Total exposure$55,060 $142,355 $9,029 $3,760 $210,204 NIG–Non-investment grade1.Counterparty credit ratings are internally determined by the CRM.2.Unrated loans and lending commitments are primarily trading positions that are measured at fair value and risk-managed as a component of market risk.\""
      ],
      "current_body": "At December 31, 2023 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$3 $11 $216 $— $230 A1,054 950 182 — 2,186 BBB7,117 10,076 346 — 17,539 BB11,723 16,367 1,775 277 30,142 Other NIG9,586 12,961 2,924 156 25,627 Unrated2111 1,036 62 2,910 4,119 Total loans, net of ACL29,594 41,401 5,505 3,343 79,843 Lending commitmentsAAA— 50 — — 50 AA2,610 3,064 154 — 5,828 A7,704 21,256 593 — 29,553 BBB9,161 46,304 106 — 55,571 BB4,069 16,431 1,594 414 22,508 Other NIG1,916 13,842 1,077 3 16,838 Unrated26 7 — — 13 Total lendingcommitments25,466 100,954 3,524 417 130,361 Total exposure$55,060 $142,355 $9,029 $3,760 $210,204 NIG–Non-investment grade1.Counterparty credit ratings are internally determined by the CRM.2.Unrated loans and lending commitments are primarily trading positions that are measured at fair value and risk-managed as a component of market risk. For a further discussion of our market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk” herein.Institutional Securities Loans and Lending Commitments by Industry$ in millionsAtDecember 31,2024AtDecember 31,2023Financials$68,512 $57,804 Real estate40,041 35,342 Communications services20,425 15,301 Industrials20,024 18,056 Information technology15,666 12,430 Healthcare15,455 14,274 Consumer discretionary14,699 12,190 Consumer staples12,098 9,305 Utilities11,755 11,522 Energy9,036 9,156 Materials7,378 6,503 Insurance6,812 6,486 Other2,428 1,835 Total exposure$244,329 $210,204 Institutional Securities Lending ActivitiesThe Institutional Securities business segment lending activities include Corporate, Secured lending facilities, Commercial and Residential real estate, and Securities-based lending and Other. As of December 31, 2024 and December 31, 2023, over 90% of our total lending exposure, which consists of loans and lending commitments, was investment grade and/or secured by collateral. Corporate comprises relationship and event-driven loans and lending commitments supporting general and event-driven financing needs for our institutional clients, which typically consist of revolving lines of credit, term loans and bridge loans; may have varying terms; may be senior or At December 31, 2023 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$3 $11 $216 $— $230 A1,054 950 182 — 2,186 BBB7,117 10,076 346 — 17,539 BB11,723 16,367 1,775 277 30,142 Other NIG9,586 12,961 2,924 156 25,627 Unrated2111 1,036 62 2,910 4,119 Total loans, net of ACL29,594 41,401 5,505 3,343 79,843 Lending commitmentsAAA— 50 — — 50 AA2,610 3,064 154 — 5,828 A7,704 21,256 593 — 29,553 BBB9,161 46,304 106 — 55,571 BB4,069 16,431 1,594 414 22,508 Other NIG1,916 13,842 1,077 3 16,838 Unrated26 7 — — 13 Total lendingcommitments25,466 100,954 3,524 417 130,361 Total exposure$55,060 $142,355 $9,029 $3,760 $210,204 Unrated2 Unrated2",
      "prior_body": "At December 31, 2023 Contractual Years to Maturity $ in millions< 11-55-15>15TotalLoansAA$3 $11 $216 $— $230 A1,054 950 182 — 2,186 BBB7,117 10,076 346 — 17,539 BB11,723 16,367 1,775 277 30,142 Other NIG9,586 12,961 2,924 156 25,627 Unrated2111 1,036 62 2,910 4,119 Total loans, net of ACL29,594 41,401 5,505 3,343 79,843 Lending commitmentsAAA— 50 — — 50 AA2,610 3,064 154 — 5,828 A7,704 21,256 593 — 29,553 BBB9,161 46,304 106 — 55,571 BB4,069 16,431 1,594 414 22,508 Other NIG1,916 13,842 1,077 3 16,838 Unrated26 7 — — 13 Total lendingcommitments25,466 100,954 3,524 417 130,361 Total exposure$55,060 $142,355 $9,029 $3,760 $210,204 Unrated2 Unrated2"
    },
    {
      "status": "MODIFIED",
      "current_title": "Institutional Securities Lending Activities",
      "prior_title": "Institutional Securities Lending Activities",
      "similarity_score": 0.825,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"As of December 31, 2024 and December 31, 2023, over 90% of our total lending exposure, which consists of loans and lending commitments, was investment grade and/or secured by collateral.\"",
        "Removed sentence: \"71December 2023 Form 10-K 71December 2023 Form 10-K 71December 2023 Form 10-K 71 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Commercial real estate loans are primarily senior, secured by underlying real estate and are typically in term loan form.\"",
        "Removed sentence: \"In addition, as part of certain of its trading and securitization activities, Institutional Securities may also hold residential real estate loans.Securities-based lending and Other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.Institutional Securities Event-Driven Loans and Lending Commitments At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$1,974 $2,564 $2,580 $7,118 Lending commitments3,564 685 549 4,798 Total exposure$5,538 $3,249 $3,129 $11,916 At December 31, 2022 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$2,385 $1,441 $2,771 $6,597 Lending commitments3,079 861 603 4,543 Total exposure$5,464 $2,302 $3,374 $11,140 Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as merger, acquisition, recapitalization or project finance activities.\"",
        "Removed sentence: \"Balances may fluctuate as such lending is related to transactions that vary in timing and size from period to period.Institutional Securities Loans and Lending Commitments Held for InvestmentAt December 31, 2023$ in millionsLoansLending CommitmentsTotalCorporate$6,758 $91,752 $98,510 Secured lending facilities39,498 15,589 55,087 Commercial real estate8,678 266 8,944 Other2,818 915 3,733 Total, before ACL$57,752 $108,522 $166,274 ACL$(874)$(533)$(1,407)At December 31, 2022$ in millionsLoansLending CommitmentsTotalCorporate$6,589 $79,882 $86,471 Secured lending facilities35,606 12,803 48,409 Commercial real estate8,515 374 8,889 Other2,865 985 3,850 Total, before ACL$53,575 $94,044 $147,619 ACL$(674)$(484)$(1,158)Institutional Securities Commercial Real Estate Loans and Lending CommitmentsBy RegionAt December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalAmericas$5,410 $289 $5,699 $6,320 $378 $6,698 EMEA3,127 56 3,183 3,040 79 3,119 Asia485 — 485 445 5 450 Total$9,022 $345 $9,367 $9,805 $462 $10,267 By Property TypeAt December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalOffice$3,310 $186 $3,496 $3,861 $301 $4,162 Industrial2,435 5 2,440 2,561 25 2,586 Multifamily1,715 74 1,789 1,889 85 1,974 Retail842 7 849 659 6 665 Hotel718 73 791 780 45 825 Other2 — 2 55 — 55 Total$9,022 $345 $9,367 $9,805 $462 $10,267 LC–Lending Commitments1.\"",
        "Removed sentence: \"Amounts include HFI, HFS and FVO loans and lending commitments.\""
      ],
      "current_body": "The Institutional Securities business segment lending activities include Corporate, Secured lending facilities, Commercial and Residential real estate, and Securities-based lending and Other. As of December 31, 2024 and December 31, 2023, over 90% of our total lending exposure, which consists of loans and lending commitments, was investment grade and/or secured by collateral. Corporate comprises relationship and event-driven loans and lending commitments supporting general and event-driven financing needs for our institutional clients, which typically consist of revolving lines of credit, term loans and bridge loans; may have varying terms; may be senior or 65December 2024 Form 10-K 65December 2024 Form 10-K 65December 2024 Form 10-K 65 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents subordinated; may be secured or unsecured; are generally contingent upon representations, warranties and contractual conditions applicable to the borrower; and may be syndicated, traded or hedged. Relationship loans and lending commitments are extended to select institutional clients, primarily for general corporate purposes and generally with the intent to hold for the foreseeable future. Event-driven loans and lending commitments are extended in connection with specific client transactions and are explained in further detail in “Institutional Securities Event-Driven Loans and Lending Commitments” herein.Secured lending facilities include loans provided to clients, which are collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other assets. These facilities generally provide for overcollateralization. Credit risk with respect to these loans and lending commitments arises from the failure of a borrower to perform according to the terms of the loan agreement and/or a decline in the underlying collateral value. The Firm monitors collateral levels against the requirements of lending agreements. See Note 15 to the financial statements for information about our securitization activities.Commercial real estate loans are primarily senior, secured by underlying real estate and are typically in term loan form. In addition, as part of certain of its trading and securitization activities, Institutional Securities may also hold residential real estate loans.Securities-based lending and Other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.Institutional Securities Event-Driven Loans and Lending Commitments At December 31, 2024 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$2,253 $2,839 $733 $5,825 Lending commitments5,153 2,152 2,918 10,223 Total exposure$7,406 $4,991 $3,651 $16,048 At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$1,974 $2,564 $2,580 $7,118 Lending commitments3,564 685 549 4,798 Total exposure$5,538 $3,249 $3,129 $11,916 Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as merger, acquisition, recapitalization or project finance activities. Balances may fluctuate as such lending is related to transactions that vary in timing and size from period to period.Institutional Securities Loans and Lending Commitments Held for InvestmentAt December 31, 2024$ in millionsLoansLending CommitmentsTotalCorporate$6,889 $105,824 $112,713 Secured lending facilities48,842 20,971 69,813 Commercial real estate8,412 1,249 9,661 Securities-based lending and Other2,876 1,504 4,380 Total, before ACL$67,019 $129,548 $196,567 ACL$(730)$(640)$(1,370)At December 31, 2023$ in millionsLoansLending CommitmentsTotalCorporate$6,758 $91,752 $98,510 Secured lending facilities39,498 15,589 55,087 Commercial real estate8,678 266 8,944 Securities-based lending and Other2,818 915 3,733 Total, before ACL$57,752 $108,522 $166,274 ACL$(874)$(533)$(1,407)Institutional Securities Commercial Real Estate Loans and Lending CommitmentsBy RegionAt December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalAmericas$5,066 $820 $5,886 $5,410 $289 $5,699 EMEA3,806 522 4,328 3,127 56 3,183 Asia467 13 480 485 — 485 Total$9,339 $1,355 $10,694 $9,022 $345 $9,367 By Property TypeAt December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalOffice$2,846 $109 $2,955 $3,310 $186 $3,496 Industrial2,610 125 2,735 2,435 5 2,440 Multifamily2,042 80 2,122 1,715 74 1,789 Retail1,105 971 2,076 842 7 849 Hotel736 70 806 718 73 791 Other— — — 2 — 2 Total$9,339 $1,355 $10,694 $9,022 $345 $9,367 LC–Lending Commitments1. Amounts include HFI, HFS and FVO loans and lending commitments. HFI loans are presented net of ACL.The current economic environment and changes in business and consumer behavior have adversely impacted commercial real estate borrowers due to pressure from higher interest rates, tenant lease renewals, and elevated refinancing risks for loans with near-term maturities, among other issues. While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given the sector’s sensitivity to economic and secular factors, credit conditions, and difficulties specific to certain property types, most notably office.As of December 31, 2024 and December 31, 2023, our lending against commercial real estate (“CRE”) properties within the Institutional Securities business segment totaled $10.7 billion and $9.4 billion, respectively. This represents subordinated; may be secured or unsecured; are generally contingent upon representations, warranties and contractual conditions applicable to the borrower; and may be syndicated, traded or hedged. Relationship loans and lending commitments are extended to select institutional clients, primarily for general corporate purposes and generally with the intent to hold for the foreseeable future. Event-driven loans and lending commitments are extended in connection with specific client transactions and are explained in further detail in “Institutional Securities Event-Driven Loans and Lending Commitments” herein.Secured lending facilities include loans provided to clients, which are collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other assets. These facilities generally provide for overcollateralization. Credit risk with respect to these loans and lending commitments arises from the failure of a borrower to perform according to the terms of the loan agreement and/or a decline in the underlying collateral value. The Firm monitors collateral levels against the requirements of lending agreements. See Note 15 to the financial statements for information about our securitization activities.Commercial real estate loans are primarily senior, secured by underlying real estate and are typically in term loan form. In addition, as part of certain of its trading and securitization activities, Institutional Securities may also hold residential real estate loans.Securities-based lending and Other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.Institutional Securities Event-Driven Loans and Lending Commitments At December 31, 2024 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$2,253 $2,839 $733 $5,825 Lending commitments5,153 2,152 2,918 10,223 Total exposure$7,406 $4,991 $3,651 $16,048 At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$1,974 $2,564 $2,580 $7,118 Lending commitments3,564 685 549 4,798 Total exposure$5,538 $3,249 $3,129 $11,916 Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as merger, acquisition, recapitalization or project finance activities. Balances may fluctuate as such lending is related to transactions that vary in timing and size from period to period. subordinated; may be secured or unsecured; are generally contingent upon representations, warranties and contractual conditions applicable to the borrower; and may be syndicated, traded or hedged. Relationship loans and lending commitments are extended to select institutional clients, primarily for general corporate purposes and generally with the intent to hold for the foreseeable future. Event-driven loans and lending commitments are extended in connection with specific client transactions and are explained in further detail in “Institutional Securities Event-Driven Loans and Lending Commitments” herein. Secured lending facilities include loans provided to clients, which are collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other assets. These facilities generally provide for overcollateralization. Credit risk with respect to these loans and lending commitments arises from the failure of a borrower to perform according to the terms of the loan agreement and/or a decline in the underlying collateral value. The Firm monitors collateral levels against the requirements of lending agreements. See Note 15 to the financial statements for information about our securitization activities. Commercial real estate loans are primarily senior, secured by underlying real estate and are typically in term loan form. In addition, as part of certain of its trading and securitization activities, Institutional Securities may also hold residential real estate loans. Securities-based lending and Other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.",
      "prior_body": "The Institutional Securities business segment lending activities include Corporate, Secured lending facilities, Commercial and Residential real estate, and Securities-based lending and Other. As of December 31, 2023 and December 31, 2022, over 90% of our total lending exposure, which consists of loans and lending commitments, is investment grade and/or secured by collateral. Corporate comprises relationship and event-driven loans and lending commitments supporting general and event-driven financing needs for our institutional clients, which typically consist of revolving lines of credit, term loans and bridge loans; may have varying terms; may be senior or subordinated; may be secured or unsecured; are generally contingent upon representations, warranties and contractual conditions applicable to the borrower; and may be syndicated, traded or hedged. Relationship loans and lending commitments are extended to select institutional clients, primarily for general corporate purposes and generally with the intent to hold for the foreseeable future. Event-driven loans and lending commitments are extended in connection with specific client transactions and are explained in further detail in “Institutional Securities Event-Driven Loans and Lending Commitments” herein. Secured lending facilities include loans provided to clients, which are collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other assets. These facilities generally provide for overcollateralization. Credit risk with respect to these loans and lending commitments arises from the failure of a borrower to perform according to the terms of the loan agreement and/or a decline in the underlying collateral value. The Firm monitors collateral levels against the requirements of lending agreements. See Note 15 to the financial statements for information about our securitization activities. 71December 2023 Form 10-K 71December 2023 Form 10-K 71December 2023 Form 10-K 71 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Commercial real estate loans are primarily senior, secured by underlying real estate and are typically in term loan form. In addition, as part of certain of its trading and securitization activities, Institutional Securities may also hold residential real estate loans.Securities-based lending and Other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.Institutional Securities Event-Driven Loans and Lending Commitments At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$1,974 $2,564 $2,580 $7,118 Lending commitments3,564 685 549 4,798 Total exposure$5,538 $3,249 $3,129 $11,916 At December 31, 2022 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$2,385 $1,441 $2,771 $6,597 Lending commitments3,079 861 603 4,543 Total exposure$5,464 $2,302 $3,374 $11,140 Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as merger, acquisition, recapitalization or project finance activities. Balances may fluctuate as such lending is related to transactions that vary in timing and size from period to period.Institutional Securities Loans and Lending Commitments Held for InvestmentAt December 31, 2023$ in millionsLoansLending CommitmentsTotalCorporate$6,758 $91,752 $98,510 Secured lending facilities39,498 15,589 55,087 Commercial real estate8,678 266 8,944 Other2,818 915 3,733 Total, before ACL$57,752 $108,522 $166,274 ACL$(874)$(533)$(1,407)At December 31, 2022$ in millionsLoansLending CommitmentsTotalCorporate$6,589 $79,882 $86,471 Secured lending facilities35,606 12,803 48,409 Commercial real estate8,515 374 8,889 Other2,865 985 3,850 Total, before ACL$53,575 $94,044 $147,619 ACL$(674)$(484)$(1,158)Institutional Securities Commercial Real Estate Loans and Lending CommitmentsBy RegionAt December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalAmericas$5,410 $289 $5,699 $6,320 $378 $6,698 EMEA3,127 56 3,183 3,040 79 3,119 Asia485 — 485 445 5 450 Total$9,022 $345 $9,367 $9,805 $462 $10,267 By Property TypeAt December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalOffice$3,310 $186 $3,496 $3,861 $301 $4,162 Industrial2,435 5 2,440 2,561 25 2,586 Multifamily1,715 74 1,789 1,889 85 1,974 Retail842 7 849 659 6 665 Hotel718 73 791 780 45 825 Other2 — 2 55 — 55 Total$9,022 $345 $9,367 $9,805 $462 $10,267 LC–Lending Commitments1. Amounts include HFI, HFS and FVO loans and lending commitments. HFI loans are presented net of ACL.The current economic environment and changes in business and consumer behavior have adversely impacted commercial real estate borrowers due to pressure from higher interest rates, tenant lease renewals, and elevated refinancing risks for loans with near-term maturities, among other issues. While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given the sector’s sensitivity to economic and secular factors, credit conditions, and difficulties specific to certain property types, most notably office.As of December 31, 2023 and December 31, 2022, our lending against commercial real estate (“CRE”) properties totaled $9.4 billion and $10.3 billion within the Institutional Securities business segment, which represents 4.5% and 5.3% of total exposure reflected in the Institutional Securities Loans and Lending Commitments table above. Those CRE loans are originated for experienced sponsors and are generally secured by specific institutional CRE properties. In many cases, loans are subsequently syndicated or securitized on a full or partial basis, reducing our ongoing exposure.In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above. These secured lending facilities benefit from structural protections including cross-collateralization and diversification across property types. Commercial real estate loans are primarily senior, secured by underlying real estate and are typically in term loan form. In addition, as part of certain of its trading and securitization activities, Institutional Securities may also hold residential real estate loans.Securities-based lending and Other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.Institutional Securities Event-Driven Loans and Lending Commitments At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$1,974 $2,564 $2,580 $7,118 Lending commitments3,564 685 549 4,798 Total exposure$5,538 $3,249 $3,129 $11,916 At December 31, 2022 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$2,385 $1,441 $2,771 $6,597 Lending commitments3,079 861 603 4,543 Total exposure$5,464 $2,302 $3,374 $11,140 Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as merger, acquisition, recapitalization or project finance activities. Balances may fluctuate as such lending is related to transactions that vary in timing and size from period to period.Institutional Securities Loans and Lending Commitments Held for InvestmentAt December 31, 2023$ in millionsLoansLending CommitmentsTotalCorporate$6,758 $91,752 $98,510 Secured lending facilities39,498 15,589 55,087 Commercial real estate8,678 266 8,944 Other2,818 915 3,733 Total, before ACL$57,752 $108,522 $166,274 ACL$(874)$(533)$(1,407)At December 31, 2022$ in millionsLoansLending CommitmentsTotalCorporate$6,589 $79,882 $86,471 Secured lending facilities35,606 12,803 48,409 Commercial real estate8,515 374 8,889 Other2,865 985 3,850 Total, before ACL$53,575 $94,044 $147,619 ACL$(674)$(484)$(1,158) Commercial real estate loans are primarily senior, secured by underlying real estate and are typically in term loan form. In addition, as part of certain of its trading and securitization activities, Institutional Securities may also hold residential real estate loans. Securities-based lending and Other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market."
    },
    {
      "status": "MODIFIED",
      "current_title": "Average Common Equity Attribution under the Required Capital Framework1",
      "prior_title": "Average Common Equity Attribution under the Required Capital Framework1",
      "similarity_score": 0.82,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in billions202420232022Institutional Securities$45.0 $45.6 $48.8 Wealth Management29.1 28.8 31.0 Investment Management10.8 10.4 10.6 Parent6.8 6.0 3.5 Total$91.7 $90.8 $93.9 Wealth Management Investment Management 1.The attribution of average common equity to the business segments is a non-GAAP financial measure.\"",
        "Removed sentence: \"The total average common equity and the allocation to the Investment Management business segment in 2021 reflect the Eaton Vance acquisition on March 1, 2021.\""
      ],
      "current_body": "$ in billions202420232022Institutional Securities$45.0 $45.6 $48.8 Wealth Management29.1 28.8 31.0 Investment Management10.8 10.4 10.6 Parent6.8 6.0 3.5 Total$91.7 $90.8 $93.9 Wealth Management Investment Management 1.The attribution of average common equity to the business segments is a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein. We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate.",
      "prior_body": "$ in billions202320222021Institutional Securities$45.6 $48.8 $43.5 Wealth Management28.8 31.0 28.6 Investment Management210.4 10.6 8.8 Parent6.0 3.5 16.2 Total$90.8 $93.9 $97.1 Wealth Management Investment Management2 1.The attribution of average common equity to the business segments is a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein. 2. The total average common equity and the allocation to the Investment Management business segment in 2021 reflect the Eaton Vance acquisition on March 1, 2021. We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate."
    },
    {
      "status": "MODIFIED",
      "current_title": "We are exposed to the risk that third parties that are indebted to us will not perform their obligations.",
      "prior_title": "We are exposed to the risk that third parties that are indebted to us will not perform their obligations.",
      "similarity_score": 0.817,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"This risk may arise from a variety of business activities, including, but not limited to: extending credit to clients through various lending commitments; entering into swap or other derivative contracts under which counterparties have obligations to make payments to us; acting as clearing broker for listed and over-the-counter derivatives whereby we guarantee client performance to clearinghouses; providing short- or long-term funding that is secured by physical or financial collateral, including, but not limited to, real estate and marketable securities, whose value may at times be insufficient to fully cover the loan repayment amount; posting margin and/or collateral and other commitments to clearinghouses, clearing agencies, exchanges, banks, securities firms and other financial counterparties; and investing and trading in securities and loan pools, whereby the value of these assets may fluctuate based on realized or expected defaults on the underlying obligations or loans.We also incur credit risk in our Wealth Management business segment lending to mainly individual investors, including, but not limited to, margin- and securities-based loans collateralized by securities, residential mortgage loans, including home equity lines of credit (“HELOCs”), and structured loans to ultra-high net worth clients, that are in most cases secured by various types of collateral whose value may at times be insufficient to fully cover the loan repayment amount, including marketable securities, private investments, commercial real estate and other financial assets.Our valuations related to, and reserves for losses on, credit exposures rely on complex models, estimates and subjective judgments about the future.\"",
        "Reworded sentence: \"For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risk.”In addition, as a clearing member of several central counterparties, we are responsible for the defaults or misconduct of our customers and could incur financial losses collateral and other commitments to clearinghouses, clearing agencies, exchanges, banks, securities firms and other financial counterparties; and investing and trading in securities and loan pools, whereby the value of these assets may fluctuate based on realized or expected defaults on the underlying obligations or loans.\"",
        "Reworded sentence: \"For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risk.” In addition, as a clearing member of several central counterparties, we are responsible for the defaults or misconduct of our customers and could incur financial losses December 2024 Form 10-K14 December 2024 Form 10-K14 December 2024 Form 10-K14 14 Table of Contents Table of Contents Table of Contents in the event of default by other clearing members.\""
      ],
      "current_body": "We incur significant credit risk exposure through our Institutional Securities business segment. This risk may arise from a variety of business activities, including, but not limited to: extending credit to clients through various lending commitments; entering into swap or other derivative contracts under which counterparties have obligations to make payments to us; acting as clearing broker for listed and over-the-counter derivatives whereby we guarantee client performance to clearinghouses; providing short- or long-term funding that is secured by physical or financial collateral, including, but not limited to, real estate and marketable securities, whose value may at times be insufficient to fully cover the loan repayment amount; posting margin and/or collateral and other commitments to clearinghouses, clearing agencies, exchanges, banks, securities firms and other financial counterparties; and investing and trading in securities and loan pools, whereby the value of these assets may fluctuate based on realized or expected defaults on the underlying obligations or loans.We also incur credit risk in our Wealth Management business segment lending to mainly individual investors, including, but not limited to, margin- and securities-based loans collateralized by securities, residential mortgage loans, including home equity lines of credit (“HELOCs”), and structured loans to ultra-high net worth clients, that are in most cases secured by various types of collateral whose value may at times be insufficient to fully cover the loan repayment amount, including marketable securities, private investments, commercial real estate and other financial assets.Our valuations related to, and reserves for losses on, credit exposures rely on complex models, estimates and subjective judgments about the future. While we believe current valuations and reserves adequately address our perceived levels of risk, future economic conditions, including inflation and changes in real estate and other asset values, that differ from or are more severe than forecast, inaccurate models or assumptions, or external factors, such as geopolitical events, changes in international trade policies, global pandemics or natural disasters, could lead to inaccurate measurement of or deterioration of credit quality of our borrowers and counterparties or the value of collateral and result in unexpected losses. We may also incur higher-than-anticipated credit losses as a result of (i) disputes with counterparties over the valuation of collateral or (ii) actions taken by other lenders that may negatively impact the valuation of collateral. In cases where we foreclose on collateral, sudden declines in the value or liquidity of collateral may result in significant losses to us despite our (i) credit monitoring, (ii) over-collateralization, (iii) ability to call for additional collateral or (iv) ability to force repayment of the underlying obligation, especially where there is a single type of collateral supporting the obligation. In addition, in the longer term, climate change may have a negative impact on the financial condition of our clients, which may decrease revenues from those clients and increase the credit risk associated with loans and other credit exposures to those clients. Certain of our credit exposures may be concentrated by counterparty, product, sector, portfolio, industry or geographic region. Although our models and estimates account for correlations among related types of exposures, a change in the market or economic environment for a concentrated product or an external factor impacting a concentrated counterparty, sector, portfolio, industry or geographic region may result in credit losses in excess of amounts forecast. For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risk.”In addition, as a clearing member of several central counterparties, we are responsible for the defaults or misconduct of our customers and could incur financial losses collateral and other commitments to clearinghouses, clearing agencies, exchanges, banks, securities firms and other financial counterparties; and investing and trading in securities and loan pools, whereby the value of these assets may fluctuate based on realized or expected defaults on the underlying obligations or loans. We also incur credit risk in our Wealth Management business segment lending to mainly individual investors, including, but not limited to, margin- and securities-based loans collateralized by securities, residential mortgage loans, including home equity lines of credit (“HELOCs”), and structured loans to ultra-high net worth clients, that are in most cases secured by various types of collateral whose value may at times be insufficient to fully cover the loan repayment amount, including marketable securities, private investments, commercial real estate and other financial assets. Our valuations related to, and reserves for losses on, credit exposures rely on complex models, estimates and subjective judgments about the future. While we believe current valuations and reserves adequately address our perceived levels of risk, future economic conditions, including inflation and changes in real estate and other asset values, that differ from or are more severe than forecast, inaccurate models or assumptions, or external factors, such as geopolitical events, changes in international trade policies, global pandemics or natural disasters, could lead to inaccurate measurement of or deterioration of credit quality of our borrowers and counterparties or the value of collateral and result in unexpected losses. We may also incur higher-than-anticipated credit losses as a result of (i) disputes with counterparties over the valuation of collateral or (ii) actions taken by other lenders that may negatively impact the valuation of collateral. In cases where we foreclose on collateral, sudden declines in the value or liquidity of collateral may result in significant losses to us despite our (i) credit monitoring, (ii) over-collateralization, (iii) ability to call for additional collateral or (iv) ability to force repayment of the underlying obligation, especially where there is a single type of collateral supporting the obligation. In addition, in the longer term, climate change may have a negative impact on the financial condition of our clients, which may decrease revenues from those clients and increase the credit risk associated with loans and other credit exposures to those clients. Certain of our credit exposures may be concentrated by counterparty, product, sector, portfolio, industry or geographic region. Although our models and estimates account for correlations among related types of exposures, a change in the market or economic environment for a concentrated product or an external factor impacting a concentrated counterparty, sector, portfolio, industry or geographic region may result in credit losses in excess of amounts forecast. For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risk.” In addition, as a clearing member of several central counterparties, we are responsible for the defaults or misconduct of our customers and could incur financial losses December 2024 Form 10-K14 December 2024 Form 10-K14 December 2024 Form 10-K14 14 Table of Contents Table of Contents Table of Contents in the event of default by other clearing members. Although we regularly review our credit exposures, default risk may arise from events or circumstances that are difficult to detect or foresee.A default by a large financial institution could adversely affect financial markets.The commercial soundness of many financial institutions and certain other large financial services firms may be closely interrelated as a result of credit, trading, clearing or other relationships among such entities. Increased centralization of trading activities through particular clearinghouses, central agents or exchanges may increase our concentration of risk with respect to these entities. As a result, concerns about, or a default or threatened default by, one or more such entities could lead to significant market-wide liquidity and credit problems, losses or defaults by other institutions, or require financial commitments to multilateral actions intended to support market stability. This is sometimes referred to as systemic risk and may adversely affect financial intermediaries, such as clearinghouses, clearing agencies, exchanges, banks and securities firms, with which we interact on a daily basis and, therefore, could adversely affect us. See also “Systemic Risk Regime” under “Business—Supervision and Regulation—Financial Holding Company.”Operational RiskOperational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, human factors (e.g., inappropriate or unlawful conduct) or external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal, regulatory and compliance risks, or damage to physical assets. We may experience operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (e.g., information technology (“IT”) and trade processing). Legal, regulatory and compliance risk is included in the scope of operational risk and is discussed below under “Legal, Regulatory and Compliance Risk.” For more information on how we monitor and manage operational risk, see “Quantitative and Qualitative Disclosures about Risk—Operational Risk.”We are subject to operational risks, including a failure, breach or other disruption of our operations or security systems or those of our third parties (or third parties thereof), as well as human error or malfeasance, which could adversely affect our businesses or reputation.Our businesses are highly dependent on our ability to process and report, on a daily basis, a large number of transactions across numerous and diverse markets in many currencies. We may introduce new products or services or change processes or reporting, including in connection with new regulatory requirements, or integration of processes or systems of acquired companies, resulting in new operational risk that we may not fully appreciate or identify. The trend toward direct access to automated, electronic markets, and the move to more automated trading platforms has resulted in the use of increasingly complex technology that relies on the continued effectiveness of the programming code and integrity of the data to process the trades. We rely on the ability of our employees, our consultants, our internal systems and systems at technology centers maintained by unaffiliated third parties to operate our different businesses and process a high volume of transactions. Unusually high trading volumes or site usage could cause our systems to operate at an unacceptably slow speed or even fail. Disruptions to, destruction of, instability of or other failure to effectively maintain our IT systems or external technology that allows our clients and customers to use our products and services (including our self-directed brokerage platform and mobile services) could harm our business and our reputation. As a major participant in the global capital markets, we face the risk of incorrect valuation or risk management of our trading positions due to flaws in data, models, electronic trading systems or processes, or due to fraud or cyberattacks. We also face the risk of operational failure or disruption of any of the clearing agents, exchanges, clearinghouses or other financial intermediaries we use to facilitate our lending, securities and derivatives transactions. In addition, in the event of a breakdown or improper operation or disposal of our, or a direct or indirect third party’s (or third parties thereof) systems, processes or information assets, or improper or unauthorized action by third parties, including consultants and subcontractors or our employees, we have received in the past and may receive in the future regulatory sanctions, and could suffer financial loss, an impairment to our liquidity position, a disruption of our businesses or damage to our reputation. In addition, the interconnectivity of multiple financial institutions with central agents, exchanges and clearinghouses, and the increased importance of these entities, increases the risk that an operational failure at one institution or entity may cause an industrywide operational failure that could materially impact our ability to conduct business. Furthermore, the concentration of Firm and personal information held by a small number of third parties increases the risk that a breach or disruption at a key third party may cause an industrywide event that could significantly increase the cost and risk of conducting business. These risks may be heightened to the extent that we rely on third parties that are concentrated in a geographic area.There can be no assurance that our or our third parties’ business contingency and security response plans fully mitigate all potential risks to us. Our ability to conduct business may be adversely affected by a disruption in the infrastructure that supports our businesses and the communities where we are located. This may include a disruption involving physical site access; software flaws and in the event of default by other clearing members. Although we regularly review our credit exposures, default risk may arise from events or circumstances that are difficult to detect or foresee.A default by a large financial institution could adversely affect financial markets.The commercial soundness of many financial institutions and certain other large financial services firms may be closely interrelated as a result of credit, trading, clearing or other relationships among such entities. Increased centralization of trading activities through particular clearinghouses, central agents or exchanges may increase our concentration of risk with respect to these entities. As a result, concerns about, or a default or threatened default by, one or more such entities could lead to significant market-wide liquidity and credit problems, losses or defaults by other institutions, or require financial commitments to multilateral actions intended to support market stability. This is sometimes referred to as systemic risk and may adversely affect financial intermediaries, such as clearinghouses, clearing agencies, exchanges, banks and securities firms, with which we interact on a daily basis and, therefore, could adversely affect us. See also “Systemic Risk Regime” under “Business—Supervision and Regulation—Financial Holding Company.”Operational RiskOperational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, human factors (e.g., inappropriate or unlawful conduct) or external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal, regulatory and compliance risks, or damage to physical assets. We may experience operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (e.g., information technology (“IT”) and trade processing). Legal, regulatory and compliance risk is included in the scope of operational risk and is discussed below under “Legal, Regulatory and Compliance Risk.” For more information on how we monitor and manage operational risk, see “Quantitative and Qualitative Disclosures about Risk—Operational Risk.”We are subject to operational risks, including a failure, breach or other disruption of our operations or security systems or those of our third parties (or third parties thereof), as well as human error or malfeasance, which could adversely affect our businesses or reputation.Our businesses are highly dependent on our ability to process and report, on a daily basis, a large number of transactions across numerous and diverse markets in many currencies. We may introduce new products or services or change processes or reporting, including in connection with new regulatory requirements, or integration of processes or systems of in the event of default by other clearing members. Although we regularly review our credit exposures, default risk may arise from events or circumstances that are difficult to detect or foresee.",
      "prior_body": "We incur significant credit risk exposure through our Institutional Securities business segment. This risk may arise from a variety of business activities, including, but not limited to: extending credit to clients through various lending commitments; entering into swap or other derivative contracts under which counterparties have obligations to make payments to us; acting as clearing broker for listed and over-the-counter derivatives whereby we guarantee client performance to clearinghouses; providing short- or long-term funding that is secured by physical or financial collateral, including, but not limited to, real estate and marketable securities, whose value may at times be insufficient to fully cover the loan repayment amount; posting margin and/or collateral and other commitments to clearinghouses, clearing agencies, exchanges, banks, securities firms and other financial counterparties; and investing and trading in securities and loan pools, whereby the value of these assets may fluctuate based on realized or expected defaults on the underlying obligations or loans. We also incur credit risk in our Wealth Management business segment lending to mainly individual investors, including, but not limited to, margin- and securities-based loans collateralized by securities, residential mortgage loans, including home equity lines of credit (“HELOCs”), and structured loans to ultra-high net worth clients, that are in most cases secured by various types of collateral whose value may at times be insufficient to fully cover the loan repayment amount, including marketable securities, private investments, commercial real estate and other financial assets. Our valuations related to, and reserves for losses on, credit exposures rely on complex models, estimates and subjective judgments about the future. While we believe current valuations and reserves adequately address our perceived levels of risk, future economic conditions, including inflation and changes in real estate and other asset values, that differ from or are more severe than forecast, inaccurate models or assumptions, or external factors such as global pandemics, natural disasters, or geopolitical events, could lead to inaccurate measurement of or deterioration of credit quality of our borrowers and counterparties or the value of collateral and result in unexpected losses. We may also incur higher-than-anticipated credit losses as a result of (i) disputes with counterparties over the valuation of collateral or (ii) actions taken by other lenders that may negatively impact the valuation of collateral. In cases where we foreclose on collateral, sudden declines in the value or liquidity of collateral may result in significant losses to us despite our (i) credit monitoring, (ii) over-collateralization, (iii) ability to call for additional collateral or (iv) ability to force repayment of the underlying obligation, especially where there is a single type of collateral supporting the obligation. In addition, in the longer term, climate change may have a negative impact on the financial condition of our clients, which may decrease revenues from those clients and increase the credit risk associated with loans and other credit exposures to those clients. Certain of our credit exposures may be concentrated by counterparty, product, sector, portfolio, industry or geographic region. Although our models and estimates account for correlations among related types of exposures, a change in the market or economic environment for a concentrated product or an external factor impacting a concentrated counterparty, sector, portfolio, industry or geographic region may result in credit losses in excess of amounts forecast. For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risks.”In addition, as a clearing member of several central counterparties, we are responsible for the defaults or misconduct of our customers and could incur financial losses in the event of default by other clearing members. Although we regularly review our credit exposures, default risk may arise from events or circumstances that are difficult to detect or foresee.A default by a large financial institution could adversely affect financial markets.The commercial soundness of many financial institutions and certain other large financial services firms may be closely interrelated as a result of credit, trading, clearing or other relationships among such entities. Increased centralization of trading activities through particular clearinghouses, central agents or exchanges may increase our concentration of risk with respect to these entities. As a result, concerns about, or a default or threatened default by, one or more such entities could lead to significant market-wide liquidity and credit problems, losses or defaults by other institutions, or require Our valuations related to, and reserves for losses on, credit exposures rely on complex models, estimates and subjective judgments about the future. While we believe current valuations and reserves adequately address our perceived levels of risk, future economic conditions, including inflation and changes in real estate and other asset values, that differ from or are more severe than forecast, inaccurate models or assumptions, or external factors such as global pandemics, natural disasters, or geopolitical events, could lead to inaccurate measurement of or deterioration of credit quality of our borrowers and counterparties or the value of collateral and result in unexpected losses. We may also incur higher-than-anticipated credit losses as a result of (i) disputes with counterparties over the valuation of collateral or (ii) actions taken by other lenders that may negatively impact the valuation of collateral. In cases where we foreclose on collateral, sudden declines in the value or liquidity of collateral may result in significant losses to us despite our (i) credit monitoring, (ii) over-collateralization, (iii) ability to call for additional collateral or (iv) ability to force repayment of the underlying obligation, especially where there is a single type of collateral supporting the obligation. In addition, in the longer term, climate change may have a negative impact on the financial condition of our clients, which may decrease revenues from those clients and increase the credit risk associated with loans and other credit exposures to those clients. Certain of our credit exposures may be concentrated by counterparty, product, sector, portfolio, industry or geographic region. Although our models and estimates account for correlations among related types of exposures, a change in the market or economic environment for a concentrated product or an external factor impacting a concentrated counterparty, sector, portfolio, industry or geographic region may result in credit losses in excess of amounts forecast. For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risks.” In addition, as a clearing member of several central counterparties, we are responsible for the defaults or misconduct of our customers and could incur financial losses in the event of default by other clearing members. Although we regularly review our credit exposures, default risk may arise from events or circumstances that are difficult to detect or foresee."
    },
    {
      "status": "MODIFIED",
      "current_title": "Wealth Management Metrics",
      "prior_title": "Wealth Management Metrics",
      "similarity_score": 0.817,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in billionsAt December 31,2024At December 31,2023Total client assets1$6,194$5,129U.S.\"",
        "Reworded sentence: \"Deposits include sweep deposit programs, savings and other deposits, and time deposits.\""
      ],
      "current_body": "$ in billionsAt December 31,2024At December 31,2023Total client assets1$6,194$5,129U.S. Bank Subsidiary loans$160$147Margin and other lending2$28$21Deposits3$370$346Annualized weighted average cost of deposits4Period end2.73%2.92%Period average3.05%2.43% Total client assets1 Margin and other lending2 Deposits3 Annualized weighted average cost of deposits4 202420232022Net new assets$251.7$282.3$311.3 Net new assets 1.Client assets represent those for which Wealth Management is providing services including financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage and investment advisory services; financial and wealth planning services; workplace services, including stock plan administration, and retirement plan services. See “Advisor-Led Channel” and “Self-Directed Channel” herein for additional information. 2.Margin and other lending represents margin lending arrangements, which allow customers to borrow against the value of qualifying securities and other lending which includes non‐purpose securities-based lending on non‐bank entities. 3.Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other deposits, and time deposits. 4.Annualized weighted average represents the total annualized weighted average cost of the various deposit products. Amounts at December 31, 2024 include the effect of related hedging derivatives. Amounts at December 31, 2023 exclude the effect of related hedging derivatives, which did not have a material impact on the cost of deposits. The period end cost of deposits is based upon balances and rates as of December 31, 2024 and December 31, 2023. The period average is based on daily balances and rates for the period.",
      "prior_body": "$ in billionsAt December 31,2023At December 31,2022Total client assets1$5,129$4,187U.S. Bank Subsidiary loans$147$146Margin and other lending2$21$22Deposits3$346$351Annualized weighted average cost of deposits4Period end2.92%1.59%Period average2.43%0.53% Total client assets1 Margin and other lending2 Deposits3 Annualized weighted average cost of deposits4 202320222021Net new assets$282.3$311.3$437.7 Net new assets 1.Client assets represent those for which Wealth Management is providing services including financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage and investment advisory services; financial and wealth planning services; workplace services, including stock plan administration, and retirement plan services. See “Advisor-Led Channel” and “Self-Directed Channel” herein for additional information. 2.Margin and other lending represents margin lending arrangements, which allow customers to borrow against the value of qualifying securities and other lending which includes non‐purpose securities-based lending on non‐bank entities. 3.Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other, and time deposits. As of December 31, 2023, there were no off-balance sheet amounts excluded from deposits. As of December 31, 2022, approximately $6 billion off-balance sheet amounts were excluded from deposits. 4.Annualized weighted average represents the total annualized weighted average cost of the various deposit products, excluding the effect of related hedging derivatives. The period end cost of deposits is based upon balances and rates as of December 31, 2023 and December 31, 2022. The period average is based on daily balances and rates for the year."
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Limits Framework",
      "prior_title": "Risk Management Process",
      "similarity_score": 0.815,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Risk limits and quantitative metrics provide the basis for monitoring risk-taking activity and avoiding outsized risk taking.\"",
        "Reworded sentence: \"Non-trading interest rate risk in the banking book (amounts classified for regulatory capital purposes under the banking book regime) refers to the exposure that a change in interest rates will result in prospective earnings and fair value changes for assets and liabilities in the banking book.Sound market risk management is an integral part of our culture.\"",
        "Reworded sentence: \"The Firm’s control functions help ensure that these risks are measured and closely monitored and are made transparent to senior management.\"",
        "Reworded sentence: \"Market risk is also monitored through various measures: by use of statistics (including VaR and related analytical measures), by measures of position size and sensitivity, and through routine stress testing, which measures the impact on the value of existing portfolios of specified\""
      ],
      "current_body": "Risk limits and quantitative metrics provide the basis for monitoring risk-taking activity and avoiding outsized risk taking. Our risk-taking capacity is sized through the Firm’s capital planning process where losses are estimated under the Firm’s BHC Severely Adverse stress testing scenario. We also maintain a comprehensive suite of risk limits and quantitative metrics to support and implement our risk-appetite statement. Our risk limits support linkages between the overall risk appetite, which is reviewed by the Board, and more granular risk-taking decisions and activities. Risk limits, once established, are reviewed and updated on an annual basis, with more frequent updates as necessary. Board-level risk limits address the most important Firmwide aggregations of risk. Additional risk limits approved by the FRC address more specific types of risk and are bound by the higher-level Board risk limits. Risk Management ProcessIn subsequent sections, we discuss our risk management policies and procedures for our primary risks involved in the activities of our Institutional Securities, Wealth Management and Investment Management business segments. These sections and the estimated amounts of our risk exposure generated by our statistical analyses are forward-looking statements. However, the analyses used to assess such risks are not predictions of future events, and actual results may vary significantly from such analyses due to events in the markets in which we operate and certain other factors described in the following paragraphs.Market RiskMarket risk refers to the risk that a change in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity, will result in losses for a position or portfolio. Generally, we incur market risk as a result of trading, investing and client facilitation activities, principally within the Institutional Securities business segment where the substantial majority of our VaR for market risk exposures is generated. In addition, we incur non-trading market risk, principally within the Wealth Management and Investment Management business segments. The Wealth Management business segment primarily incurs non-trading market risk (including interest rate risk) from lending and deposit-taking activities. The Investment Management business segment primarily incurs non-trading market risk from capital investments in its funds. Market risk also includes non-trading interest rate risk. Non-trading interest rate risk in the banking book (amounts classified for regulatory capital purposes under the banking book regime) refers to the exposure that a change in interest rates will result in prospective earnings and fair value changes for assets and liabilities in the banking book.Sound market risk management is an integral part of our culture. The various business units and trading desks are responsible for ensuring that market risk exposures are well-managed and prudent. The Firm’s control functions help ensure that these risks are measured and closely monitored and are made transparent to senior management. The Market Risk Department is responsible for ensuring the transparency of material market risks, monitoring compliance with established limits and escalating risk concentrations to appropriate senior management.To execute these responsibilities, the Market Risk Department monitors our risk against limits on aggregate risk exposures, performs a variety of risk analyses, routinely reports risk summaries, and maintains our VaR and scenario analysis systems. Market risk is also monitored through various measures: by use of statistics (including VaR and related analytical measures), by measures of position size and sensitivity, and through routine stress testing, which measures the impact on the value of existing portfolios of specified",
      "prior_body": "In subsequent sections, we discuss our risk management policies and procedures for our primary risks involved in the activities of our Institutional Securities, Wealth Management and Investment Management business segments. These sections and the estimated amounts of our risk exposure generated by our statistical analyses are forward-looking statements. However, the analyses used to assess such risks are not predictions of future events, and actual results may vary significantly from such analyses due to events in the markets in which we operate and certain other factors described in the following paragraphs.Market RiskMarket risk refers to the risk that a change in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity, will result in losses for a position or portfolio. Generally, we incur market risk as a result of trading, investing and client facilitation activities, principally within the Institutional Securities business segment where the substantial majority of our VaR for market risk exposures is generated. In addition, we incur non-trading market risk, principally within the Wealth Management and Investment Management business segments. The Wealth Management business segment primarily incurs non-trading market risk (including interest rate risk) from lending and deposit-taking activities. The Investment Management business segment primarily incurs non-trading market risk from capital investments in its funds. Market risk also includes non-trading interest rate risk. Non-trading interest rate risk in the banking book (amounts classified for regulatory capital purposes under the banking book regime) refers to the exposure that a change in interest rates will result in prospective earnings changes for assets and liabilities in the banking book.Sound market risk management is an integral part of our culture. The various business units and trading desks are responsible for ensuring that market risk exposures are well-managed and prudent. The control groups help ensure that these risks are measured and closely monitored and are made transparent to senior management. The Market Risk Department is responsible for ensuring the transparency of material market risks, monitoring compliance with established limits and escalating risk concentrations to appropriate senior management.To execute these responsibilities, the Market Risk Department monitors our risk against limits on aggregate risk exposures, performs a variety of risk analyses, routinely reports risk summaries, and maintains our VaR and scenario analysis systems. Market risk is also monitored through various measures: by use of statistics (including VaR and related analytical measures), by measures of position size and sensitivity, and through routine stress testing, which measures the impact on the value of existing portfolios of specified changes in market factors and scenarios designed by the Market Risk Department in collaboration with the business units. The material risks identified by these processes are summarized in reports produced by the Market Risk activities of our Institutional Securities, Wealth Management and Investment Management business segments. These sections and the estimated amounts of our risk exposure generated by our statistical analyses are forward-looking statements. However, the analyses used to assess such risks are not predictions of future events, and actual results may vary significantly from such analyses due to events in the markets in which we operate and certain other factors described in the following paragraphs."
    },
    {
      "status": "MODIFIED",
      "current_title": "Climate change manifesting as physical or transition risks could result in increased costs and risks and adversely affect our operations, businesses and clients.",
      "prior_title": "Climate change manifesting as physical or transition risks could result in increased costs and risks and adversely affect our operations, businesses and clients.",
      "similarity_score": 0.813,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"There continues to be increasing concern over the risks of climate change and related sustainability matters.\"",
        "Reworded sentence: \"These events could impact the ability of certain of our clients or customers to repay their obligations, reduce the value of collateral, increase costs, including the cost or availability of insurance coverage, and result in other adverse effects.The transition risks of climate change include policy, legal, technology and market changes.\"",
        "Reworded sentence: \"Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or regulation of carbon emissions.\"",
        "Reworded sentence: \"If we are unable to achieve our objectives relating to climate change or our current response to climate change is perceived to be ineffective or insufficient, or the way we respond is perceived negatively, our business and reputation may suffer.\"",
        "Reworded sentence: \"Despite our risk management practices, the unpredictability surrounding the timing and severity of climate-related events, and societal or political changes in reaction to them, make it difficult to predict, identify, monitor and mitigate climate risks.\""
      ],
      "current_body": "There continues to be increasing concern over the risks of climate change and related sustainability matters. The physical risks of climate change include harm to people and property arising from acute, climate-related events, such as floods, hurricanes, heatwaves, droughts and wildfires, and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. Such events could disrupt our operations or those of our clients or third parties on which we rely, including through direct damage to physical assets and indirect impacts from supply chain disruption and market volatility. These events could impact the ability of certain of our clients or customers to repay their obligations, reduce the value of collateral, increase costs, including the cost or availability of insurance coverage, and result in other adverse effects.The transition risks of climate change include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or regulation of carbon emissions. These risks could increase our expenses and adversely impact our strategies. Negative impacts to certain of our clients, such as decreased profitability and asset write-downs, could also lead to increased credit and liquidity risk to us.In addition, our reputation and client relationships may be adversely impacted as a result of our, or our clients’, involvement in certain practices that may have, or are associated with having, an adverse impact on climate change. Legislative or regulatory change regarding climate-related risks, including inconsistent requirements and uncertainties, could result in loss of revenue, or increased credit, market, liquidity, regulatory, compliance, reputational and other risks and costs.Our ability to achieve our climate-related targets and commitments and the way we go about this could also result in reputational harm as a result of public sentiment, legislative and regulatory scrutiny (including from U.S. federal and state governments and foreign policymakers and regulators), litigation and reduced investor and stakeholder confidence. If we are unable to achieve our objectives relating to climate change or our current response to climate change is perceived to be ineffective or insufficient, or the way we respond is perceived negatively, our business and reputation may suffer.The risks associated with, and the perspective of regulators, governments, shareholders, employees and other stakeholders regarding climate change, as well as geopolitical events, continue to evolve rapidly, making it difficult to assess the ultimate impact on us of climate-related risks and uncertainties. As climate risk is interconnected with other risks, we have developed and continue to enhance processes to embed climate risk considerations into our risk management practices and governance structures. Despite our risk management practices, the unpredictability surrounding the timing and severity of climate-related events, and societal or political changes in reaction to them, make it difficult to predict, identify, monitor and mitigate climate risks.In addition, the methodologies and data used to manage and monitor climate risk continue to evolve. Current approaches utilize information and estimates that have been derived from information or factors released by third-party sources, which may not reflect the latest or most accurate data. Climate-related data, particularly greenhouse gas emissions for clients and counterparties, remains limited in availability and varies in quality. Certain third-party information may also change customers to repay their obligations, reduce the value of collateral, increase costs, including the cost or availability of insurance coverage, and result in other adverse effects. The transition risks of climate change include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or regulation of carbon emissions. These risks could increase our expenses and adversely impact our strategies. Negative impacts to certain of our clients, such as decreased profitability and asset write-downs, could also lead to increased credit and liquidity risk to us. In addition, our reputation and client relationships may be adversely impacted as a result of our, or our clients’, involvement in certain practices that may have, or are associated with having, an adverse impact on climate change. Legislative or regulatory change regarding climate-related risks, including inconsistent requirements and uncertainties, could result in loss of revenue, or increased credit, market, liquidity, regulatory, compliance, reputational and other risks and costs. Our ability to achieve our climate-related targets and commitments and the way we go about this could also result in reputational harm as a result of public sentiment, legislative and regulatory scrutiny (including from U.S. federal and state governments and foreign policymakers and regulators), litigation and reduced investor and stakeholder confidence. If we are unable to achieve our objectives relating to climate change or our current response to climate change is perceived to be ineffective or insufficient, or the way we respond is perceived negatively, our business and reputation may suffer. The risks associated with, and the perspective of regulators, governments, shareholders, employees and other stakeholders regarding climate change, as well as geopolitical events, continue to evolve rapidly, making it difficult to assess the ultimate impact on us of climate-related risks and uncertainties. As climate risk is interconnected with other risks, we have developed and continue to enhance processes to embed climate risk considerations into our risk management practices and governance structures. Despite our risk management practices, the unpredictability surrounding the timing and severity of climate-related events, and societal or political changes in reaction to them, make it difficult to predict, identify, monitor and mitigate climate risks. In addition, the methodologies and data used to manage and monitor climate risk continue to evolve. Current approaches utilize information and estimates that have been derived from information or factors released by third-party sources, which may not reflect the latest or most accurate data. Climate-related data, particularly greenhouse gas emissions for clients and counterparties, remains limited in availability and varies in quality. Certain third-party information may also change December 2024 Form 10-K22 December 2024 Form 10-K22 December 2024 Form 10-K22 22 Table of Contents Table of Contents Table of Contents over time as methodologies evolve and are refined. While we believe this information is the best available at the time, we may only be able to complete limited validation. Furthermore, modeling capabilities and methodologies to analyze climate-related risks, although improving, remain nascent and emerging and are subject to uncertainty due to limited historical trend information and the absence of standardized and comprehensive data. These and other factors could cause results to differ materially, which could impact our ability to manage climate-related risks.Competitive EnvironmentWe face strong competition from financial services firms and others, which could lead to pricing pressures that could materially adversely affect our revenues and profitability.The financial services industry and all aspects of our businesses are intensely competitive, and we expect them to remain so. We compete with commercial banks, global investment banks, regional banks, broker-dealers, wire houses, private banks, registered investment advisers, digital investing platforms, traditional and alternative asset managers, financial technology firms and other companies offering financial and ancillary services in the U.S. and globally. We compete on the basis of several factors, including transaction execution, capital or access to capital, products and services, innovation, technology, reputation, risk appetite and price.We have experienced, and will likely continue to experience, increased competition in the U.S. and globally driven by established financial services firms and emerging firms, including non-financial companies and business models focusing on technology innovation, competing for the same clients and assets, or offering similar products and services to retail and institutional customers. It is also possible that competition may become even more intense as we continue to compete with financial or other institutions that may be, or will become, larger, or better capitalized, or may have a stronger local presence and longer operating history in certain geographies or products.We have experienced, and may continue to experience, pricing pressures as a result of these factors and as some of our competitors seek to obtain market share by reducing prices and fees, paying higher interest rates on deposits, eliminating commissions or other fees or otherwise providing more favorable terms of business. In addition, certain of our competitors may be subject to different and, in some cases, less stringent, legal and regulatory regimes than we are, thereby putting us at a competitive disadvantage. For more information regarding the competitive environment in which we operate, see “Business—Competition” and “Business—Supervision and Regulation.”Automated trading markets and the introduction and application of new technologies may adversely affect our business and may increase competition.We continue to experience price competition in some of our businesses. In particular, the ability to execute securities, derivatives and other financial instrument trades electronically on exchanges, swap execution facilities and other automated trading platforms, and the introduction and application of new technologies, including generative artificial intelligence, will likely continue the pressure on revenues. The trend toward direct access to automated, electronic markets will likely continue as additional markets move to more automated trading platforms. We have experienced, and will likely continue to experience, competitive pressures in these and other areas in the future.Our ability to retain and attract qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance.Our people are our most important asset. We compete with various other companies in attracting and retaining qualified and skilled personnel. If we are unable to continue to attract, integrate and retain highly qualified employees or successfully transition key roles, or do so at levels or in forms necessary to maintain our competitive position, our performance, including our competitive position and results of operations, could be materially adversely affected. Our ability to attract and retain qualified and skilled personnel depends on numerous factors, some of which are outside of our control.Compensation costs required to attract and retain employees may increase or the competitive market for talent may further intensify due to factors such as low unemployment, a strong job market and changes in employees’ expectations, concerns and preferences. The financial industry has experienced, and may continue to experience, more stringent regulation of employee compensation than other industries, which may or may not impact competitors. These more stringent regulations have shaped our compensation practices, which could have an adverse effect on our ability to hire or retain the most qualified employees.International RiskWe are subject to numerous political, economic, legal, tax, operational, franchise and other risks as a result of our international operations that could adversely impact our businesses in many ways.We are subject to numerous political, economic, legal, tax, operational, franchise and other risks that are inherent in operating in many countries, including risks of possible nationalization, expropriation, price controls, capital controls, exchange controls, increased taxes and levies, cybersecurity, data transfer and outsourcing restrictions, regulatory scrutiny regarding the use of new technologies, prohibitions on certain over time as methodologies evolve and are refined. While we believe this information is the best available at the time, we may only be able to complete limited validation. Furthermore, modeling capabilities and methodologies to analyze climate-related risks, although improving, remain nascent and emerging and are subject to uncertainty due to limited historical trend information and the absence of standardized and comprehensive data. These and other factors could cause results to differ materially, which could impact our ability to manage climate-related risks.Competitive EnvironmentWe face strong competition from financial services firms and others, which could lead to pricing pressures that could materially adversely affect our revenues and profitability.The financial services industry and all aspects of our businesses are intensely competitive, and we expect them to remain so. We compete with commercial banks, global investment banks, regional banks, broker-dealers, wire houses, private banks, registered investment advisers, digital investing platforms, traditional and alternative asset managers, financial technology firms and other companies offering financial and ancillary services in the U.S. and globally. We compete on the basis of several factors, including transaction execution, capital or access to capital, products and services, innovation, technology, reputation, risk appetite and price.We have experienced, and will likely continue to experience, increased competition in the U.S. and globally driven by established financial services firms and emerging firms, including non-financial companies and business models focusing on technology innovation, competing for the same clients and assets, or offering similar products and services to retail and institutional customers. It is also possible that competition may become even more intense as we continue to compete with financial or other institutions that may be, or will become, larger, or better capitalized, or may have a stronger local presence and longer operating history in certain geographies or products.We have experienced, and may continue to experience, pricing pressures as a result of these factors and as some of our competitors seek to obtain market share by reducing prices and fees, paying higher interest rates on deposits, eliminating commissions or other fees or otherwise providing more favorable terms of business. In addition, certain of our competitors may be subject to different and, in some cases, less stringent, legal and regulatory regimes than we are, thereby putting us at a competitive disadvantage. For more information regarding the competitive environment in which we operate, see “Business—Competition” and “Business—Supervision and Regulation.” over time as methodologies evolve and are refined. While we believe this information is the best available at the time, we may only be able to complete limited validation. Furthermore, modeling capabilities and methodologies to analyze climate-related risks, although improving, remain nascent and emerging and are subject to uncertainty due to limited historical trend information and the absence of standardized and comprehensive data. These and other factors could cause results to differ materially, which could impact our ability to manage climate-related risks.",
      "prior_body": "There continues to be increasing concern over the risks of climate change and related environmental sustainability matters. The physical risks of climate change include harm to people and property arising from acute, climate-related events, such as floods, hurricanes, heatwaves, droughts, and wildfires and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. Such events could disrupt our operations or those of our clients or third parties on which we rely, including through direct damage to physical assets and indirect impacts from supply chain disruption and market volatility. These events could impact the ability of certain of our clients or customers to repay their obligations, reduce the value of collateral, increase costs, including the cost or availability of insurance coverage, and result in other adverse effects. The transition risks of climate change include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or carbon taxes. These risks could increase our expenses and adversely impact our strategies, including by limiting our ability to pursue certain business activities or offer certain products and services. Negative impacts to certain of our clients, such as decreased profitability and asset write-downs, could also lead to increased credit, counterparty and liquidity risk to us. In addition, our reputation and client relationships may be adversely impacted as a result of our, or our clients’, involvement in certain practices that may have, or are associated with having, an adverse impact on climate change. Legislative or regulatory change regarding climate-related risks, including inconsistent requirements and uncertainties, could result in loss of revenue, or increased credit, market, liquidity, regulatory, compliance, reputational and other risks and costs. Our ability to achieve our climate-related targets and commitments and the way we go about this could also result in reputational harm as a result of public sentiment, legislative and regulatory scrutiny (including from U.S. federal and state governments and foreign policymakers and regulators), litigation and reduced investor and stakeholder confidence. If we are unable to achieve our objectives relating to climate change or our current response to climate change is perceived to be ineffective or insufficient, or the way we respond is perceived negatively, our business and reputation may suffer.The risks associated with, and the perspective of regulators, governments, shareholders, employees and other stakeholders regarding, climate change, as well as geopolitical events, continue to evolve rapidly, making it difficult to assess the ultimate impact on us of climate-related risks and uncertainties. As climate risk is interconnected with other risks, we have developed and continue to enhance processes to embed climate risk considerations into our risk management practices and governance structures. Despite our risk management practices, the unpredictability surrounding the timing and severity of climate-related events and societal or political changes in reaction to them make it difficult to predict, identify, monitor and mitigate climate risks.In addition, the methodologies and data used to manage and monitor climate risk continue to evolve. Current approaches utilize information and estimates that have been derived from information or factors released by third-party sources, which may not reflect the latest or most accurate data. Climate-related data, particularly greenhouse gas emissions for clients and counterparties, remains limited in availability and varies in quality. Certain third-party information may also change over time as methodologies evolve and are refined. While we believe this information is the best available at the time, we may only be able to complete limited validation. Furthermore, modeling capabilities and methodologies to analyze climate-related risks, although improving, remain nascent and emerging. These and other factors could cause results to differ materially, which could impact our ability to manage climate-related risks.Replacement or reform of certain interest rate benchmarks could adversely affect our business, securities, financial condition and results of operations.Central banks around the world, including the Federal Reserve, have sponsored initiatives in recent years to replace LIBOR and replace or reform certain other interest rate benchmarks (collectively, the “IBORs”). A transition away from use of the IBORs to alternative rates and other potential interest rate benchmark reforms has been underway for a number of years. These reforms have caused and may in the future cause such rates to perform differently than in the past, or to cease entirely, or have other consequences that are contrary to market expectations.The ongoing market transition away from these interest rate benchmarks to alternative reference rates is complex and in reputational harm as a result of public sentiment, legislative and regulatory scrutiny (including from U.S. federal and state governments and foreign policymakers and regulators), litigation and reduced investor and stakeholder confidence. If we are unable to achieve our objectives relating to climate change or our current response to climate change is perceived to be ineffective or insufficient, or the way we respond is perceived negatively, our business and reputation may suffer. The risks associated with, and the perspective of regulators, governments, shareholders, employees and other stakeholders regarding, climate change, as well as geopolitical events, continue to evolve rapidly, making it difficult to assess the ultimate impact on us of climate-related risks and uncertainties. As climate risk is interconnected with other risks, we have developed and continue to enhance processes to embed climate risk considerations into our risk management practices and governance structures. Despite our risk management practices, the unpredictability surrounding the timing and severity of climate-related events and societal or political changes in reaction to them make it difficult to predict, identify, monitor and mitigate climate risks. In addition, the methodologies and data used to manage and monitor climate risk continue to evolve. Current approaches utilize information and estimates that have been derived from information or factors released by third-party sources, which may not reflect the latest or most accurate data. Climate-related data, particularly greenhouse gas emissions for clients and counterparties, remains limited in availability and varies in quality. Certain third-party information may also change over time as methodologies evolve and are refined. While we believe this information is the best available at the time, we may only be able to complete limited validation. Furthermore, modeling capabilities and methodologies to analyze climate-related risks, although improving, remain nascent and emerging. These and other factors could cause results to differ materially, which could impact our ability to manage climate-related risks."
    },
    {
      "status": "MODIFIED",
      "current_title": "Wealth Management Commercial Real Estate Loans and Lending Commitments by Property Type",
      "prior_title": "Wealth Management Commercial Real Estate Loans and Lending Commitments by Property Type",
      "similarity_score": 0.802,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"At December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalRetail$2,293 $— $2,293 $2,180 $3 $2,183 Multifamily1,928 261 2,189 1,891 159 2,050 Office1,951 11 1,962 1,736 16 1,752 Industrial456 — 456 454 — 454 Hotel442 — 442 400 — 400 Other309 — 309 253 — 253 Total$7,379 $272 $7,651 $6,914 $178 $7,092 Loans1 LC1 Loans1 LC1 Total LC–Lending Commitments 1.Amounts include HFI loans and lending commitments.\"",
        "Reworded sentence: \"As of December 31, 2024 and December 31, 2023, our direct lending against CRE properties totaled $7.7 billion and $7.1 billion, respectively, within the Wealth Management business segment.\"",
        "Reworded sentence: \"At both December 31, 2024 and December 31, 2023, greater than 95% of the CRE loans balance in the Wealth Management business segment received guarantees.\""
      ],
      "current_body": "At December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalRetail$2,293 $— $2,293 $2,180 $3 $2,183 Multifamily1,928 261 2,189 1,891 159 2,050 Office1,951 11 1,962 1,736 16 1,752 Industrial456 — 456 454 — 454 Hotel442 — 442 400 — 400 Other309 — 309 253 — 253 Total$7,379 $272 $7,651 $6,914 $178 $7,092 Loans1 LC1 Loans1 LC1 Total LC–Lending Commitments 1.Amounts include HFI loans and lending commitments. HFI loans are presented net of ACL. As of December 31, 2024 and December 31, 2023, our direct lending against CRE properties totaled $7.7 billion and $7.1 billion, respectively, within the Wealth Management business segment. This represents 4.3% and 4.3%, respectively, of total exposure reflected in the Wealth Management Loans and Lending Commitments table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our private banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which partially reduce associated credit risk. At both December 31, 2024 and December 31, 2023, greater than 95% of the CRE loans balance in the Wealth Management business segment received guarantees. During 2024, there were charge-offs of Wealth Management commercial real estate loans of $25 million, mainly in the office sector. All of our lending against CRE properties within Wealth Management are in the Americas region.",
      "prior_body": "At December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalRetail$2,180 $3 $2,183 $2,135 $6 $2,141 Multifamily1,891 159 2,050 1,661 142 1,803 Office1,736 16 1,752 1,675 1 1,676 Industrial454 — 454 330 — 330 Hotel400 — 400 419 — 419 Other253 — 253 183 10 193 Total$6,914 $178 $7,092 $6,403 $159 $6,562 Loans1 LC1 Loans1 LC1 Total LC–Lending Commitments 1.Amounts include HFI loans and lending commitments. HFI loans are presented net of ACL. As of December 31, 2023 and December 31, 2022, our direct lending against CRE totaled $7.1 billion and $6.6 billion within the Wealth Management business segment, which represents 4.3% and 4.0% of total exposure reflected in the Wealth Management Loans and Lending Commitments table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our private banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which partially reduce associated credit risk. At both December 31, 2023 and December 31, 2022, greater than 95% of the CRE loans balance in the Wealth Management business segment received guarantees. All of our lending against CRE properties within Wealth Management are in the Americas region."
    },
    {
      "status": "MODIFIED",
      "current_title": "Wealth Management Loans and Lending Commitments",
      "prior_title": "Wealth Management Loans and Lending Commitments",
      "similarity_score": 0.8,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"At December 31, 2024 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $82,788 $8,944 $1,024 $145 $92,901 Residential real estate1 111 1,106 65,423 66,641 Total loans, net of ACL$82,789 $9,055 $2,130 $65,568 $159,542 Lending commitments16,318 2,523 43 386 19,270 Total exposure$99,107 $11,578 $2,173 $65,954 $178,812 Securities-based lending and Other Residential real estate At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $76,923 $7,679 $1,494 $133 $86,229 Residential real estate1 91 1,255 58,950 60,297 Total loans, net of ACL$76,924 $7,770 $2,749 $59,083 $146,526 Lending commitments16,312 2,937 19 344 19,612 Total exposure$93,236 $10,707 $2,768 $59,427 $166,138 The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans.Securities-based lending allows clients to borrow money against the value of qualifying securities, generally for any purpose other than purchasing, trading or carrying securities or refinancing margin debt.\"",
        "Added sentence: \"Mortgage borrowers are required to maintain adequate insurance in accordance with loan terms.\"",
        "Reworded sentence: \"The vast majority of mortgage loans, including HELOCs, are held for investment in the Wealth Management business segment’s loan portfolio.\"",
        "Added sentence: \"Mortgage borrowers are required to maintain adequate insurance in accordance with loan terms.\"",
        "Added sentence: \"67December 2024 Form 10-K 67December 2024 Form 10-K 67December 2024 Form 10-K 67 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Wealth Management Commercial Real Estate Loans and Lending Commitments by Property TypeAt December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalRetail$2,293 $— $2,293 $2,180 $3 $2,183 Multifamily1,928 261 2,189 1,891 159 2,050 Office1,951 11 1,962 1,736 16 1,752 Industrial456 — 456 454 — 454 Hotel442 — 442 400 — 400 Other309 — 309 253 — 253 Total$7,379 $272 $7,651 $6,914 $178 $7,092 LC–Lending Commitments1.Amounts include HFI loans and lending commitments.\""
      ],
      "current_body": "At December 31, 2024 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $82,788 $8,944 $1,024 $145 $92,901 Residential real estate1 111 1,106 65,423 66,641 Total loans, net of ACL$82,789 $9,055 $2,130 $65,568 $159,542 Lending commitments16,318 2,523 43 386 19,270 Total exposure$99,107 $11,578 $2,173 $65,954 $178,812 Securities-based lending and Other Residential real estate At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $76,923 $7,679 $1,494 $133 $86,229 Residential real estate1 91 1,255 58,950 60,297 Total loans, net of ACL$76,924 $7,770 $2,749 $59,083 $146,526 Lending commitments16,312 2,937 19 344 19,612 Total exposure$93,236 $10,707 $2,768 $59,427 $166,138 The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans.Securities-based lending allows clients to borrow money against the value of qualifying securities, generally for any purpose other than purchasing, trading or carrying securities or refinancing margin debt. We establish approved credit lines against qualifying securities and monitor limits daily and, pursuant to such guidelines, require customers to deposit additional collateral, or reduce debt positions, when necessary. These credit lines are primarily uncommitted loan facilities, as we reserve the right not to make any advances or may terminate these credit lines at any time. Factors considered in the review of these loans include, but are not limited to, the loan amount, the client’s credit profile, the degree of leverage, collateral diversification, price volatility and liquidity of the collateral. Other loans primarily include tailored lending, which typically consist of bespoke lending arrangements provided to ultra-high net worth clients. Securities-based lending and Other loans are generally secured by various types of eligible collateral, including marketable securities, private investments, commercial real estate and other financial assets.Residential real estate loans consist of first- and second-lien mortgages, including HELOCs. Our underwriting policy is designed to ensure that all borrowers pass an assessment of capacity and willingness to pay, which includes an analysis utilizing industry standard credit scoring models (e.g., FICO scores), debt-to-income ratios and assets of the borrower. Mortgage borrowers are required to maintain adequate insurance in accordance with loan terms. LTV ratios are determined based on independent third-party property appraisals and valuations, and security lien positions are established through title and ownership reports. The vast majority of mortgage loans, including HELOCs, are held for investment in the Wealth Management business segment’s loan portfolio. At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $76,923 $7,679 $1,494 $133 $86,229 Residential real estate1 91 1,255 58,950 60,297 Total loans, net of ACL$76,924 $7,770 $2,749 $59,083 $146,526 Lending commitments16,312 2,937 19 344 19,612 Total exposure$93,236 $10,707 $2,768 $59,427 $166,138 Securities-based lending and Other Residential real estate The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans. Securities-based lending allows clients to borrow money against the value of qualifying securities, generally for any purpose other than purchasing, trading or carrying securities or refinancing margin debt. We establish approved credit lines against qualifying securities and monitor limits daily and, pursuant to such guidelines, require customers to deposit additional collateral, or reduce debt positions, when necessary. These credit lines are primarily uncommitted loan facilities, as we reserve the right not to make any advances or may terminate these credit lines at any time. Factors considered in the review of these loans include, but are not limited to, the loan amount, the client’s credit profile, the degree of leverage, collateral diversification, price volatility and liquidity of the collateral. Other loans primarily include tailored lending, which typically consist of bespoke lending arrangements provided to ultra-high net worth clients. Securities-based lending and Other loans are generally secured by various types of eligible collateral, including marketable securities, private investments, commercial real estate and other financial assets. Residential real estate loans consist of first- and second-lien mortgages, including HELOCs. Our underwriting policy is designed to ensure that all borrowers pass an assessment of capacity and willingness to pay, which includes an analysis utilizing industry standard credit scoring models (e.g., FICO scores), debt-to-income ratios and assets of the borrower. Mortgage borrowers are required to maintain adequate insurance in accordance with loan terms. LTV ratios are determined based on independent third-party property appraisals and valuations, and security lien positions are established through title and ownership reports. The vast majority of mortgage loans, including HELOCs, are held for investment in the Wealth Management business segment’s loan portfolio. 67December 2024 Form 10-K 67December 2024 Form 10-K 67December 2024 Form 10-K 67 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Wealth Management Commercial Real Estate Loans and Lending Commitments by Property TypeAt December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalRetail$2,293 $— $2,293 $2,180 $3 $2,183 Multifamily1,928 261 2,189 1,891 159 2,050 Office1,951 11 1,962 1,736 16 1,752 Industrial456 — 456 454 — 454 Hotel442 — 442 400 — 400 Other309 — 309 253 — 253 Total$7,379 $272 $7,651 $6,914 $178 $7,092 LC–Lending Commitments1.Amounts include HFI loans and lending commitments. HFI loans are presented net of ACL.As of December 31, 2024 and December 31, 2023, our direct lending against CRE properties totaled $7.7 billion and $7.1 billion, respectively, within the Wealth Management business segment. This represents 4.3% and 4.3%, respectively, of total exposure reflected in the Wealth Management Loans and Lending Commitments table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our private banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which partially reduce associated credit risk. At both December 31, 2024 and December 31, 2023, greater than 95% of the CRE loans balance in the Wealth Management business segment received guarantees. During 2024, there were charge-offs of Wealth Management commercial real estate loans of $25 million, mainly in the office sector. All of our lending against CRE properties within Wealth Management are in the Americas region. Wealth Management Allowance for Credit Losses—Loans and Lending CommitmentsYear Ended December 31, 2024$ in millionsResidential Real EstateSBL and OtherTotalACL—LoansBeginning balance$100 $195 $295 Gross charge-offs— (27)(27)Recoveries— 2 2 Net (charge-offs)/recoveries— (25)(25)Provision (release)(3)68 65 Other— 1 1 Ending balance$97 $239 $336 ACL—Lending commitmentsBeginning balance$4 $14 $18 Provision (release)— (3)(3)Other— 1 1 Ending balance$4 $12 $16 Total ending balance$101 $251 $352 As of December 31, 2024 and December 31, 2023, more than 75% of Wealth Management residential real estate loans were to borrowers with “Exceptional” or “Very Good” FICO scores (i.e., exceeding 740). Additionally, Wealth Management’s securities-based lending portfolio remains well-collateralized and subject to daily client margining, which includes requiring customers to deposit additional collateral or reduce debt positions, when necessary.Customer and Other ReceivablesMargin and Other Lending$ in millionsAtDecember 31,2024AtDecember 31,2023 Institutional Securities$27,612 $24,208 Wealth Management28,270 21,436 Total$55,882 $45,644 The Institutional Securities and Wealth Management business segments provide margin lending arrangements that allow customers to borrow against the value of qualifying securities, primarily for the purpose of purchasing additional securities, as well as to collateralize short positions. Institutional Securities primarily includes margin loans in the Equity Financing business. Wealth Management includes margin loans as well as non-purpose securities-based lending on non-bank entities. Amounts may fluctuate from period to period as overall client balances change as a result of market levels, client positioning and leverage.Credit exposures arising from margin lending activities are generally mitigated by their short-term nature, the value of collateral held and our right to call for additional margin when collateral values decline. However, we could incur losses in the event that the customer fails to meet margin calls and collateral values decline below the loan amount. This risk is elevated in loans backed by collateral pools with significant concentrations in individual issuers or securities with similar risk characteristics. For a further discussion, see “Risk Factors—Credit Risk” herein. Employee LoansFor information on employee loans and related ACL, see Note 9 to the financial statements. Wealth Management Commercial Real Estate Loans and Lending Commitments by Property TypeAt December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalRetail$2,293 $— $2,293 $2,180 $3 $2,183 Multifamily1,928 261 2,189 1,891 159 2,050 Office1,951 11 1,962 1,736 16 1,752 Industrial456 — 456 454 — 454 Hotel442 — 442 400 — 400 Other309 — 309 253 — 253 Total$7,379 $272 $7,651 $6,914 $178 $7,092 LC–Lending Commitments1.Amounts include HFI loans and lending commitments. HFI loans are presented net of ACL.As of December 31, 2024 and December 31, 2023, our direct lending against CRE properties totaled $7.7 billion and $7.1 billion, respectively, within the Wealth Management business segment. This represents 4.3% and 4.3%, respectively, of total exposure reflected in the Wealth Management Loans and Lending Commitments table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our private banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which partially reduce associated credit risk. At both December 31, 2024 and December 31, 2023, greater than 95% of the CRE loans balance in the Wealth Management business segment received guarantees. During 2024, there were charge-offs of Wealth Management commercial real estate loans of $25 million, mainly in the office sector. All of our lending against CRE properties within Wealth Management are in the Americas region. Wealth Management Allowance for Credit Losses—Loans and Lending CommitmentsYear Ended December 31, 2024$ in millionsResidential Real EstateSBL and OtherTotalACL—LoansBeginning balance$100 $195 $295 Gross charge-offs— (27)(27)Recoveries— 2 2 Net (charge-offs)/recoveries— (25)(25)Provision (release)(3)68 65 Other— 1 1 Ending balance$97 $239 $336 ACL—Lending commitmentsBeginning balance$4 $14 $18 Provision (release)— (3)(3)Other— 1 1 Ending balance$4 $12 $16 Total ending balance$101 $251 $352 As of December 31, 2024 and December 31, 2023, more than 75% of Wealth Management residential real estate loans were to borrowers with “Exceptional” or “Very Good” FICO scores (i.e., exceeding 740). Additionally, Wealth Management’s securities-based lending portfolio remains well-collateralized and subject to daily client margining,",
      "prior_body": "At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other loans$76,923 $7,679 $1,494 $133 $86,229 Residential real estateloans1 91 1,255 58,950 60,297 Total loans, net of ACL$76,924 $7,770 $2,749 $59,083 $146,526 Lending commitments16,312 2,937 19 344 19,612 Total exposure$93,236 $10,707 $2,768 $59,427 $166,138 Residential real estate loans At December 31, 2022 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other loans$80,526 $9,371 $1,692 $140 $91,729 Residential real estate loans1 32 1,375 52,968 54,376 Total loans, net of ACL$80,527 $9,403 $3,067 $53,108 $146,105 Lending commitments12,408 4,501 37 323 17,269 Total exposure$92,935 $13,904 $3,104 $53,431 $163,374 The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans. Securities-based lending allows clients to borrow money against the value of qualifying securities, generally for any purpose other than purchasing, trading or carrying securities or refinancing margin debt. We establish approved credit lines against qualifying securities and monitor limits daily and, pursuant to such guidelines, require customers to deposit additional collateral, or reduce debt positions, when necessary. These credit lines are primarily uncommitted loan facilities, as we reserve the right not to make any advances or may terminate these credit lines at any time. Factors considered in the review of these loans include, but are not limited to, the loan amount, the client’s credit profile, the degree of leverage, collateral diversification, price volatility and liquidity of the collateral. Other loans primarily include tailored lending, which typically consist of bespoke lending arrangements provided to ultra-high net worth clients. Securities-based lending and Other loans are generally secured by various types of eligible collateral, including marketable securities, private investments, commercial real estate and other financial assets.Residential real estate loans consist of first- and second-lien mortgages, including HELOCs. Our underwriting policy is designed to ensure that all borrowers pass an assessment of capacity and willingness to pay, which includes an analysis utilizing industry standard credit scoring models (e.g., FICO scores), debt-to-income ratios and assets of the borrower. LTV ratios are determined based on independent third-party property appraisals and valuations, and security lien positions are established through title and ownership reports. The vast majority of mortgage loans, including HELOCs, are held for investment in the Wealth Management business segment’s loan portfolio.Wealth Management Commercial Real Estate Loans and Lending Commitments by Property TypeAt December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalRetail$2,180 $3 $2,183 $2,135 $6 $2,141 Multifamily1,891 159 2,050 1,661 142 1,803 Office1,736 16 1,752 1,675 1 1,676 Industrial454 — 454 330 — 330 Hotel400 — 400 419 — 419 Other253 — 253 183 10 193 Total$6,914 $178 $7,092 $6,403 $159 $6,562 LC–Lending Commitments1.Amounts include HFI loans and lending commitments. HFI loans are presented net of ACL.As of December 31, 2023 and December 31, 2022, our direct lending against CRE totaled $7.1 billion and $6.6 billion within the Wealth Management business segment, which represents 4.3% and 4.0% of total exposure reflected in the Wealth Management Loans and Lending Commitments table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our private banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which partially reduce associated credit risk. At both December 31, 2023 and December 31, 2022, greater than 95% of the CRE loans balance in the Wealth Management business segment received guarantees. All of our lending against CRE properties within Wealth Management are in the Americas region. against qualifying securities and monitor limits daily and, pursuant to such guidelines, require customers to deposit additional collateral, or reduce debt positions, when necessary. These credit lines are primarily uncommitted loan facilities, as we reserve the right not to make any advances or may terminate these credit lines at any time. Factors considered in the review of these loans include, but are not limited to, the loan amount, the client’s credit profile, the degree of leverage, collateral diversification, price volatility and liquidity of the collateral. Other loans primarily include tailored lending, which typically consist of bespoke lending arrangements provided to ultra-high net worth clients. Securities-based lending and Other loans are generally secured by various types of eligible collateral, including marketable securities, private investments, commercial real estate and other financial assets. Residential real estate loans consist of first- and second-lien mortgages, including HELOCs. Our underwriting policy is designed to ensure that all borrowers pass an assessment of capacity and willingness to pay, which includes an analysis utilizing industry standard credit scoring models (e.g., FICO scores), debt-to-income ratios and assets of the borrower. LTV ratios are determined based on independent third-party property appraisals and valuations, and security lien positions are established through title and ownership reports. The vast majority of mortgage loans, including HELOCs, are held for investment in the Wealth Management business segment’s loan portfolio."
    },
    {
      "status": "MODIFIED",
      "current_title": "Workplace Channel1",
      "prior_title": "Workplace Channel1",
      "similarity_score": 0.796,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"At December 31,2024At December 31,2023Workplace unvested assets (in billions)2$475$416Number of participants (in millions)36.66.6 Workplace unvested assets (in billions)2 Number of participants (in millions)3 1.The workplace channel includes equity compensation solutions for companies, their executives and employees.\"",
        "Removed sentence: \"The stock plan vested asset retention rate within the workplace channel, which represents the percentage of stock plan assets retained in either the self-directed or advisor-led channels following vesting, is 29%, 34% and 24% for 2023, 2022 and 2021, respectively.\"",
        "Removed sentence: \"The rate is derived using the stock plan inflows for the previous year, less related outflows for the previous year and reported year, and dividing the result by the previous year inflows.\""
      ],
      "current_body": "At December 31,2024At December 31,2023Workplace unvested assets (in billions)2$475$416Number of participants (in millions)36.66.6 Workplace unvested assets (in billions)2 Number of participants (in millions)3 1.The workplace channel includes equity compensation solutions for companies, their executives and employees. 2.Stock plan unvested assets represent the market value of public company securities at the end of the period. 3.Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan.",
      "prior_body": "At December 31,2023At December 31,2022Workplace unvested assets (in billions)2$416$302Number of participants (in millions)36.66.3 Workplace unvested assets (in billions)2 Number of participants (in millions)3 1.The workplace channel includes equity compensation solutions for companies, their executives and employees. 2.Stock plan unvested assets represent the market value of public company securities at the end of the period. The stock plan vested asset retention rate within the workplace channel, which represents the percentage of stock plan assets retained in either the self-directed or advisor-led channels following vesting, is 29%, 34% and 24% for 2023, 2022 and 2021, respectively. The rate is derived using the stock plan inflows for the previous year, less related outflows for the previous year and reported year, and dividing the result by the previous year inflows. 3.Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan."
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk-Based Regulatory Capital Ratio Requirements",
      "prior_title": "Risk-Based Regulatory Capital Ratio Requirements",
      "similarity_score": 0.794,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Regulatory MinimumAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedRequired ratios1CET1 capital ratio4.5 %13.5%12.9%10.0%Tier 1 capital ratio6.0 %15.0%14.4%11.5%Total capital ratio8.0 %17.0%16.4%13.5% At December 31, 2024 and December 31, 2023\""
      ],
      "current_body": "Regulatory MinimumAtDecember 31,2024 AtDecember 31,2023 At December 31, 2024 and December 31, 2023StandardizedStandardizedAdvancedRequired ratios1CET1 capital ratio4.5 %13.5%12.9%10.0%Tier 1 capital ratio6.0 %15.0%14.4%11.5%Total capital ratio8.0 %17.0%16.4%13.5% At December 31, 2024 and December 31, 2023",
      "prior_body": "Regulatory MinimumAtDecember 31,2023 AtDecember 31,2022 At December 31, 2023 and December 31, 2022StandardizedStandardizedAdvancedRequired ratios1Common Equity Tier 1 capital ratio4.5 %12.9%13.3%10.0%Tier 1 capital ratio6.0 %14.4%14.8%11.5%Total capital ratio8.0 %16.4%16.8%13.5% At December 31, 2023 and December 31, 2022"
    },
    {
      "status": "MODIFIED",
      "current_title": "Amounts Recognized in Compensation Expense",
      "prior_title": "Amounts Recognized in Compensation Expense",
      "similarity_score": 0.793,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"$ in millions202420232022Deferred cash-based awards$770 $693 $761 Return on referenced investments672 668 (716)Total recognized in compensation expense$1,442 $1,361 $45\""
      ],
      "current_body": "$ in millions202420232022Deferred cash-based awards$770 $693 $761 Return on referenced investments672 668 (716)Total recognized in compensation expense$1,442 $1,361 $45",
      "prior_body": "$ in millions202320222021Deferred cash-based awards$693 $761 $810 Return on referenced investments668 (716)526 Total recognized in compensation expense$1,361 $45 $1,336"
    },
    {
      "status": "MODIFIED",
      "current_title": "Non-Interest Expenses",
      "prior_title": "Non-Interest Expenses",
      "similarity_score": 0.792,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Non-interest expenses of $19,129 million in 2024 increased 5% compared with the prior year as a result of higher Non-compensation expenses and Compensation and benefits expenses.\"",
        "Reworded sentence: \"Deposits include sweep deposit programs, savings and other deposits, and time deposits.\"",
        "Reworded sentence: \"Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts.3.DARTs represent the total self-directed trades in a period divided by the number of trading days during that period.Workplace Channel1At December 31,2024At December 31,2023Workplace unvested assets (in billions)2$475$416Number of participants (in millions)36.66.61.The workplace channel includes equity compensation solutions for companies, their executives and employees.2.Stock plan unvested assets represent the market value of public company securities at the end of the period.\"",
        "Reworded sentence: \"Deposits include sweep deposit programs, savings and other deposits, and time deposits.\""
      ],
      "current_body": "($ in millions) •Compensation and benefits expenses of $26,178 million in 2024 increased 7% from the prior year, primarily due to an increase in the formulaic payout to Wealth Management representatives and higher discretionary incentive compensation, both on higher revenues, partially offset by lower severance costs. In 2023, Compensation and benefits expenses included severance costs of $353 million, primarily associated with a specific Firmwide reduction in workforce during the second quarter of 2023. We recorded severance costs of $220 million in the Institutional Securities business segment, $105 million in the Wealth Management business segment, and $28 million in the Investment Management business segment for 2023. In 2022, Compensation and benefits expenses included severance costs of $133 million, associated with a specific Firmwide reduction in workforce during the fourth quarter of 2022. We recorded severance costs of $88 million in the Institutional Securities business segment, $30 million in the Wealth Management business segment, and $15 million in the Investment Management business segment for 2022. These specific reductions in workforce occurred across the Firm’s business segments and geographic regions, impacted approximately 4% and 1% of the Firm’s global workforce in 2023 and 2022, respectively, and resulted from the Firm’s review of its global workforce, operating expenses and the business environment following the acquisitions of E*TRADE Financial Corporation (“E*TRADE”) and Eaton Vance Corp. (“Eaton Vance”), rather than a change in strategy or exit of businesses. These costs were primarily incurred in the Americas and EMEA, with the majority in the Americas. •Non-compensation expenses of $17,723 million in 2024 increased 3% from the prior year, primarily driven by higher execution-related expenses and increased technology spend, partially offset by lower legal expenses and lower FDIC special assessment cost. In 2023, integration-related expenses were $293 million, of which $201 million related to the integration of E*TRADE within the Wealth Management business segment and $92 million related to the integration of Eaton Vance within the Investment Management business segment. In 2022, integration-related expenses were $470 million, of which $357 million related to the integration of E*TRADE within the Wealth Management business segment and $113 million related to the integration of Eaton Vance within the Investment Management business segment. Integration-related expenses primarily included non-compensation expenses such as information technology expense related to the consolidation of platforms, and professional fees related to changes in legal entity structures and the integration of clients, within both Wealth Management and Investment Management business segments. Integration-related activities were substantially completed as of December 31, 2023.Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios.For further information on the Provision for credit losses, see “Credit Risk” herein.Business Segment ResultsNet Revenues by Segment1($ in millions) In 2023, integration-related expenses were $293 million, of which $201 million related to the integration of E*TRADE within the Wealth Management business segment and $92 million related to the integration of Eaton Vance within the Investment Management business segment. In 2022, integration-related expenses were $470 million, of which $357 million related to the integration of E*TRADE within the Wealth Management business segment and $113 million related to the integration of Eaton Vance within the Investment Management business segment. Integration-related expenses primarily included non-compensation expenses such as information technology expense related to the consolidation of platforms, and professional fees related to changes in legal entity structures and the integration of clients, within both Wealth Management and Investment Management business segments. Integration-related activities were substantially completed as of December 31, 2023.",
      "prior_body": "($ in millions) •Compensation and benefits expenses of $24,558 million in 2023 increased 7% from the prior year, primarily due to higher expenses related to certain employee deferred cash-based compensation plans linked to investment performance (“DCP”) and higher salary expenses, partially offset by lower expenses related to outstanding deferred equity compensation. 2023 Compensation and benefits expenses included $353 million of severance costs, primarily associated with the employee action recorded in the second quarter of 2023. •Non-compensation expenses of $17,240 million in 2023 increased 6% from the prior year, primarily driven by an FDIC special assessment of $286 million, increased spend on technology, higher costs related to exits of real estate and higher legal expenses, including $249 million related to a specific matter."
    },
    {
      "status": "MODIFIED",
      "current_title": "Other Net Revenues",
      "prior_title": "Other Net Revenues",
      "similarity_score": 0.789,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Other net revenues were $1,262 million in 2024 compared with $823 million in the prior year, primarily due to lower mark-to-market losses on corporate loans, inclusive of hedges, and higher net interest income and fees on corporate loans.\""
      ],
      "current_body": "Other net revenues were $1,262 million in 2024 compared with $823 million in the prior year, primarily due to lower mark-to-market losses on corporate loans, inclusive of hedges, and higher net interest income and fees on corporate loans.",
      "prior_body": "Other net revenues were $823 million in 2023 compared with losses of $633 million in the prior year, primarily due to lower mark-to-market losses on corporate loans held for sale, inclusive of hedges, and higher net interest income and fees on corporate loans, mark-to-market gains compared with losses in the prior year on DCP investments and impacts from liquidity and funding costs."
    },
    {
      "status": "MODIFIED",
      "current_title": "Liquidity Risk Management Framework",
      "prior_title": "Liquidity Risk Management Framework",
      "similarity_score": 0.789,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The following principles guide our Liquidity Risk Management Framework: •Sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”) should be maintained to cover maturing liabilities and other planned and contingent outflows; •Maturity profile of assets and liabilities should be aligned, with limited reliance on short-term funding; •Source, counterparty, currency, region and term of funding should be diversified; and•Liquidity Stress Tests should anticipate, and account for, periods of limited access to funding.The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile.Required Liquidity FrameworkOur Required Liquidity Framework establishes the amount of liquidity we must hold in both normal and stressed environments to ensure that our financial condition and overall soundness are not adversely affected by an inability (or perceived inability) to meet our financial obligations in a timely manner.\""
      ],
      "current_body": "The primary goal of our Liquidity Risk Management Framework is to ensure that we have access to adequate funding across a wide range of market conditions and time horizons. The framework is designed to enable us to fulfill our financial obligations and support the execution of our business strategies. The following principles guide our Liquidity Risk Management Framework: •Sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”) should be maintained to cover maturing liabilities and other planned and contingent outflows; •Maturity profile of assets and liabilities should be aligned, with limited reliance on short-term funding; •Source, counterparty, currency, region and term of funding should be diversified; and•Liquidity Stress Tests should anticipate, and account for, periods of limited access to funding.The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile.Required Liquidity FrameworkOur Required Liquidity Framework establishes the amount of liquidity we must hold in both normal and stressed environments to ensure that our financial condition and overall soundness are not adversely affected by an inability (or perceived inability) to meet our financial obligations in a timely manner. The Required Liquidity Framework considers the most constraining liquidity requirement to satisfy all regulatory and internal limits at a consolidated and legal entity level.Liquidity Stress TestsWe use Liquidity Stress Tests to model external and intercompany liquidity flows across multiple scenarios and a range of time horizons. These scenarios contain various combinations of idiosyncratic and systemic stress events of different severity and duration. The methodology, implementation, production and analysis of our Liquidity Stress Tests are important components of the Required Liquidity Framework.The assumptions used in our various Liquidity Stress Test scenarios include, but are not limited to, the following:•No government support;•No access to equity and limited access to unsecured debt markets;•Repayment of all unsecured debt maturing within the stress horizon;•Higher haircuts for and significantly lower availability of secured funding;•Additional collateral that would be required by trading counterparties, certain exchanges and clearing organizations related to credit rating downgrades;•Additional collateral that would be required due to collateral substitutions, collateral disputes and uncalled collateral;•Discretionary unsecured debt buybacks;•Drawdowns on lending commitments provided to third parties; and•Client cash withdrawals and reduction in customer short positions that fund long positions.Liquidity Stress Tests are produced and results are reported at different levels, including major operating subsidiaries and major currencies, to capture specific cash requirements and cash availability across the Firm, including a limited number of asset sales in a stressed environment. The Liquidity Stress •Source, counterparty, currency, region and term of funding should be diversified; and •Liquidity Stress Tests should anticipate, and account for, periods of limited access to funding. The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile.",
      "prior_body": "The primary goal of our Liquidity Risk Management Framework is to ensure that we have access to adequate funding across a wide range of market conditions and time horizons. The framework is designed to enable us to fulfill our financial obligations and support the execution of our business strategies. The following principles guide our Liquidity Risk Management Framework: •Sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”) should be maintained to cover maturing liabilities and other planned and contingent outflows; •Maturity profile of assets and liabilities should be aligned, with limited reliance on short-term funding; •Source, counterparty, currency, region and term of funding should be diversified; and •Liquidity Stress Tests should anticipate, and account for, periods of limited access to funding. The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile."
    },
    {
      "status": "MODIFIED",
      "current_title": "Lending commitments3",
      "prior_title": "Lending commitments3",
      "similarity_score": 0.786,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by Investment Management, composed primarily of senior secured loans to corporations.\"",
        "Reworded sentence: \"In 2024, total loans and lending commitments increased by approximately $47 billion, primarily due to an increase in Corporate lending commitments and Secured lending facilities within the Institutional Securities business segment, and growth across portfolios within the Wealth Management business segment.\"",
        "Added sentence: \"Allowance for Credit Losses—Loans and Lending Commitments $ in millions2024ACL—LoansBeginning balance$1,169 Gross charge-offs(242)Recoveries7 Net (charge-offs)/recoveries(235)Provision for credit losses146 Other(14)Ending balance$1,066 ACL—Lending commitmentsBeginning balance$551 Provision for credit losses118 Other(13)Ending balance$656 Total ending balance$1,722 Provision for Credit Losses by Business SegmentYear Ended December 31, 2024$ in millionsISWMTotalLoans$81 $65 $146 Lending commitments121 (3)118 Total$202 $62 $264 Credit exposure arising from our loans and lending commitments is measured in accordance with our internal risk management standards.\"",
        "Added sentence: \"Risk factors considered in determining the allowance for credit losses for loans and lending commitments include the borrower’s financial strength, industry, facility structure, LTV ratio, debt service ratio, collateral and covenants.\"",
        "Added sentence: \"Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio and lending terms, and volume and severity of past due loans may also be considered.The allowance for credit losses for loans and lending commitments was relatively unchanged since December 31, 2023, reflecting provisions for certain specific commercial real estate loans and growth in the corporate loan portfolio, offset by charge-offs related to commercial real estate lending, mainly in the office sector, and improvements in the macroeconomic outlook.\""
      ],
      "current_body": "63December 2024 Form 10-K 63December 2024 Form 10-K 63December 2024 Form 10-K 63 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$128,134 $21,329 $510 $149,973 Total exposure$331,519 $36,584 $8,698 $376,801 Total exposure—consists of Total loans, net of ACL, and Lending commitments1.FVO includes the fair value of certain unfunded lending commitments.2.Investment Management business segment loans are related to certain of our activities as an investment adviser and manager. Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by Investment Management, composed primarily of senior secured loans to corporations.3.Lending commitments represent the notional amount of legally binding obligations to provide funding to clients for lending transactions. Since commitments associated with these business activities may expire unused or may not be utilized to full capacity, they do not necessarily reflect the actual future cash funding requirements.We provide loans and lending commitments to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals. In addition, we purchase loans in the secondary market. Loans and lending commitments are either held for investment, held for sale or carried at fair value. For more information on these loan classifications, see Note 2 to the financial statements. In 2024, total loans and lending commitments increased by approximately $47 billion, primarily due to an increase in Corporate lending commitments and Secured lending facilities within the Institutional Securities business segment, and growth across portfolios within the Wealth Management business segment.See Notes 4, 5, 9 and 14 to the financial statements for further information.Allowance for Credit Losses—Loans and Lending Commitments $ in millions2024ACL—LoansBeginning balance$1,169 Gross charge-offs(242)Recoveries7 Net (charge-offs)/recoveries(235)Provision for credit losses146 Other(14)Ending balance$1,066 ACL—Lending commitmentsBeginning balance$551 Provision for credit losses118 Other(13)Ending balance$656 Total ending balance$1,722 Provision for Credit Losses by Business SegmentYear Ended December 31, 2024$ in millionsISWMTotalLoans$81 $65 $146 Lending commitments121 (3)118 Total$202 $62 $264 Credit exposure arising from our loans and lending commitments is measured in accordance with our internal risk management standards. Risk factors considered in determining the allowance for credit losses for loans and lending commitments include the borrower’s financial strength, industry, facility structure, LTV ratio, debt service ratio, collateral and covenants. Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio and lending terms, and volume and severity of past due loans may also be considered.The allowance for credit losses for loans and lending commitments was relatively unchanged since December 31, 2023, reflecting provisions for certain specific commercial real estate loans and growth in the corporate loan portfolio, offset by charge-offs related to commercial real estate lending, mainly in the office sector, and improvements in the macroeconomic outlook. The base scenario used in our ACL models as of December 31, 2024 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. This scenario assumes continued economic growth as well as lower interest rates relative to the prior year forecast. The ACL calculation incorporates key macroeconomic variables, including U.S. real GDP growth rate. The significance of key macroeconomic variables on the ACL calculation varies depending on portfolio composition and economic conditions.Forecasted U.S. Real GDP Growth Rates in Base Scenario4Q 20254Q 2026Year-over-year growth rate1.9 %2.1 % At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$128,134 $21,329 $510 $149,973 Total exposure$331,519 $36,584 $8,698 $376,801 Total exposure—consists of Total loans, net of ACL, and Lending commitments1.FVO includes the fair value of certain unfunded lending commitments.2.Investment Management business segment loans are related to certain of our activities as an investment adviser and manager. Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by Investment Management, composed primarily of senior secured loans to corporations.3.Lending commitments represent the notional amount of legally binding obligations to provide funding to clients for lending transactions. Since commitments associated with these business activities may expire unused or may not be utilized to full capacity, they do not necessarily reflect the actual future cash funding requirements.We provide loans and lending commitments to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals. In addition, we purchase loans in the secondary market. Loans and lending commitments are either held for investment, held for sale or carried at fair value. For more information on these loan classifications, see Note 2 to the financial statements. In 2024, total loans and lending commitments increased by approximately $47 billion, primarily due to an increase in Corporate lending commitments and Secured lending facilities within the Institutional Securities business segment, and growth across portfolios within the Wealth Management business segment.See Notes 4, 5, 9 and 14 to the financial statements for further information. At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$128,134 $21,329 $510 $149,973 Total exposure$331,519 $36,584 $8,698 $376,801 FVO1",
      "prior_body": "At December 31, 2022$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,589 $10,634 $— $17,223 Secured lending facilities35,606 3,176 6 38,788 Commercial and Residential real estate8,515 926 2,548 11,989 Securities-based lending and Other2,865 39 5,625 8,529 Total Institutional Securities53,575 14,775 8,179 76,529 Wealth Management:Residential real estate54,460 4 — 54,464 Securities-based lending and Other91,797 9 — 91,806 Total Wealth Management146,257 13 — 146,270 Total Investment Management24 — 218 222 Total loans199,836 14,788 8,397 223,021 ACL(839)(839)Total loans, net of ACL$198,997 $14,788 $8,397 $222,182 Lending commitments3$136,960 Total exposure$359,142 FVO1"
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk management and strategy",
      "prior_title": "Processes for assessing, identifying and managing material risks from cybersecurity threats",
      "similarity_score": 0.784,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We, our businesses, and the broader financial services industry face an increasingly complex and evolving threat environment.\"",
        "Reworded sentence: \"These policies, procedures and technologies cover a broad range of areas, including: identification of internal and external threats, access control, data security, protective controls, detection of malicious or unauthorized activity, incident response and recovery planning.\"",
        "Reworded sentence: \"These senior officers are responsible for assessing and managing the Firm’s cybersecurity risks.\""
      ],
      "current_body": "We, our businesses, and the broader financial services industry face an increasingly complex and evolving threat environment. We have made and continue to make substantial investments in cybersecurity and fraud prevention technology, and employ experienced talent to lead our Cybersecurity and Information Security organizations and program under the oversight of the Board and the BOTC. See “Risk Factors—Operational Risk” for information on risks to the Firm from cybersecurity threats. As part of the ERM framework, we have implemented and maintain a program to assess, identify and manage risks arising from the cybersecurity threats confronting the Firm (“Cybersecurity Program”). Our Cybersecurity Program helps 71December 2024 Form 10-K 71December 2024 Form 10-K 71December 2024 Form 10-K 71 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents protect our clients, customers, employees, property, products, services and reputation by seeking to preserve the confidentiality, integrity and availability of information, enable the secure delivery of financial services, and protect the business and the safe operation of our technology systems. We continually adjust our Cybersecurity Program to address the evolving cybersecurity threat landscape and comply with extensive legal and regulatory expectations.Processes for assessing, identifying and managing material risks from cybersecurity threatsOur Cybersecurity Program takes into account industry best practices and addresses risks from cybersecurity threats to our network, infrastructure, computing environment and the third parties that we rely on. We periodically assess the design of our cybersecurity controls against the Cyber Risk Institute Cyber Profile, which is based on the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework for Improving Critical Infrastructure Cybersecurity, as well as global cybersecurity regulations, and develop improvements to those controls in response to that assessment. Our Cybersecurity Program also includes cybersecurity and information security policies, procedures and technologies that are designed to address regulatory requirements and protect our clients’, employees’ and own data against unauthorized disclosure, modification and misuse. These policies, procedures and technologies cover a broad range of areas, including: identification of internal and external threats, access control, data security, protective controls, detection of malicious or unauthorized activity, incident response and recovery planning. See also “Firm Resilience” herein for a discussion of our resilience program that is designed to mitigate the impacts of cybersecurity events and other risks.Our threat intelligence function within the Cybersecurity Program actively engages in private and public information-sharing communities and leverages both commercial and proprietary products to collect a wide variety of industry and governmental information regarding the latest cybersecurity threats, which informs our cybersecurity risk assessments and strategy. This information is also provided to an internal cyber threat detection team, which develops and implements strategies designed to defend against these cybersecurity threats across our environment. Our vulnerability management team, as well as NFR, also reviews external cybersecurity incidents that may be relevant to the Firm to further inform the design of our Cybersecurity Program. To assess the efficacy of our controls and defenses designed to mitigate cybersecurity risk, we utilize internal and external testing, including penetration testing and red team engagements. The results of these assessments are used to strengthen the Cybersecurity Program. Additionally, we maintain a global training program covering cybersecurity risks and requirements, including heightened security training to specialized employees, and conduct regular phishing email simulations for our employees and consultants as preventative measures. When a threat is identified in our environment, our incident response team follows an incident response plan to evaluate the impact to the Firm and coordinate appropriate remediation. If warranted, the cybersecurity incident will be reported to applicable regulators, authorities, impacted clients or counterparties, as appropriate. The Firm’s cybersecurity incident response and remediation processes, including assessing materiality and reporting requirements, are reviewed through tabletop exercises.Our processes are designed to help oversee, identify and mitigate cybersecurity risks associated with our use of third-party vendors. We maintain a third-party risk management program that evaluates and responds to cybersecurity risks at our third-party vendors. Prior to engaging third-party vendors to provide services to the Firm, we assess the third-party vendors’ cybersecurity programs to identify cybersecurity risks arising from the use of those vendors’ services. Once onboarded, third-party vendors’ cybersecurity programs are subject to risk-based oversight, which may include security questionnaires, submission of independent security audit reports or a Firm audit of the third-party vendor’s security program, and, with limited exceptions, third-party vendors are required to meet our minimum cybersecurity standards. Where a third-party vendor cannot meet those standards, its services, and the residual risk to the Firm, are subject to review, challenge and escalation through our risk management processes and ERM committees, which may ultimately result in requesting increased security measures or ceasing engagement with such third-party vendor.Our Cybersecurity Program is regularly assessed by IAD through various assurance activities, with the results reported to the BAC and the BOTC. Annually, key elements of the Cybersecurity Program are subject to review by an independent third party, the results of which, including opportunities identified for improvement and related remediation plans, are reviewed with the BOTC. Our Cybersecurity Program is also examined regularly by the Firm’s prudential and conduct regulators within the scope of their jurisdiction.GovernanceManagement’s role in assessing and managing material risks from cybersecurity threatsOur Cybersecurity Program is operated and maintained by management, including the Chief Information Officer of Cyber, Data, Risk and Resilience (“CIO”) and the Chief Information Security Officer (“CISO”). These senior officers are responsible for assessing and managing the Firm’s cybersecurity risks. Our Cybersecurity Program strategy, which is set by the CISO and overseen by the Head of Cyber, Technology, and Information Security Non-Financial Risk (“Head of NFR CTIS”), is informed by various risk and control assessments, control testing, external assessments, threat intelligence, and public and private information sharing. Our Cybersecurity Program also includes processes protect our clients, customers, employees, property, products, services and reputation by seeking to preserve the confidentiality, integrity and availability of information, enable the secure delivery of financial services, and protect the business and the safe operation of our technology systems. We continually adjust our Cybersecurity Program to address the evolving cybersecurity threat landscape and comply with extensive legal and regulatory expectations.Processes for assessing, identifying and managing material risks from cybersecurity threatsOur Cybersecurity Program takes into account industry best practices and addresses risks from cybersecurity threats to our network, infrastructure, computing environment and the third parties that we rely on. We periodically assess the design of our cybersecurity controls against the Cyber Risk Institute Cyber Profile, which is based on the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework for Improving Critical Infrastructure Cybersecurity, as well as global cybersecurity regulations, and develop improvements to those controls in response to that assessment. Our Cybersecurity Program also includes cybersecurity and information security policies, procedures and technologies that are designed to address regulatory requirements and protect our clients’, employees’ and own data against unauthorized disclosure, modification and misuse. These policies, procedures and technologies cover a broad range of areas, including: identification of internal and external threats, access control, data security, protective controls, detection of malicious or unauthorized activity, incident response and recovery planning. See also “Firm Resilience” herein for a discussion of our resilience program that is designed to mitigate the impacts of cybersecurity events and other risks.Our threat intelligence function within the Cybersecurity Program actively engages in private and public information-sharing communities and leverages both commercial and proprietary products to collect a wide variety of industry and governmental information regarding the latest cybersecurity threats, which informs our cybersecurity risk assessments and strategy. This information is also provided to an internal cyber threat detection team, which develops and implements strategies designed to defend against these cybersecurity threats across our environment. Our vulnerability management team, as well as NFR, also reviews external cybersecurity incidents that may be relevant to the Firm to further inform the design of our Cybersecurity Program. To assess the efficacy of our controls and defenses designed to mitigate cybersecurity risk, we utilize internal and external testing, including penetration testing and red team engagements. The results of these assessments are used to strengthen the Cybersecurity Program. Additionally, we maintain a global training program covering cybersecurity risks and requirements, including heightened security training to specialized employees, and conduct regular phishing email simulations for our employees and consultants as preventative measures. protect our clients, customers, employees, property, products, services and reputation by seeking to preserve the confidentiality, integrity and availability of information, enable the secure delivery of financial services, and protect the business and the safe operation of our technology systems. We continually adjust our Cybersecurity Program to address the evolving cybersecurity threat landscape and comply with extensive legal and regulatory expectations.",
      "prior_body": "Our Cybersecurity Program takes into account industry best practices and addresses risks from cybersecurity threats to our network, infrastructure, computing environment and the third parties that we rely on. We periodically assess the design of our cybersecurity controls against the Cyber Risk Institute Cyber Profile, which is based on the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework for Improving Critical Infrastructure Cybersecurity, as well as global cybersecurity regulations, and develop improvements to those controls in response to that assessment. Our Cybersecurity Program also includes cybersecurity and information security policies, procedures and technologies that are designed to address regulatory requirements and protect our clients’, employees’ and own data against unauthorized disclosure, modification and misuse. These policies, procedures and technologies cover a broad range of areas, including: identification of internal and external threats, access control, data security, protective controls, detection of malicious or unauthorized activity, incident response, and recovery planning. Our threat intelligence function within the Cybersecurity Program actively engages in private and public information sharing communities and leverages both commercial and proprietary products to collect a wide variety of industry and governmental information regarding the latest cybersecurity threats, which informs our cybersecurity risk assessments and strategy. This information is also provided to an internal forensics team, which develops and implements technologies designed to help detect these cybersecurity threats across our environment. Where a potential threat is identified in our environment, our incident response team evaluates the potential impact to the Firm and coordinates remediation where required. These groups, as well as the Operational Risk Department, review external cybersecurity incidents that may be relevant to the Firm, and the outcomes of these incidents further inform the design of our Cybersecurity Program. In addition, we maintain a robust global training program on cybersecurity risks and requirements and conduct regular phishing email simulations for our employees and consultants.Our processes are designed to help oversee, identify and mitigate cybersecurity risks associated with our use of third-party vendors. We maintain a third-party risk management program that includes evaluation of, and response to, cybersecurity risks at our third-party vendors. Prior to engaging third-party vendors to provide services to the Firm, we conduct assessments of the third-party vendors’ cybersecurity programs to identify the impact of their services on the cybersecurity risks to the Firm. Once on-boarded, third-party vendors’ cybersecurity programs are subject to risk-based oversight, which may include security questionnaires, submission of independent security audit reports or a Firm audit of the third-party vendor’s security program, and, with limited exceptions, third-party vendors are required to meet our cybersecurity standards. Where a third-party vendor cannot meet those standards, its services, and the residual risk to the Firm, are subject to review, challenge and escalation through our risk management processes and ERM committees, which may ultimately result in requesting increased security measures or ceasing engagement with such third-party vendor. Our Cybersecurity Program is regularly assessed by the Internal Audit Department (“IAD”) through various assurance activities, with the results reported to the Audit Committee of the Board (“BAC”) and the BOTC. Annually, certain elements of the Cybersecurity Program are subject to an audit by an independent consultant, as well as an assessment by a separate, independent third party, the results of which, including opportunities identified for improvement and related remediation plans, are reviewed with the BOTC. Our Cybersecurity Program is also examined regularly by the Firm’s prudential and conduct regulators within the scope of their jurisdiction.GovernanceManagement’s role in assessing and managing material risks from cybersecurity threatsOur Cybersecurity Program is operated and maintained by management, including the Chief Information Officer of Cyber, Data, Risk and Resilience (“CIO”) and the Chief Information Security Officer (“CISO”). These senior officers strategy. This information is also provided to an internal forensics team, which develops and implements technologies designed to help detect these cybersecurity threats across our environment. Where a potential threat is identified in our environment, our incident response team evaluates the potential impact to the Firm and coordinates remediation where required. These groups, as well as the Operational Risk Department, review external cybersecurity incidents that may be relevant to the Firm, and the outcomes of these incidents further inform the design of our Cybersecurity Program. In addition, we maintain a robust global training program on cybersecurity risks and requirements and conduct regular phishing email simulations for our employees and consultants. Our processes are designed to help oversee, identify and mitigate cybersecurity risks associated with our use of third-party vendors. We maintain a third-party risk management program that includes evaluation of, and response to, cybersecurity risks at our third-party vendors. Prior to engaging third-party vendors to provide services to the Firm, we conduct assessments of the third-party vendors’ cybersecurity programs to identify the impact of their services on the cybersecurity risks to the Firm. Once on-boarded, third-party vendors’ cybersecurity programs are subject to risk-based oversight, which may include security questionnaires, submission of independent security audit reports or a Firm audit of the third-party vendor’s security program, and, with limited exceptions, third-party vendors are required to meet our cybersecurity standards. Where a third-party vendor cannot meet those standards, its services, and the residual risk to the Firm, are subject to review, challenge and escalation through our risk management processes and ERM committees, which may ultimately result in requesting increased security measures or ceasing engagement with such third-party vendor. Our Cybersecurity Program is regularly assessed by the Internal Audit Department (“IAD”) through various assurance activities, with the results reported to the Audit Committee of the Board (“BAC”) and the BOTC. Annually, certain elements of the Cybersecurity Program are subject to an audit by an independent consultant, as well as an assessment by a separate, independent third party, the results of which, including opportunities identified for improvement and related remediation plans, are reviewed with the BOTC. Our Cybersecurity Program is also examined regularly by the Firm’s prudential and conduct regulators within the scope of their jurisdiction. Governance"
    },
    {
      "status": "MODIFIED",
      "current_title": "Non-Interest Expenses",
      "prior_title": "Non-Interest Expenses",
      "similarity_score": 0.78,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Non-interest expenses of $20,618 million in 2024 increased 5% compared with the prior year, as a result of higher Compensation and benefits expenses, partially offset by lower Non-compensation expenses.\""
      ],
      "current_body": "($ in millions) •Compensation and benefits expenses of $26,178 million in 2024 increased 7% from the prior year, primarily due to an increase in the formulaic payout to Wealth Management representatives and higher discretionary incentive compensation, both on higher revenues, partially offset by lower severance costs. In 2023, Compensation and benefits expenses included severance costs of $353 million, primarily associated with a specific Firmwide reduction in workforce during the second quarter of 2023. We recorded severance costs of $220 million in the Institutional Securities business segment, $105 million in the Wealth Management business segment, and $28 million in the Investment Management business segment for 2023. In 2022, Compensation and benefits expenses included severance costs of $133 million, associated with a specific Firmwide reduction in workforce during the fourth quarter of 2022. We recorded severance costs of $88 million in the Institutional Securities business segment, $30 million in the Wealth Management business segment, and $15 million in the Investment Management business segment for 2022. These specific reductions in workforce occurred across the Firm’s business segments and geographic regions, impacted approximately 4% and 1% of the Firm’s global workforce in 2023 and 2022, respectively, and resulted from the Firm’s review of its global workforce, operating expenses and the business environment following the acquisitions of E*TRADE Financial Corporation (“E*TRADE”) and Eaton Vance Corp. (“Eaton Vance”), rather than a change in strategy or exit of businesses. These costs were primarily incurred in the Americas and EMEA, with the majority in the Americas. •Non-compensation expenses of $17,723 million in 2024 increased 3% from the prior year, primarily driven by higher execution-related expenses and increased technology spend, partially offset by lower legal expenses and lower FDIC special assessment cost. In 2023, integration-related expenses were $293 million, of which $201 million related to the integration of E*TRADE within the Wealth Management business segment and $92 million related to the integration of Eaton Vance within the Investment Management business segment. In 2022, integration-related expenses were $470 million, of which $357 million related to the integration of E*TRADE within the Wealth Management business segment and $113 million related to the integration of Eaton Vance within the Investment Management business segment. Integration-related expenses primarily included non-compensation expenses such as information technology expense related to the consolidation of platforms, and professional fees related to changes in legal entity structures and the integration of clients, within both Wealth Management and Investment Management business segments. Integration-related activities were substantially completed as of December 31, 2023.Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios.For further information on the Provision for credit losses, see “Credit Risk” herein.Business Segment ResultsNet Revenues by Segment1($ in millions) In 2023, integration-related expenses were $293 million, of which $201 million related to the integration of E*TRADE within the Wealth Management business segment and $92 million related to the integration of Eaton Vance within the Investment Management business segment. In 2022, integration-related expenses were $470 million, of which $357 million related to the integration of E*TRADE within the Wealth Management business segment and $113 million related to the integration of Eaton Vance within the Investment Management business segment. Integration-related expenses primarily included non-compensation expenses such as information technology expense related to the consolidation of platforms, and professional fees related to changes in legal entity structures and the integration of clients, within both Wealth Management and Investment Management business segments. Integration-related activities were substantially completed as of December 31, 2023.",
      "prior_body": "($ in millions) •Compensation and benefits expenses of $24,558 million in 2023 increased 7% from the prior year, primarily due to higher expenses related to certain employee deferred cash-based compensation plans linked to investment performance (“DCP”) and higher salary expenses, partially offset by lower expenses related to outstanding deferred equity compensation. 2023 Compensation and benefits expenses included $353 million of severance costs, primarily associated with the employee action recorded in the second quarter of 2023. •Non-compensation expenses of $17,240 million in 2023 increased 6% from the prior year, primarily driven by an FDIC special assessment of $286 million, increased spend on technology, higher costs related to exits of real estate and higher legal expenses, including $249 million related to a specific matter."
    },
    {
      "status": "MODIFIED",
      "current_title": "Table of Contents Notes to Consolidated Financial Statements",
      "prior_title": "Regulatory Capital Framework",
      "similarity_score": 0.776,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Table of Contents 16.\""
      ],
      "current_body": "Table of Contents 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Basis of Financial InformationThe financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.ConsolidationThe financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 15). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.For entities where the total equity investment at risk is sufficient to enable the entity to finance its activities without additional subordinated financial support and the equity holders bear the residual economic risks and returns of the entity and have the power to direct the activities of the entity that most significantly affect its economic performance, the Firm consolidates those entities it controls either through a majority voting interest or otherwise. For VIEs (i.e., entities that do not meet the aforementioned criteria), the Firm consolidates those entities where it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.For investments in entities in which the Firm does not have a controlling financial interest but has significant influence over operating and financial decisions, it applies the equity method 1. Introduction and Basis of Presentation The FirmMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K.A description of the clients and principal products and services of each of the Firm’s business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds,",
      "prior_body": "We are an FHC under the BHC Act and are subject to the regulation and oversight of the Federal Reserve. The Federal Reserve establishes capital requirements for us, including “well-capitalized” standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and standards for our U.S. Bank 53December 2023 Form 10-K 53December 2023 Form 10-K 53December 2023 Form 10-K 53 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 16 to the financial statements.Regulatory Capital RequirementsWe are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For additional information on TLAC, see “Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” herein.Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer RequirementsAtDecember 31,2023 AtDecember 31,2022 At December 31, 2023 and December 31, 2022StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB15.4%5.8%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement8.4%8.8%5.5%1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein.2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein.3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero.The capital buffer requirement represents the amount of Common Equity Tier 1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB. Risk-Based Regulatory Capital Ratio RequirementsRegulatory MinimumAtDecember 31,2023 AtDecember 31,2022 At December 31, 2023 and December 31, 2022StandardizedStandardizedAdvancedRequired ratios1Common Equity Tier 1 capital ratio4.5 %12.9%13.3%10.0%Tier 1 capital ratio6.0 %14.4%14.8%11.5%Total capital ratio8.0 %16.4%16.8%13.5%1.Required ratios represent the regulatory minimum plus the capital buffer requirement.Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following:•Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us;•Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and•Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets).Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2023 and December 31, 2022, the differences between the actual and required ratios were lower under the Standardized Approach.Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%.CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and are phased-in at 50% from January 1, 2023. The deferral impacts will become fully phased-in beginning on January 1, 2025. Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 16 to the financial statements.Regulatory Capital RequirementsWe are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For additional information on TLAC, see “Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” herein.Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer RequirementsAtDecember 31,2023 AtDecember 31,2022 At December 31, 2023 and December 31, 2022StandardizedStandardizedAdvancedCapital buffersCapital conservation buffer——2.5%SCB15.4%5.8%N/AG-SIB capital surcharge23.0%3.0%3.0%CCyB30%0%0%Capital buffer requirement8.4%8.8%5.5%1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein.2.For a further discussion of the G-SIB capital surcharge, see “G-SIB Capital Surcharge” herein.3.The CCyB can be set up to 2.5% but is currently set by the Federal Reserve at zero.The capital buffer requirement represents the amount of Common Equity Tier 1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 16 to the financial statements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Critical Accounting Estimates",
      "prior_title": "Accounting Development Updates",
      "similarity_score": 0.772,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Our financial statements are prepared in accordance with U.S.\"",
        "Reworded sentence: \"We believe that of our significant accounting policies (see Note 2 to the financial statements), the following policies involve a higher degree of judgment and complexity.\"",
        "Reworded sentence: \"Level 3 financial assets represented 0.9% and 1.2% of our total assets, as of December 31, 2024 and December 31, 2023, respectively.\"",
        "Reworded sentence: \"As such, all the activities of a reporting unit, whether acquired or organically developed, are available to support the value of the goodwill.For both the annual and interim tests, we have the option to either (i) perform a quantitative impairment test or (ii) first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, in which case the quantitative test would be performed.When performing a quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill.\"",
        "Reworded sentence: \"The fair values for the substantial majority of our financial assets and liabilities carried at fair value are based on observable prices and inputs and are classified in level 1 or 2, of the fair value hierarchy.\""
      ],
      "current_body": "Our financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions (see Note 1 to the financial statements). We believe that of our significant accounting policies (see Note 2 to the financial statements), the following policies involve a higher degree of judgment and complexity. 41December 2024 Form 10-K 41December 2024 Form 10-K 41December 2024 Form 10-K 41 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Fair ValueFinancial Instruments Measured at Fair ValueA significant number of our financial instruments are carried at fair value. The use of fair value to measure financial instruments is fundamental to our risk management practices and is our most critical accounting estimate. We make estimates regarding the valuation of assets and liabilities measured at fair value in preparing the financial statements. These assets and liabilities include, but are not limited to:•Trading assets and Trading liabilities;•Investment Securities—AFS;•Certain Securities purchased under agreements to resell;•Loans held-for-sale (measured at the lower of amortized cost or fair value);•Certain Deposits, primarily certificates of deposit;•Certain Securities sold under agreements to repurchase;•Certain Other secured financings; and•Certain Borrowings.Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date.In determining fair value, we use various valuation approaches. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable prices and inputs, and minimizes the use of unobservable prices and inputs by requiring that the relevant observable inputs be used when available. The hierarchy is broken down into three levels: wherein Level 1 represents quoted prices in active markets, Level 2 represents valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, and Level 3 consists of valuation techniques that incorporate significant unobservable inputs and, therefore, require the greatest use of judgment. The fair values for the substantial majority of our financial assets and liabilities carried at fair value are based on observable prices and inputs and are classified in level 1 or 2, of the fair value hierarchy. Level 3 financial assets represented 0.9% and 1.2% of our total assets, as of December 31, 2024 and December 31, 2023, respectively. In periods of market disruption, the observability of prices and inputs, as well as market liquidity, may be reduced for many instruments, which could cause an instrument to be recategorized from Level 1 to Level 2 or from Level 2 to Level 3. In addition, a downturn in market conditions could lead to declines in the valuation of many instruments carried at fair value. Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. For further information on the definition of fair value, Level 1, Level 2, Level 3 and related valuation techniques, and quantitative information about and sensitivity of significant unobservable inputs used in Level 3 fair value measurements, see Notes 2 and 4 to the financial statements.Where appropriate, valuation adjustments are made to account for various factors, such as liquidity risk (bid-ask adjustments), credit quality, model uncertainty, concentration risk and funding, in order to arrive at fair value. For a further discussion of valuation adjustments that we apply, see Note 2 to the financial statements.Goodwill and Intangible AssetsGoodwillWe test goodwill for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist. Evaluating goodwill for impairment requires management to make significant judgments, including, in part, the use of unobservable inputs that are subject to uncertainty. Goodwill impairment tests are performed at the reporting unit level, which is generally at the level of or one level below our business segments. Goodwill no longer retains its association with a particular acquisition once it has been assigned to a reporting unit. As such, all the activities of a reporting unit, whether acquired or organically developed, are available to support the value of the goodwill.For both the annual and interim tests, we have the option to either (i) perform a quantitative impairment test or (ii) first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, in which case the quantitative test would be performed.When performing a quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, the goodwill impairment loss is equal to the excess of the carrying value over the fair value, limited by the carrying amount of goodwill allocated to that reporting unit.The carrying value of each reporting unit is determined based on the capital allocated to the reporting unit. The estimated fair value of the reporting units is derived based on valuation techniques we believe market participants would use for each of the reporting units. The estimated fair value is generally determined by utilizing a discounted cash flow methodology. In certain instances, we may also utilize methodologies that incorporate price-to-book and price-to-earnings multiples of comparable companies. The discounted cash flow methodology uses projected future cash flows based on the reporting units’ earnings forecast. The discount rate used represents an estimate of the cost of equity for that reporting unit based on the Capital Asset Pricing Model. Fair ValueFinancial Instruments Measured at Fair ValueA significant number of our financial instruments are carried at fair value. The use of fair value to measure financial instruments is fundamental to our risk management practices and is our most critical accounting estimate. We make estimates regarding the valuation of assets and liabilities measured at fair value in preparing the financial statements. These assets and liabilities include, but are not limited to:•Trading assets and Trading liabilities;•Investment Securities—AFS;•Certain Securities purchased under agreements to resell;•Loans held-for-sale (measured at the lower of amortized cost or fair value);•Certain Deposits, primarily certificates of deposit;•Certain Securities sold under agreements to repurchase;•Certain Other secured financings; and•Certain Borrowings.Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date.In determining fair value, we use various valuation approaches. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable prices and inputs, and minimizes the use of unobservable prices and inputs by requiring that the relevant observable inputs be used when available. The hierarchy is broken down into three levels: wherein Level 1 represents quoted prices in active markets, Level 2 represents valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, and Level 3 consists of valuation techniques that incorporate significant unobservable inputs and, therefore, require the greatest use of judgment. The fair values for the substantial majority of our financial assets and liabilities carried at fair value are based on observable prices and inputs and are classified in level 1 or 2, of the fair value hierarchy. Level 3 financial assets represented 0.9% and 1.2% of our total assets, as of December 31, 2024 and December 31, 2023, respectively. In periods of market disruption, the observability of prices and inputs, as well as market liquidity, may be reduced for many instruments, which could cause an instrument to be recategorized from Level 1 to Level 2 or from Level 2 to Level 3. In addition, a downturn in market conditions could lead to declines in the valuation of many instruments carried at fair value. Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. For further information on the Fair Value",
      "prior_body": "The Financial Accounting Standards Board has issued certain accounting updates that apply to us. Accounting updates not listed below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption. We adopted the following accounting update on January 1, 2024, with no material impact on our financial condition or results of operations upon adoption: •Investments—Tax Credit Structures. This accounting update permits an election to account for tax equity investments using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the income tax credits and other income tax benefits received and recognized net in the income statement as a component of provision for income taxes. The update requires a separate accounting policy election to be made for each tax credit program. Additional disclosures are required regarding (i) the nature of our tax equity investments and (ii) the effect of our tax equity investments and related income tax credits on the financial condition and results of operations. We are currently evaluating the following accounting updates; however, we do not expect a material impact on our financial condition or results of operations upon adoption: •Income Tax Disclosures. This accounting update requires disclosure of additional information in relation to income taxes, including additional disaggregation of the income tax rate reconciliation and income taxes paid. For the income tax rate reconciliation, this update requires (1) disclosure of specific categories of reconciling items; and (2) providing additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). For income taxes paid, this update requires disclosure of information, including (1) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes; and (2) the amount of income taxes paid (net of refunds received), disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). Additionally, the update requires disclosure of (1) income (or loss) before income taxes, disaggregated between domestic and foreign; and (2) income taxes disaggregated by federal, state and foreign. The accounting update is effective for annual periods beginning January 1, 2025, with early adoption permitted. •Segment Reporting. This accounting update requires additional reportable segment disclosures on an annual and interim basis, primarily about significant segment expenses and other segment items that are regularly provided to the 45December 2023 Form 10-K 45December 2023 Form 10-K 45December 2023 Form 10-K 45 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents chief operating decision maker and included within the reported measure of segment profit or loss. This update does not change how operating segments are identified or aggregated, or how quantitative thresholds are applied to determine the reportable segments. The accounting update is effective for fiscal years beginning January 1, 2024, and interim periods within fiscal years beginning January 1, 2025, with early adoption permitted.Critical Accounting EstimatesOur financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions (see Note 1 to the financial statements). We believe that of our significant accounting policies (see Note 2 to the financial statements), the following policies involve a higher degree of judgment and complexity.Fair ValueFinancial Instruments Measured at Fair ValueA significant number of our financial instruments are carried at fair value. The use of fair value to measure financial instruments is fundamental to our risk management practices and is our most critical accounting estimate. We make estimates regarding the valuation of assets and liabilities measured at fair value in preparing the financial statements. These assets and liabilities include, but are not limited to:•Trading assets and Trading liabilities;•Investment Securities—AFS;•Certain Securities purchased under agreements to resell;•Loans held-for-sale (measured at the lower of amortized cost or fair value);•Certain Deposits, primarily certificates of deposit;•Certain Securities sold under agreements to repurchase;•Certain Other secured financings; and•Certain Borrowings.Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date.In determining fair value, we use various valuation approaches. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable prices and inputs, and minimizes the use of unobservable prices and inputs by requiring that the relevant observable inputs be used when available. The hierarchy is broken down into three levels: wherein Level 1 represents quoted prices in active markets, Level 2 represents valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, and Level 3 consists of valuation techniques that incorporate significant unobservable inputs and, therefore, require the greatest use of judgment. The fair values for the substantial majority of our financial assets and liabilities carried at fair value are based on observable prices and inputs and are classified in level 1 or 2, of the fair value hierarchy. Level 3 financial assets represented 1.2% and 1.4% of our total assets, as of December 31, 2023 and December 31, 2022, respectively. In periods of market disruption, the observability of prices and inputs, as well as market liquidity, may be reduced for many instruments, which could cause an instrument to be recategorized from Level 1 to Level 2 or from Level 2 to Level 3. In addition, a downturn in market conditions could lead to declines in the valuation of many instruments carried at fair value. Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. For further information on the definition of fair value, Level 1, Level 2, Level 3 and related valuation techniques, and quantitative information about and sensitivity of significant unobservable inputs used in Level 3 fair value measurements, see Notes 2 and 4 to the financial statements.Where appropriate, valuation adjustments are made to account for various factors, such as liquidity risk (bid-ask adjustments), credit quality, model uncertainty, concentration risk and funding, in order to arrive at fair value. For a further discussion of valuation adjustments that we apply, see Note 2 to the financial statements.Goodwill and Intangible AssetsGoodwillWe test goodwill for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist. Evaluating goodwill for impairment requires management to make significant judgments, including, in part, the use of unobservable inputs that are subject to uncertainty. Goodwill impairment tests are performed at the reporting unit level, which is generally at the level of or one level below our business segments. Goodwill no longer retains its association with a particular acquisition once it has been assigned to a reporting unit. As such, all the activities of a reporting unit, whether acquired or organically developed, are available to support the value of the goodwill.For both the annual and interim tests, we have the option to either (i) perform a quantitative impairment test or (ii) first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, in which case, the quantitative test would be performed.When performing a quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, the goodwill impairment loss is equal to the excess of the carrying value over the fair value, chief operating decision maker and included within the reported measure of segment profit or loss. This update does not change how operating segments are identified or aggregated, or how quantitative thresholds are applied to determine the reportable segments. The accounting update is effective for fiscal years beginning January 1, 2024, and interim periods within fiscal years beginning January 1, 2025, with early adoption permitted.Critical Accounting EstimatesOur financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions (see Note 1 to the financial statements). We believe that of our significant accounting policies (see Note 2 to the financial statements), the following policies involve a higher degree of judgment and complexity.Fair ValueFinancial Instruments Measured at Fair ValueA significant number of our financial instruments are carried at fair value. The use of fair value to measure financial instruments is fundamental to our risk management practices and is our most critical accounting estimate. We make estimates regarding the valuation of assets and liabilities measured at fair value in preparing the financial statements. These assets and liabilities include, but are not limited to:•Trading assets and Trading liabilities;•Investment Securities—AFS;•Certain Securities purchased under agreements to resell;•Loans held-for-sale (measured at the lower of amortized cost or fair value);•Certain Deposits, primarily certificates of deposit;•Certain Securities sold under agreements to repurchase;•Certain Other secured financings; and•Certain Borrowings.Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date.In determining fair value, we use various valuation approaches. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable prices and inputs, and minimizes the use of unobservable prices and inputs by requiring that the relevant observable inputs be used when available. The hierarchy is broken down into three levels: wherein Level 1 represents quoted prices in active markets, Level 2 represents valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, and Level 3 consists of valuation techniques that incorporate significant unobservable inputs and, therefore, require the greatest use of judgment. The fair values for the substantial majority of our financial assets and liabilities carried at fair value are based on observable prices and inputs and are classified in level 1 or 2, of the fair value chief operating decision maker and included within the reported measure of segment profit or loss. This update does not change how operating segments are identified or aggregated, or how quantitative thresholds are applied to determine the reportable segments. The accounting update is effective for fiscal years beginning January 1, 2024, and interim periods within fiscal years beginning January 1, 2025, with early adoption permitted."
    },
    {
      "status": "MODIFIED",
      "current_title": "Credit Evaluation",
      "prior_title": "Credit Evaluation",
      "similarity_score": 0.771,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The CRM also evaluates strategy, market position, industry dynamics, exposure to changes in international trade policies and supply chain constraints, management and other factors such as country risks and legal and contingent risks that could affect the obligor’s risk profile.\"",
        "Reworded sentence: \"For more information on the allowance for credit losses, see Notes 2 and 9 to the financial statements.Risk MitigationWe may seek to mitigate credit risk from our lending and trading activities in multiple ways, including collateral provisions, guarantees and hedges.\""
      ],
      "current_body": "The evaluation of corporate and institutional counterparties and borrowers includes assigning credit ratings, which reflect an assessment of an obligor’s probability of default and loss given default. Credit evaluations typically involve the assessment of financial statements; leverage; liquidity; capital strength; asset composition and quality; market capitalization; access to capital markets; adequacy of collateral, if applicable; and, in the case of certain loans, cash flow projections and debt service requirements. The CRM also evaluates strategy, market position, industry dynamics, exposure to changes in international trade policies and supply chain constraints, management and other factors such as country risks and legal and contingent risks that could affect the obligor’s risk profile. Additionally, the CRM evaluates the relative position of our exposure in the borrower’s capital structure and relative recovery prospects, as well as other structural elements of the particular transaction. The underwriting of commercial real estate loans includes, but is not limited to, review of the property type, LTV ratio, occupancy levels, debt service ratio, prevailing capitalization rates and market dynamics. The evaluation of consumer borrowers is tailored to the specific type of lending. Securities-based loans are evaluated based on factors that include, but are not limited to, the amount of the loan and the amount, quality, diversification, price volatility and liquidity of the collateral. The underwriting of residential real estate loans includes, but is not limited to, review of the obligor’s debt-to-income ratio, net worth, liquidity, collateral, LTV ratio and industry standard credit-scoring models (e.g., FICO scores). Subsequent credit monitoring for individual loans is performed at the portfolio level, and collateral values are monitored on an ongoing basis. Credit risk metrics assigned to our borrowers during the evaluation process are incorporated into the CRM maintenance of the allowance for credit losses. Such allowance serves as a reserve for expected inherent losses, as well as expected losses related to loans identified as impaired. For more information on the allowance for credit losses, see Notes 2 and 9 to the financial statements.Risk MitigationWe may seek to mitigate credit risk from our lending and trading activities in multiple ways, including collateral provisions, guarantees and hedges. At the transaction level, we seek to mitigate risk through management of key risk elements such as size, tenor, financial covenants, seniority and collateral. We actively hedge our lending and derivatives exposures. Hedging activities consist of the purchase, sale or transfer of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). Additionally, we may sell, assign or syndicate loans and lending commitments to other financial institutions in the primary and secondary loan markets.In connection with our derivatives trading activities, we generally enter into master netting agreements and collateral arrangements with counterparties. These agreements provide us with the ability to demand collateral, as well as to liquidate collateral and offset receivables and payables covered under the same master agreement in the event of a counterparty default. A collateral management group monitors collateral levels against requirements and oversees the administration of the collateral function. See Note 8 to the financial statements for additional information about our collateralized transactions.Loans and Lending Commitments At December 31, 2024$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,889 $9,183 $— $16,072 Secured lending facilities48,842 2,507 — 51,349 Commercial and Residential real estate8,412 628 2,420 11,460 Securities-based lending and Other2,876 — 6,041 8,917 Total Institutional Securities67,019 12,318 8,461 87,798 Wealth Management:Residential real estate66,738 — — 66,738 Securities-based lending and Other93,139 1 — 93,140 Total Wealth Management159,877 1 — 159,878 Total Investment Management24 — 200 204 Total loans226,900 12,319 8,661 247,880 ACL(1,066)(1,066)Total loans, net of ACL$225,834 $12,319 $8,661 $246,814 Lending commitments3$148,818 $26,955 $758 $176,531 Total exposure$374,652 $39,274 $9,419 $423,345 For more information on the allowance for credit losses, see Notes 2 and 9 to the financial statements.",
      "prior_body": "The evaluation of corporate and institutional counterparties and borrowers includes assigning credit ratings, which reflect an assessment of an obligor’s probability of default and loss given default. Credit evaluations typically involve the assessment of financial statements; leverage; liquidity; capital strength; asset composition and quality; market capitalization; access to capital markets; adequacy of collateral, if applicable; and, in the case of certain loans, cash flow projections and debt service requirements. The CRM also evaluates strategy, market position, industry dynamics, management and other factors such as country risks and legal and contingent risks that could affect the obligor’s risk profile. Additionally, the CRM evaluates the relative position of our exposure in the borrower’s capital structure and relative recovery prospects, as well as other structural elements of the particular transaction. The underwriting of commercial real estate loans includes, but is not limited to, review of the property type, LTV ratio, occupancy levels, debt service ratio, prevailing capitalization rates and market dynamics. The evaluation of consumer borrowers is tailored to the specific type of lending. Securities-based loans are evaluated based on factors that include, but are not limited to, the amount of the loan and the amount, quality, diversification, price volatility and liquidity of the collateral. The underwriting of residential real estate loans includes, but is not limited to, review of the obligor’s debt-to-income ratio, net worth, liquidity, collateral, LTV ratio and industry standard credit-scoring models (e.g., FICO scores). Subsequent credit monitoring for individual loans is performed at the portfolio level, and collateral values are monitored on an ongoing basis. Credit risk metrics assigned to our borrowers during the evaluation process are incorporated into the CRM maintenance of the allowance for credit losses. Such allowance serves as a reserve for expected inherent losses, as well as expected losses related to loans identified as impaired. For more information on the allowance for credit losses, see Notes 2 and 9 to the financial statements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Capital ratios9",
      "prior_title": "Economic and Market Conditions",
      "similarity_score": 0.767,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"1.The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues.\"",
        "Reworded sentence: \"We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses, net of financing costs on DCP investments from net revenues.\"",
        "Reworded sentence: \"For additional information on DCP, refer to “Other Matters” herein.Tangible common equity is a non-GAAP financial measure that we believe analysts, investors and other stakeholders consider useful to allow for comparability to peers and of the period-to-period use of our equity.\"",
        "Reworded sentence: \"GAAP to Non-GAAP Consolidated Financial Measures$ in millions202420232022Net revenues$61,761 $54,143 $53,668 Adjustment for mark-to-market losses (gains) on DCP1(363)(434)1,198 Adjusted Net revenues—non-GAAP$61,398 $53,709 $54,866 Compensation expense$26,178 $24,558 $23,053 Adjustment for mark-to-market losses (gains) on DCP1(672)(668)716 Adjusted Compensation expense—non-GAAP$25,506 $23,890 $23,769 Wealth Management Net revenues$28,420 $26,268 $24,417 Adjustment for mark-to-market losses (gains) on DCP1(239)(282)858 Adjusted Wealth Management Net revenues—non-GAAP$28,181 $25,986 $25,275 Wealth Management Compensation expense$15,207 $13,972 $12,534 Adjustment for mark-to-market losses (gains) on DCP1(431)(412)530 Adjusted Wealth Management Compensation expense—non-GAAP$14,776 $13,560 $13,064 1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment.\"",
        "Reworded sentence: \"We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses, net of financing costs on DCP investments from net revenues.\""
      ],
      "current_body": "1.The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues. 2.ROE and ROTCE represent earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity and average tangible common equity, respectively. 3.Represents a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein. 4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues. 5.For a discussion of Liquidity resources, see “Liquidity and Capital Resources— Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources” herein. 6.Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet. 7.Book value per common share and tangible book value per common share equal common equity and tangible common equity, respectively, divided by common shares outstanding. December 2024 Form 10-K28 December 2024 Form 10-K28 December 2024 Form 10-K28 28 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents 8.Client assets represent the sum of Wealth Management client assets and Investment Management AUM. Certain Wealth Management client assets are invested in Investment Management products and are therefore also included in Investment Management’s AUM.9.For a discussion of our capital ratios, see “Liquidity and Capital Resources—Regulatory Requirements” herein.Economic and Market ConditionsThe economic environment, client and investor confidence and overall market sentiment improved in 2024. While interest rates declined in recent months, elevated inflation, geopolitical risks including ongoing tensions in the Middle East, uncertainties surrounding government and policy developments in the markets we operate in and the timing and pace of further interest rate actions present ongoing risks to the economic environment. These factors have impacted, and could continue to impact capital markets and our businesses, as discussed further in “Business Segments” herein. For more information on economic and market conditions, and the potential effects of geopolitical events and acts of war or aggression on our future results, refer to “Risk Factors” and “Forward-Looking Statements.”Selected Non-GAAP Financial InformationWe prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non-GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non-GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non-GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non-GAAP financial measure. We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses, net of financing costs on DCP investments from net revenues. We also exclude the impact of mark-to-market gains and losses on DCP from compensation expenses. The impact of DCP investments and DCP are primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period-to-period underlying operating performance and revenue trends. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. For additional information on DCP, refer to “Other Matters” herein.Tangible common equity is a non-GAAP financial measure that we believe analysts, investors and other stakeholders consider useful to allow for comparability to peers and of the period-to-period use of our equity. The calculation of tangible common equity represents common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. In addition, we believe that certain ratios that utilize tangible common equity, such as return on average tangible common equity (“ROTCE”) and tangible book value per common share, also non-GAAP financial measures, are useful for evaluating the operating performance and capital adequacy of the business period-to-period, respectively. The calculation of ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity. The calculation of tangible book value per common share represents tangible common equity divided by common shares outstanding.The principal non-GAAP financial measures presented in this document are set forth in the following tables. Reconciliations from U.S. GAAP to Non-GAAP Consolidated Financial Measures$ in millions202420232022Net revenues$61,761 $54,143 $53,668 Adjustment for mark-to-market losses (gains) on DCP1(363)(434)1,198 Adjusted Net revenues—non-GAAP$61,398 $53,709 $54,866 Compensation expense$26,178 $24,558 $23,053 Adjustment for mark-to-market losses (gains) on DCP1(672)(668)716 Adjusted Compensation expense—non-GAAP$25,506 $23,890 $23,769 Wealth Management Net revenues$28,420 $26,268 $24,417 Adjustment for mark-to-market losses (gains) on DCP1(239)(282)858 Adjusted Wealth Management Net revenues—non-GAAP$28,181 $25,986 $25,275 Wealth Management Compensation expense$15,207 $13,972 $12,534 Adjustment for mark-to-market losses (gains) on DCP1(431)(412)530 Adjusted Wealth Management Compensation expense—non-GAAP$14,776 $13,560 $13,064 1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment. See “Other Matters” herein for more information.At December 31,$ in millions202420232022Tangible equityCommon equity$94,761 $90,288 $91,391 Less: Goodwill and net intangible assets(23,157)(23,761)(24,268)Tangible common equity—non-GAAP$71,604 $66,527 $67,123 8.Client assets represent the sum of Wealth Management client assets and Investment Management AUM. Certain Wealth Management client assets are invested in Investment Management products and are therefore also included in Investment Management’s AUM.9.For a discussion of our capital ratios, see “Liquidity and Capital Resources—Regulatory Requirements” herein.Economic and Market ConditionsThe economic environment, client and investor confidence and overall market sentiment improved in 2024. While interest rates declined in recent months, elevated inflation, geopolitical risks including ongoing tensions in the Middle East, uncertainties surrounding government and policy developments in the markets we operate in and the timing and pace of further interest rate actions present ongoing risks to the economic environment. These factors have impacted, and could continue to impact capital markets and our businesses, as discussed further in “Business Segments” herein. For more information on economic and market conditions, and the potential effects of geopolitical events and acts of war or aggression on our future results, refer to “Risk Factors” and “Forward-Looking Statements.”Selected Non-GAAP Financial InformationWe prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non-GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non-GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non-GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non-GAAP financial measure. We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses, net of financing costs on DCP investments from net revenues. We also exclude the impact of mark-to-market gains and losses on DCP from compensation expenses. The impact of DCP investments and DCP are primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period-to-period underlying operating performance and revenue trends. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and 8.Client assets represent the sum of Wealth Management client assets and Investment Management AUM. Certain Wealth Management client assets are invested in Investment Management products and are therefore also included in Investment Management’s AUM. 9.For a discussion of our capital ratios, see “Liquidity and Capital Resources—Regulatory Requirements” herein.",
      "prior_body": "The market environment in 2023 remained mixed, characterized by inflationary pressures and uncertainty regarding the future path of interest rates, which remained persistently high. Towards the end of the year, the market environment improved from prior quarters with the expectation of lower interest rates going into 2024. However, there is continued uncertainty regarding the timing and pace of these rate reductions along with concerns regarding heightened geopolitical risks that could impact the capital markets in 2024. The market environment impacted our businesses in 2023, as discussed further in “Business Segments” herein, and, to the extent that it continues to remain uncertain, could adversely impact client confidence and related activity. For more information on economic and market conditions, and the potential effects of geopolitical events and acts of war or aggression on our future results, refer to “Risk Factors” and “Forward-Looking Statements.” 31December 2023 Form 10-K 31December 2023 Form 10-K 31December 2023 Form 10-K 31 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Selected Non-GAAP Financial InformationWe prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non-GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non-GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non-GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non-GAAP financial measure. We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses on DCP investments from net revenues and compensation expenses. The impact of DCP is primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period-to-period underlying operating performance and revenue trends, especially in our Wealth Management business segment. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. Compensation expense for DCP awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards.We invest directly, as principal, in financial instruments and other investments to economically hedge certain of our obligations under these DCP awards. Changes in the fair value of such investments, net of financing costs, are recorded in net revenues, and included in Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments recognized in net revenues, there is typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period. While this timing difference may not be material to our Income before provision for income taxes in any individual period, it may impact the Wealth Management business segment reported ratios and operating metrics in certain periods due to potentially significant impacts to net revenues and compensation expenses. For additional information on DCP, refer to “Other Matters” herein.The principal non-GAAP financial measures presented in this document are set forth in the following tables. Reconciliations from U.S. GAAP to Non-GAAP Consolidated Financial Measures$ in millions202320222021Net revenues$54,143 $53,668 $59,755 Adjustment for mark-to-market losses (gains) on DCP1(434)1,198 (389)Adjusted Net revenues—non-GAAP$53,709 $54,866 $59,366 Compensation expense$24,558 $23,053 $24,628 Adjustment for mark-to-market losses (gains) on DCP1(668)716 (526)Adjusted Compensation expense—non-GAAP$23,890 $23,769 $24,102 Wealth Management Net revenues$26,268 $24,417 $24,243 Adjustment for mark-to-market losses (gains) on DCP1(282)858 (210)Adjusted Wealth Management Net revenues—non-GAAP$25,986 $25,275 $24,033 Wealth Management Compensation expense$13,972 $12,534 $13,090 Adjustment for mark-to-market losses (gains) on DCP1(412)530 (293)Adjusted Wealth Management Compensation expense—non-GAAP$13,560 $13,064 $12,797 At December 31,$ in millions202320222021Tangible equityCommon shareholders’ equity$90,288 $91,391 $97,691 Less: Goodwill and net intangible assets(23,761)(24,268)(25,192)Tangible common shareholders’ equity—non-GAAP$66,527 $67,123 $72,499 Average Monthly Balance$ in millions202320222021Tangible equityCommon shareholders’ equity$90,819 $93,873 $97,094 Less: Goodwill and net intangible assets(24,013)(24,789)(23,392)Tangible common shareholders’ equity—non-GAAP$66,806 $69,084 $73,702 Selected Non-GAAP Financial InformationWe prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non-GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non-GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non-GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non-GAAP financial measure. We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses on DCP investments from net revenues and compensation expenses. The impact of DCP is primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period-to-period underlying operating performance and revenue trends, especially in our Wealth Management business segment. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. Compensation expense for DCP awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards.We invest directly, as principal, in financial instruments and other investments to economically hedge certain of our obligations under these DCP awards. Changes in the fair value of such investments, net of financing costs, are recorded in net revenues, and included in Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments recognized in net revenues, there is typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period. While this timing difference"
    },
    {
      "status": "MODIFIED",
      "current_title": "Performance-based Income and Other",
      "prior_title": "Performance-based Income and Other",
      "similarity_score": 0.766,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Performance-based income and other revenues increased to $234 million in 2024, from $139 million in the prior year, primarily due to higher accrued carried interest in infrastructure and real estate funds, partially offset by lower accrued carried interest in certain private equity funds.\""
      ],
      "current_body": "Performance-based income and other revenues increased to $234 million in 2024, from $139 million in the prior year, primarily due to higher accrued carried interest in infrastructure and real estate funds, partially offset by lower accrued carried interest in certain private equity funds.",
      "prior_body": "Performance-based income and other revenues increased to $139 million in 2023, from $43 million in the prior year, primarily due to mark-to-market gains in 2023 compared with losses in the prior year on DCP investments and investments in public funds, partially offset by lower accrued carried interest in certain private funds."
    },
    {
      "status": "MODIFIED",
      "current_title": "Balance Sheet",
      "prior_title": "Liquidity and Capital Resources",
      "similarity_score": 0.765,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We monitor and evaluate the composition and size of our balance sheet on a regular basis.\"",
        "Reworded sentence: \"We also monitor key metrics, including asset and liability size and capital usage.\"",
        "Reworded sentence: \"Liquidity Risk Management FrameworkThe primary goal of our Liquidity Risk Management Framework is to ensure that we have access to adequate funding across a wide range of market conditions and time horizons.\"",
        "Reworded sentence: \"The methodology, implementation, production and analysis of our Liquidity Stress Tests are important components of the Required Liquidity Framework.The assumptions used in our various Liquidity Stress Test scenarios include, but are not limited to, the following:•No government support;•No access to equity and limited access to unsecured debt markets;•Repayment of all unsecured debt maturing within the stress horizon;•Higher haircuts for and significantly lower availability of secured funding;•Additional collateral that would be required by trading counterparties, certain exchanges and clearing organizations related to credit rating downgrades;•Additional collateral that would be required due to collateral substitutions, collateral disputes and uncalled collateral;•Discretionary unsecured debt buybacks;•Drawdowns on lending commitments provided to third parties; and•Client cash withdrawals and reduction in customer short positions that fund long positions.Liquidity Stress Tests are produced and results are reported at different levels, including major operating subsidiaries and major currencies, to capture specific cash requirements and cash availability across the Firm, including a limited number of asset sales in a stressed environment.\"",
        "Added sentence: \"Liquidity Risk Management FrameworkThe primary goal of our Liquidity Risk Management Framework is to ensure that we have access to adequate funding across a wide range of market conditions and time horizons.\""
      ],
      "current_body": "We monitor and evaluate the composition and size of our balance sheet on a regular basis. Our balance sheet management process includes quarterly planning, business-specific thresholds, monitoring of business-specific usage versus key performance metrics and new business impact assessments. We establish balance sheet thresholds at the consolidated and business segment levels. We monitor balance sheet utilization and review variances resulting from business activity and market fluctuations. On a regular basis, we review current performance versus established thresholds and assess the need to re-allocate our balance sheet based on business segment needs. We also monitor key metrics, including asset and liability size and capital usage. December 2024 Form 10-K44 December 2024 Form 10-K44 December 2024 Form 10-K44 44 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Total Assets by Business SegmentAt December 31, 2024$ in millionsISWMIMTotalAssetsCash and cash equivalents$74,079 $31,072 $235 $105,386 Trading assets at fair value320,003 6,915 4,966 331,884 Investment securities38,096 121,583 — 159,679 Securities purchased under agreements to resell100,404 18,161 — 118,565 Securities borrowed121,901 1,958 — 123,859 Customer and other receivables47,321 37,196 1,641 86,158 Loans178,607 159,542 4 238,153 Goodwill435 10,190 6,081 16,706 Intangible assets27 2,939 3,487 6,453 Other assets215,735 11,292 1,201 28,228 Total assets$796,608 $400,848 $17,615 $1,215,071 At December 31, 2023$ in millionsISWMIMTotalAssetsCash and cash equivalents$72,928 $16,172 $132 $89,232 Trading assets at fair value353,841 7,962 5,271 367,074 Investment securities39,212 115,595 — 154,807 Securities purchased under agreements to resell90,701 20,039 — 110,740 Securities borrowed119,823 1,268 — 121,091 Customer and other receivables47,333 31,237 1,535 80,105 Loans172,110 146,526 4 218,640 Goodwill424 10,199 6,084 16,707 Intangible assets26 3,427 3,602 7,055 Other assets214,108 12,743 1,391 28,242 Total assets$810,506 $365,168 $18,019 $1,193,693 1.Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements).2.Other assets primarily includes premises, equipment and software, ROU assets related to leases, other investments and deferred tax assets.A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities and short-term receivables. In the Institutional Securities business segment, these arise from market-making, financing and prime brokerage activities, and in the Wealth Management business segment, these arise from banking activities, including management of the investment portfolio. Liquidity Risk Management FrameworkThe primary goal of our Liquidity Risk Management Framework is to ensure that we have access to adequate funding across a wide range of market conditions and time horizons. The framework is designed to enable us to fulfill our financial obligations and support the execution of our business strategies.The following principles guide our Liquidity Risk Management Framework:•Sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”) should be maintained to cover maturing liabilities and other planned and contingent outflows;•Maturity profile of assets and liabilities should be aligned, with limited reliance on short-term funding;•Source, counterparty, currency, region and term of funding should be diversified; and•Liquidity Stress Tests should anticipate, and account for, periods of limited access to funding.The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile.Required Liquidity FrameworkOur Required Liquidity Framework establishes the amount of liquidity we must hold in both normal and stressed environments to ensure that our financial condition and overall soundness are not adversely affected by an inability (or perceived inability) to meet our financial obligations in a timely manner. The Required Liquidity Framework considers the most constraining liquidity requirement to satisfy all regulatory and internal limits at a consolidated and legal entity level.Liquidity Stress TestsWe use Liquidity Stress Tests to model external and intercompany liquidity flows across multiple scenarios and a range of time horizons. These scenarios contain various combinations of idiosyncratic and systemic stress events of different severity and duration. The methodology, implementation, production and analysis of our Liquidity Stress Tests are important components of the Required Liquidity Framework.The assumptions used in our various Liquidity Stress Test scenarios include, but are not limited to, the following:•No government support;•No access to equity and limited access to unsecured debt markets;•Repayment of all unsecured debt maturing within the stress horizon;•Higher haircuts for and significantly lower availability of secured funding;•Additional collateral that would be required by trading counterparties, certain exchanges and clearing organizations related to credit rating downgrades;•Additional collateral that would be required due to collateral substitutions, collateral disputes and uncalled collateral;•Discretionary unsecured debt buybacks;•Drawdowns on lending commitments provided to third parties; and•Client cash withdrawals and reduction in customer short positions that fund long positions.Liquidity Stress Tests are produced and results are reported at different levels, including major operating subsidiaries and major currencies, to capture specific cash requirements and cash availability across the Firm, including a limited number of asset sales in a stressed environment. The Liquidity Stress Total Assets by Business SegmentAt December 31, 2024$ in millionsISWMIMTotalAssetsCash and cash equivalents$74,079 $31,072 $235 $105,386 Trading assets at fair value320,003 6,915 4,966 331,884 Investment securities38,096 121,583 — 159,679 Securities purchased under agreements to resell100,404 18,161 — 118,565 Securities borrowed121,901 1,958 — 123,859 Customer and other receivables47,321 37,196 1,641 86,158 Loans178,607 159,542 4 238,153 Goodwill435 10,190 6,081 16,706 Intangible assets27 2,939 3,487 6,453 Other assets215,735 11,292 1,201 28,228 Total assets$796,608 $400,848 $17,615 $1,215,071 At December 31, 2023$ in millionsISWMIMTotalAssetsCash and cash equivalents$72,928 $16,172 $132 $89,232 Trading assets at fair value353,841 7,962 5,271 367,074 Investment securities39,212 115,595 — 154,807 Securities purchased under agreements to resell90,701 20,039 — 110,740 Securities borrowed119,823 1,268 — 121,091 Customer and other receivables47,333 31,237 1,535 80,105 Loans172,110 146,526 4 218,640 Goodwill424 10,199 6,084 16,707 Intangible assets26 3,427 3,602 7,055 Other assets214,108 12,743 1,391 28,242 Total assets$810,506 $365,168 $18,019 $1,193,693 1.Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements).2.Other assets primarily includes premises, equipment and software, ROU assets related to leases, other investments and deferred tax assets.A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities and short-term receivables. In the Institutional Securities business segment, these arise from market-making, financing and prime brokerage activities, and in the Wealth Management business segment, these arise from banking activities, including management of the investment portfolio. Liquidity Risk Management FrameworkThe primary goal of our Liquidity Risk Management Framework is to ensure that we have access to adequate funding across a wide range of market conditions and time horizons. The framework is designed to enable us to fulfill our financial obligations and support the execution of our business strategies.The following principles guide our Liquidity Risk Management Framework:•Sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”) should be maintained to cover maturing liabilities and other planned and contingent outflows;•Maturity profile of assets and liabilities should be aligned, with limited reliance on short-term funding;",
      "prior_body": "Our liquidity and capital policies are established and maintained by senior management, with oversight by the Asset/Liability Management Committee and the Board. Through various risk and control committees, senior management reviews business performance relative to these policies, monitors the availability of alternative sources of financing, and oversees the liquidity, interest rate and currency sensitivity of our asset and liability position. Our Corporate Treasury department (“Treasury”), Firm Risk Committee, Asset/Liability Management Committee, and other committees and control groups assist in evaluating, monitoring and managing the impact that our business activities have on our balance sheet, liquidity and capital structure. Liquidity and capital matters are reported regularly to the Board and the BRC. December 2023 Form 10-K48 December 2023 Form 10-K48 December 2023 Form 10-K48 48 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Balance SheetWe monitor and evaluate the composition and size of our balance sheet on a regular basis. Our balance sheet management process includes quarterly planning, business-specific thresholds, monitoring of business-specific usage versus key performance metrics and new business impact assessments.We establish balance sheet thresholds at the consolidated and business segment levels. We monitor balance sheet utilization and review variances resulting from business activity and market fluctuations. On a regular basis, we review current performance versus established thresholds and assess the need to re-allocate our balance sheet based on business segment needs. We also monitor key metrics, including asset and liability size and capital usage.Total Assets by Business SegmentAt December 31, 2023$ in millionsISWMIMTotalAssetsCash and cash equivalents$72,928 $16,172 $132 $89,232 Trading assets at fair value353,841 7,962 5,271 367,074 Investment securities39,212 115,595 — 154,807 Securities purchased under agreements to resell90,701 20,039 — 110,740 Securities borrowed119,823 1,268 — 121,091 Customer and other receivables47,333 31,237 1,535 80,105 Loans172,110 146,526 4 218,640 Goodwill424 10,199 6,084 16,707 Intangible assets26 3,427 3,602 7,055 Other assets214,108 12,743 1,391 28,242 Total assets$810,506 $365,168 $18,019 $1,193,693 At December 31, 2022$ in millionsISWMIMTotalAssetsCash and cash equivalents$88,362 $39,539 $226 $128,127 Trading assets at fair value294,884 1,971 4,460 301,315 Investment securities40,481 119,450 — 159,931 Securities purchased under agreements to resell102,511 11,396 — 113,907 Securities borrowed132,619 755 — 133,374 Customer and other receivables47,515 29,620 1,405 78,540 Loans167,676 146,105 4 213,785 Goodwill429 10,202 6,021 16,652 Intangible assets36 3,911 3,671 7,618 Other assets215,324 10,356 1,302 26,982 Total assets$789,837 $373,305 $17,089 $1,180,231 1.Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements).2.Other assets primarily includes premises, equipment and software, ROU assets related to leases, other investments and deferred tax assets.A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities and short-term receivables. In the Institutional Securities business segment, these arise from market-making, financing and prime brokerage activities, and in the Wealth Management business segment, these arise from banking activities, including management of the investment portfolio. Total assets of $1,194 billion at December 31, 2023 were relatively unchanged from $1,180 billion at December 31, 2022.Liquidity Risk Management FrameworkThe primary goal of our Liquidity Risk Management Framework is to ensure that we have access to adequate funding across a wide range of market conditions and time horizons. The framework is designed to enable us to fulfill our financial obligations and support the execution of our business strategies.The following principles guide our Liquidity Risk Management Framework:•Sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”) should be maintained to cover maturing liabilities and other planned and contingent outflows;•Maturity profile of assets and liabilities should be aligned, with limited reliance on short-term funding;•Source, counterparty, currency, region and term of funding should be diversified; and•Liquidity Stress Tests should anticipate, and account for, periods of limited access to funding.The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile.Required Liquidity FrameworkOur Required Liquidity Framework establishes the amount of liquidity we must hold in both normal and stressed environments to ensure that our financial condition and overall soundness are not adversely affected by an inability (or perceived inability) to meet our financial obligations in a timely manner. The Required Liquidity Framework considers the most constraining liquidity requirement to satisfy all regulatory and internal limits at a consolidated and legal entity level.Liquidity Stress TestsWe use Liquidity Stress Tests to model external and intercompany liquidity flows across multiple scenarios and a range of time horizons. These scenarios contain various combinations of idiosyncratic and systemic stress events of different severity and duration. The methodology, implementation, production and analysis of our Liquidity Stress Tests are important components of the Required Liquidity Framework.The assumptions used in our various Liquidity Stress Test scenarios include, but are not limited to, the following:•No government support;•No access to equity and limited access to unsecured debt markets; Balance SheetWe monitor and evaluate the composition and size of our balance sheet on a regular basis. Our balance sheet management process includes quarterly planning, business-specific thresholds, monitoring of business-specific usage versus key performance metrics and new business impact assessments.We establish balance sheet thresholds at the consolidated and business segment levels. We monitor balance sheet utilization and review variances resulting from business activity and market fluctuations. On a regular basis, we review current performance versus established thresholds and assess the need to re-allocate our balance sheet based on business segment needs. We also monitor key metrics, including asset and liability size and capital usage.Total Assets by Business SegmentAt December 31, 2023$ in millionsISWMIMTotalAssetsCash and cash equivalents$72,928 $16,172 $132 $89,232 Trading assets at fair value353,841 7,962 5,271 367,074 Investment securities39,212 115,595 — 154,807 Securities purchased under agreements to resell90,701 20,039 — 110,740 Securities borrowed119,823 1,268 — 121,091 Customer and other receivables47,333 31,237 1,535 80,105 Loans172,110 146,526 4 218,640 Goodwill424 10,199 6,084 16,707 Intangible assets26 3,427 3,602 7,055 Other assets214,108 12,743 1,391 28,242 Total assets$810,506 $365,168 $18,019 $1,193,693 At December 31, 2022$ in millionsISWMIMTotalAssetsCash and cash equivalents$88,362 $39,539 $226 $128,127 Trading assets at fair value294,884 1,971 4,460 301,315 Investment securities40,481 119,450 — 159,931 Securities purchased under agreements to resell102,511 11,396 — 113,907 Securities borrowed132,619 755 — 133,374 Customer and other receivables47,515 29,620 1,405 78,540 Loans167,676 146,105 4 213,785 Goodwill429 10,202 6,021 16,652 Intangible assets36 3,911 3,671 7,618 Other assets215,324 10,356 1,302 26,982 Total assets$789,837 $373,305 $17,089 $1,180,231 1.Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements).2.Other assets primarily includes premises, equipment and software, ROU assets related to leases, other investments and deferred tax assets.A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities and short-term receivables. In the Institutional Securities business segment, these arise from market-making, financing and prime brokerage activities, and in the Wealth Management business segment, these arise from banking activities, including management of the investment portfolio. Total assets of"
    },
    {
      "status": "MODIFIED",
      "current_title": "Tangible common equity—non-GAAP",
      "prior_title": "Reconciliations from U.S. GAAP to Non-GAAP Consolidated Financial Measures",
      "similarity_score": 0.761,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"29December 2024 Form 10-K 29December 2024 Form 10-K 29December 2024 Form 10-K 29 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Average Monthly Balance$ in millions202420232022Tangible equityCommon equity$91,699 $90,819 $93,873 Less: Goodwill and net intangible assets(23,482)(24,013)(24,789)Tangible common equity—non-GAAP$68,217 $66,806 $69,084 Non-GAAP Financial Measures by Business Segment$ in billions202420232022Average common equity1Institutional Securities$45.0 $45.6 $48.8 Wealth Management29.1 28.8 31.0 Investment Management10.8 10.4 10.6 ROE2Institutional Securities14 %7 %10 %Wealth Management20 %17 %16 %Investment Management8 %6 %6 %Average tangible common equity1Institutional Securities$44.6 $45.2 $48.3 Wealth Management15.5 14.8 16.3 Investment Management1.1 0.7 0.8 ROTCE2Institutional Securities14 %7 %10 %Wealth Management37 %33 %31 %Investment Management76 %88 %86 %1.Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein).\"",
        "Reworded sentence: \"2.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.Return on Tangible Common Equity GoalWe have an ROTCE goal of 20%.\"",
        "Reworded sentence: \"Certain fees received on loans carried at fair value and dividends from equity securities are also recorded in Trading revenues since they relate to positions carried at fair value.\"",
        "Reworded sentence: \"2.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.Return on Tangible Common Equity GoalWe have an ROTCE goal of 20%.\"",
        "Reworded sentence: \"See Note 22 to the financial statements for segment net revenues by income statement line item and information on intersegment transactions.\""
      ],
      "current_body": "29December 2024 Form 10-K 29December 2024 Form 10-K 29December 2024 Form 10-K 29 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Average Monthly Balance$ in millions202420232022Tangible equityCommon equity$91,699 $90,819 $93,873 Less: Goodwill and net intangible assets(23,482)(24,013)(24,789)Tangible common equity—non-GAAP$68,217 $66,806 $69,084 Non-GAAP Financial Measures by Business Segment$ in billions202420232022Average common equity1Institutional Securities$45.0 $45.6 $48.8 Wealth Management29.1 28.8 31.0 Investment Management10.8 10.4 10.6 ROE2Institutional Securities14 %7 %10 %Wealth Management20 %17 %16 %Investment Management8 %6 %6 %Average tangible common equity1Institutional Securities$44.6 $45.2 $48.3 Wealth Management15.5 14.8 16.3 Investment Management1.1 0.7 0.8 ROTCE2Institutional Securities14 %7 %10 %Wealth Management37 %33 %31 %Investment Management76 %88 %86 %1.Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein). The sums of the segments’ Average common equity and Average tangible common equity do not equal the Consolidated measures due to Parent Company equity. 2.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.Return on Tangible Common Equity GoalWe have an ROTCE goal of 20%. Our ROTCE goal is a forward-looking statement that is based on a normal market environment and may be materially affected by many factors.See “Risk Factors” and “Forward-Looking Statements” herein for further information on market and economic conditions and their potential effects on our future operating results.ROTCE represents a non-GAAP financial measure. For further information on non-GAAP measures, see “Selected Non-GAAP Financial Information” herein.Business SegmentsSubstantially all of our operating revenues and operating expenses are directly attributable to our business segments. Certain revenues and expenses have been allocated to each business segment, generally in proportion to its respective net revenues, non-interest expenses or other relevant measures. See Note 22 to the financial statements for segment net revenues by income statement line item and information on intersegment transactions.Net RevenuesInvestment Banking Investment banking revenues are derived from client engagements in which we act as an advisor, underwriter or distributor of capital.Within the Institutional Securities business segment, these revenues are primarily composed of fees earned from underwriting equity and fixed income securities, syndicating loans and advisory services in relation to mergers and acquisitions, divestitures and corporate restructurings.Within the Wealth Management business segment, these revenues are derived from the distribution of newly issued securities.TradingTrading revenues include the realized gains and losses from transactions in financial instruments, unrealized gains and losses from ongoing changes in the fair value of our positions, and gains and losses from financial instruments used to economically hedge compensation expense related to DCP. Within the Institutional Securities business segment, Trading revenues arise from transactions in cash instruments and derivatives in which we act as a market maker for our clients. In this role, we stand ready to buy, sell or otherwise transact with customers under a variety of market conditions and to provide firm or indicative prices in response to customer requests. Our liquidity obligations can be explicit in some cases, and in others, customers expect us to be willing to transact with them. In order to most effectively fulfill our market-making function, we engage in activities across all of our trading businesses that include, but are not limited to:•taking positions in anticipation of, and in response to, customer demand to buy or sell and—depending on the liquidity of the relevant market and the size of the position—to hold those positions for a period of time;•building, maintaining and rebalancing inventory held to facilitate client activity through trades with other market participants;•managing and assuming basis risk (risk associated with imperfect hedging) between risks incurred from the facilitation of client transactions and the standardized products available in the market to hedge those risks;•trading in the market to remain current on pricing and trends; and•engaging in other activities to provide efficiency and liquidity for markets.In many markets, the realized and unrealized gains and losses from purchase and sale transactions will include any spreads between bids and offers. Certain fees received on loans carried at fair value and dividends from equity securities are also recorded in Trading revenues since they relate to positions carried at fair value. Average Monthly Balance$ in millions202420232022Tangible equityCommon equity$91,699 $90,819 $93,873 Less: Goodwill and net intangible assets(23,482)(24,013)(24,789)Tangible common equity—non-GAAP$68,217 $66,806 $69,084 Non-GAAP Financial Measures by Business Segment$ in billions202420232022Average common equity1Institutional Securities$45.0 $45.6 $48.8 Wealth Management29.1 28.8 31.0 Investment Management10.8 10.4 10.6 ROE2Institutional Securities14 %7 %10 %Wealth Management20 %17 %16 %Investment Management8 %6 %6 %Average tangible common equity1Institutional Securities$44.6 $45.2 $48.3 Wealth Management15.5 14.8 16.3 Investment Management1.1 0.7 0.8 ROTCE2Institutional Securities14 %7 %10 %Wealth Management37 %33 %31 %Investment Management76 %88 %86 %1.Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein). The sums of the segments’ Average common equity and Average tangible common equity do not equal the Consolidated measures due to Parent Company equity. 2.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.Return on Tangible Common Equity GoalWe have an ROTCE goal of 20%. Our ROTCE goal is a forward-looking statement that is based on a normal market environment and may be materially affected by many factors.See “Risk Factors” and “Forward-Looking Statements” herein for further information on market and economic conditions and their potential effects on our future operating results.ROTCE represents a non-GAAP financial measure. For further information on non-GAAP measures, see “Selected Non-GAAP Financial Information” herein.Business SegmentsSubstantially all of our operating revenues and operating expenses are directly attributable to our business segments. Certain revenues and expenses have been allocated to each business segment, generally in proportion to its respective net revenues, non-interest expenses or other relevant measures. See Note 22 to the financial statements for segment net revenues by income statement line item and information on intersegment transactions. Average Monthly Balance$ in millions202420232022Tangible equityCommon equity$91,699 $90,819 $93,873 Less: Goodwill and net intangible assets(23,482)(24,013)(24,789)Tangible common equity—non-GAAP$68,217 $66,806 $69,084 Common equity",
      "prior_body": "$ in millions202320222021Net revenues$54,143 $53,668 $59,755 Adjustment for mark-to-market losses (gains) on DCP1(434)1,198 (389)Adjusted Net revenues—non-GAAP$53,709 $54,866 $59,366 Compensation expense$24,558 $23,053 $24,628 Adjustment for mark-to-market losses (gains) on DCP1(668)716 (526)Adjusted Compensation expense—non-GAAP$23,890 $23,769 $24,102 Wealth Management Net revenues$26,268 $24,417 $24,243 Adjustment for mark-to-market losses (gains) on DCP1(282)858 (210)Adjusted Wealth Management Net revenues—non-GAAP$25,986 $25,275 $24,033 Wealth Management Compensation expense$13,972 $12,534 $13,090 Adjustment for mark-to-market losses (gains) on DCP1(412)530 (293)Adjusted Wealth Management Compensation expense—non-GAAP$13,560 $13,064 $12,797 $ in millions Adjustment for mark-to-market losses (gains) on DCP1 Adjustment for mark-to-market losses (gains) on DCP1 Adjustment for mark-to-market losses (gains) on DCP1 Adjustment for mark-to-market losses (gains) on DCP1 At December 31,$ in millions202320222021Tangible equityCommon shareholders’ equity$90,288 $91,391 $97,691 Less: Goodwill and net intangible assets(23,761)(24,268)(25,192)Tangible common shareholders’ equity—non-GAAP$66,527 $67,123 $72,499 Average Monthly Balance$ in millions202320222021Tangible equityCommon shareholders’ equity$90,819 $93,873 $97,094 Less: Goodwill and net intangible assets(24,013)(24,789)(23,392)Tangible common shareholders’ equity—non-GAAP$66,806 $69,084 $73,702 December 2023 Form 10-K32 December 2023 Form 10-K32 December 2023 Form 10-K32 32 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Non-GAAP Financial Measures by Business Segment$ in billions202320222021Average common equity2Institutional Securities$45.6 $48.8 $43.5 Wealth Management28.8 31.0 28.6 Investment Management10.4 10.6 8.8 ROE3Institutional Securities7 %10 %20 %Wealth Management17 %16 %16 %Investment Management6 %6 %15 %Average tangible common equity2Institutional Securities$45.2 $48.3 $42.9 Wealth Management14.8 16.3 13.4 Investment Management0.7 0.8 0.9 ROTCE3Institutional Securities7 %10 %20 %Wealth Management33 %31 %34 %Investment Management88 %86 %144 %1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment. See “Other Matters” herein for more information.2.Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein). The sums of the segments’ Average common equity and Average tangible common equity do not equal the Consolidated measures due to Parent Company equity. 3.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.Return on Tangible Common Equity GoalWe have an ROTCE goal of 20%. Our ROTCE goal is a forward-looking statement that is based on a normal market environment and may be materially affected by many factors. See “Risk Factors” and “Forward-Looking Statements” herein for further information on market and economic conditions and their potential effects on our future operating results.ROTCE represents a non-GAAP financial measure. For further information on non-GAAP measures, see “Selected Non-GAAP Financial Information” herein.Business SegmentsSubstantially all of our operating revenues and operating expenses are directly attributable to our business segments. Certain revenues and expenses have been allocated to each business segment, generally in proportion to its respective net revenues, non-interest expenses or other relevant measures. See Note 22 to the financial statements for segment net revenues by income statement line item and information on intersegment transactions.Net RevenuesInvestment Banking Investment banking revenues are derived from client engagements in which we act as an advisor, underwriter or distributor of capital.Within the Institutional Securities business segment, these revenues are primarily composed of fees earned from underwriting equity and fixed income securities, syndicating loans and advisory services in relation to mergers and acquisitions, divestitures and corporate restructurings.Within the Wealth Management business segment, these revenues are derived from the distribution of newly issued securities.TradingTrading revenues include the realized gains and losses from transactions in financial instruments, unrealized gains and losses from ongoing changes in the fair value of our positions, and gains and losses from financial instruments used to economically hedge compensation expense related to DCP. Within the Institutional Securities business segment, Trading revenues arise from transactions in cash instruments and derivatives in which we act as a market maker for our clients. In this role, we stand ready to buy, sell or otherwise transact with customers under a variety of market conditions and to provide firm or indicative prices in response to customer requests. Our liquidity obligations can be explicit in some cases, and in others, customers expect us to be willing to transact with them. In order to most effectively fulfill our market-making function, we engage in activities across all of our trading businesses that include, but are not limited to:•taking positions in anticipation of, and in response to, customer demand to buy or sell and—depending on the liquidity of the relevant market and the size of the position—to hold those positions for a period of time;•building, maintaining and rebalancing inventory held to facilitate client activity through trades with other market participants;•managing and assuming basis risk (risk associated with imperfect hedging) between risks incurred from the facilitation of client transactions and the standardized products available in the market to hedge those risks;•trading in the market to remain current on pricing and trends; and•engaging in other activities to provide efficiency and liquidity for markets.In many markets, the realized and unrealized gains and losses from purchase and sale transactions will include any spreads between bids and offers. Certain fees received on loans carried at fair value and dividends from equity securities are also recorded in Trading revenues since they relate to positions carried at fair value.Within the Wealth Management business segment, Trading revenues primarily include revenues from customers’ purchases and sales of fixed income instruments in which we act as principal, as well as gains and losses related to DCP investments. Non-GAAP Financial Measures by Business Segment$ in billions202320222021Average common equity2Institutional Securities$45.6 $48.8 $43.5 Wealth Management28.8 31.0 28.6 Investment Management10.4 10.6 8.8 ROE3Institutional Securities7 %10 %20 %Wealth Management17 %16 %16 %Investment Management6 %6 %15 %Average tangible common equity2Institutional Securities$45.2 $48.3 $42.9 Wealth Management14.8 16.3 13.4 Investment Management0.7 0.8 0.9 ROTCE3Institutional Securities7 %10 %20 %Wealth Management33 %31 %34 %Investment Management88 %86 %144 %1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment. See “Other Matters” herein for more information.2.Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein). The sums of the segments’ Average common equity and Average tangible common equity do not equal the Consolidated measures due to Parent Company equity. 3.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.Return on Tangible Common Equity GoalWe have an ROTCE goal of 20%. Our ROTCE goal is a forward-looking statement that is based on a normal market environment and may be materially affected by many factors. See “Risk Factors” and “Forward-Looking Statements” herein for further information on market and economic conditions and their potential effects on our future operating results.ROTCE represents a non-GAAP financial measure. For further information on non-GAAP measures, see “Selected Non-GAAP Financial Information” herein.Business SegmentsSubstantially all of our operating revenues and operating expenses are directly attributable to our business segments. Certain revenues and expenses have been allocated to each business segment, generally in proportion to its respective net revenues, non-interest expenses or other relevant measures. See Note 22 to the financial statements for segment net revenues by income statement line item and information on intersegment transactions.Net RevenuesInvestment Banking Investment banking revenues are derived from client engagements in which we act as an advisor, underwriter or distributor of capital."
    },
    {
      "status": "MODIFIED",
      "current_title": "Incremental Collateral or Terminating Payments",
      "prior_title": "Credit Ratings",
      "similarity_score": 0.751,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"In connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities December 2024 Form 10-K48 December 2024 Form 10-K48 December 2024 Form 10-K48 48 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position.\"",
        "Reworded sentence: \"Capital ManagementWe view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements, such as the SCB, and rating agency guidelines.\"",
        "Reworded sentence: \"The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act.\"",
        "Reworded sentence: \"Capital ManagementWe view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements, such as the SCB, and rating agency guidelines.\""
      ],
      "current_body": "In connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities December 2024 Form 10-K48 December 2024 Form 10-K48 December 2024 Form 10-K48 48 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position. See Note 6 to the financial statements for additional information on OTC derivatives that contain such contingent features.While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact it would have on our business and results of operations in future periods is inherently uncertain and would depend on a number of interrelated factors, including, among other things, the magnitude of the downgrade, the rating relative to peers, the rating assigned by the relevant agency before the downgrade, individual client behavior and future mitigating actions we might take. The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests. Capital ManagementWe view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements, such as the SCB, and rating agency guidelines. In the future, we may expand or contract our capital base to address the changing needs of our businesses.Common Stock Repurchasesin millions, except for per share data202420232022Number of shares33 62 113 Average price per share$99.16 $85.35 $87.25 Total$3,250 $5,300 $9,865 For additional information on our common stock repurchases, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein and Note 17 to the financial statements.For a description of our capital plan, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.Common Stock Dividend AnnouncementAnnouncement dateJanuary 16, 2025Amount per share$0.925Date paidFebruary 14, 2025Shareholders of record as ofJanuary 31, 2025For additional information on our common stock dividends, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.For additional information on our common stock and information on our preferred stock, see Note 17 to the financial statements.Off-Balance Sheet Arrangements We enter into various off-balance sheet arrangements, including through unconsolidated SPEs and lending-related financial instruments (e.g., guarantees and commitments), primarily in connection with the Institutional Securities and Investment Management business segments.We utilize SPEs primarily in connection with securitization activities. For information on our securitization activities, see Note 15 to the financial statements.For information on our commitments, obligations under certain guarantee arrangements and indemnities, see Note 14 to the financial statements. For a further discussion of our lending commitments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Loans and Lending Commitments” herein.Regulatory RequirementsRegulatory Capital FrameworkWe are an FHC under the BHC Act and are subject to the regulation and oversight of the Federal Reserve. The Federal Reserve establishes capital requirements for us, including “well-capitalized” standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and standards for our U.S. Bank Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 16 to the financial statements.Regulatory Capital RequirementsWe are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For additional information on TLAC, see “Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” herein.Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 (“CET1”) business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position. See Note 6 to the financial statements for additional information on OTC derivatives that contain such contingent features.While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact it would have on our business and results of operations in future periods is inherently uncertain and would depend on a number of interrelated factors, including, among other things, the magnitude of the downgrade, the rating relative to peers, the rating assigned by the relevant agency before the downgrade, individual client behavior and future mitigating actions we might take. The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests. Capital ManagementWe view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements, such as the SCB, and rating agency guidelines. In the future, we may expand or contract our capital base to address the changing needs of our businesses.Common Stock Repurchasesin millions, except for per share data202420232022Number of shares33 62 113 Average price per share$99.16 $85.35 $87.25 Total$3,250 $5,300 $9,865 For additional information on our common stock repurchases, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein and Note 17 to the financial statements.For a description of our capital plan, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.Common Stock Dividend AnnouncementAnnouncement dateJanuary 16, 2025Amount per share$0.925Date paidFebruary 14, 2025Shareholders of record as ofJanuary 31, 2025For additional information on our common stock dividends, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein. business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position. See Note 6 to the financial statements for additional information on OTC derivatives that contain such contingent features. While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact it would have on our business and results of operations in future periods is inherently uncertain and would depend on a number of interrelated factors, including, among other things, the magnitude of the downgrade, the rating relative to peers, the rating assigned by the relevant agency before the downgrade, individual client behavior and future mitigating actions we might take. The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests.",
      "prior_body": "We rely on external sources to finance a significant portion of our daily operations. Our credit ratings are one of the factors in the cost and availability of financing and can have an impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as certain OTC derivative transactions. When determining credit ratings, rating agencies consider both company-specific and industry-wide factors. See also “Risk Factors—Liquidity Risk.” December 2023 Form 10-K52 December 2023 Form 10-K52 December 2023 Form 10-K52 52 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Parent Company and U.S. Bank Subsidiaries Issuer Ratings at February 16, 2024Parent CompanyShort-Term DebtLong-Term DebtRating OutlookDBRS, Inc.R-1 (middle)A (high)StableFitch Ratings, Inc.F1A+StableMoody’s Investors Service, Inc.P-1A1StableRating and Investment Information, Inc.a-1A+StableS&P Global RatingsA-2A-StableMSBNAShort-Term DebtLong-Term DebtRating OutlookFitch Ratings, Inc.F1+AA-StableMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableMSPBNAShort-Term DebtLong-Term DebtRating OutlookMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableIncremental Collateral or Terminating PaymentsIn connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position. See Note 6 to the financial statements for additional information on OTC derivatives that contain such contingent features.While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact it would have on our business and results of operations in future periods is inherently uncertain and would depend on a number of interrelated factors, including, among other things, the magnitude of the downgrade, the rating relative to peers, the rating assigned by the relevant agency before the downgrade, individual client behavior and future mitigating actions we might take. The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests. Capital ManagementWe view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements and rating agency guidelines. In the future, we may expand or contract our capital base to address the changing needs of our businesses.Common Stock Repurchasesin millions, except for per share data202320222021Number of shares62 113 126 Average price per share$85.35 $87.25 $91.13 Total$5,300 $9,865 $11,464 For additional information on our common stock repurchases, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein and Note 17 to the financial statements.For a description of our capital plan, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.Common Stock Dividend AnnouncementAnnouncement dateJanuary 16, 2024Amount per share$0.85Date paidFebruary 15, 2024Shareholders of record as ofJanuary 31, 2024For additional information on our common stock dividends, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.For additional information on our common stock and information on our preferred stock, see Note 17 to the financial statements.Off-Balance Sheet Arrangements We enter into various off-balance sheet arrangements, including through unconsolidated SPEs and lending-related financial instruments (e.g., guarantees and commitments), primarily in connection with the Institutional Securities and Investment Management business segments.We utilize SPEs primarily in connection with securitization activities. For information on our securitization activities, see Note 15 to the financial statements.For information on our commitments, obligations under certain guarantee arrangements and indemnities, see Note 14 to the financial statements. For a further discussion of our lending commitments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Loans and Lending Commitments” herein.Regulatory RequirementsRegulatory Capital FrameworkWe are an FHC under the BHC Act and are subject to the regulation and oversight of the Federal Reserve. The Federal Reserve establishes capital requirements for us, including “well-capitalized” standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and standards for our U.S. Bank Parent Company and U.S. Bank Subsidiaries Issuer Ratings at February 16, 2024Parent CompanyShort-Term DebtLong-Term DebtRating OutlookDBRS, Inc.R-1 (middle)A (high)StableFitch Ratings, Inc.F1A+StableMoody’s Investors Service, Inc.P-1A1StableRating and Investment Information, Inc.a-1A+StableS&P Global RatingsA-2A-StableMSBNAShort-Term DebtLong-Term DebtRating OutlookFitch Ratings, Inc.F1+AA-StableMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableMSPBNAShort-Term DebtLong-Term DebtRating OutlookMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableIncremental Collateral or Terminating PaymentsIn connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position. See Note 6 to the financial statements for additional information on OTC derivatives that contain such contingent features.While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact it would have on our business and results of operations in future periods is inherently uncertain and would depend on a number of interrelated factors, including, among other things, the magnitude of the downgrade, the rating relative to peers, the rating assigned by the relevant agency before the downgrade, individual client behavior and future mitigating actions we might take. The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests. Capital ManagementWe view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements and rating agency guidelines. In the future, we may expand or contract our capital base to address the changing needs of our businesses."
    },
    {
      "status": "MODIFIED",
      "current_title": "Net Stable Funding Ratio",
      "prior_title": "Net Stable Funding Ratio",
      "similarity_score": 0.742,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Available stable funding$616,689 $610,727 Required stable funding507,022 502,318 NSFR122 %122 % Available stable funding\""
      ],
      "current_body": "Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Available stable funding$616,689 $610,727 Required stable funding507,022 502,318 NSFR122 %122 % Available stable funding",
      "prior_body": "Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Available stable funding$555,884 $553,413 Required stable funding465,226 468,290 NSFR120 %118 % Available stable funding"
    },
    {
      "status": "MODIFIED",
      "current_title": "Projected Future Compensation Expense1",
      "prior_title": "Projected Future Compensation Expense1",
      "similarity_score": 0.736,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"$ in millionsEstimated to be recognized in:2025$623 2026389 Thereafter1,010 Total$2,022 2025 1.Amounts relate to performance years 2024 and prior, and do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments.\"",
        "Reworded sentence: \"Our projected future compensation obligation and expense for DCP for performance years 2024 and prior are forward-looking statements subject to uncertainty.\"",
        "Reworded sentence: \"Accounting updates not listed below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption.We are currently evaluating the following accounting updates; however, we do not expect a material impact on our financial condition or results of operations upon adoption:•Disaggregation of Income Statement Expenses.\""
      ],
      "current_body": "$ in millionsEstimated to be recognized in:2025$623 2026389 Thereafter1,010 Total$2,022 2025 1.Amounts relate to performance years 2024 and prior, and do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments. The previous table sets forth an estimate of compensation expense associated with the projected future compensation obligation. Our projected future compensation obligation and expense for DCP for performance years 2024 and prior are forward-looking statements subject to uncertainty. Actual results may be materially affected by various factors, including, among other things: the performance of each participant’s referenced investments; changes in market conditions; participants’ allocation of their deferred awards; and participant cancellations or accelerations. See “Forward-Looking Statements” and “Risk Factors” for additional information. For further information on the Firm’s deferred stock-based plans and carried interest compensation, which are excluded from the previous tables, see Notes 2 and 19 to the financial statements. Accounting Development UpdatesThe Financial Accounting Standards Board has issued certain accounting updates that apply to us. Accounting updates not listed below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption.We are currently evaluating the following accounting updates; however, we do not expect a material impact on our financial condition or results of operations upon adoption:•Disaggregation of Income Statement Expenses. This update requires quantitative and qualitative disclosure of certain expense categories contained within their relevant expense lines in the income statement, including but not limited to: (1) employee compensation; (2) depreciation; and (3) intangible asset amortization. The update requires the disaggregation of these expense lines in a tabular format in the notes to the financial statements, including the separate disclosure of certain other expenses and gains or losses included within these expense lines which are required under existing U.S. GAAP, with all other expenses permitted to be disclosed in an “other items” category. Additionally, the update requires disclosure of the total amount and definition of the Firm’s selling expenses. The update is effective for annual periods beginning January 1, 2027, and interim reporting periods beginning January 1, 2028, with early adoption permitted.•Income Tax Disclosures. This update enhances annual income tax disclosures primarily to further disaggregate disclosures related to the income tax rate reconciliation and income taxes paid. For the income tax rate reconciliation, this update requires (1) disclosure of specific categories of reconciling items (where applicable), and (2) providing additional information for reconciling items that meet a quantitative threshold. For income taxes paid (net of refunds), this update requires disclosure of amounts disaggregated by (1) federal, state, and foreign taxes; and (2) individual jurisdictions that meet a quantitative threshold. Additionally, the update requires disclosure of (1) income (or loss) before income taxes, disaggregated between domestic and foreign; and (2) income tax expense disaggregated by federal, state and foreign. The update is effective for annual periods beginning January 1, 2025, with early adoption permitted. Critical Accounting EstimatesOur financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions (see Note 1 to the financial statements). We believe that of our significant accounting policies (see Note 2 to the financial statements), the following policies involve a higher degree of judgment and complexity.",
      "prior_body": "$ in millionsEstimated to be recognized in:2024$534 2025337 Thereafter859 Total$1,730 2024 1.Amounts relate to performance years 2023 and prior, and do not include assumptions regarding forfeitures or assumptions about future market conditions with respect to referenced investments. The previous table sets forth an estimate of compensation expense associated with the projected future compensation obligation. Our projected future compensation obligation and expense for DCP for performance years 2023 and prior are forward-looking statements subject to uncertainty. Actual results may be materially affected by various factors, including, among other things: the performance of each participant’s referenced investments; changes in market conditions; participants’ allocation of their deferred awards; and participant cancellations or accelerations. See “Forward-Looking Statements” and “Risk Factors” for additional information. For further information on the Firm’s deferred stock-based plans and carried interest compensation, which are excluded from the previous tables, see Notes 2 and 19 to the financial statements. Accounting Development UpdatesThe Financial Accounting Standards Board has issued certain accounting updates that apply to us. Accounting updates not listed below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption.We adopted the following accounting update on January 1, 2024, with no material impact on our financial condition or results of operations upon adoption:•Investments—Tax Credit Structures. This accounting update permits an election to account for tax equity investments using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the income tax credits and other income tax benefits received and recognized net in the income statement as a component of provision for income taxes. The update requires a separate accounting policy election to be made for each tax credit program. Additional disclosures are required regarding (i) the nature of our tax equity investments and (ii) the effect of our tax equity investments and related income tax credits on the financial condition and results of operations. We are currently evaluating the following accounting updates; however, we do not expect a material impact on our financial condition or results of operations upon adoption:•Income Tax Disclosures. This accounting update requires disclosure of additional information in relation to income taxes, including additional disaggregation of the income tax rate reconciliation and income taxes paid. For the income tax rate reconciliation, this update requires (1) disclosure of specific categories of reconciling items; and (2) providing additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). For income taxes paid, this update requires disclosure of information, including (1) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes; and (2) the amount of income taxes paid (net of refunds received), disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). Additionally, the update requires disclosure of (1) income (or loss) before income taxes, disaggregated between domestic and foreign; and (2) income taxes disaggregated by federal, state and foreign. The accounting update is effective for annual periods beginning January 1, 2025, with early adoption permitted.•Segment Reporting. This accounting update requires additional reportable segment disclosures on an annual and interim basis, primarily about significant segment expenses and other segment items that are regularly provided to the"
    },
    {
      "status": "MODIFIED",
      "current_title": "Selected Non-GAAP Financial Information",
      "prior_title": "Selected Non-GAAP Financial Information",
      "similarity_score": 0.728,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses, net of financing costs on DCP investments from net revenues.\"",
        "Reworded sentence: \"For additional information on DCP, refer to “Other Matters” herein.Tangible common equity is a non-GAAP financial measure that we believe analysts, investors and other stakeholders consider useful to allow for comparability to peers and of the period-to-period use of our equity.\"",
        "Reworded sentence: \"GAAP to Non-GAAP Consolidated Financial Measures$ in millions202420232022Net revenues$61,761 $54,143 $53,668 Adjustment for mark-to-market losses (gains) on DCP1(363)(434)1,198 Adjusted Net revenues—non-GAAP$61,398 $53,709 $54,866 Compensation expense$26,178 $24,558 $23,053 Adjustment for mark-to-market losses (gains) on DCP1(672)(668)716 Adjusted Compensation expense—non-GAAP$25,506 $23,890 $23,769 Wealth Management Net revenues$28,420 $26,268 $24,417 Adjustment for mark-to-market losses (gains) on DCP1(239)(282)858 Adjusted Wealth Management Net revenues—non-GAAP$28,181 $25,986 $25,275 Wealth Management Compensation expense$15,207 $13,972 $12,534 Adjustment for mark-to-market losses (gains) on DCP1(431)(412)530 Adjusted Wealth Management Compensation expense—non-GAAP$14,776 $13,560 $13,064 1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment.\"",
        "Added sentence: \"Tangible common equity is a non-GAAP financial measure that we believe analysts, investors and other stakeholders consider useful to allow for comparability to peers and of the period-to-period use of our equity.\"",
        "Added sentence: \"The calculation of tangible common equity represents common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction.\""
      ],
      "current_body": "We prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non-GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non-GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non-GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non-GAAP financial measure. We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses, net of financing costs on DCP investments from net revenues. We also exclude the impact of mark-to-market gains and losses on DCP from compensation expenses. The impact of DCP investments and DCP are primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period-to-period underlying operating performance and revenue trends. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. For additional information on DCP, refer to “Other Matters” herein.Tangible common equity is a non-GAAP financial measure that we believe analysts, investors and other stakeholders consider useful to allow for comparability to peers and of the period-to-period use of our equity. The calculation of tangible common equity represents common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. In addition, we believe that certain ratios that utilize tangible common equity, such as return on average tangible common equity (“ROTCE”) and tangible book value per common share, also non-GAAP financial measures, are useful for evaluating the operating performance and capital adequacy of the business period-to-period, respectively. The calculation of ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity. The calculation of tangible book value per common share represents tangible common equity divided by common shares outstanding.The principal non-GAAP financial measures presented in this document are set forth in the following tables. Reconciliations from U.S. GAAP to Non-GAAP Consolidated Financial Measures$ in millions202420232022Net revenues$61,761 $54,143 $53,668 Adjustment for mark-to-market losses (gains) on DCP1(363)(434)1,198 Adjusted Net revenues—non-GAAP$61,398 $53,709 $54,866 Compensation expense$26,178 $24,558 $23,053 Adjustment for mark-to-market losses (gains) on DCP1(672)(668)716 Adjusted Compensation expense—non-GAAP$25,506 $23,890 $23,769 Wealth Management Net revenues$28,420 $26,268 $24,417 Adjustment for mark-to-market losses (gains) on DCP1(239)(282)858 Adjusted Wealth Management Net revenues—non-GAAP$28,181 $25,986 $25,275 Wealth Management Compensation expense$15,207 $13,972 $12,534 Adjustment for mark-to-market losses (gains) on DCP1(431)(412)530 Adjusted Wealth Management Compensation expense—non-GAAP$14,776 $13,560 $13,064 1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment. See “Other Matters” herein for more information.At December 31,$ in millions202420232022Tangible equityCommon equity$94,761 $90,288 $91,391 Less: Goodwill and net intangible assets(23,157)(23,761)(24,268)Tangible common equity—non-GAAP$71,604 $66,527 $67,123 corresponding change to the associated compensation expenses. For additional information on DCP, refer to “Other Matters” herein. Tangible common equity is a non-GAAP financial measure that we believe analysts, investors and other stakeholders consider useful to allow for comparability to peers and of the period-to-period use of our equity. The calculation of tangible common equity represents common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. In addition, we believe that certain ratios that utilize tangible common equity, such as return on average tangible common equity (“ROTCE”) and tangible book value per common share, also non-GAAP financial measures, are useful for evaluating the operating performance and capital adequacy of the business period-to-period, respectively. The calculation of ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity. The calculation of tangible book value per common share represents tangible common equity divided by common shares outstanding. The principal non-GAAP financial measures presented in this document are set forth in the following tables.",
      "prior_body": "We prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non-GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non-GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non-GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non-GAAP financial measure. We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses on DCP investments from net revenues and compensation expenses. The impact of DCP is primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period-to-period underlying operating performance and revenue trends, especially in our Wealth Management business segment. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. Compensation expense for DCP awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards. We invest directly, as principal, in financial instruments and other investments to economically hedge certain of our obligations under these DCP awards. Changes in the fair value of such investments, net of financing costs, are recorded in net revenues, and included in Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments recognized in net revenues, there is typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period. While this timing difference may not be material to our Income before provision for income taxes in any individual period, it may impact the Wealth Management business segment reported ratios and operating metrics in certain periods due to potentially significant impacts to net revenues and compensation expenses. For additional information on DCP, refer to “Other Matters” herein.The principal non-GAAP financial measures presented in this document are set forth in the following tables. Reconciliations from U.S. GAAP to Non-GAAP Consolidated Financial Measures$ in millions202320222021Net revenues$54,143 $53,668 $59,755 Adjustment for mark-to-market losses (gains) on DCP1(434)1,198 (389)Adjusted Net revenues—non-GAAP$53,709 $54,866 $59,366 Compensation expense$24,558 $23,053 $24,628 Adjustment for mark-to-market losses (gains) on DCP1(668)716 (526)Adjusted Compensation expense—non-GAAP$23,890 $23,769 $24,102 Wealth Management Net revenues$26,268 $24,417 $24,243 Adjustment for mark-to-market losses (gains) on DCP1(282)858 (210)Adjusted Wealth Management Net revenues—non-GAAP$25,986 $25,275 $24,033 Wealth Management Compensation expense$13,972 $12,534 $13,090 Adjustment for mark-to-market losses (gains) on DCP1(412)530 (293)Adjusted Wealth Management Compensation expense—non-GAAP$13,560 $13,064 $12,797 At December 31,$ in millions202320222021Tangible equityCommon shareholders’ equity$90,288 $91,391 $97,691 Less: Goodwill and net intangible assets(23,761)(24,268)(25,192)Tangible common shareholders’ equity—non-GAAP$66,527 $67,123 $72,499 Average Monthly Balance$ in millions202320222021Tangible equityCommon shareholders’ equity$90,819 $93,873 $97,094 Less: Goodwill and net intangible assets(24,013)(24,789)(23,392)Tangible common shareholders’ equity—non-GAAP$66,806 $69,084 $73,702 may not be material to our Income before provision for income taxes in any individual period, it may impact the Wealth Management business segment reported ratios and operating metrics in certain periods due to potentially significant impacts to net revenues and compensation expenses. For additional information on DCP, refer to “Other Matters” herein. The principal non-GAAP financial measures presented in this document are set forth in the following tables."
    },
    {
      "status": "MODIFIED",
      "current_title": "CET1 capital",
      "prior_title": "Regulatory Capital",
      "similarity_score": 0.724,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Common shareholders’ equity Impact of CECL transition Other adjustments and deductions1 Total CET1 capital 1.Other adjustments and deductions used in the calculation of CET1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets.\"",
        "Reworded sentence: \"RWA Rollforward$ in millionsStandardizedAdvancedCredit risk RWABalance at December 31, 2023$407,731 $297,858 Change related to the following items:Derivatives(8,690)3,106 Securities financing transactions9,699 1,871 Investment securities(133)(2,515)Commitments, guarantees and loans7,956 15,523 Equity investments(50)(279)Other credit risk1,469 865 Total change in credit risk RWA$10,251 $18,571 Balance at December 31, 2024$417,982 $316,429 Market risk RWABalance at December 31, 2023$48,322 $48,201 Change related to the following items:Regulatory VaR124 124 Regulatory stressed VaR643 643 Incremental risk charge1,577 1,577 Comprehensive risk measure(98)493 Specific risk3,284 3,284 Total change in market risk RWA$5,530 $6,121 Balance at December 31, 2024$53,852 $54,322 Operational risk RWABalance at December 31, 2023N/A$102,095 Change in operational risk RWAN/A4,485 Balance at December 31, 2024N/A$106,580 Total RWA$471,834 $477,331 Regulatory VaR—VaR for regulatory capital requirementsIn 2024, Credit risk RWA increased under both the Standardized and Advanced Approaches.\""
      ],
      "current_body": "Common shareholders’ equity Impact of CECL transition Other adjustments and deductions1 Total CET1 capital 1.Other adjustments and deductions used in the calculation of CET1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets. 51December 2024 Form 10-K 51December 2024 Form 10-K 51December 2024 Form 10-K 51 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents RWA Rollforward$ in millionsStandardizedAdvancedCredit risk RWABalance at December 31, 2023$407,731 $297,858 Change related to the following items:Derivatives(8,690)3,106 Securities financing transactions9,699 1,871 Investment securities(133)(2,515)Commitments, guarantees and loans7,956 15,523 Equity investments(50)(279)Other credit risk1,469 865 Total change in credit risk RWA$10,251 $18,571 Balance at December 31, 2024$417,982 $316,429 Market risk RWABalance at December 31, 2023$48,322 $48,201 Change related to the following items:Regulatory VaR124 124 Regulatory stressed VaR643 643 Incremental risk charge1,577 1,577 Comprehensive risk measure(98)493 Specific risk3,284 3,284 Total change in market risk RWA$5,530 $6,121 Balance at December 31, 2024$53,852 $54,322 Operational risk RWABalance at December 31, 2023N/A$102,095 Change in operational risk RWAN/A4,485 Balance at December 31, 2024N/A$106,580 Total RWA$471,834 $477,331 Regulatory VaR—VaR for regulatory capital requirementsIn 2024, Credit risk RWA increased under both the Standardized and Advanced Approaches. Under the Standardized Approach, the increase was primarily due to higher Securities financing transactions, growth in Corporate lending, as well as an increase in Other credit risk driven by securitizations. These increases were partially offset by decreased exposure in derivatives. Under the Advanced Approach, the increase was primarily due to growth in Corporate lending, increase in Derivatives driven by counterparty credit risk, and higher Securities financing transactions. These increases were partially offset by decreased exposure in investment securities.Market risk RWA increased in 2024 under both the Standardized and Advanced Approaches, primarily driven by higher charges on Specific risk and Incremental risk due to increased exposures.The increase in Operational risk RWA in 2024 is related to legal expenses and execution losses.G-SIB Capital SurchargeWe and other U.S. G-SIBs are subject to an additional risk-based capital surcharge, the G-SIB capital surcharge, which must be satisfied using CET1 capital and which functions as an extension of the capital conservation buffer. The surcharge is calculated based on the G-SIB’s size, interconnectedness, cross-jurisdictional activity, and complexity and substitutability (“Method 1”) or use of short-term wholesale funding (“Method 2”), whichever is higher.Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company RequirementsThe Federal Reserve has established external TLAC, long-term debt (“LTD”) and clean holding company requirements for top-tier BHCs of U.S. G-SIBs (“covered BHCs”), including the Parent Company. These requirements are designed to ensure that covered BHCs will have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of eligible LTD to equity or otherwise by imposing losses on eligible LTD or other forms of TLAC where an SPOE resolution strategy is used (see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk”).These TLAC and eligible LTD requirements include various restrictions, such as requiring eligible LTD to: be issued by the covered BHC; be unsecured; have a maturity of one year or more from the date of issuance; and not contain certain embedded features, such as a principal or redemption amount subject to reduction based on the performance of an asset, entity or index, or a similar feature. In addition, the requirements provide permanent grandfathering for debt instruments issued prior to December 31, 2016 that would be eligible LTD but for having impermissible acceleration clauses or being governed by foreign law. A covered BHC is also required to maintain minimum external TLAC equal to the greater of (i) 18% of total RWA or (ii) 7.5% of its total leverage exposure (the denominator of its SLR). Covered BHCs must also meet a minimum external LTD requirement equal to the greater of (i) total RWA multiplied by the sum of 6% plus the higher of the Method 1 or Method 2 G-SIB capital surcharge applicable to the Parent Company or (ii) 4.5% of its total leverage exposure. TLAC buffer requirements are imposed on top of both the risk-based and leverage exposure-based external TLAC minimum requirements. The risk-based TLAC buffer is equal to the sum of 2.5%, our Method 1 G-SIB surcharge and the CCyB, if any, as a percentage of total RWA. The leverage exposure-based TLAC buffer is equal to 2% of our total leverage exposure. Failure to maintain the buffers would result in restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. RWA Rollforward$ in millionsStandardizedAdvancedCredit risk RWABalance at December 31, 2023$407,731 $297,858 Change related to the following items:Derivatives(8,690)3,106 Securities financing transactions9,699 1,871 Investment securities(133)(2,515)Commitments, guarantees and loans7,956 15,523 Equity investments(50)(279)Other credit risk1,469 865 Total change in credit risk RWA$10,251 $18,571 Balance at December 31, 2024$417,982 $316,429 Market risk RWABalance at December 31, 2023$48,322 $48,201 Change related to the following items:Regulatory VaR124 124 Regulatory stressed VaR643 643 Incremental risk charge1,577 1,577 Comprehensive risk measure(98)493 Specific risk3,284 3,284 Total change in market risk RWA$5,530 $6,121 Balance at December 31, 2024$53,852 $54,322 Operational risk RWABalance at December 31, 2023N/A$102,095 Change in operational risk RWAN/A4,485 Balance at December 31, 2024N/A$106,580 Total RWA$471,834 $477,331 Regulatory VaR—VaR for regulatory capital requirementsIn 2024, Credit risk RWA increased under both the Standardized and Advanced Approaches. Under the Standardized Approach, the increase was primarily due to higher Securities financing transactions, growth in Corporate lending, as well as an increase in Other credit risk driven by securitizations. These increases were partially offset by decreased exposure in derivatives. Under the Advanced Approach, the increase was primarily due to growth in Corporate lending, increase in Derivatives driven by counterparty credit risk, and higher Securities financing transactions. These increases were partially offset by decreased exposure in investment securities.Market risk RWA increased in 2024 under both the Standardized and Advanced Approaches, primarily driven by higher charges on Specific risk and Incremental risk due to increased exposures.The increase in Operational risk RWA in 2024 is related to legal expenses and execution losses.G-SIB Capital SurchargeWe and other U.S. G-SIBs are subject to an additional risk-based capital surcharge, the G-SIB capital surcharge, which must be satisfied using CET1 capital and which functions as an extension of the capital conservation buffer. The surcharge is calculated based on the G-SIB’s size, interconnectedness, cross-jurisdictional activity, and complexity and",
      "prior_body": "$ in millionsAtDecember 31,2023AtDecember 31,2022 ChangeCommon Equity Tier 1 capitalCommon shareholders’ equity$90,288 $91,391 $(1,103)Regulatory adjustments and deductions:Net goodwill(16,394)(16,393)(1)Net intangible assets(5,509)(6,048)539 Impact of CECL transition124 185 (61)Other adjustments and deductions1939 (465)1,404 Total Common Equity Tier 1 capital$69,448 $68,670 $778 Additional Tier 1 capitalPreferred stock$8,750 $8,750 $— Noncontrolling interests758 552 206 Additional Tier 1 capital$9,508 $9,302 $206 Deduction for investments in covered funds(773)(781)8 Total Tier 1 capital$78,183 $77,191 $992 Standardized Tier 2 capitalSubordinated debt$8,760 $7,846 $914 Eligible ACL2,051 1,613 438 Other adjustments and deductions(120)(75)(45)Total Standardized Tier 2 capital$10,691 $9,384 $1,307 Total Standardized capital$88,874 $86,575 $2,299 Advanced Tier 2 capitalSubordinated debt$8,760 $7,846 $914 Eligible credit reserves1,367 1,197 170 Other adjustments and deductions(120)(75)(45)Total Advanced Tier 2 capital$10,007 $8,968 $1,039 Total Advanced capital$88,190 $86,159 $2,031 Common shareholders’ equity Impact of CECL transition Other adjustments and deductions1 1.Other adjustments and deductions used in the calculation of Common Equity Tier 1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets. 55December 2023 Form 10-K 55December 2023 Form 10-K 55December 2023 Form 10-K 55 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents RWA Rollforward$ in millionsStandardizedAdvancedCredit risk RWABalance at December 31, 2022$397,275 $285,638 Change related to the following items:Derivatives6,065 660 Securities financing transactions2,924 (354)Investment securities(1,316)385 Commitments, guarantees and loans(2,606)6,903 Equity investments1,621 1,964 Other credit risk3,768 2,662 Total change in credit risk RWA$10,456 $12,220 Balance at December 31, 2023$407,731 $297,858 Market risk RWABalance at December 31, 2022$50,574 $50,563 Change related to the following items:Regulatory VaR(3,946)(3,946)Regulatory stressed VaR(5,017)(5,017)Incremental risk charge94 94 Comprehensive risk measure341 231 Specific risk6,276 6,276 Total change in market risk RWA$(2,252)$(2,362)Balance at December 31, 2023$48,322 $48,201 Operational risk RWABalance at December 31, 2022N/A$102,605 Change in operational risk RWAN/A(510)Balance at December 31, 2023N/A$102,095 Total RWA$456,053 $448,154 Regulatory VaR—VaR for regulatory capital requirementsIn 2023, Credit risk RWA increased under the Standardized and Advanced Approaches. Under the Standardized Approach, the increase was primarily driven by higher derivatives, higher securities financing transactions, higher equity investments, as well as an increase in Other credit risk driven by higher deferred tax assets and securitizations. These increases were partially offset by decreases in lending activity. Under the Advanced Approach, the increase was primarily driven by growth in Corporate lending, higher equity investments, higher derivatives, as well as increase in Other credit risk driven by higher deferred tax assets and securitizations.Market risk RWA decreased in 2023 under both the Standardized and Advanced Approaches, primarily due to lower Regulatory VaR and stressed VaR driven by reductions in macro and commodities businesses, partially offset by higher Specific risk charges on securitization and non-securitization standardized charges.Operational risk RWA in 2023 remained relatively unchanged.G-SIB Capital SurchargeWe and other U.S. G-SIBs are subject to an additional risk-based capital surcharge, the G-SIB capital surcharge, which must be satisfied using Common Equity Tier 1 capital and which functions as an extension of the capital conservation buffer. The surcharge is calculated based on the G-SIB’s size, interconnectedness, cross-jurisdictional activity, and complexity and substitutability (“Method 1”) or use of short-term wholesale funding (“Method 2”), whichever is higher.Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company RequirementsThe Federal Reserve has established external TLAC, long-term debt (“LTD”) and clean holding company requirements for top-tier BHCs of U.S. G-SIBs (“covered BHCs”), including the Parent Company. These requirements are designed to ensure that covered BHCs will have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of eligible LTD to equity or otherwise by imposing losses on eligible LTD or other forms of TLAC where an SPOE resolution strategy is used (see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk”).These TLAC and eligible LTD requirements include various restrictions, such as requiring eligible LTD to: be issued by the covered BHC; be unsecured; have a maturity of one year or more from the date of issuance; and not contain certain embedded features, such as a principal or redemption amount subject to reduction based on the performance of an asset, entity or index, or a similar feature. In addition, the requirements provide permanent grandfathering for debt instruments issued prior to December 31, 2016 that would be eligible LTD but for having impermissible acceleration clauses or being governed by foreign law. A covered BHC is also required to maintain minimum external TLAC equal to the greater of (i) 18% of total RWA or (ii) 7.5% of its total leverage exposure (the denominator of its SLR). Covered BHCs must also meet a minimum external LTD requirement equal to the greater of (i) total RWA multiplied by the sum of 6% plus the higher of the Method 1 or Method 2 G-SIB capital surcharge applicable to the Parent Company or (ii) 4.5% of its total leverage exposure. TLAC buffer requirements are imposed on top of both the risk-based and leverage exposure-based external TLAC minimum requirements. The risk-based TLAC buffer is equal to the sum of 2.5%, our Method 1 G-SIB surcharge and the CCyB, if any, as a percentage of total RWA. The leverage exposure-based TLAC buffer is equal to 2% of our total leverage exposure. Failure to maintain the buffers would result in restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. RWA Rollforward$ in millionsStandardizedAdvancedCredit risk RWABalance at December 31, 2022$397,275 $285,638 Change related to the following items:Derivatives6,065 660 Securities financing transactions2,924 (354)Investment securities(1,316)385 Commitments, guarantees and loans(2,606)6,903 Equity investments1,621 1,964 Other credit risk3,768 2,662 Total change in credit risk RWA$10,456 $12,220 Balance at December 31, 2023$407,731 $297,858 Market risk RWABalance at December 31, 2022$50,574 $50,563 Change related to the following items:Regulatory VaR(3,946)(3,946)Regulatory stressed VaR(5,017)(5,017)Incremental risk charge94 94 Comprehensive risk measure341 231 Specific risk6,276 6,276 Total change in market risk RWA$(2,252)$(2,362)Balance at December 31, 2023$48,322 $48,201 Operational risk RWABalance at December 31, 2022N/A$102,605 Change in operational risk RWAN/A(510)Balance at December 31, 2023N/A$102,095 Total RWA$456,053 $448,154 Regulatory VaR—VaR for regulatory capital requirementsIn 2023, Credit risk RWA increased under the Standardized and Advanced Approaches. Under the Standardized Approach, the increase was primarily driven by higher derivatives, higher securities financing transactions, higher equity investments, as well as an increase in Other credit risk driven by higher deferred tax assets and securitizations. These increases were partially offset by decreases in lending activity. Under the Advanced Approach, the increase was primarily driven by growth in Corporate lending, higher equity investments, higher derivatives, as well as increase in Other credit risk driven by higher deferred tax assets and securitizations.Market risk RWA decreased in 2023 under both the Standardized and Advanced Approaches, primarily due to lower Regulatory VaR and stressed VaR driven by reductions in macro and commodities businesses, partially offset by higher Specific risk charges on securitization and non-securitization standardized charges.Operational risk RWA in 2023 remained relatively unchanged.G-SIB Capital SurchargeWe and other U.S. G-SIBs are subject to an additional risk-based capital surcharge, the G-SIB capital surcharge, which must be satisfied using Common Equity Tier 1 capital and which functions as an extension of the capital conservation buffer. The surcharge is calculated based on the G-SIB’s size,"
    },
    {
      "status": "MODIFIED",
      "current_title": "By Property Type",
      "prior_title": "By Property Type",
      "similarity_score": 0.717,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"At December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalOffice$2,846 $109 $2,955 $3,310 $186 $3,496 Industrial2,610 125 2,735 2,435 5 2,440 Multifamily2,042 80 2,122 1,715 74 1,789 Retail1,105 971 2,076 842 7 849 Hotel736 70 806 718 73 791 Other— — — 2 — 2 Total$9,339 $1,355 $10,694 $9,022 $345 $9,367 Loans1 LC1 Loans1 LC1 Total LC–Lending Commitments 1.\"",
        "Reworded sentence: \"As of December 31, 2024 and December 31, 2023, our lending against commercial real estate (“CRE”) properties within the Institutional Securities business segment totaled $10.7 billion and $9.4 billion, respectively.\"",
        "Reworded sentence: \"In many cases, loans are subsequently syndicated or securitized on a full or partial basis, reducing our ongoing exposure.In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above.\"",
        "Reworded sentence: \"Institutional Securities Allowance for Credit Losses—Loans and Lending CommitmentsYear Ended December 31, 2024$ in millionsCorporate Secured Lending FacilitiesCRESBL and OtherTotalACL—LoansBeginning balance$241 $153 $463 $17 $874 Gross charge-offs(39)(11)(165)— (215)Recoveries— — 4 1 5 Net (charge-offs)/recoveries(39)(11)(161)1 (210)Provision (release)2 1 77 1 81 Other(4)(3)(6)(2)(15)Ending balance$200 $140 $373 $17 $730 ACL—Lending commitmentsBeginning balance$431 $70 $26 $6 $533 Provision (release)86 19 16 — 121 Other(10)(1)(2)(1)(14)Ending balance$507 $88 $40 $5 $640 Total ending balance$707 $228 $413 $22 $1,370 Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance before AllowanceAtDecember 31,2024 AtDecember 31,2023 Corporate2.9 %3.6 %Secured lending facilities0.3 %0.4 %Commercial real estate4.4 %5.3 %Securities-based lending and Other0.6 %0.6 %Total Institutional Securities loans1.1 %1.5 %Wealth Management Loans and Lending Commitments At December 31, 2024 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $82,788 $8,944 $1,024 $145 $92,901 Residential real estate1 111 1,106 65,423 66,641 Total loans, net of ACL$82,789 $9,055 $2,130 $65,568 $159,542 Lending commitments16,318 2,523 43 386 19,270 Total exposure$99,107 $11,578 $2,173 $65,954 $178,812 At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $76,923 $7,679 $1,494 $133 $86,229 Residential real estate1 91 1,255 58,950 60,297 Total loans, net of ACL$76,924 $7,770 $2,749 $59,083 $146,526 Lending commitments16,312 2,937 19 344 19,612 Total exposure$93,236 $10,707 $2,768 $59,427 $166,138 The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans.Securities-based lending allows clients to borrow money against the value of qualifying securities, generally for any purpose other than purchasing, trading or carrying securities or refinancing margin debt.\"",
        "Added sentence: \"Mortgage borrowers are required to maintain adequate insurance in accordance with loan terms.\""
      ],
      "current_body": "At December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalOffice$2,846 $109 $2,955 $3,310 $186 $3,496 Industrial2,610 125 2,735 2,435 5 2,440 Multifamily2,042 80 2,122 1,715 74 1,789 Retail1,105 971 2,076 842 7 849 Hotel736 70 806 718 73 791 Other— — — 2 — 2 Total$9,339 $1,355 $10,694 $9,022 $345 $9,367 Loans1 LC1 Loans1 LC1 Total LC–Lending Commitments 1. Amounts include HFI, HFS and FVO loans and lending commitments. HFI loans are presented net of ACL. The current economic environment and changes in business and consumer behavior have adversely impacted commercial real estate borrowers due to pressure from higher interest rates, tenant lease renewals, and elevated refinancing risks for loans with near-term maturities, among other issues. While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given the sector’s sensitivity to economic and secular factors, credit conditions, and difficulties specific to certain property types, most notably office. As of December 31, 2024 and December 31, 2023, our lending against commercial real estate (“CRE”) properties within the Institutional Securities business segment totaled $10.7 billion and $9.4 billion, respectively. This represents December 2024 Form 10-K66 December 2024 Form 10-K66 December 2024 Form 10-K66 66 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents 4.4% and 4.5%, respectively, of total exposure reflected in the Institutional Securities Loans and Lending Commitments table above. Those CRE loans are originated for experienced sponsors and are generally secured by specific institutional CRE properties. In many cases, loans are subsequently syndicated or securitized on a full or partial basis, reducing our ongoing exposure.In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above. These secured lending facilities benefit from structural protections including cross-collateralization and diversification across property types. Institutional Securities Allowance for Credit Losses—Loans and Lending CommitmentsYear Ended December 31, 2024$ in millionsCorporate Secured Lending FacilitiesCRESBL and OtherTotalACL—LoansBeginning balance$241 $153 $463 $17 $874 Gross charge-offs(39)(11)(165)— (215)Recoveries— — 4 1 5 Net (charge-offs)/recoveries(39)(11)(161)1 (210)Provision (release)2 1 77 1 81 Other(4)(3)(6)(2)(15)Ending balance$200 $140 $373 $17 $730 ACL—Lending commitmentsBeginning balance$431 $70 $26 $6 $533 Provision (release)86 19 16 — 121 Other(10)(1)(2)(1)(14)Ending balance$507 $88 $40 $5 $640 Total ending balance$707 $228 $413 $22 $1,370 Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance before AllowanceAtDecember 31,2024 AtDecember 31,2023 Corporate2.9 %3.6 %Secured lending facilities0.3 %0.4 %Commercial real estate4.4 %5.3 %Securities-based lending and Other0.6 %0.6 %Total Institutional Securities loans1.1 %1.5 %Wealth Management Loans and Lending Commitments At December 31, 2024 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $82,788 $8,944 $1,024 $145 $92,901 Residential real estate1 111 1,106 65,423 66,641 Total loans, net of ACL$82,789 $9,055 $2,130 $65,568 $159,542 Lending commitments16,318 2,523 43 386 19,270 Total exposure$99,107 $11,578 $2,173 $65,954 $178,812 At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $76,923 $7,679 $1,494 $133 $86,229 Residential real estate1 91 1,255 58,950 60,297 Total loans, net of ACL$76,924 $7,770 $2,749 $59,083 $146,526 Lending commitments16,312 2,937 19 344 19,612 Total exposure$93,236 $10,707 $2,768 $59,427 $166,138 The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans.Securities-based lending allows clients to borrow money against the value of qualifying securities, generally for any purpose other than purchasing, trading or carrying securities or refinancing margin debt. We establish approved credit lines against qualifying securities and monitor limits daily and, pursuant to such guidelines, require customers to deposit additional collateral, or reduce debt positions, when necessary. These credit lines are primarily uncommitted loan facilities, as we reserve the right not to make any advances or may terminate these credit lines at any time. Factors considered in the review of these loans include, but are not limited to, the loan amount, the client’s credit profile, the degree of leverage, collateral diversification, price volatility and liquidity of the collateral. Other loans primarily include tailored lending, which typically consist of bespoke lending arrangements provided to ultra-high net worth clients. Securities-based lending and Other loans are generally secured by various types of eligible collateral, including marketable securities, private investments, commercial real estate and other financial assets.Residential real estate loans consist of first- and second-lien mortgages, including HELOCs. Our underwriting policy is designed to ensure that all borrowers pass an assessment of capacity and willingness to pay, which includes an analysis utilizing industry standard credit scoring models (e.g., FICO scores), debt-to-income ratios and assets of the borrower. Mortgage borrowers are required to maintain adequate insurance in accordance with loan terms. LTV ratios are determined based on independent third-party property appraisals and valuations, and security lien positions are established through title and ownership reports. The vast majority of mortgage loans, including HELOCs, are held for investment in the Wealth Management business segment’s loan portfolio. 4.4% and 4.5%, respectively, of total exposure reflected in the Institutional Securities Loans and Lending Commitments table above. Those CRE loans are originated for experienced sponsors and are generally secured by specific institutional CRE properties. In many cases, loans are subsequently syndicated or securitized on a full or partial basis, reducing our ongoing exposure.In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above. These secured lending facilities benefit from structural protections including cross-collateralization and diversification across property types. Institutional Securities Allowance for Credit Losses—Loans and Lending CommitmentsYear Ended December 31, 2024$ in millionsCorporate Secured Lending FacilitiesCRESBL and OtherTotalACL—LoansBeginning balance$241 $153 $463 $17 $874 Gross charge-offs(39)(11)(165)— (215)Recoveries— — 4 1 5 Net (charge-offs)/recoveries(39)(11)(161)1 (210)Provision (release)2 1 77 1 81 Other(4)(3)(6)(2)(15)Ending balance$200 $140 $373 $17 $730 ACL—Lending commitmentsBeginning balance$431 $70 $26 $6 $533 Provision (release)86 19 16 — 121 Other(10)(1)(2)(1)(14)Ending balance$507 $88 $40 $5 $640 Total ending balance$707 $228 $413 $22 $1,370 Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance before AllowanceAtDecember 31,2024 AtDecember 31,2023 Corporate2.9 %3.6 %Secured lending facilities0.3 %0.4 %Commercial real estate4.4 %5.3 %Securities-based lending and Other0.6 %0.6 %Total Institutional Securities loans1.1 %1.5 %Wealth Management Loans and Lending Commitments At December 31, 2024 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other $82,788 $8,944 $1,024 $145 $92,901 Residential real estate1 111 1,106 65,423 66,641 Total loans, net of ACL$82,789 $9,055 $2,130 $65,568 $159,542 Lending commitments16,318 2,523 43 386 19,270 Total exposure$99,107 $11,578 $2,173 $65,954 $178,812 4.4% and 4.5%, respectively, of total exposure reflected in the Institutional Securities Loans and Lending Commitments table above. Those CRE loans are originated for experienced sponsors and are generally secured by specific institutional CRE properties. In many cases, loans are subsequently syndicated or securitized on a full or partial basis, reducing our ongoing exposure. In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above. These secured lending facilities benefit from structural protections including cross-collateralization and diversification across property types.",
      "prior_body": "At December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalOffice$3,310 $186 $3,496 $3,861 $301 $4,162 Industrial2,435 5 2,440 2,561 25 2,586 Multifamily1,715 74 1,789 1,889 85 1,974 Retail842 7 849 659 6 665 Hotel718 73 791 780 45 825 Other2 — 2 55 — 55 Total$9,022 $345 $9,367 $9,805 $462 $10,267 Loans1 LC1 Loans1 LC1 Total LC–Lending Commitments 1. Amounts include HFI, HFS and FVO loans and lending commitments. HFI loans are presented net of ACL. The current economic environment and changes in business and consumer behavior have adversely impacted commercial real estate borrowers due to pressure from higher interest rates, tenant lease renewals, and elevated refinancing risks for loans with near-term maturities, among other issues. While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given the sector’s sensitivity to economic and secular factors, credit conditions, and difficulties specific to certain property types, most notably office. As of December 31, 2023 and December 31, 2022, our lending against commercial real estate (“CRE”) properties totaled $9.4 billion and $10.3 billion within the Institutional Securities business segment, which represents 4.5% and 5.3% of total exposure reflected in the Institutional Securities Loans and Lending Commitments table above. Those CRE loans are originated for experienced sponsors and are generally secured by specific institutional CRE properties. In many cases, loans are subsequently syndicated or securitized on a full or partial basis, reducing our ongoing exposure. In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above. These secured lending facilities benefit from structural protections including cross-collateralization and diversification across property types. December 2023 Form 10-K72 December 2023 Form 10-K72 December 2023 Form 10-K72 72 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Institutional Securities Allowance for Credit Losses—Loans and Lending CommitmentsYear Ended December 31, 2023$ in millionsCorporate Secured Lending FacilitiesCREOtherTotalACL—LoansBeginning balance$235 $153 $275 $11 $674 Gross charge-offs(34)— (129)(1)(164)Recoveries1 — — — 1 Net (charge-offs) recoveries(33)— (129)(1)(163)Provision (release)37 — 314 5 356 Other2 — 3 2 7 Ending balance$241 $153 $463 $17 $874 ACL—Lending commitmentsBeginning balance$411 $51 $15 $7 $484 Provision (release)16 18 11 — 45 Other4 1 — (1)4 Ending balance$431 $70 $26 $6 $533 Total ending balance$672 $223 $489 $23 $1,407 CRE—Commercial real estateInstitutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance before AllowanceAtDecember 31,2023 AtDecember 31,2022 Corporate3.6 %3.6 %Secured lending facilities0.4 %0.4 %Commercial real estate5.3 %3.2 %Securities-based lending and Other0.6 %0.4 %Total Institutional Securities loans1.5 %1.3 %Wealth Management Loans and Lending Commitments At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other loans$76,923 $7,679 $1,494 $133 $86,229 Residential real estateloans1 91 1,255 58,950 60,297 Total loans, net of ACL$76,924 $7,770 $2,749 $59,083 $146,526 Lending commitments16,312 2,937 19 344 19,612 Total exposure$93,236 $10,707 $2,768 $59,427 $166,138 At December 31, 2022 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other loans$80,526 $9,371 $1,692 $140 $91,729 Residential real estate loans1 32 1,375 52,968 54,376 Total loans, net of ACL$80,527 $9,403 $3,067 $53,108 $146,105 Lending commitments12,408 4,501 37 323 17,269 Total exposure$92,935 $13,904 $3,104 $53,431 $163,374 The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans.Securities-based lending allows clients to borrow money against the value of qualifying securities, generally for any purpose other than purchasing, trading or carrying securities or refinancing margin debt. We establish approved credit lines against qualifying securities and monitor limits daily and, pursuant to such guidelines, require customers to deposit additional collateral, or reduce debt positions, when necessary. These credit lines are primarily uncommitted loan facilities, as we reserve the right not to make any advances or may terminate these credit lines at any time. Factors considered in the review of these loans include, but are not limited to, the loan amount, the client’s credit profile, the degree of leverage, collateral diversification, price volatility and liquidity of the collateral. Other loans primarily include tailored lending, which typically consist of bespoke lending arrangements provided to ultra-high net worth clients. Securities-based lending and Other loans are generally secured by various types of eligible collateral, including marketable securities, private investments, commercial real estate and other financial assets.Residential real estate loans consist of first- and second-lien mortgages, including HELOCs. Our underwriting policy is designed to ensure that all borrowers pass an assessment of capacity and willingness to pay, which includes an analysis utilizing industry standard credit scoring models (e.g., FICO scores), debt-to-income ratios and assets of the borrower. LTV ratios are determined based on independent third-party property appraisals and valuations, and security lien positions are established through title and ownership reports. The vast majority of mortgage loans, including HELOCs, are held for investment in the Wealth Management business segment’s loan portfolio.Wealth Management Commercial Real Estate Loans and Lending Commitments by Property TypeAt December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalRetail$2,180 $3 $2,183 $2,135 $6 $2,141 Multifamily1,891 159 2,050 1,661 142 1,803 Office1,736 16 1,752 1,675 1 1,676 Industrial454 — 454 330 — 330 Hotel400 — 400 419 — 419 Other253 — 253 183 10 193 Total$6,914 $178 $7,092 $6,403 $159 $6,562 LC–Lending Commitments1.Amounts include HFI loans and lending commitments. HFI loans are presented net of ACL.As of December 31, 2023 and December 31, 2022, our direct lending against CRE totaled $7.1 billion and $6.6 billion within the Wealth Management business segment, which represents 4.3% and 4.0% of total exposure reflected in the Wealth Management Loans and Lending Commitments table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our private banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which partially reduce associated credit risk. At both December 31, 2023 and December 31, 2022, greater than 95% of the CRE loans balance in the Wealth Management business segment received guarantees. All of our lending against CRE properties within Wealth Management are in the Americas region. Institutional Securities Allowance for Credit Losses—Loans and Lending CommitmentsYear Ended December 31, 2023$ in millionsCorporate Secured Lending FacilitiesCREOtherTotalACL—LoansBeginning balance$235 $153 $275 $11 $674 Gross charge-offs(34)— (129)(1)(164)Recoveries1 — — — 1 Net (charge-offs) recoveries(33)— (129)(1)(163)Provision (release)37 — 314 5 356 Other2 — 3 2 7 Ending balance$241 $153 $463 $17 $874 ACL—Lending commitmentsBeginning balance$411 $51 $15 $7 $484 Provision (release)16 18 11 — 45 Other4 1 — (1)4 Ending balance$431 $70 $26 $6 $533 Total ending balance$672 $223 $489 $23 $1,407 CRE—Commercial real estateInstitutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance before AllowanceAtDecember 31,2023 AtDecember 31,2022 Corporate3.6 %3.6 %Secured lending facilities0.4 %0.4 %Commercial real estate5.3 %3.2 %Securities-based lending and Other0.6 %0.4 %Total Institutional Securities loans1.5 %1.3 %Wealth Management Loans and Lending Commitments At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other loans$76,923 $7,679 $1,494 $133 $86,229 Residential real estateloans1 91 1,255 58,950 60,297 Total loans, net of ACL$76,924 $7,770 $2,749 $59,083 $146,526 Lending commitments16,312 2,937 19 344 19,612 Total exposure$93,236 $10,707 $2,768 $59,427 $166,138 At December 31, 2022 Contractual Years to Maturity $ in millions<11-55-15>15TotalSecurities-based lending and Other loans$80,526 $9,371 $1,692 $140 $91,729 Residential real estate loans1 32 1,375 52,968 54,376 Total loans, net of ACL$80,527 $9,403 $3,067 $53,108 $146,105 Lending commitments12,408 4,501 37 323 17,269 Total exposure$92,935 $13,904 $3,104 $53,431 $163,374 The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans.Securities-based lending allows clients to borrow money against the value of qualifying securities, generally for any purpose other than purchasing, trading or carrying securities or refinancing margin debt. We establish approved credit lines"
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Mitigation",
      "prior_title": "Risk Mitigation",
      "similarity_score": 0.715,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Hedging activities consist of the purchase, sale or transfer of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options).\""
      ],
      "current_body": "We may seek to mitigate credit risk from our lending and trading activities in multiple ways, including collateral provisions, guarantees and hedges. At the transaction level, we seek to mitigate risk through management of key risk elements such as size, tenor, financial covenants, seniority and collateral. We actively hedge our lending and derivatives exposures. Hedging activities consist of the purchase, sale or transfer of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). Additionally, we may sell, assign or syndicate loans and lending commitments to other financial institutions in the primary and secondary loan markets. In connection with our derivatives trading activities, we generally enter into master netting agreements and collateral arrangements with counterparties. These agreements provide us with the ability to demand collateral, as well as to liquidate collateral and offset receivables and payables covered under the same master agreement in the event of a counterparty default. A collateral management group monitors collateral levels against requirements and oversees the administration of the collateral function. See Note 8 to the financial statements for additional information about our collateralized transactions.",
      "prior_body": "We may seek to mitigate credit risk from our lending and trading activities in multiple ways, including collateral provisions, guarantees and hedges. At the transaction level, we seek to mitigate risk through management of key risk elements such as size, tenor, financial covenants, seniority and collateral. We actively hedge our lending and derivatives exposures. Hedging activities consist of the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). Additionally, we may sell, assign or syndicate loans and lending commitments to other financial institutions in the primary and secondary loan markets.In connection with our derivatives trading activities, we generally enter into master netting agreements and collateral arrangements with counterparties. These agreements provide us with the ability to demand collateral, as well as to liquidate collateral and offset receivables and payables covered under the same master agreement in the event of a counterparty default. A collateral management group monitors collateral levels against requirements and oversees the administration of the collateral function. See Note 8 to the financial statements for additional information about our collateralized transactions.Loans and Lending Commitments At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$149,973 Total exposure$376,801 At December 31, 2022$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,589 $10,634 $— $17,223 Secured lending facilities35,606 3,176 6 38,788 Commercial and Residential real estate8,515 926 2,548 11,989 Securities-based lending and Other2,865 39 5,625 8,529 Total Institutional Securities53,575 14,775 8,179 76,529 Wealth Management:Residential real estate54,460 4 — 54,464 Securities-based lending and Other91,797 9 — 91,806 Total Wealth Management146,257 13 — 146,270 Total Investment Management24 — 218 222 Total loans199,836 14,788 8,397 223,021 ACL(839)(839)Total loans, net of ACL$198,997 $14,788 $8,397 $222,182 Lending commitments3$136,960 Total exposure$359,142 Total exposure—consists of Total loans, net of ACL, and Lending commitments1.FVO includes the fair value of certain unfunded lending commitments.2.Investment Management business segment loans are related to certain of our activities as an investment adviser and manager. Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by forwards, swaps and options). Additionally, we may sell, assign or syndicate loans and lending commitments to other financial institutions in the primary and secondary loan markets. In connection with our derivatives trading activities, we generally enter into master netting agreements and collateral arrangements with counterparties. These agreements provide us with the ability to demand collateral, as well as to liquidate collateral and offset receivables and payables covered under the same master agreement in the event of a counterparty default. A collateral management group monitors collateral levels against requirements and oversees the administration of the collateral function. See Note 8 to the financial statements for additional information about our collateralized transactions."
    },
    {
      "status": "MODIFIED",
      "current_title": "Required ratios1",
      "prior_title": "Required ratios1",
      "similarity_score": 0.712,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"CET1 capital ratio 1.Required ratios represent the regulatory minimum plus the capital buffer requirement.\"",
        "Reworded sentence: \"RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following: •Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us; •Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and•Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets).Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach.\"",
        "Reworded sentence: \"At December 31, 2024 and December 31, 2023, the differences between the actual and required ratios were lower under the Standardized Approach.\"",
        "Reworded sentence: \"The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024.\""
      ],
      "current_body": "CET1 capital ratio 1.Required ratios represent the regulatory minimum plus the capital buffer requirement. Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following: •Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us; •Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and•Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets).Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2024 and December 31, 2023, the differences between the actual and required ratios were lower under the Standardized Approach.Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%.CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024. The deferral impacts were fully phased-in from January 1, 2025. correlations or other market factors, such as market liquidity; and •Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets). Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2024 and December 31, 2023, the differences between the actual and required ratios were lower under the Standardized Approach. Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%. CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and were phased-in at 75% from January 1, 2024. The deferral impacts were fully phased-in from January 1, 2025. December 2024 Form 10-K50 December 2024 Form 10-K50 December 2024 Form 10-K50 50 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Regulatory Capital RatiosRisk-based capitalStandardizedAdvanced$ in millionsAt December 31, 2024At December 31, 2023At December 31, 2024At December 31, 2023Risk-based capitalCET1 capital$75,095 $69,448 $75,095 $69,448 Tier 1 capital84,790 78,183 84,790 78,183 Total capital95,567 88,874 94,846 88,190 Total RWA471,834 456,053 477,331 448,154 Risk-based capital ratiosCET1 capital15.9 %15.2 %15.7 %15.5 %Tier 1 capital18.0 %17.1 %17.8 %17.4 %Total capital20.3 %19.5 %19.9 %19.7 %Required ratios1CET1 capital13.5 %12.9 %10.0 %10.0 %Tier 1 capital15.0 %14.4 %11.5 %11.5 %Total capital17.0 %16.4 %13.5 %13.5 %1.Required ratios are inclusive of any buffers applicable as of the date presented.Leveraged-based capital$ in millionsAt December 31, 2024At December 31, 2023Leveraged-based capitalAdjusted average assets1$1,223,779 $1,159,626 Supplementary leverage exposure21,517,687 1,429,552 Leveraged-based capital ratiosTier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %Required ratios3Tier 1 leverage4.0 %4.0 %SLR5.0 %5.0 %1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.2.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.3.Required ratios are inclusive of any buffers applicable as of the date presented. Regulatory Capital$ in millionsAtDecember 31,2024AtDecember 31,2023 ChangeCET1 capitalCommon shareholders’ equity$94,761 $90,288 $4,473 Regulatory adjustments and deductions:Net goodwill(16,354)(16,394)40 Net intangible assets(5,003)(5,509)506 Impact of CECL transition62 124 (61)Other adjustments and deductions11,629 939 690 Total CET1 capital$75,095 $69,448 $5,647 Additional Tier 1 capitalPreferred stock$9,750 $8,750 $1,000 Noncontrolling interests807 758 49 Additional Tier 1 capital$10,557 $9,508 $1,049 Deduction for investments in covered funds(862)(773)(89)Total Tier 1 capital$84,790 $78,183 $6,607 Standardized Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible ACL2,065 2,051 14 Other adjustments and deductions(139)(120)(19)Total Standardized Tier 2 capital$10,777 $10,691 $86 Total Standardized capital$95,567 $88,874 $6,693 Advanced Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible credit reserves1,344 1,367 (23)Other adjustments and deductions(139)(120)(19)Total Advanced Tier 2 capital$10,056 $10,007 $49 Total Advanced capital$94,846 $88,190 $6,656 1.Other adjustments and deductions used in the calculation of CET1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets. Regulatory Capital RatiosRisk-based capitalStandardizedAdvanced$ in millionsAt December 31, 2024At December 31, 2023At December 31, 2024At December 31, 2023Risk-based capitalCET1 capital$75,095 $69,448 $75,095 $69,448 Tier 1 capital84,790 78,183 84,790 78,183 Total capital95,567 88,874 94,846 88,190 Total RWA471,834 456,053 477,331 448,154 Risk-based capital ratiosCET1 capital15.9 %15.2 %15.7 %15.5 %Tier 1 capital18.0 %17.1 %17.8 %17.4 %Total capital20.3 %19.5 %19.9 %19.7 %Required ratios1CET1 capital13.5 %12.9 %10.0 %10.0 %Tier 1 capital15.0 %14.4 %11.5 %11.5 %Total capital17.0 %16.4 %13.5 %13.5 %1.Required ratios are inclusive of any buffers applicable as of the date presented.Leveraged-based capital$ in millionsAt December 31, 2024At December 31, 2023Leveraged-based capitalAdjusted average assets1$1,223,779 $1,159,626 Supplementary leverage exposure21,517,687 1,429,552 Leveraged-based capital ratiosTier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %Required ratios3Tier 1 leverage4.0 %4.0 %SLR5.0 %5.0 %1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.2.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.3.Required ratios are inclusive of any buffers applicable as of the date presented.",
      "prior_body": "1.Required ratios represent the regulatory minimum plus the capital buffer requirement. Risk-Weighted Assets. RWA reflects both our on- and off-balance sheet risk, as well as capital charges attributable to the risk of loss arising from the following: •Credit risk: The failure of a borrower, counterparty or issuer to meet its financial obligations to us; •Market risk: Adverse changes in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity; and •Operational risk: Inadequate or failed processes or systems, from human factors or from external events (e.g., fraud, theft, legal and compliance risks, cyber attacks or damage to physical assets). Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At December 31, 2023 and December 31, 2022, the differences between the actual and required ratios were lower under the Standardized Approach. Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced SLR capital buffer of at least 2%. CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022 and are phased-in at 50% from January 1, 2023. The deferral impacts will become fully phased-in beginning on January 1, 2025. December 2023 Form 10-K54 December 2023 Form 10-K54 December 2023 Form 10-K54 54 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Regulatory Capital Ratios$ in millionsRequiredRatio1At December 31, 2023RequiredRatio1At December 31, 2022Risk-based capital— StandardizedCommon Equity Tier 1 capital$69,448 $68,670 Tier 1 capital78,183 77,191 Total capital88,874 86,575 Total RWA456,053 447,849 Common Equity Tier 1 capital ratio12.9 %15.2 %13.3 %15.3 %Tier 1 capital ratio14.4 %17.1 %14.8 %17.2 %Total capital ratio16.4 %19.5 %16.8 %19.3 %$ in millionsRequiredRatio1At December 31, 2023At December 31, 2022Risk-based capital—AdvancedCommon Equity Tier 1 capital$69,448 $68,670 Tier 1 capital 78,183 77,191 Total capital 88,190 86,159 Total RWA 448,154 438,806 Common Equity Tier 1 capital ratio10.0 %15.5 %15.6 %Tier 1 capital ratio11.5 %17.4 %17.6 %Total capital ratio13.5 %19.7 %19.6 %$ in millionsRequired Ratio1At December 31, 2023At December 31, 2022Leverage-based capitalAdjusted average assets2$1,159,626 $1,150,772 Tier 1 leverage ratio4.0 %6.7 %6.7 %Supplementary leverage exposure3$1,429,552 $1,399,403 SLR5.0 %5.5 %5.5 %1.Required ratios are inclusive of any buffers applicable as of the date presented. 2.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions. 3.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures. Regulatory Capital$ in millionsAtDecember 31,2023AtDecember 31,2022 ChangeCommon Equity Tier 1 capitalCommon shareholders’ equity$90,288 $91,391 $(1,103)Regulatory adjustments and deductions:Net goodwill(16,394)(16,393)(1)Net intangible assets(5,509)(6,048)539 Impact of CECL transition124 185 (61)Other adjustments and deductions1939 (465)1,404 Total Common Equity Tier 1 capital$69,448 $68,670 $778 Additional Tier 1 capitalPreferred stock$8,750 $8,750 $— Noncontrolling interests758 552 206 Additional Tier 1 capital$9,508 $9,302 $206 Deduction for investments in covered funds(773)(781)8 Total Tier 1 capital$78,183 $77,191 $992 Standardized Tier 2 capitalSubordinated debt$8,760 $7,846 $914 Eligible ACL2,051 1,613 438 Other adjustments and deductions(120)(75)(45)Total Standardized Tier 2 capital$10,691 $9,384 $1,307 Total Standardized capital$88,874 $86,575 $2,299 Advanced Tier 2 capitalSubordinated debt$8,760 $7,846 $914 Eligible credit reserves1,367 1,197 170 Other adjustments and deductions(120)(75)(45)Total Advanced Tier 2 capital$10,007 $8,968 $1,039 Total Advanced capital$88,190 $86,159 $2,031 1.Other adjustments and deductions used in the calculation of Common Equity Tier 1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets. Regulatory Capital Ratios$ in millionsRequiredRatio1At December 31, 2023RequiredRatio1At December 31, 2022Risk-based capital— StandardizedCommon Equity Tier 1 capital$69,448 $68,670 Tier 1 capital78,183 77,191 Total capital88,874 86,575 Total RWA456,053 447,849 Common Equity Tier 1 capital ratio12.9 %15.2 %13.3 %15.3 %Tier 1 capital ratio14.4 %17.1 %14.8 %17.2 %Total capital ratio16.4 %19.5 %16.8 %19.3 %$ in millionsRequiredRatio1At December 31, 2023At December 31, 2022Risk-based capital—AdvancedCommon Equity Tier 1 capital$69,448 $68,670 Tier 1 capital 78,183 77,191 Total capital 88,190 86,159 Total RWA 448,154 438,806 Common Equity Tier 1 capital ratio10.0 %15.5 %15.6 %Tier 1 capital ratio11.5 %17.4 %17.6 %Total capital ratio13.5 %19.7 %19.6 %$ in millionsRequired Ratio1At December 31, 2023At December 31, 2022Leverage-based capitalAdjusted average assets2$1,159,626 $1,150,772 Tier 1 leverage ratio4.0 %6.7 %6.7 %Supplementary leverage exposure3$1,429,552 $1,399,403 SLR5.0 %5.5 %5.5 %1.Required ratios are inclusive of any buffers applicable as of the date presented. 2.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions. 3.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures."
    },
    {
      "status": "MODIFIED",
      "current_title": "Lending commitments3",
      "prior_title": "Loans and Lending Commitments",
      "similarity_score": 0.71,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"63December 2024 Form 10-K 63December 2024 Form 10-K 63December 2024 Form 10-K 63 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$128,134 $21,329 $510 $149,973 Total exposure$331,519 $36,584 $8,698 $376,801 Total exposure—consists of Total loans, net of ACL, and Lending commitments1.FVO includes the fair value of certain unfunded lending commitments.2.Investment Management business segment loans are related to certain of our activities as an investment adviser and manager.\""
      ],
      "current_body": "63December 2024 Form 10-K 63December 2024 Form 10-K 63December 2024 Form 10-K 63 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$128,134 $21,329 $510 $149,973 Total exposure$331,519 $36,584 $8,698 $376,801 Total exposure—consists of Total loans, net of ACL, and Lending commitments1.FVO includes the fair value of certain unfunded lending commitments.2.Investment Management business segment loans are related to certain of our activities as an investment adviser and manager. Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by Investment Management, composed primarily of senior secured loans to corporations.3.Lending commitments represent the notional amount of legally binding obligations to provide funding to clients for lending transactions. Since commitments associated with these business activities may expire unused or may not be utilized to full capacity, they do not necessarily reflect the actual future cash funding requirements.We provide loans and lending commitments to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals. In addition, we purchase loans in the secondary market. Loans and lending commitments are either held for investment, held for sale or carried at fair value. For more information on these loan classifications, see Note 2 to the financial statements. In 2024, total loans and lending commitments increased by approximately $47 billion, primarily due to an increase in Corporate lending commitments and Secured lending facilities within the Institutional Securities business segment, and growth across portfolios within the Wealth Management business segment.See Notes 4, 5, 9 and 14 to the financial statements for further information.Allowance for Credit Losses—Loans and Lending Commitments $ in millions2024ACL—LoansBeginning balance$1,169 Gross charge-offs(242)Recoveries7 Net (charge-offs)/recoveries(235)Provision for credit losses146 Other(14)Ending balance$1,066 ACL—Lending commitmentsBeginning balance$551 Provision for credit losses118 Other(13)Ending balance$656 Total ending balance$1,722 Provision for Credit Losses by Business SegmentYear Ended December 31, 2024$ in millionsISWMTotalLoans$81 $65 $146 Lending commitments121 (3)118 Total$202 $62 $264 Credit exposure arising from our loans and lending commitments is measured in accordance with our internal risk management standards. Risk factors considered in determining the allowance for credit losses for loans and lending commitments include the borrower’s financial strength, industry, facility structure, LTV ratio, debt service ratio, collateral and covenants. Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio and lending terms, and volume and severity of past due loans may also be considered.The allowance for credit losses for loans and lending commitments was relatively unchanged since December 31, 2023, reflecting provisions for certain specific commercial real estate loans and growth in the corporate loan portfolio, offset by charge-offs related to commercial real estate lending, mainly in the office sector, and improvements in the macroeconomic outlook. The base scenario used in our ACL models as of December 31, 2024 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. This scenario assumes continued economic growth as well as lower interest rates relative to the prior year forecast. The ACL calculation incorporates key macroeconomic variables, including U.S. real GDP growth rate. The significance of key macroeconomic variables on the ACL calculation varies depending on portfolio composition and economic conditions.Forecasted U.S. Real GDP Growth Rates in Base Scenario4Q 20254Q 2026Year-over-year growth rate1.9 %2.1 % At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$128,134 $21,329 $510 $149,973 Total exposure$331,519 $36,584 $8,698 $376,801 Total exposure—consists of Total loans, net of ACL, and Lending commitments1.FVO includes the fair value of certain unfunded lending commitments.2.Investment Management business segment loans are related to certain of our activities as an investment adviser and manager. Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by Investment Management, composed primarily of senior secured loans to corporations.3.Lending commitments represent the notional amount of legally binding obligations to provide funding to clients for lending transactions. Since commitments associated with these business activities may expire unused or may not be utilized to full capacity, they do not necessarily reflect the actual future cash funding requirements.We provide loans and lending commitments to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals. In addition, we purchase loans in the secondary market. Loans and lending commitments are either held for investment, held for sale or carried at fair value. For more information on these loan classifications, see Note 2 to the financial statements. In 2024, total loans and lending commitments increased by approximately $47 billion, primarily due to an increase in Corporate lending commitments and Secured lending facilities within the Institutional Securities business segment, and growth across portfolios within the Wealth Management business segment.See Notes 4, 5, 9 and 14 to the financial statements for further information. At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$128,134 $21,329 $510 $149,973 Total exposure$331,519 $36,584 $8,698 $376,801 FVO1",
      "prior_body": "At December 31, 2023$ in millionsHFIHFSFVO1TotalInstitutional Securities:Corporate$6,758 $11,862 $— $18,620 Secured lending facilities39,498 3,161 — 42,659 Commercial and Residential real estate8,678 209 3,331 12,218 Securities-based lending and Other2,818 — 4,402 7,220 Total Institutional Securities57,752 15,232 7,733 80,717 Wealth Management:Residential real estate60,375 22 — 60,397 Securities-based lending and Other86,423 1 — 86,424 Total Wealth Management146,798 23 — 146,821 Total Investment Management24 — 455 459 Total loans204,554 15,255 8,188 227,997 ACL(1,169)(1,169)Total loans, net of ACL$203,385 $15,255 $8,188 $226,828 Lending commitments3$149,973 Total exposure$376,801 FVO1"
    },
    {
      "status": "MODIFIED",
      "current_title": "Our ability to retain and attract qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance.",
      "prior_title": "Our ability to retain and attract qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance.",
      "similarity_score": 0.708,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"We compete with various other companies in attracting and retaining qualified and skilled personnel.\"",
        "Reworded sentence: \"The financial industry has experienced, and may continue to experience, more stringent regulation of employee compensation than other industries, which may or may not impact competitors.\""
      ],
      "current_body": "Our people are our most important asset. We compete with various other companies in attracting and retaining qualified and skilled personnel. If we are unable to continue to attract, integrate and retain highly qualified employees or successfully transition key roles, or do so at levels or in forms necessary to maintain our competitive position, our performance, including our competitive position and results of operations, could be materially adversely affected. Our ability to attract and retain qualified and skilled personnel depends on numerous factors, some of which are outside of our control. Compensation costs required to attract and retain employees may increase or the competitive market for talent may further intensify due to factors such as low unemployment, a strong job market and changes in employees’ expectations, concerns and preferences. The financial industry has experienced, and may continue to experience, more stringent regulation of employee compensation than other industries, which may or may not impact competitors. These more stringent regulations have shaped our compensation practices, which could have an adverse effect on our ability to hire or retain the most qualified employees.",
      "prior_body": "Our people are our most important asset. We compete with various other companies in attracting and retaining qualified 23December 2023 Form 10-K 23December 2023 Form 10-K 23December 2023 Form 10-K 23 Table of Contents Table of Contents Table of Contents and skilled personnel. If we are unable to continue to attract, integrate and retain highly qualified employees or successfully transition key roles, or do so at levels or in forms necessary to maintain our competitive position, our performance, including our competitive position and results of operations, could be materially adversely affected. Our ability to attract and retain qualified and skilled personnel depends on numerous factors, some of which are outside of our control.Compensation costs required to attract and retain employees may increase or the competitive market for talent may further intensify due to factors such as low unemployment, a strong job market and changes in employees’ expectations, concerns and preferences. The financial industry has experienced and may continue to experience more stringent regulation of employee compensation than other industries, which may or may not impact competitors. These more stringent regulations have shaped our compensation practices, which could have an adverse effect on our ability to hire or retain the most qualified employees.International RiskWe are subject to numerous political, economic, legal, tax, operational, franchise and other risks as a result of our international operations that could adversely impact our businesses in many ways.We are subject to numerous political, economic, legal, tax, operational, franchise and other risks that are inherent in operating in many countries, including risks of possible nationalization, expropriation, price controls, capital controls, exchange controls, increased taxes and levies, minimum global tax regimes, cybersecurity, data transfer and outsourcing restrictions, regulatory scrutiny regarding the use of new technologies, prohibitions on certain types of foreign and capital market activities, limitations on cross-border listings and other restrictive governmental actions, as well as the outbreak of hostilities or political and governmental instability, including tensions between China and the U.S., the expansion or escalation of hostilities between Russia and Ukraine or in the Middle East or the initiation or escalation of hostilities or terrorist activity around the world and the potential associated impacts on global and local economies and our operations. In many countries, the laws and regulations applicable to the securities and financial services industries and multinational corporations are uncertain, evolving and subject to sudden change or may be inconsistent with U.S. law. It may also be difficult for us to determine the exact requirements of local laws in every market or adapt to changes in law, which could adversely impact our businesses. Our inability to remain in compliance with local laws in a particular market could have a significant and negative effect not only on our business in that market but also on our reputation generally. We are also subject to the risk that transactions we structure might not be legally enforceable in all cases.Various emerging market countries have experienced severe political, economic or financial disruptions, including significant devaluations of their currencies, defaults or potential defaults on sovereign debt, capital and currency exchange controls, high rates of inflation and low or negative growth rates in their economies. Crime and corruption, as well as issues of security and personal safety, also exist in certain of these countries. These conditions could adversely impact our businesses and increase volatility in financial markets generally.A disease pandemic, such as COVID-19 and its variants, or other widespread health emergencies, natural disasters, climate-related incidents, terrorist activities or military actions, or social or political tensions, could create economic and financial disruptions in emerging markets or in other areas of the global economy that could adversely affect our businesses, or could lead to operational difficulties, including travel limitations and supply chain complications, that could impair our ability to manage or conduct our businesses around the world.As a U.S. company, we are required to comply with the economic sanctions and embargo programs administered by OFAC and similar multinational bodies and governmental agencies worldwide, which may be inconsistent with local law. We and certain of our subsidiaries are also subject to applicable AML and/or anti-corruption laws in the U.S., as well as in the jurisdictions in which we operate, including the Bank Secrecy Act, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. A violation of a sanction, embargo program, AML or anti-corruption law could subject us, and individual employees, to a regulatory enforcement action, as well as significant civil and criminal penalties.Acquisition, Divestiture and Joint Venture RiskWe may be unable to fully capture the expected value from acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances, and certain acquisitions may subject our business to new or increased risk.In connection with past or future acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances (including with Mitsubishi UFJ Financial Group, Inc. (“MUFG”)), we face numerous risks and uncertainties in combining, transferring, separating or integrating the relevant businesses and systems that may present operational and other risks, including the need to combine or separate accounting, data processing and other systems, management controls and legal entities, and to integrate relationships with clients, trading counterparties and business partners. Certain of these strategic initiatives, and integration thereof, may cause us to incur incremental expenses and may also require incremental financial, management and other resources. In the case of joint ventures, partnerships and minority stakes, we are subject to additional risks and uncertainties because and skilled personnel. If we are unable to continue to attract, integrate and retain highly qualified employees or successfully transition key roles, or do so at levels or in forms necessary to maintain our competitive position, our performance, including our competitive position and results of operations, could be materially adversely affected. Our ability to attract and retain qualified and skilled personnel depends on numerous factors, some of which are outside of our control.Compensation costs required to attract and retain employees may increase or the competitive market for talent may further intensify due to factors such as low unemployment, a strong job market and changes in employees’ expectations, concerns and preferences. The financial industry has experienced and may continue to experience more stringent regulation of employee compensation than other industries, which may or may not impact competitors. These more stringent regulations have shaped our compensation practices, which could have an adverse effect on our ability to hire or retain the most qualified employees.International RiskWe are subject to numerous political, economic, legal, tax, operational, franchise and other risks as a result of our international operations that could adversely impact our businesses in many ways.We are subject to numerous political, economic, legal, tax, operational, franchise and other risks that are inherent in operating in many countries, including risks of possible nationalization, expropriation, price controls, capital controls, exchange controls, increased taxes and levies, minimum global tax regimes, cybersecurity, data transfer and outsourcing restrictions, regulatory scrutiny regarding the use of new technologies, prohibitions on certain types of foreign and capital market activities, limitations on cross-border listings and other restrictive governmental actions, as well as the outbreak of hostilities or political and governmental instability, including tensions between China and the U.S., the expansion or escalation of hostilities between Russia and Ukraine or in the Middle East or the initiation or escalation of hostilities or terrorist activity around the world and the potential associated impacts on global and local economies and our operations. In many countries, the laws and regulations applicable to the securities and financial services industries and multinational corporations are uncertain, evolving and subject to sudden change or may be inconsistent with U.S. law. It may also be difficult for us to determine the exact requirements of local laws in every market or adapt to changes in law, which could adversely impact our businesses. Our inability to remain in compliance with local laws in a particular market could have a significant and negative effect not only on our business in that market but also on our reputation generally. We are also subject to the risk that transactions we structure might not be legally enforceable in all cases. and skilled personnel. If we are unable to continue to attract, integrate and retain highly qualified employees or successfully transition key roles, or do so at levels or in forms necessary to maintain our competitive position, our performance, including our competitive position and results of operations, could be materially adversely affected. Our ability to attract and retain qualified and skilled personnel depends on numerous factors, some of which are outside of our control. Compensation costs required to attract and retain employees may increase or the competitive market for talent may further intensify due to factors such as low unemployment, a strong job market and changes in employees’ expectations, concerns and preferences. The financial industry has experienced and may continue to experience more stringent regulation of employee compensation than other industries, which may or may not impact competitors. These more stringent regulations have shaped our compensation practices, which could have an adverse effect on our ability to hire or retain the most qualified employees."
    },
    {
      "status": "MODIFIED",
      "current_title": "We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements.",
      "prior_title": "We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements.",
      "similarity_score": 0.707,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”\""
      ],
      "current_body": "We are subject to comprehensive consolidated supervision, regulation and examination by the Federal Reserve, including with respect to regulatory capital requirements, stress testing and capital planning. We submit, on at least an annual basis, a capital plan to the Federal Reserve describing proposed dividend payments to shareholders, proposed repurchases of our outstanding securities and other proposed capital actions that we intend to take. Our ability to take capital actions described in the capital plan is dependent on, among other factors, the results of supervisory stress tests conducted by the Federal Reserve and our compliance with regulatory capital requirements imposed by the Federal Reserve. In addition, the Federal Reserve may change regulatory capital requirements to impose higher requirements that restrict our ability to take capital actions or may modify or impose other regulatory standards or restrictions that increase our operating expenses or constrain our ability to take capital actions. For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”",
      "prior_body": "We are subject to comprehensive consolidated supervision, regulation and examination by the Federal Reserve, including with respect to regulatory capital requirements, stress testing and capital planning. We submit, on at least an annual basis, a capital plan to the Federal Reserve describing proposed dividend payments to shareholders, proposed repurchases of our outstanding securities and other proposed capital actions that we intend to take. Our ability to take capital actions described in the capital plan is dependent on, among other factors, the results of supervisory stress tests conducted by the Federal Reserve and our compliance with regulatory capital requirements imposed by the Federal Reserve. In addition, the Federal Reserve may change regulatory capital requirements to impose higher requirements that restrict our ability to take capital actions or may modify or impose other regulatory standards or restrictions that increase our operating expenses or constrain our ability to take capital actions. For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” The financial services industry faces substantial litigation and is subject to extensive regulatory and law enforcement investigations, and we may face damage to our reputation and legal liability.As a global financial services firm, we face the risk of investigations and proceedings by governmental and self-regulatory organizations in all countries in which we conduct our business. These investigations and proceedings, as well as the amount of penalties and fines sought, continue to impact the financial services industry. Certain U.S. and international governmental entities have brought criminal actions against, or have sought criminal convictions, pleas, deferred prosecution agreements or non-prosecution agreements from financial institutions. Significant regulatory or law enforcement action against us could materially adversely affect our business, reputation, financial condition or results of operations, and increase our exposure to civil litigation.Investigations and proceedings initiated by these authorities may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions or other relief, and have included and may in the future include requirements that the Firm admit certain conduct, which may result in increased exposure to civil litigation. In addition, these measures have caused and may in the future cause collateral consequences. For example, such matters could impact our ability to engage in, or impose limitations on, certain of our businesses.As part of the resolution of certain investigations and proceedings, the Firm has been and may in the future be required to undertake certain measures and failure to do so may result in adverse consequences, such as further investigations or proceedings—both civil and criminal—and additional penalties, fines, judgments or other relief.The Dodd-Frank Act also provides compensation to whistleblowers who present the SEC or CFTC with information related to securities or commodities law violations that leads to a successful enforcement action. As a result of this compensation, it is possible we could face an increased number of investigations by the SEC or CFTC.We have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, as well as investigations or proceedings brought by regulatory agencies, arising in connection with our activities as a global diversified financial services institution. Certain of the actual or threatened legal or regulatory actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages, or may result in material penalties, fines or other results adverse to us.In some cases, the third-party entities that would otherwise be the primary defendants in such cases are bankrupt, in financial distress or may not honor applicable indemnification"
    },
    {
      "status": "MODIFIED",
      "current_title": "Fixed Income",
      "prior_title": "Fixed Income",
      "similarity_score": 0.707,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Net revenues of $8,418 million in 2024 increased 10% compared with the prior year, reflecting an increase across businesses, particularly in Credit and Global macro products.\""
      ],
      "current_body": "Net revenues of $8,418 million in 2024 increased 10% compared with the prior year, reflecting an increase across businesses, particularly in Credit and Global macro products. •Global macro products increased primarily due to lower losses on foreign exchange products and higher gains on rates products, on inventory held to facilitate client activity. •Credit products revenues increased primarily due to higher lending and securitized products revenues and lower losses 33December 2024 Form 10-K 33December 2024 Form 10-K 33December 2024 Form 10-K 33 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents on inventory held to facilitate client activity in corporate credit products. •Commodities products and other fixed income revenues were relatively unchanged.Other Net RevenuesOther net revenues were $1,262 million in 2024 compared with $823 million in the prior year, primarily due to lower mark-to-market losses on corporate loans, inclusive of hedges, and higher net interest income and fees on corporate loans.Provision for Credit LossesIn 2024, the Provision for credit losses on loans and lending commitments of $202 million was primarily related to growth in the corporate loan portfolio and provisions for certain specific commercial real estate loans, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $401 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios.For further information on the Provision for credit losses, see “Credit Risk” herein.Non-Interest ExpensesNon-interest expenses of $19,129 million in 2024 increased 5% compared with the prior year as a result of higher Non-compensation expenses and Compensation and benefits expenses. •Compensation and benefits expenses increased primarily reflecting higher discretionary incentive compensation on higher revenues, partially offset by lower severance costs.•Non-compensation expenses increased primarily reflecting higher execution-related expenses and increased technology spend, partially offset by lower legal expenses and lower FDIC special assessment cost. on inventory held to facilitate client activity in corporate credit products. •Commodities products and other fixed income revenues were relatively unchanged.Other Net RevenuesOther net revenues were $1,262 million in 2024 compared with $823 million in the prior year, primarily due to lower mark-to-market losses on corporate loans, inclusive of hedges, and higher net interest income and fees on corporate loans.Provision for Credit LossesIn 2024, the Provision for credit losses on loans and lending commitments of $202 million was primarily related to growth in the corporate loan portfolio and provisions for certain specific commercial real estate loans, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $401 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios.For further information on the Provision for credit losses, see “Credit Risk” herein.Non-Interest ExpensesNon-interest expenses of $19,129 million in 2024 increased 5% compared with the prior year as a result of higher Non-compensation expenses and Compensation and benefits expenses. •Compensation and benefits expenses increased primarily reflecting higher discretionary incentive compensation on higher revenues, partially offset by lower severance costs.•Non-compensation expenses increased primarily reflecting higher execution-related expenses and increased technology spend, partially offset by lower legal expenses and lower FDIC special assessment cost. on inventory held to facilitate client activity in corporate credit products. •Commodities products and other fixed income revenues were relatively unchanged.",
      "prior_body": "Net revenues of $7,673 million in 2023 decreased 15% compared with the prior year, primarily reflecting a decrease in foreign exchange and commodities products. •Global macro products revenues decreased primarily due to a decline in foreign exchange products. •Credit products revenues decreased primarily due to lower client activity across products. 37December 2023 Form 10-K 37December 2023 Form 10-K 37December 2023 Form 10-K 37 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents •Commodities products and other fixed income revenues decreased compared to elevated results in the prior year, primarily due to lower gains on inventory held to facilitate client activity and lower client activity.Other Net RevenuesOther net revenues were $823 million in 2023 compared with losses of $633 million in the prior year, primarily due to lower mark-to-market losses on corporate loans held for sale, inclusive of hedges, and higher net interest income and fees on corporate loans, mark-to-market gains compared with losses in the prior year on DCP investments and impacts from liquidity and funding costs.Provision for Credit LossesIn 2023, the Provision for credit losses on loans and lending commitments of $401 million was primarily related to deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. The Provision for credit losses on loans and lending commitments of $211 million in 2022 was primarily driven by portfolio growth and deterioration in the macroeconomic outlook.For further information on the Provision for credit losses, see “Credit Risk” herein.Non-Interest ExpensesNon-interest expenses of $18,183 million in 2023 increased 4% compared with the prior year due to higher Non-compensation expenses and Compensation and benefits expenses. •Compensation and benefits expenses increased primarily due to higher expenses related to DCP and higher stock-based compensation expenses driven by the Firm’s share price movement in the prior year, partially offset by lower expenses related to outstanding deferred equity compensation.•Non-compensation expenses increased primarily due to increased spend on technology, an FDIC special assessment of $121 million, higher legal expenses, including $249 million related to a specific matter, higher execution-related and marketing and business development expenses. •Commodities products and other fixed income revenues decreased compared to elevated results in the prior year, primarily due to lower gains on inventory held to facilitate client activity and lower client activity.Other Net RevenuesOther net revenues were $823 million in 2023 compared with losses of $633 million in the prior year, primarily due to lower mark-to-market losses on corporate loans held for sale, inclusive of hedges, and higher net interest income and fees on corporate loans, mark-to-market gains compared with losses in the prior year on DCP investments and impacts from liquidity and funding costs.Provision for Credit LossesIn 2023, the Provision for credit losses on loans and lending commitments of $401 million was primarily related to deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. The Provision for credit losses on loans and lending commitments of $211 million in 2022 was primarily driven by portfolio growth and deterioration in the macroeconomic outlook.For further information on the Provision for credit losses, see “Credit Risk” herein.Non-Interest ExpensesNon-interest expenses of $18,183 million in 2023 increased 4% compared with the prior year due to higher Non-compensation expenses and Compensation and benefits expenses. •Compensation and benefits expenses increased primarily due to higher expenses related to DCP and higher stock-based compensation expenses driven by the Firm’s share price movement in the prior year, partially offset by lower expenses related to outstanding deferred equity compensation.•Non-compensation expenses increased primarily due to increased spend on technology, an FDIC special assessment of $121 million, higher legal expenses, including $249 million related to a specific matter, higher execution-related and marketing and business development expenses. •Commodities products and other fixed income revenues decreased compared to elevated results in the prior year, primarily due to lower gains on inventory held to facilitate client activity and lower client activity."
    },
    {
      "status": "MODIFIED",
      "current_title": "Allowance for Credit Losses—Loans and Lending Commitments",
      "prior_title": "Allowance for Credit Losses—Loans and Lending Commitments",
      "similarity_score": 0.705,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"$ in millions2024ACL—LoansBeginning balance$1,169 Gross charge-offs(242)Recoveries7 Net (charge-offs)/recoveries(235)Provision for credit losses146 Other(14)Ending balance$1,066 ACL—Lending commitmentsBeginning balance$551 Provision for credit losses118 Other(13)Ending balance$656 Total ending balance$1,722 Net (charge-offs)/recoveries\""
      ],
      "current_body": "$ in millions2024ACL—LoansBeginning balance$1,169 Gross charge-offs(242)Recoveries7 Net (charge-offs)/recoveries(235)Provision for credit losses146 Other(14)Ending balance$1,066 ACL—Lending commitmentsBeginning balance$551 Provision for credit losses118 Other(13)Ending balance$656 Total ending balance$1,722 Net (charge-offs)/recoveries",
      "prior_body": "$ in millions2023ACL—LoansBeginning balance$839 Gross charge-offs(167)Recoveries2 Net (charge-offs) recoveries(165)Provision for credit losses488 Other7 Ending balance$1,169 ACL—Lending commitmentsBeginning balance$504 Provision for credit losses44 Other3 Ending balance$551 Total ending balance$1,720"
    },
    {
      "status": "MODIFIED",
      "current_title": "Unsecured Financing",
      "prior_title": "Unsecured Financing",
      "similarity_score": 0.703,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Our unsecured financings include borrowings and certificates of 47December 2024 Form 10-K 47December 2024 Form 10-K 47December 2024 Form 10-K 47 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents deposit carried at fair value, which are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons.\"",
        "Reworded sentence: \"As part of our asset/liability management strategy, when appropriate, we use derivatives to make adjustments to the interest rate risk profile of our borrowings (see Notes 6 and 13 to the financial statements).Deposits$ in millionsAtDecember 31,2024 AtDecember 31,2023 Savings and demand deposits:Brokerage sweep deposits1$142,550 $148,274 Savings and other157,348 139,978 Total Savings and demand deposits299,898 288,252 Time deposits276,109 63,552 Total3$376,007 $351,804 1.Amounts represent balances swept from client brokerage accounts.2.Our Time deposits are predominantly brokered certificates of deposit.3.Our deposits are primarily held in U.S.\"",
        "Reworded sentence: \"Total deposits in 2024 increased primarily due to increases in Savings and Time deposits, partially offset by a reduction in Brokerage sweep deposits, largely due to net outflows to alternative cash equivalent and other investment products.\"",
        "Reworded sentence: \"See also “Risk Factors—Liquidity Risk.”Parent Company and U.S.\""
      ],
      "current_body": "We view deposits and borrowings as stable sources of funding for unencumbered securities and non-security assets. Our unsecured financings include borrowings and certificates of 47December 2024 Form 10-K 47December 2024 Form 10-K 47December 2024 Form 10-K 47 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents deposit carried at fair value, which are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. As part of our asset/liability management strategy, when appropriate, we use derivatives to make adjustments to the interest rate risk profile of our borrowings (see Notes 6 and 13 to the financial statements).Deposits$ in millionsAtDecember 31,2024 AtDecember 31,2023 Savings and demand deposits:Brokerage sweep deposits1$142,550 $148,274 Savings and other157,348 139,978 Total Savings and demand deposits299,898 288,252 Time deposits276,109 63,552 Total3$376,007 $351,804 1.Amounts represent balances swept from client brokerage accounts.2.Our Time deposits are predominantly brokered certificates of deposit.3.Our deposits are primarily held in U.S. offices.Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding. Each category of deposits presented above has a different cost profile and clients may respond differently to changes in interest rates and other macroeconomic conditions. Total deposits in 2024 increased primarily due to increases in Savings and Time deposits, partially offset by a reduction in Brokerage sweep deposits, largely due to net outflows to alternative cash equivalent and other investment products. Borrowings by Maturity at December 31, 20241$ in millionsParentCompanySubsidiariesTotalOriginal maturities of one year or less$— $4,512 $4,512 Original maturities greater than one year2025$7,544 $14,377 $21,921 202624,738 13,231 37,969 202720,716 13,334 34,050 202813,844 14,875 28,719 202916,318 9,841 26,159 Thereafter98,886 36,603 135,489 Total greater than one year$182,046 $102,261 $284,307 Total$182,046 $106,773 $288,819 1.Original maturity in the table is generally based on contractual final maturity. For borrowings with put options, maturity represents the earliest put date.Borrowings of $289 billion at December 31, 2024 increased when compared with $264 billion at December 31, 2023, primarily due to issuances net of maturities and redemptions.We believe that accessing debt investors through multiple distribution channels helps provide consistent access to the unsecured markets. In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments. Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types. The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit. We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities.For further information on Borrowings, see Note 13 to the financial statements.Credit RatingsWe rely on external sources to finance a significant portion of our daily operations. Our credit ratings are one of the factors in the cost and availability of financing and can have an impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as certain OTC derivative transactions. When determining credit ratings, rating agencies consider both company-specific and industry-wide factors. See also “Risk Factors—Liquidity Risk.”Parent Company and U.S. Bank Subsidiaries Issuer Ratings at February 14, 2025Parent CompanyShort-Term DebtLong-Term DebtRating OutlookDBRS, Inc.R-1 (middle)A (high)PositiveFitch Ratings, Inc.F1A+StableMoody’s Investors Service, Inc.P-1A1StableRating and Investment Information, Inc.a-1A+StableS&P Global RatingsA-2A-StableMSBNAShort-Term DebtLong-Term DebtRating OutlookFitch Ratings, Inc.F1+AA-StableMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableMSPBNAShort-Term DebtLong-Term DebtRating OutlookMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableIncremental Collateral or Terminating PaymentsIn connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities deposit carried at fair value, which are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. As part of our asset/liability management strategy, when appropriate, we use derivatives to make adjustments to the interest rate risk profile of our borrowings (see Notes 6 and 13 to the financial statements).Deposits$ in millionsAtDecember 31,2024 AtDecember 31,2023 Savings and demand deposits:Brokerage sweep deposits1$142,550 $148,274 Savings and other157,348 139,978 Total Savings and demand deposits299,898 288,252 Time deposits276,109 63,552 Total3$376,007 $351,804 1.Amounts represent balances swept from client brokerage accounts.2.Our Time deposits are predominantly brokered certificates of deposit.3.Our deposits are primarily held in U.S. offices.Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding. Each category of deposits presented above has a different cost profile and clients may respond differently to changes in interest rates and other macroeconomic conditions. Total deposits in 2024 increased primarily due to increases in Savings and Time deposits, partially offset by a reduction in Brokerage sweep deposits, largely due to net outflows to alternative cash equivalent and other investment products. Borrowings by Maturity at December 31, 20241$ in millionsParentCompanySubsidiariesTotalOriginal maturities of one year or less$— $4,512 $4,512 Original maturities greater than one year2025$7,544 $14,377 $21,921 202624,738 13,231 37,969 202720,716 13,334 34,050 202813,844 14,875 28,719 202916,318 9,841 26,159 Thereafter98,886 36,603 135,489 Total greater than one year$182,046 $102,261 $284,307 Total$182,046 $106,773 $288,819 1.Original maturity in the table is generally based on contractual final maturity. For borrowings with put options, maturity represents the earliest put date.Borrowings of $289 billion at December 31, 2024 increased when compared with $264 billion at December 31, 2023, primarily due to issuances net of maturities and redemptions. deposit carried at fair value, which are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. As part of our asset/liability management strategy, when appropriate, we use derivatives to make adjustments to the interest rate risk profile of our borrowings (see Notes 6 and 13 to the financial statements). Deposits $ in millionsAtDecember 31,2024 AtDecember 31,2023 Savings and demand deposits:Brokerage sweep deposits1$142,550 $148,274 Savings and other157,348 139,978 Total Savings and demand deposits299,898 288,252 Time deposits276,109 63,552 Total3$376,007 $351,804 Brokerage sweep deposits1 Time deposits2 Total3 1.Amounts represent balances swept from client brokerage accounts. 2.Our Time deposits are predominantly brokered certificates of deposit. 3.Our deposits are primarily held in U.S. offices. Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding. Each category of deposits presented above has a different cost profile and clients may respond differently to changes in interest rates and other macroeconomic conditions. Total deposits in 2024 increased primarily due to increases in Savings and Time deposits, partially offset by a reduction in Brokerage sweep deposits, largely due to net outflows to alternative cash equivalent and other investment products.",
      "prior_body": "We view deposits and borrowings as stable sources of funding for unencumbered securities and non-security assets. Our unsecured financings include borrowings and certificates of deposit carried at fair value, which are primarily composed of: instruments whose payments and redemption values are linked to the performance of a specific index, a basket of stocks, a specific equity security, a commodity, a credit exposure or basket of credit exposures; and instruments with various interest rate-related features, including step-ups, step-downs and zero coupons. Also included are unsecured contracts that are not classified as OTC derivatives because they fail initial net investment criteria. As part of our asset/liability management strategy, when appropriate, we use derivatives to make adjustments to the interest rate risk profile of our borrowings (see Notes 6 and 13 to the financial statements). Deposits $ in millionsAtDecember 31,2023 AtDecember 31,2022 Savings and demand deposits:Brokerage sweep deposits1$148,274 $202,592 Savings and other139,978 117,356 Total Savings and demand deposits288,252 319,948 Time deposits63,552 36,698 Total2$351,804 $356,646 Brokerage sweep deposits1 Total2 1.Amounts represent balances swept from client brokerage accounts. 2.As of December 31, 2023, there were no off-balance sheet amounts excluded from deposits. As of December 31, 2022, approximately $6 billion of off-balance sheet amounts were excluded from deposits at unaffiliated financial institutions. Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding. Each category of deposits presented above has a different cost profile and clients may respond differently to changes in interest rates and other macroeconomic conditions. The decrease in total deposits in 2023 was primarily driven by a continued reduction in Brokerage sweep deposits, largely due to net outflows to alternative cash equivalent and other products, partially offset by an increase in Time deposits and Savings. Borrowings by Remaining Maturity at December 31, 20231$ in millionsParentCompanySubsidiariesTotalOriginal maturities of one year or less$— $3,188 $3,188 Original maturities greater than one year2024$8,915 $11,236 $20,151 202522,030 13,493 35,523 202624,516 10,907 35,423 202719,282 6,056 25,338 202811,432 9,807 21,239 Thereafter90,635 32,235 122,870 Total greater than one year$176,810 $83,734 $260,544 Total$176,810 $86,922 $263,732 1.Original maturity in the table is generally based on contractual final maturity. For borrowings with put options, remaining maturity represents the earliest put date.Borrowings of $264 billion at December 31, 2023 increased from $238 billion at December 31, 2022, primarily due to issuances net of maturities and redemptions and mark-to-market adjustments on equity-linked borrowings driven by market factors.We believe that accessing debt investors through multiple distribution channels helps provide consistent access to the unsecured markets. In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments. Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types. The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit. We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities.For further information on Borrowings, see Note 13 to the financial statements.Credit RatingsWe rely on external sources to finance a significant portion of our daily operations. Our credit ratings are one of the factors in the cost and availability of financing and can have an impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as certain OTC derivative transactions. When determining credit ratings, rating agencies consider both company-specific and industry-wide factors. See also “Risk Factors—Liquidity Risk.”"
    },
    {
      "status": "MODIFIED",
      "current_title": "Selected Financial Information and Other Statistical Data",
      "prior_title": "Selected Financial Information and Other Statistical Data",
      "similarity_score": 0.702,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"$ in millions, except per share data202420232022Consolidated resultsNet revenues$61,761 $54,143 $53,668 Earnings applicable to Morgan Stanley common shareholders$12,800 $8,530 $10,540 Earnings per diluted common share$7.95 $5.18 $6.15 $ in millions, except per share data Consolidated financial measuresExpense efficiency ratio171 %77 %73 %ROE214.0 %9.4 %11.2 %ROTCE2,318.8 %12.8 %15.3 %Pre-tax margin428 %22 %26 %Effective tax rate 23.1 %21.9 %20.7 %Pre-tax margin by segment4Institutional Securities31 %19 %28 %Wealth Management27 %25 %27 %Investment Management19 %16 %15 % Expense efficiency ratio1 ROE2 ROTCE2,3 Pre-tax margin4\""
      ],
      "current_body": "$ in millions, except per share data202420232022Consolidated resultsNet revenues$61,761 $54,143 $53,668 Earnings applicable to Morgan Stanley common shareholders$12,800 $8,530 $10,540 Earnings per diluted common share$7.95 $5.18 $6.15 $ in millions, except per share data Consolidated financial measuresExpense efficiency ratio171 %77 %73 %ROE214.0 %9.4 %11.2 %ROTCE2,318.8 %12.8 %15.3 %Pre-tax margin428 %22 %26 %Effective tax rate 23.1 %21.9 %20.7 %Pre-tax margin by segment4Institutional Securities31 %19 %28 %Wealth Management27 %25 %27 %Investment Management19 %16 %15 % Expense efficiency ratio1 ROE2 ROTCE2,3 Pre-tax margin4",
      "prior_body": "$ in millions, except per share data202320222021Consolidated resultsNet revenues$54,143 $53,668 $59,755 Earnings applicable to Morgan Stanley common shareholders$8,530 $10,540 $14,566 Earnings per diluted common share$5.18 $6.15 $8.03 $ in millions, except per share data Consolidated financial measuresExpense efficiency ratio177 %73 %67 %ROE29.4 %11.2 %15.0 %ROTCE2,312.8 %15.3 %19.8 %Pre-tax margin422 %26 %33 %Effective tax rate 21.9 %20.7 %23.1 %Pre-tax margin by segment4Institutional Securities19 %28 %40 %Wealth Management25 %27 %25 %Investment Management16 %15 %27 % Expense efficiency ratio1 ROE2 ROTCE2,3 Pre-tax margin4"
    },
    {
      "status": "MODIFIED",
      "current_title": "We face strong competition from financial services firms and others, which could lead to pricing pressures that could materially adversely affect our revenues and profitability.",
      "prior_title": "We face strong competition from financial services firms and others, which could lead to pricing pressures that could materially adversely affect our revenues and profitability.",
      "similarity_score": 0.7,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"We compete with commercial banks, global investment banks, regional banks, broker-dealers, wire houses, private banks, registered investment advisers, digital investing platforms, traditional and alternative asset managers, financial technology firms and other companies offering financial and ancillary services in the U.S.\"",
        "Reworded sentence: \"For more information regarding the competitive environment in which we operate, see “Business—Competition” and “Business—Supervision and Regulation.” Automated trading markets and the introduction and application of new technologies may adversely affect our business and may increase competition.We continue to experience price competition in some of our businesses.\"",
        "Reworded sentence: \"We have experienced, and will likely continue to experience, competitive pressures in these and other areas in the future.Our ability to retain and attract qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance.Our people are our most important asset.\""
      ],
      "current_body": "The financial services industry and all aspects of our businesses are intensely competitive, and we expect them to remain so. We compete with commercial banks, global investment banks, regional banks, broker-dealers, wire houses, private banks, registered investment advisers, digital investing platforms, traditional and alternative asset managers, financial technology firms and other companies offering financial and ancillary services in the U.S. and globally. We compete on the basis of several factors, including transaction execution, capital or access to capital, products and services, innovation, technology, reputation, risk appetite and price. We have experienced, and will likely continue to experience, increased competition in the U.S. and globally driven by established financial services firms and emerging firms, including non-financial companies and business models focusing on technology innovation, competing for the same clients and assets, or offering similar products and services to retail and institutional customers. It is also possible that competition may become even more intense as we continue to compete with financial or other institutions that may be, or will become, larger, or better capitalized, or may have a stronger local presence and longer operating history in certain geographies or products. We have experienced, and may continue to experience, pricing pressures as a result of these factors and as some of our competitors seek to obtain market share by reducing prices and fees, paying higher interest rates on deposits, eliminating commissions or other fees or otherwise providing more favorable terms of business. In addition, certain of our competitors may be subject to different and, in some cases, less stringent, legal and regulatory regimes than we are, thereby putting us at a competitive disadvantage. For more information regarding the competitive environment in which we operate, see “Business—Competition” and “Business—Supervision and Regulation.” Automated trading markets and the introduction and application of new technologies may adversely affect our business and may increase competition.We continue to experience price competition in some of our businesses. In particular, the ability to execute securities, derivatives and other financial instrument trades electronically on exchanges, swap execution facilities and other automated trading platforms, and the introduction and application of new technologies, including generative artificial intelligence, will likely continue the pressure on revenues. The trend toward direct access to automated, electronic markets will likely continue as additional markets move to more automated trading platforms. We have experienced, and will likely continue to experience, competitive pressures in these and other areas in the future.Our ability to retain and attract qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance.Our people are our most important asset. We compete with various other companies in attracting and retaining qualified and skilled personnel. If we are unable to continue to attract, integrate and retain highly qualified employees or successfully transition key roles, or do so at levels or in forms necessary to maintain our competitive position, our performance, including our competitive position and results of operations, could be materially adversely affected. Our ability to attract and retain qualified and skilled personnel depends on numerous factors, some of which are outside of our control.Compensation costs required to attract and retain employees may increase or the competitive market for talent may further intensify due to factors such as low unemployment, a strong job market and changes in employees’ expectations, concerns and preferences. The financial industry has experienced, and may continue to experience, more stringent regulation of employee compensation than other industries, which may or may not impact competitors. These more stringent regulations have shaped our compensation practices, which could have an adverse effect on our ability to hire or retain the most qualified employees.International RiskWe are subject to numerous political, economic, legal, tax, operational, franchise and other risks as a result of our international operations that could adversely impact our businesses in many ways.We are subject to numerous political, economic, legal, tax, operational, franchise and other risks that are inherent in operating in many countries, including risks of possible nationalization, expropriation, price controls, capital controls, exchange controls, increased taxes and levies, cybersecurity, data transfer and outsourcing restrictions, regulatory scrutiny regarding the use of new technologies, prohibitions on certain",
      "prior_body": "The financial services industry and all aspects of our businesses are intensely competitive, and we expect them to remain so. We compete with commercial banks, investment banking firms, brokerage firms, insurance companies, exchanges, electronic trading and clearing platforms, financial data repositories, investment advisers and sponsors of mutual funds, hedge funds, real assets funds and private credit and equity funds, energy companies, financial technology firms and other companies offering financial and ancillary services in the U.S. and globally, including, in certain instances, through the internet. We also compete with companies that provide online trading and banking services, investment advisory services, robo-advice capabilities, access to digital asset capabilities and services, and other financial products and services. We compete on the basis of several factors, including transaction execution, capital or access to capital, products and services, innovation, technology, reputation, risk appetite and price.Over time, certain sectors of the financial services industry have become more concentrated, as institutions involved in a broad range of financial services have left businesses, been acquired by or merged into other firms, or have declared bankruptcy. Such changes could result in our remaining competitors gaining greater capital and other resources, such as the ability to offer a broader range of products and services and geographic diversity, or new competitors may emerge.We have experienced and may continue to experience pricing pressures as a result of these factors and as some of our competitors seek to obtain market share by reducing prices, eliminating commissions or other fees, or providing more favorable terms of business. In addition, certain of our competitors may be subject to different and, in some cases, less stringent, legal and regulatory regimes than we are, thereby putting us at a competitive disadvantage. Some new competitors in the financial technology sector have sought to target existing segments of our businesses that could be susceptible to disruption by innovative or less regulated business models. For more information regarding the competitive environment in which we operate, see “Business—Competition” and “Business—Supervision and Regulation.”Automated trading markets and the introduction and application of new technologies may adversely affect our business and may increase competition.We continue to experience price competition in some of our businesses. In particular, the ability to execute securities, derivatives and other financial instrument trades electronically on exchanges, swap execution facilities and other automated trading platforms, and the introduction and application of new technologies, including generative artificial intelligence, will likely continue the pressure on revenues. The trend toward direct access to automated, electronic markets will likely continue as additional markets move to more automated trading platforms. We have experienced and will likely continue to experience competitive pressures in these and other areas in the future.Our ability to retain and attract qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance.Our people are our most important asset. We compete with various other companies in attracting and retaining qualified and other companies offering financial and ancillary services in the U.S. and globally, including, in certain instances, through the internet. We also compete with companies that provide online trading and banking services, investment advisory services, robo-advice capabilities, access to digital asset capabilities and services, and other financial products and services. We compete on the basis of several factors, including transaction execution, capital or access to capital, products and services, innovation, technology, reputation, risk appetite and price. Over time, certain sectors of the financial services industry have become more concentrated, as institutions involved in a broad range of financial services have left businesses, been acquired by or merged into other firms, or have declared bankruptcy. Such changes could result in our remaining competitors gaining greater capital and other resources, such as the ability to offer a broader range of products and services and geographic diversity, or new competitors may emerge. We have experienced and may continue to experience pricing pressures as a result of these factors and as some of our competitors seek to obtain market share by reducing prices, eliminating commissions or other fees, or providing more favorable terms of business. In addition, certain of our competitors may be subject to different and, in some cases, less stringent, legal and regulatory regimes than we are, thereby putting us at a competitive disadvantage. Some new competitors in the financial technology sector have sought to target existing segments of our businesses that could be susceptible to disruption by innovative or less regulated business models. For more information regarding the competitive environment in which we operate, see “Business—Competition” and “Business—Supervision and Regulation.”"
    },
    {
      "status": "MODIFIED",
      "current_title": "Pre-tax margin by segment4",
      "prior_title": "Pre-tax margin by segment4",
      "similarity_score": 0.698,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"$ in millions, except per share data, worldwide employees and client assetsAtDecember 31,2024AtDecember 31,2023Average liquidity resources for three months ended5$345,440 $314,504 Loans6$246,814 $226,828 Total assets$1,215,071 $1,193,693 Deposits$376,007 $351,804 Borrowings$288,819 $263,732 Common equity$94,761 $90,288 Tangible common equity3$71,604 $66,527 Common shares outstanding1,607 1,627 Book value per common share7$58.98 $55.50 Tangible book value per common share3,7$44.57 $40.89 Worldwide employees (in thousands)80 80 Client assets8 (in billions)$7,860 $6,588 $ in millions, except per share data, worldwide employees and client assets Average liquidity resources for three months ended5 Loans6 Common equity Tangible common equity3 Book value per common share7 Tangible book value per common share3,7 Client assets8 (in billions) Capital ratios9Common Equity Tier 1 capital—Standardized15.9 %15.2 %Tier 1 capital—Standardized18.0 %17.1 %Common Equity Tier 1 capital—Advanced15.7 %15.5 %Tier 1 capital—Advanced17.8 %17.4 %Tier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %\""
      ],
      "current_body": "$ in millions, except per share data, worldwide employees and client assetsAtDecember 31,2024AtDecember 31,2023Average liquidity resources for three months ended5$345,440 $314,504 Loans6$246,814 $226,828 Total assets$1,215,071 $1,193,693 Deposits$376,007 $351,804 Borrowings$288,819 $263,732 Common equity$94,761 $90,288 Tangible common equity3$71,604 $66,527 Common shares outstanding1,607 1,627 Book value per common share7$58.98 $55.50 Tangible book value per common share3,7$44.57 $40.89 Worldwide employees (in thousands)80 80 Client assets8 (in billions)$7,860 $6,588 $ in millions, except per share data, worldwide employees and client assets Average liquidity resources for three months ended5 Loans6 Common equity Tangible common equity3 Book value per common share7 Tangible book value per common share3,7 Client assets8 (in billions) Capital ratios9Common Equity Tier 1 capital—Standardized15.9 %15.2 %Tier 1 capital—Standardized18.0 %17.1 %Common Equity Tier 1 capital—Advanced15.7 %15.5 %Tier 1 capital—Advanced17.8 %17.4 %Tier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %",
      "prior_body": "$ in millions, except per share data, worldwide employees and client assetsAtDecember 31,2023AtDecember 31,2022Average liquidity resources for three months ended5$314,504 $312,250 Loans6$226,828 $222,182 Total assets$1,193,693 $1,180,231 Deposits$351,804 $356,646 Borrowings$263,732 $238,058 Common shareholders’ equity$90,288 $91,391 Tangible common shareholders’ equity3$66,527 $67,123 Common shares outstanding1,627 1,675 Book value per common share7$55.50 $54.55 Tangible book value per common share3,7$40.89 $40.06 Worldwide employees (in thousands)80 82 Client assets8 (in billions)$6,588 $5,492 Capital ratios9Common Equity Tier 1 capital—Standardized15.2 %15.3 %Tier 1 capital—Standardized17.1 %17.2 %Common Equity Tier 1 capital—Advanced15.5 %15.6 %Tier 1 capital—Advanced17.4 %17.6 %Tier 1 leverage6.7 %6.7 %SLR5.5 %5.5 %1.The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues. 2.ROE and ROTCE represent earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity and average tangible common equity, respectively.3.Represents a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein.4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.5.For a discussion of Liquidity resources, see “Liquidity and Capital Resources— Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources” herein.6.Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet.7.Book value per common share and tangible book value per common share equal common shareholders’ equity and tangible common shareholders’ equity, respectively, divided by common shares outstanding.8.Client assets represents Wealth Management client assets and Investment Management AUM. Certain Wealth Management client assets are invested in Investment Management products and are also included in Investment Management’s AUM.9.For a discussion of our capital ratios, see “Liquidity and Capital Resources—Regulatory Requirements” herein.Economic and Market ConditionsThe market environment in 2023 remained mixed, characterized by inflationary pressures and uncertainty regarding the future path of interest rates, which remained persistently high. Towards the end of the year, the market environment improved from prior quarters with the expectation of lower interest rates going into 2024. However, there is continued uncertainty regarding the timing and pace of these rate reductions along with concerns regarding heightened geopolitical risks that could impact the capital markets in 2024. The market environment impacted our businesses in 2023, as discussed further in “Business Segments” herein, and, to the extent that it continues to remain uncertain, could adversely impact client confidence and related activity. For more information on economic and market conditions, and the potential effects of geopolitical events and acts of war or aggression on our future results, refer to “Risk Factors” and “Forward-Looking Statements.” $ in millions, except per share data, worldwide employees and client assetsAtDecember 31,2023AtDecember 31,2022Average liquidity resources for three months ended5$314,504 $312,250 Loans6$226,828 $222,182 Total assets$1,193,693 $1,180,231 Deposits$351,804 $356,646 Borrowings$263,732 $238,058 Common shareholders’ equity$90,288 $91,391 Tangible common shareholders’ equity3$66,527 $67,123 Common shares outstanding1,627 1,675 Book value per common share7$55.50 $54.55 Tangible book value per common share3,7$40.89 $40.06 Worldwide employees (in thousands)80 82 Client assets8 (in billions)$6,588 $5,492 $ in millions, except per share data, worldwide employees and client assets Average liquidity resources for three months ended5 Loans6 Tangible common shareholders’ equity3 Book value per common share7 Tangible book value per common share3,7 Client assets8 (in billions) Capital ratios9Common Equity Tier 1 capital—Standardized15.2 %15.3 %Tier 1 capital—Standardized17.1 %17.2 %Common Equity Tier 1 capital—Advanced15.5 %15.6 %Tier 1 capital—Advanced17.4 %17.6 %Tier 1 leverage6.7 %6.7 %SLR5.5 %5.5 %"
    },
    {
      "status": "MODIFIED",
      "current_title": "Liquidity Resources by Type of Investment",
      "prior_title": "Liquidity Resources",
      "similarity_score": 0.689,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Cash deposits with central banks$58,493 $48,848 Unencumbered HQLA securities1:U.S.\"",
        "Reworded sentence: \"The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable funding, which is their projected minimum funding needs, over a one-year time horizon.\""
      ],
      "current_body": "Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Cash deposits with central banks$58,493 $48,848 Unencumbered HQLA securities1:U.S. government obligations161,952 171,663 U.S. agency and agency mortgage-backed securities94,512 90,290 Non-U.S. sovereign obligations222,646 24,011 Other investment grade securities600 810 Total HQLA1$338,203 $335,622 Cash deposits with banks (non-HQLA)7,237 6,998 Total Liquidity Resources$345,440 $342,620 Unencumbered HQLA securities1: Non-U.S. sovereign obligations2 Total HQLA1 1.HQLA is presented prior to applying weightings and includes all HQLA held in subsidiaries. 2.Primarily composed of unencumbered French, U.K., Japanese, Italian, German, and Spanish government obligations Liquidity Resources by Non-Bank and Bank Legal EntitiesAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Non-Bank legal entitiesU.S.:Parent Company$71,981 $76,366 Non-Parent Company61,684 60,537 Total U.S.133,665 136,903 Non-U.S.61,432 63,965 Total Non-Bank legal entities195,097 200,868 Bank legal entitiesU.S.144,735 136,171 Non-U.S.5,608 5,581 Total Bank legal entities150,343 141,752 Total Liquidity Resources$345,440 $342,620 Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and estimates of funding needs in a stressed environment, among other factors.Regulatory Liquidity FrameworkLiquidity Coverage Ratio and Net Stable Funding RatioWe and our U.S. Bank Subsidiaries are required to maintain a minimum LCR and NSFR of 100%. The LCR rule requires large banking organizations to have sufficient Eligible HQLA to cover net cash outflows arising from significant stress over 30 calendar days, thus promoting the short-term resilience of the liquidity risk profile of banking organizations. In determining Eligible HQLA for LCR purposes, weightings (or asset haircuts) are applied to HQLA, and certain HQLA held in subsidiaries is excluded. The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable funding, which is their projected minimum funding needs, over a one-year time horizon. As of December 31, 2024, we and our U.S. Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%.",
      "prior_body": "We maintain sufficient Liquidity Resources to cover daily funding needs and to meet strategic liquidity targets sized by the Required Liquidity Framework and Liquidity Stress Tests. We actively manage the amount of our Liquidity Resources considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements. The amount of Liquidity Resources we hold is based on our risk appetite and is calibrated to meet various internal and regulatory requirements and to fund prospective business activities. The Liquidity Resources are primarily held within the Parent Company and its major operating subsidiaries. The Total HQLA values in the tables immediately following are different from Eligible HQLA, which, in accordance with the LCR rule, also takes into account certain regulatory weightings and other operational considerations. Liquidity Resources by Type of InvestmentAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Cash deposits with central banks$64,205 $66,330 Unencumbered HQLA securities1:U.S. government obligations137,635 122,110 U.S. agency and agency mortgage-backed securities83,733 86,628 Non-U.S. sovereign obligations220,117 23,416 Other investment grade securities678 693 Total HQLA1$306,368 $299,177 Cash deposits with banks (non-HQLA)8,136 8,190 Total Liquidity Resources$314,504 $307,367 1.HQLA is presented prior to applying weightings and includes all HQLA held in subsidiaries.2.Primarily composed of unencumbered French, Japanese, U.K., German and Spanish government obligations.Liquidity Resources by Bank and Non-Bank Legal EntitiesAverage Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Bank legal entitiesU.S.$132,870 $132,663 Non-U.S.5,359 6,101 Total Bank legal entities138,229 138,764 Non-Bank legal entitiesU.S.:Parent Company58,494 53,681 Non-Parent Company56,459 58,839 Total U.S.114,953 112,520 Non-U.S.61,322 56,083 Total Non-Bank legal entities176,275 168,603 Total Liquidity Resources$314,504 $307,367 Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and estimates of funding needs in a stressed environment, among other factors.Regulatory Liquidity FrameworkLiquidity Coverage Ratio and Net Stable Funding RatioWe and our U.S. Bank Subsidiaries are required to maintain a minimum LCR and NSFR of 100%. The LCR rule requires large banking organizations to have sufficient Eligible HQLA to cover net cash outflows arising from significant stress over 30 calendar days, thus promoting the short-term resilience of the liquidity risk profile of banking organizations. In determining Eligible HQLA for LCR purposes, weightings (or asset haircuts) are applied to HQLA, and certain HQLA held in subsidiaries is excluded. The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable"
    },
    {
      "status": "MODIFIED",
      "current_title": "Liquidity Resources by Non-Bank and Bank Legal Entities",
      "prior_title": "Liquidity Resources by Bank and Non-Bank Legal Entities",
      "similarity_score": 0.688,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Non-Bank legal entitiesU.S.:Parent Company$71,981 $76,366 Non-Parent Company61,684 60,537 Total U.S.133,665 136,903 Non-U.S.61,432 63,965 Total Non-Bank legal entities195,097 200,868 Bank legal entitiesU.S.144,735 136,171 Non-U.S.5,608 5,581 Total Bank legal entities150,343 141,752 Total Liquidity Resources$345,440 $342,620 Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and estimates of funding needs in a stressed environment, among other factors.\""
      ],
      "current_body": "Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Non-Bank legal entitiesU.S.:Parent Company$71,981 $76,366 Non-Parent Company61,684 60,537 Total U.S.133,665 136,903 Non-U.S.61,432 63,965 Total Non-Bank legal entities195,097 200,868 Bank legal entitiesU.S.144,735 136,171 Non-U.S.5,608 5,581 Total Bank legal entities150,343 141,752 Total Liquidity Resources$345,440 $342,620 Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and estimates of funding needs in a stressed environment, among other factors.",
      "prior_body": "Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Bank legal entitiesU.S.$132,870 $132,663 Non-U.S.5,359 6,101 Total Bank legal entities138,229 138,764 Non-Bank legal entitiesU.S.:Parent Company58,494 53,681 Non-Parent Company56,459 58,839 Total U.S.114,953 112,520 Non-U.S.61,322 56,083 Total Non-Bank legal entities176,275 168,603 Total Liquidity Resources$314,504 $307,367 Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and estimates of funding needs in a stressed environment, among other factors."
    },
    {
      "status": "MODIFIED",
      "current_title": "Net Revenues by Segment1",
      "prior_title": "Net Income Applicable to Morgan Stanley by Segment1",
      "similarity_score": 0.685,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"($ in millions) 27December 2024 Form 10-K 27December 2024 Form 10-K 27December 2024 Form 10-K 27 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Net Income Applicable to Morgan Stanley by Segment1($ in millions)1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations.\"",
        "Reworded sentence: \"•Institutional Securities net revenues of $28,080 million in 2024 increased 22% from the prior year, reflecting higher results across businesses, particularly in Equity and underwriting results within Investment Banking.•Wealth Management net revenues of $28,420 million in 2024 increased 8% from the prior year, primarily reflecting higher Asset management revenues and Transactional revenues, partially offset by lower Net interest income.•Investment Management net revenues of $5,861 million in 2024 increased 9% from the prior year, primarily reflecting higher Asset management and related fees and higher Performance-based income and other revenues.Net Revenues by Region1($ in millions)1.For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements.•Americas net revenues in 2024 increased 13% from the prior year, primarily driven by higher Asset management revenues within the Wealth Management business segment and higher results across businesses within the Institutional Securities business segment.\"",
        "Reworded sentence: \"See “Selected Non-GAAP Financial Information” herein.4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.5.For a discussion of Liquidity resources, see “Liquidity and Capital Resources— Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources” herein.6.Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet.7.Book value per common share and tangible book value per common share equal common equity and tangible common equity, respectively, divided by common shares outstanding.\""
      ],
      "current_body": "($ in millions) 27December 2024 Form 10-K 27December 2024 Form 10-K 27December 2024 Form 10-K 27 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Net Income Applicable to Morgan Stanley by Segment1($ in millions)1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 22 to the financial statements for details of intersegment eliminations. •Institutional Securities net revenues of $28,080 million in 2024 increased 22% from the prior year, reflecting higher results across businesses, particularly in Equity and underwriting results within Investment Banking.•Wealth Management net revenues of $28,420 million in 2024 increased 8% from the prior year, primarily reflecting higher Asset management revenues and Transactional revenues, partially offset by lower Net interest income.•Investment Management net revenues of $5,861 million in 2024 increased 9% from the prior year, primarily reflecting higher Asset management and related fees and higher Performance-based income and other revenues.Net Revenues by Region1($ in millions)1.For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements.•Americas net revenues in 2024 increased 13% from the prior year, primarily driven by higher Asset management revenues within the Wealth Management business segment and higher results across businesses within the Institutional Securities business segment. •EMEA net revenues in 2024 increased 19% from the prior year, primarily driven by higher results across businesses within the Institutional Securities business segment. •Asia net revenues in 2024 increased 19% from the prior year, primarily driven by higher results from Equity and Investment Banking within the Institutional Securities business segment. Selected Financial Information and Other Statistical Data$ in millions, except per share data202420232022Consolidated resultsNet revenues$61,761 $54,143 $53,668 Earnings applicable to Morgan Stanley common shareholders$12,800 $8,530 $10,540 Earnings per diluted common share$7.95 $5.18 $6.15 Consolidated financial measuresExpense efficiency ratio171 %77 %73 %ROE214.0 %9.4 %11.2 %ROTCE2,318.8 %12.8 %15.3 %Pre-tax margin428 %22 %26 %Effective tax rate 23.1 %21.9 %20.7 %Pre-tax margin by segment4Institutional Securities31 %19 %28 %Wealth Management27 %25 %27 %Investment Management19 %16 %15 %$ in millions, except per share data, worldwide employees and client assetsAtDecember 31,2024AtDecember 31,2023Average liquidity resources for three months ended5$345,440 $314,504 Loans6$246,814 $226,828 Total assets$1,215,071 $1,193,693 Deposits$376,007 $351,804 Borrowings$288,819 $263,732 Common equity$94,761 $90,288 Tangible common equity3$71,604 $66,527 Common shares outstanding1,607 1,627 Book value per common share7$58.98 $55.50 Tangible book value per common share3,7$44.57 $40.89 Worldwide employees (in thousands)80 80 Client assets8 (in billions)$7,860 $6,588 Capital ratios9Common Equity Tier 1 capital—Standardized15.9 %15.2 %Tier 1 capital—Standardized18.0 %17.1 %Common Equity Tier 1 capital—Advanced15.7 %15.5 %Tier 1 capital—Advanced17.8 %17.4 %Tier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %1.The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues. 2.ROE and ROTCE represent earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity and average tangible common equity, respectively.3.Represents a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein.4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.5.For a discussion of Liquidity resources, see “Liquidity and Capital Resources— Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources” herein.6.Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet.7.Book value per common share and tangible book value per common share equal common equity and tangible common equity, respectively, divided by common shares outstanding. Net Income Applicable to Morgan Stanley by Segment1($ in millions)1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 22 to the financial statements for details of intersegment eliminations. •Institutional Securities net revenues of $28,080 million in 2024 increased 22% from the prior year, reflecting higher results across businesses, particularly in Equity and underwriting results within Investment Banking.•Wealth Management net revenues of $28,420 million in 2024 increased 8% from the prior year, primarily reflecting higher Asset management revenues and Transactional revenues, partially offset by lower Net interest income.•Investment Management net revenues of $5,861 million in 2024 increased 9% from the prior year, primarily reflecting higher Asset management and related fees and higher Performance-based income and other revenues.Net Revenues by Region1($ in millions)1.For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements.•Americas net revenues in 2024 increased 13% from the prior year, primarily driven by higher Asset management revenues within the Wealth Management business segment and higher results across businesses within the Institutional Securities business segment.",
      "prior_body": "($ in millions) 1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 22 to the financial statements for details of intersegment eliminations. •Institutional Securities net revenues of $23,060 million in 2023 decreased 5% from the prior year, primarily reflecting lower results across businesses. •Wealth Management net revenues of $26,268 million in 2023 increased 8% from the prior year, primarily reflecting gains on DCP investments compared with losses in the prior year and higher Net interest revenues. •Investment Management net revenues of $5,370 million in 2023 were relatively unchanged from the prior year, reflecting a decrease in Asset management and related fees revenues offset by an increase in Performance based income and other revenues. December 2023 Form 10-K30 December 2023 Form 10-K30 December 2023 Form 10-K30 30 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Net Revenues by Region1($ in millions)1.For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements.•Americas net revenues in 2023 increased 4%, primarily driven by results within the Wealth Management business segment and Other net revenues within the Institutional Securities business segment, partially offset by lower results across businesses within the Institutional Securities business segment. •EMEA net revenues in 2023 decreased 11%, primarily driven by lower results across businesses within the Institutional Securities business segment. •Asia net revenues in 2023 decreased 5%, primarily driven by lower results across businesses within the Institutional Securities business segment. Selected Financial Information and Other Statistical Data$ in millions, except per share data202320222021Consolidated resultsNet revenues$54,143 $53,668 $59,755 Earnings applicable to Morgan Stanley common shareholders$8,530 $10,540 $14,566 Earnings per diluted common share$5.18 $6.15 $8.03 Consolidated financial measuresExpense efficiency ratio177 %73 %67 %ROE29.4 %11.2 %15.0 %ROTCE2,312.8 %15.3 %19.8 %Pre-tax margin422 %26 %33 %Effective tax rate 21.9 %20.7 %23.1 %Pre-tax margin by segment4Institutional Securities19 %28 %40 %Wealth Management25 %27 %25 %Investment Management16 %15 %27 %$ in millions, except per share data, worldwide employees and client assetsAtDecember 31,2023AtDecember 31,2022Average liquidity resources for three months ended5$314,504 $312,250 Loans6$226,828 $222,182 Total assets$1,193,693 $1,180,231 Deposits$351,804 $356,646 Borrowings$263,732 $238,058 Common shareholders’ equity$90,288 $91,391 Tangible common shareholders’ equity3$66,527 $67,123 Common shares outstanding1,627 1,675 Book value per common share7$55.50 $54.55 Tangible book value per common share3,7$40.89 $40.06 Worldwide employees (in thousands)80 82 Client assets8 (in billions)$6,588 $5,492 Capital ratios9Common Equity Tier 1 capital—Standardized15.2 %15.3 %Tier 1 capital—Standardized17.1 %17.2 %Common Equity Tier 1 capital—Advanced15.5 %15.6 %Tier 1 capital—Advanced17.4 %17.6 %Tier 1 leverage6.7 %6.7 %SLR5.5 %5.5 %1.The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues. 2.ROE and ROTCE represent earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity and average tangible common equity, respectively.3.Represents a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein.4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.5.For a discussion of Liquidity resources, see “Liquidity and Capital Resources— Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources” herein.6.Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet.7.Book value per common share and tangible book value per common share equal common shareholders’ equity and tangible common shareholders’ equity, respectively, divided by common shares outstanding.8.Client assets represents Wealth Management client assets and Investment Management AUM. Certain Wealth Management client assets are invested in Investment Management products and are also included in Investment Management’s AUM.9.For a discussion of our capital ratios, see “Liquidity and Capital Resources—Regulatory Requirements” herein.Economic and Market ConditionsThe market environment in 2023 remained mixed, characterized by inflationary pressures and uncertainty regarding the future path of interest rates, which remained persistently high. Towards the end of the year, the market environment improved from prior quarters with the expectation of lower interest rates going into 2024. However, there is continued uncertainty regarding the timing and pace of these rate reductions along with concerns regarding heightened geopolitical risks that could impact the capital markets in 2024. The market environment impacted our businesses in 2023, as discussed further in “Business Segments” herein, and, to the extent that it continues to remain uncertain, could adversely impact client confidence and related activity. For more information on economic and market conditions, and the potential effects of geopolitical events and acts of war or aggression on our future results, refer to “Risk Factors” and “Forward-Looking Statements.” Net Revenues by Region1($ in millions)1.For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements.•Americas net revenues in 2023 increased 4%, primarily driven by results within the Wealth Management business segment and Other net revenues within the Institutional Securities business segment, partially offset by lower results across businesses within the Institutional Securities business segment. •EMEA net revenues in 2023 decreased 11%, primarily driven by lower results across businesses within the Institutional Securities business segment. •Asia net revenues in 2023 decreased 5%, primarily driven by lower results across businesses within the Institutional Securities business segment. Selected Financial Information and Other Statistical Data$ in millions, except per share data202320222021Consolidated resultsNet revenues$54,143 $53,668 $59,755 Earnings applicable to Morgan Stanley common shareholders$8,530 $10,540 $14,566 Earnings per diluted common share$5.18 $6.15 $8.03 Consolidated financial measuresExpense efficiency ratio177 %73 %67 %ROE29.4 %11.2 %15.0 %ROTCE2,312.8 %15.3 %19.8 %Pre-tax margin422 %26 %33 %Effective tax rate 21.9 %20.7 %23.1 %Pre-tax margin by segment4Institutional Securities19 %28 %40 %Wealth Management25 %27 %25 %Investment Management16 %15 %27 %"
    },
    {
      "status": "MODIFIED",
      "current_title": "Institutional Securities Commercial Real Estate Loans and Lending Commitments",
      "prior_title": "Institutional Securities Commercial Real Estate Loans and Lending Commitments",
      "similarity_score": 0.684,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"By Region At December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalAmericas$5,066 $820 $5,886 $5,410 $289 $5,699 EMEA3,806 522 4,328 3,127 56 3,183 Asia467 13 480 485 — 485 Total$9,339 $1,355 $10,694 $9,022 $345 $9,367 Loans1 LC1 Loans1 LC1 Total\""
      ],
      "current_body": "By Region At December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalAmericas$5,066 $820 $5,886 $5,410 $289 $5,699 EMEA3,806 522 4,328 3,127 56 3,183 Asia467 13 480 485 — 485 Total$9,339 $1,355 $10,694 $9,022 $345 $9,367 Loans1 LC1 Loans1 LC1 Total",
      "prior_body": "By Region At December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalAmericas$5,410 $289 $5,699 $6,320 $378 $6,698 EMEA3,127 56 3,183 3,040 79 3,119 Asia485 — 485 445 5 450 Total$9,022 $345 $9,367 $9,805 $462 $10,267 Loans1 LC1 Loans1 LC1 Total"
    },
    {
      "status": "MODIFIED",
      "current_title": "Transactional Revenues",
      "prior_title": "Asset Management",
      "similarity_score": 0.676,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Transactional revenues of $3,864 million in 2024 increased 9% compared with the prior year, reflecting higher client activity particularly in equity-related transactions.\""
      ],
      "current_body": "Transactional revenues of $3,864 million in 2024 increased 9% compared with the prior year, reflecting higher client activity particularly in equity-related transactions. 35December 2024 Form 10-K 35December 2024 Form 10-K 35December 2024 Form 10-K 35 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Net InterestNet interest revenues of $7,313 million in 2024 decreased 10% compared with the prior year, primarily due to lower average sweep deposits, partially offset by higher yields on our investment portfolio and lending growth.The level and pace of interest rate changes and other macroeconomic factors have impacted client preferences for cash allocation to higher-yielding products and client demand for loans. These factors, along with other developments, such as pricing changes to certain deposit types due to various competitive dynamics, have impacted our net interest income. To the extent they persist, or other factors arise, such as central bank actions and changes in the path of interest rates, net interest income may be impacted in future periods.Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of $62 million in 2024 was primarily related to certain specific commercial real estate and securities-based loans, and portfolio growth, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $131 million in 2023 was primarily related to deteriorating conditions in the commercial real estate sector including provisions for certain specific loans, mainly in the office portfolio.For further information on the Provision for credit losses, see “Credit Risk” herein.Non-Interest ExpensesNon-interest expenses of $20,618 million in 2024 increased 5% compared with the prior year, as a result of higher Compensation and benefits expenses, partially offset by lower Non-compensation expenses.•Compensation and benefits expenses increased, primarily due to an increase in the formulaic payout to Wealth Management representatives on higher compensable revenues.•Non-compensation expenses decreased, primarily driven by lower professional services and legal expenses and lower FDIC special assessment cost, partially offset by higher technology spend.Fee-Based Client Assets Rollforwards$ in billionsAtDecember 31,2023 Inflows1Outflows2MarketImpact3AtDecember 31,2024 Separately managed4$589 $69 $(38)$99 $719 Unified managed501 120 (56)48 613 Advisor188 31 (35)23 207 Portfolio manager645 120 (88)73 750 Subtotal$1,923 $340 $(217)$243 $2,289 Cash management60 57 (59)— 58 Total fee-based client assets$1,983 $397 $(276)$243 $2,347 $ in billionsAtDecember 31,2022 Inflows1Outflows2MarketImpact3AtDecember 31,2023 Separately managed4$501 $70 $(23)$41 $589 Unified managed408 96 (56)53 501 Advisor167 29 (32)24 188 Portfolio manager552 98 (73)68 645 Subtotal$1,628 $293 $(184)$186 $1,923 Cash management50 60 (50)— 60 Total fee-based client assets$1,678 $353 $(234)$186 $1,983 $ in billionsAtDecember 31,2021 Inflows1,5Outflows2MarketImpact3AtDecember 31,2022 Separately managed4$479 $141 $(25)$(94)$501 Unified managed467 76 (50)(85)408 Advisor211 29 (35)(38)167 Portfolio manager636 94 (67)(111)552 Subtotal$1,793 $340 $(177)$(328)$1,628 Cash management46 38 (34)— 50 Total fee-based client assets$1,839 $378 $(211)$(328)$1,678 1.Inflows include new accounts, account transfers, deposits, dividends and interest.2.Outflows include closed or terminated accounts, account transfers, withdrawals and client fees.3.Market impact includes realized and unrealized gains and losses on portfolio investments.4.Includes non-custody account values based on asset values reported on a quarter lag by third-party custodians.5.Includes $75 billion of fee-based assets acquired in an asset acquisition in the first quarter of 2022, reflected in Separately managed.Average Fee Rates1Fee rate in bps202420232022Separately managed12 12 12 Unified managed91 92 94 Advisor79 80 81 Portfolio manager89 91 92 Subtotal65 65 66 Cash management6 6 6 Total fee-based client assets63 64 65 1.Based on Asset management revenues related to advisory services associated with fee-based assets.Asset management revenues within the Wealth Management segment are primarily generated from the following types of accounts:•Separately managed—accounts by which third party and affiliated asset managers are engaged to manage clients’ assets with investment decisions made by the asset Net InterestNet interest revenues of $7,313 million in 2024 decreased 10% compared with the prior year, primarily due to lower average sweep deposits, partially offset by higher yields on our investment portfolio and lending growth.The level and pace of interest rate changes and other macroeconomic factors have impacted client preferences for cash allocation to higher-yielding products and client demand for loans. These factors, along with other developments, such as pricing changes to certain deposit types due to various competitive dynamics, have impacted our net interest income. To the extent they persist, or other factors arise, such as central bank actions and changes in the path of interest rates, net interest income may be impacted in future periods.Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of $62 million in 2024 was primarily related to certain specific commercial real estate and securities-based loans, and portfolio growth, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $131 million in 2023 was primarily related to deteriorating conditions in the commercial real estate sector including provisions for certain specific loans, mainly in the office portfolio.For further information on the Provision for credit losses, see “Credit Risk” herein.Non-Interest ExpensesNon-interest expenses of $20,618 million in 2024 increased 5% compared with the prior year, as a result of higher Compensation and benefits expenses, partially offset by lower Non-compensation expenses.•Compensation and benefits expenses increased, primarily due to an increase in the formulaic payout to Wealth Management representatives on higher compensable revenues.•Non-compensation expenses decreased, primarily driven by lower professional services and legal expenses and lower FDIC special assessment cost, partially offset by higher technology spend.",
      "prior_body": "Asset management revenues include fees associated with the management and supervision of assets and the distribution of funds and similar products. Within the Wealth Management business segment, Asset management revenues are related to advisory services associated with fee-based assets, account service and administration, as well as distribution of products. These revenues are generally based on the net asset value of the account in which a client is invested. Within the Investment Management business segment, Asset management revenues are primarily composed of fees received from investment vehicles on the basis of assets under management. Performance-based fees, not in the form of carried interest, are earned on certain products and separately managed accounts as a percentage of appreciation in value and, in certain cases, are based upon the achievement of performance criteria. These performance fees are generally recognized on a quarterly or annual basis. Net InterestInterest income and Interest expense are functions of the level and mix of total assets and liabilities, including Trading assets and Trading liabilities, Investment securities, Securities borrowed or purchased under agreements to resell, Securities loaned or sold under agreements to repurchase, Loans, Deposits and Borrowings. Within the Institutional Securities business segment, Net interest is a function of market-making strategies, client activity, and the prevailing level, term structure and volatility of interest rates. Net interest is impacted by market-making, lending and financing activities as we generally earn interest on securities held by the Firm, Securities borrowed, Securities purchased under agreements to resell, Loans and margin loans, while Borrowings, Securities loaned and Securities sold under agreements to repurchase generally incur interest expense. Within the Wealth Management business segment, Interest income is driven by assets held including Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. OtherOther revenues for Institutional Securities include revenues and losses from equity method investments, fees earned in association with lending activities, mark-to-market gains and losses on loans and lending commitments held for sale, as well as gains and losses on economic derivative hedges associated with certain held-for-sale and held-for-investment loans and lending commitments.Other revenues for Wealth Management include realized gains and losses on AFS securities, account handling fees, referral fees and other miscellaneous revenues.Provision for Credit LossesThe Provision for credit losses includes the provision for credit losses for loans and lending commitments held for investment.Institutional Securities—Fixed Income and EquitiesFixed income and Equities net revenues are composed of Trading revenues, Commissions and fees, Asset management revenues, Net interest, and certain Investments and Other Within the Investment Management business segment, Asset management revenues are primarily composed of fees received from investment vehicles on the basis of assets under management. Performance-based fees, not in the form of carried interest, are earned on certain products and separately managed accounts as a percentage of appreciation in value and, in certain cases, are based upon the achievement of performance criteria. These performance fees are generally recognized on a quarterly or annual basis."
    },
    {
      "status": "MODIFIED",
      "current_title": "Year Ended December 31, 2024",
      "prior_title": "Year Ended December 31, 2023",
      "similarity_score": 0.67,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"CRE SBL and Other Beginning balance Gross charge-offs Recoveries Net (charge-offs)/recoveries Provision (release)\""
      ],
      "current_body": "CRE SBL and Other Beginning balance Gross charge-offs Recoveries Net (charge-offs)/recoveries Provision (release)",
      "prior_body": "CRE Beginning balance Gross charge-offs Recoveries Provision (release)"
    },
    {
      "status": "MODIFIED",
      "current_title": "U.S. Bank Subsidiaries’ Supplemental Financial Information1",
      "prior_title": "U.S. Bank Subsidiaries’ Supplemental Financial Information1",
      "similarity_score": 0.663,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"$ in billionsAtDecember 31,2024AtDecember 31,2023 Investment securities:Available-for-sale at fair value$76.5 $66.6 Held-to-maturity47.8 51.4 Total Investment securities$124.3 $118.0 Wealth Management loans2Residential real estate$66.6 $60.3 Securities-based lending and Other392.9 86.2 Total Wealth Management loans$159.5 $146.5 Institutional Securities loans2Corporate$7.1 $10.1 Secured lending facilities50.2 40.8 Commercial and Residential real estate10.5 10.7 Securities-based lending and Other5.6 4.1 Total Institutional Securities loans$73.4 $65.7 Total assets$434.8 $396.1 Deposits4$369.7 $346.1\""
      ],
      "current_body": "$ in billionsAtDecember 31,2024AtDecember 31,2023 Investment securities:Available-for-sale at fair value$76.5 $66.6 Held-to-maturity47.8 51.4 Total Investment securities$124.3 $118.0 Wealth Management loans2Residential real estate$66.6 $60.3 Securities-based lending and Other392.9 86.2 Total Wealth Management loans$159.5 $146.5 Institutional Securities loans2Corporate$7.1 $10.1 Secured lending facilities50.2 40.8 Commercial and Residential real estate10.5 10.7 Securities-based lending and Other5.6 4.1 Total Institutional Securities loans$73.4 $65.7 Total assets$434.8 $396.1 Deposits4$369.7 $346.1",
      "prior_body": "$ in billionsAtDecember 31,2023AtDecember 31,2022 Investment securities:Available-for-sale at fair value$66.6 $66.9 Held-to-maturity51.4 56.4 Total Investment securities$118.0 $123.3 Wealth Management Loans2Residential real estate$60.3 $54.4 Securities-based lending and Other386.2 91.7 Total, net of ACL$146.5 $146.1 Institutional Securities Loans2Corporate$10.1 $6.9 Secured lending facilities40.8 37.1 Commercial and Residential real estate10.7 10.2 Securities-based lending and Other4.1 6.0 Total, net of ACL$65.7 $60.2 Total Assets$396.1 $391.0 Deposits4$346.1 $350.6"
    },
    {
      "status": "MODIFIED",
      "current_title": "Asset Management and Related Fees",
      "prior_title": "Asset Management and Related Fees",
      "similarity_score": 0.661,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Asset management and related fees of $5,627 million in 2024 increased 8% compared with the prior year, primarily driven by higher average AUM on higher market levels.\"",
        "Reworded sentence: \"While higher market levels drove increases in average AUM in the current year period, there were continued net outflows in the Equity asset class, which may be influenced by the structure and performance of our investment strategies and products relative to their benchmarks, offset by higher net inflows in the Alternatives and Solutions and Fixed Income asset classes reflecting client preferences.\""
      ],
      "current_body": "Asset management and related fees of $5,627 million in 2024 increased 8% compared with the prior year, primarily driven by higher average AUM on higher market levels. Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. While higher market levels drove increases in average AUM in the current year period, there were continued net outflows in the Equity asset class, which may be influenced by the structure and performance of our investment strategies and products relative to their benchmarks, offset by higher net inflows in the Alternatives and Solutions and Fixed Income asset classes reflecting client preferences. To the extent these conditions continue, we would expect our Asset management revenue to continue to be impacted. See “Assets Under Management or Supervision” herein.",
      "prior_body": "Asset management and related fees of $5,231 million in 2023 decreased 2% compared with the prior year, primarily due to a shift in the mix of average AUM, driven by the cumulative effect of net flows. Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. The market environment and client preferences in recent quarters have impacted the mix of our average Long-Term AUM level across certain asset classes. To the extent these conditions continue, we would expect our Asset management revenue to continue to be negatively impacted. See “Assets Under Management or Supervision” herein."
    },
    {
      "status": "MODIFIED",
      "current_title": "Liquidity Risk",
      "prior_title": "Liquidity Risk",
      "similarity_score": 0.66,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern, as well as the associated funding risks triggered by the market or idiosyncratic stress events that may negatively affect our liquidity and may impact our ability to raise new funding or the cost of new funding.\""
      ],
      "current_body": "Liquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern, as well as the associated funding risks triggered by the market or idiosyncratic stress events that may negatively affect our liquidity and may impact our ability to raise new funding or the cost of new funding. For more information on how we monitor and manage liquidity risk, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” and “Quantitative and Qualitative Disclosures about Risk—Liquidity Risk.”",
      "prior_body": "Liquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern, as well as the associated funding risks triggered by the market or idiosyncratic stress events that may negatively affect our liquidity and may impact our ability to raise new funding. For more information on how we monitor and manage liquidity risk, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” and “Quantitative and Qualitative Disclosures about Risk—Liquidity Risk.”Liquidity is essential to our businesses and we rely on external sources to finance a significant portion of our operations.Liquidity is essential to our businesses. Our liquidity could be negatively affected by our inability to raise funding in the long-term or short-term debt capital markets, our inability to access the secured lending markets, our inability to attract and retain deposits, or unanticipated outflows of cash or collateral by customers or clients. Factors that we cannot control, such as disruption of the financial markets or negative views about the financial services industry generally, including concerns regarding fiscal matters in the U.S. and other geographic areas, could impair our ability to raise funding.In addition, our ability to raise funding could be impaired if investors, depositors or lenders develop a negative perception of our long-term or short-term financial prospects due to factors such as an incurrence of large trading, credit or operational losses, a downgrade by the rating agencies, a decline in the level of our business activity, if regulatory authorities take significant action against us or our industry, or if we discover significant employee misconduct or illegal activity.If we are unable to raise funding using the methods described above, we would likely need to finance or liquidate unencumbered assets, such as our investment portfolios or trading assets, to meet maturing liabilities or other obligations. We may be unable to sell some of our assets or we may have to sell assets at a discount to market value, either of which could adversely affect our results of operations, cash flows and financial condition.Our borrowing costs and access to the debt capital markets depend on our credit ratings.The cost and availability of unsecured financing generally are impacted by (among other things) our long-term and short-term credit ratings. The rating agencies continue to monitor certain Firm-specific and industrywide factors that are important to the determination of our credit ratings. These include governance, capital adequacy, the level and quality of earnings, liquidity and funding, risk appetite and management, asset quality, strategic direction, business mix, regulatory or legislative changes, macroeconomic environment and perceived levels of support, and it is possible that the rating agencies could downgrade our ratings and those of similar institutions.Our credit ratings also can have an adverse impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, on how we monitor and manage liquidity risk, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” and “Quantitative and Qualitative Disclosures about Risk—Liquidity Risk.”"
    },
    {
      "status": "MODIFIED",
      "current_title": "Income Taxes",
      "prior_title": "Income Taxes",
      "similarity_score": 0.657,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"December 2024 Form 10-K32 December 2024 Form 10-K32 December 2024 Form 10-K32 32 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Institutional SecuritiesIncome Statement Information % Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%Investment BankingInvestment Banking Volumes$ in billions202420232022Completed mergers and acquisitions1$628 $677 $881 Equity and equity-related offerings2, 363 32 23 Fixed income offerings2, 4323 236 229 Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of January 2, 2025.\"",
        "Reworded sentence: \"Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues.•Advisory revenues increased primarily due to higher completed M&A transactions.•Equity underwriting revenues increased primarily on higher initial public offerings and follow-on offerings.•Fixed income underwriting revenues increased primarily reflecting higher bond issuances, non-investment grade loan issuances and securitized products revenues.While Investment Banking results improved from the prior year, we continue to operate in a market environment with lower completed M&A activity relative to longer-term averages.See “Investment Banking Volumes” herein.Equity, Fixed Income and Other Net RevenuesEquity and Fixed Income Net Revenues 2024$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$8,135 $566 $(2,840)$17 $5,878 Execution services3,702 2,591 (291)350 6,352 Total Equity$11,837 $3,157 $(3,131)$367 $12,230 Total Fixed income$8,464 $394 $(730)$290 $8,418 2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 1.Includes Commissions and fees and Asset management revenues.2.Includes funding costs, which are allocated to the businesses based on funding usage.\"",
        "Reworded sentence: \"Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues.•Advisory revenues increased primarily due to higher completed M&A transactions.•Equity underwriting revenues increased primarily on higher initial public offerings and follow-on offerings.•Fixed income underwriting revenues increased primarily reflecting higher bond issuances, non-investment grade loan issuances and securitized products revenues.\""
      ],
      "current_body": "The Income tax provision for our business segments is generally determined based on the revenues, expenses and activities directly attributable to each business segment. Certain items have been allocated to each business segment, generally in proportion to its respective net revenues or other relevant measures. December 2024 Form 10-K32 December 2024 Form 10-K32 December 2024 Form 10-K32 32 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Institutional SecuritiesIncome Statement Information % Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%Investment BankingInvestment Banking Volumes$ in billions202420232022Completed mergers and acquisitions1$628 $677 $881 Equity and equity-related offerings2, 363 32 23 Fixed income offerings2, 4323 236 229 Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of January 2, 2025. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.2.Based on full credit for single book managers and equal credit for joint book managers.3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues.•Advisory revenues increased primarily due to higher completed M&A transactions.•Equity underwriting revenues increased primarily on higher initial public offerings and follow-on offerings.•Fixed income underwriting revenues increased primarily reflecting higher bond issuances, non-investment grade loan issuances and securitized products revenues.While Investment Banking results improved from the prior year, we continue to operate in a market environment with lower completed M&A activity relative to longer-term averages.See “Investment Banking Volumes” herein.Equity, Fixed Income and Other Net RevenuesEquity and Fixed Income Net Revenues 2024$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$8,135 $566 $(2,840)$17 $5,878 Execution services3,702 2,591 (291)350 6,352 Total Equity$11,837 $3,157 $(3,131)$367 $12,230 Total Fixed income$8,464 $394 $(730)$290 $8,418 2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 1.Includes Commissions and fees and Asset management revenues.2.Includes funding costs, which are allocated to the businesses based on funding usage. 3.Includes Investments and Other revenues.EquityNet revenues of $12,230 million in 2024 increased 22% compared with the prior year, reflecting an increase in both Execution services and Financing, particularly in Asia and the Americas.•Financing revenues increased primarily due to higher client activity and lower funding and liquidity costs.•Execution services revenues increased primarily due to higher gains on inventory held to facilitate client activity and increased client activity in derivatives and cash equities.Fixed IncomeNet revenues of $8,418 million in 2024 increased 10% compared with the prior year, reflecting an increase across businesses, particularly in Credit and Global macro products.•Global macro products increased primarily due to lower losses on foreign exchange products and higher gains on rates products, on inventory held to facilitate client activity.•Credit products revenues increased primarily due to higher lending and securitized products revenues and lower losses Institutional SecuritiesIncome Statement Information % Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%Investment BankingInvestment Banking Volumes$ in billions202420232022Completed mergers and acquisitions1$628 $677 $881 Equity and equity-related offerings2, 363 32 23 Fixed income offerings2, 4323 236 229 Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of January 2, 2025. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.2.Based on full credit for single book managers and equal credit for joint book managers.3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues.•Advisory revenues increased primarily due to higher completed M&A transactions.•Equity underwriting revenues increased primarily on higher initial public offerings and follow-on offerings.•Fixed income underwriting revenues increased primarily reflecting higher bond issuances, non-investment grade loan issuances and securitized products revenues.",
      "prior_body": "The Income tax provision for our business segments is generally determined based on the revenues, expenses and activities directly attributable to each business segment. Certain items have been allocated to each business segment, generally in proportion to its respective net revenues or other relevant measures. December 2023 Form 10-K36 December 2023 Form 10-K36 December 2023 Form 10-K36 36 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Institutional SecuritiesIncome Statement Information % Change$ in millions20232022202120232022RevenuesAdvisory$2,244 $2,946 $3,487 (24)%(16)%Equity889 851 4,437 4 %(81)%Fixed income1,445 1,438 2,348 — %(39)%Total Underwriting2,334 2,289 6,785 2 %(66)%Total Investment banking4,578 5,235 10,272 (13)%(49)%Equity9,986 10,769 11,435 (7)%(6)%Fixed income7,673 9,022 7,516 (15)%20 %Other823 (633)610 N/MN/MNet revenues23,060 24,393 29,833 (5)%(18)%Provision for credit losses401 211 (7)90 %N/MCompensation and benefits8,369 8,246 9,165 1 %(10)%Non-compensation expenses9,814 9,221 8,861 6 %4 %Total non-interest expenses18,183 17,467 18,026 4 %(3)%Income before provision for income taxes4,476 6,715 11,814 (33)%(43)%Provision for income taxes884 1,308 2,746 (32)%(52)%Net income3,592 5,407 9,068 (34)%(40)%Net income applicable to noncontrolling interests139 165 111 (16)%49 %Net income applicable to Morgan Stanley$3,453 $5,242 $8,957 (34)%(41)%Investment BankingInvestment Banking Volumes$ in billions202320222021Completed mergers and acquisitions1$655 $881 $1,107 Equity and equity-related offerings2, 331 23 117 Fixed income offerings2, 4235 229 371 Source: Refinitiv data as of January 2, 2024. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.2.Based on full credit for single book managers and equal credit for joint book managers.3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $4,578 million in 2023 decreased 13% compared with the prior year, primarily reflecting lower Advisory revenues.•Advisory revenues decreased primarily due to fewer completed M&A transactions on lower market volumes.•Equity underwriting revenues increased on higher volumes, primarily in secondary offerings and convertible issuances, partially offset by lower revenues from initial public offerings.•Fixed income underwriting revenues were relatively unchanged from the prior year, primarily reflecting higher investment-grade loan and bond issuances, offset by lower non-investment grade loan issuances.Investment Banking continues to operate in a market environment characterized by lower completed M&A and underwriting activity amid market uncertainty, including the future path of interest rates.See “Investment Banking Volumes” herein.Equity, Fixed Income and Other Net RevenuesEquity and Fixed Income Net Revenues 2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 2021$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$4,110 $508 $520 $8 $5,146 Execution services3,327 2,648 (226)540 6,289 Total Equity$7,437 $3,156 $294 $548 $11,435 Total Fixed income$5,098 $307 $1,835 $276 $7,516 1.Includes Commissions and fees and Asset management revenues.2.Includes funding costs, which are allocated to the businesses based on funding usage. 3.Includes Investments and Other revenues.EquityNet revenues of $9,986 million in 2023 decreased 7% compared with the prior year, reflecting decreases in Financing and Execution services.•Financing revenues decreased primarily due to higher funding and liquidity costs compared with the prior year.•Execution services revenues decreased primarily due to lower gains on inventory held to facilitate client activity in derivatives and cash equities and lower client activity in cash equities, partially offset by mark-to-market gains on business-related investments compared with losses in the prior year.Fixed IncomeNet revenues of $7,673 million in 2023 decreased 15% compared with the prior year, primarily reflecting a decrease in foreign exchange and commodities products.•Global macro products revenues decreased primarily due to a decline in foreign exchange products.•Credit products revenues decreased primarily due to lower client activity across products. Institutional SecuritiesIncome Statement Information % Change$ in millions20232022202120232022RevenuesAdvisory$2,244 $2,946 $3,487 (24)%(16)%Equity889 851 4,437 4 %(81)%Fixed income1,445 1,438 2,348 — %(39)%Total Underwriting2,334 2,289 6,785 2 %(66)%Total Investment banking4,578 5,235 10,272 (13)%(49)%Equity9,986 10,769 11,435 (7)%(6)%Fixed income7,673 9,022 7,516 (15)%20 %Other823 (633)610 N/MN/MNet revenues23,060 24,393 29,833 (5)%(18)%Provision for credit losses401 211 (7)90 %N/MCompensation and benefits8,369 8,246 9,165 1 %(10)%Non-compensation expenses9,814 9,221 8,861 6 %4 %Total non-interest expenses18,183 17,467 18,026 4 %(3)%Income before provision for income taxes4,476 6,715 11,814 (33)%(43)%Provision for income taxes884 1,308 2,746 (32)%(52)%Net income3,592 5,407 9,068 (34)%(40)%Net income applicable to noncontrolling interests139 165 111 (16)%49 %Net income applicable to Morgan Stanley$3,453 $5,242 $8,957 (34)%(41)%Investment BankingInvestment Banking Volumes$ in billions202320222021Completed mergers and acquisitions1$655 $881 $1,107 Equity and equity-related offerings2, 331 23 117 Fixed income offerings2, 4235 229 371 Source: Refinitiv data as of January 2, 2024. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.2.Based on full credit for single book managers and equal credit for joint book managers.3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $4,578 million in 2023 decreased 13% compared with the prior year, primarily reflecting lower Advisory revenues.•Advisory revenues decreased primarily due to fewer completed M&A transactions on lower market volumes.•Equity underwriting revenues increased on higher volumes, primarily in secondary offerings and convertible issuances, partially offset by lower revenues from initial public offerings.•Fixed income underwriting revenues were relatively unchanged from the prior year, primarily reflecting higher investment-grade loan and bond issuances, offset by lower non-investment grade loan issuances."
    },
    {
      "status": "MODIFIED",
      "current_title": "Consolidated Results—Full Year Ended December 31, 2024",
      "prior_title": "Consolidated Results—Full Year Ended December 31, 2023",
      "similarity_score": 0.654,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"•The Firm reported net revenues of $61.8 billion and net income of $13.4 billion, reflecting strong results across our business segments.\""
      ],
      "current_body": "•The Firm reported net revenues of $61.8 billion and net income of $13.4 billion, reflecting strong results across our business segments. •The Firm delivered ROE of 14.0% and ROTCE of 18.8% (see “Selected Non-GAAP Financial Information” herein). •The Firm expense efficiency ratio was 71% compared to 77% in the prior year, reflecting higher revenues and expense discipline. In the prior year, the ratio was negatively impacted by specific severance costs of $353 million, integration-related expenses of $293 million, an FDIC special assessment of $286 million and higher legal expenses related to a $249 million settlement in connection with resolutions of investigations into the Firm’s blocks business. (See “Expenses” herein for more information). •The Firm accreted $5.6 billion of Common Equity Tier 1 capital while supporting clients and returning capital to shareholders. At December 31, 2024, the Firm’s Standardized Common Equity Tier 1 capital ratio was 15.9%. •Institutional Securities net revenues of $28.1 billion reflect higher results across businesses and regions on higher client activity and improved market conditions. •Wealth Management delivered net revenues of $28.4 billion, reflecting higher Asset management and Transactional revenues. The pre-tax margin was 27.2%. Fee-based asset flows were $123 billion and the business added net new assets of $252 billion. •Investment Management reported net revenues of $5.9 billion, primarily driven by asset management revenues on higher average AUM. Net Revenues($ in millions)Net Income Applicable to Morgan Stanley($ in millions)Earnings per Diluted Common Share2024 Compared with 2023 •We reported net revenues of $61.8 billion in 2024, which increased by 14% compared with $54.1 billion in 2023. Net income applicable to Morgan Stanley was $13.4 billion in 2024, which increased by 47% compared with $9.1 billion in 2023. Diluted earnings per common share was $7.95 in 2024, which increased by 53% compared with $5.18 in 2023.",
      "prior_body": "•The Firm reported net revenues of $54.1 billion and net income of $9.1 billion against a mixed market backdrop and a number of headwinds. •The Firm delivered ROE of 9.4% and ROTCE of 12.8% (see “Selected Non-GAAP Financial Information” herein). •The Firm expense efficiency ratio was 77%. The ratio was negatively impacted by severance costs of $353 million, an FDIC special assessment of $286 million, higher legal expenses relating to a specific matter of $249 million and integration-related expenses of $293 million. •At December 31, 2023, the Firm’s Standardized Common Equity Tier 1 capital ratio was 15.2%. •Institutional Securities reported net revenues of $23.1 billion reflecting lower completed activity in Investment Banking and lower results in Equity and Fixed Income on reduced client activity and a less favorable market environment compared to a year ago. •Wealth Management delivered net revenues of $26.3 billion, reflecting mark-to-market gains on investments associated with certain employee deferred cash-based compensation plans (“DCP investments”) compared with losses in the prior year and higher Net interest revenues. The pre-tax margin was 24.9%. The business added net new assets of $282.3 billion, representing a 6.7% annualized growth rate from beginning period assets. •Investment Management reported net revenues of $5.4 billion and AUM increased to $1.5 trillion. Net Revenues($ in millions)Net Income Applicable to Morgan Stanley($ in millions)Earnings per Diluted Common Share2023 Compared with 2022 •We reported net revenues of $54.1 billion in 2023 compared with $53.7 billion in 2022. For 2023, net income applicable to Morgan Stanley was $9.1 billion, or $5.18 per diluted common share, compared with $11.0 billion, or $6.15 per diluted common share in 2022."
    },
    {
      "status": "MODIFIED",
      "current_title": "Provision for Credit Losses",
      "prior_title": "Provision for Credit Losses",
      "similarity_score": 0.654,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"The Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook.\""
      ],
      "current_body": "The Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. For further information on the Provision for credit losses, see “Credit Risk” herein.",
      "prior_body": "The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. The Provision for credit losses on loans and lending commitments of $280 million in 2022 was due to portfolio growth and deterioration in the macroeconomic outlook. For further information on the Provision for credit losses, see “Credit Risk” herein. Business Segment ResultsNet Revenues by Segment1($ in millions)Net Income Applicable to Morgan Stanley by Segment1($ in millions)1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 22 to the financial statements for details of intersegment eliminations. •Institutional Securities net revenues of $23,060 million in 2023 decreased 5% from the prior year, primarily reflecting lower results across businesses.•Wealth Management net revenues of $26,268 million in 2023 increased 8% from the prior year, primarily reflecting gains on DCP investments compared with losses in the prior year and higher Net interest revenues.•Investment Management net revenues of $5,370 million in 2023 were relatively unchanged from the prior year, reflecting a decrease in Asset management and related fees revenues offset by an increase in Performance based income and other revenues."
    },
    {
      "status": "MODIFIED",
      "current_title": "RWA Rollforward",
      "prior_title": "RWA Rollforward",
      "similarity_score": 0.654,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"$ in millionsStandardizedAdvancedCredit risk RWABalance at December 31, 2023$407,731 $297,858 Change related to the following items:Derivatives(8,690)3,106 Securities financing transactions9,699 1,871 Investment securities(133)(2,515)Commitments, guarantees and loans7,956 15,523 Equity investments(50)(279)Other credit risk1,469 865 Total change in credit risk RWA$10,251 $18,571 Balance at December 31, 2024$417,982 $316,429 Market risk RWABalance at December 31, 2023$48,322 $48,201 Change related to the following items:Regulatory VaR124 124 Regulatory stressed VaR643 643 Incremental risk charge1,577 1,577 Comprehensive risk measure(98)493 Specific risk3,284 3,284 Total change in market risk RWA$5,530 $6,121 Balance at December 31, 2024$53,852 $54,322 Operational risk RWABalance at December 31, 2023N/A$102,095 Change in operational risk RWAN/A4,485 Balance at December 31, 2024N/A$106,580 Total RWA$471,834 $477,331 Regulatory VaR—VaR for regulatory capital requirements In 2024, Credit risk RWA increased under both the Standardized and Advanced Approaches.\""
      ],
      "current_body": "$ in millionsStandardizedAdvancedCredit risk RWABalance at December 31, 2023$407,731 $297,858 Change related to the following items:Derivatives(8,690)3,106 Securities financing transactions9,699 1,871 Investment securities(133)(2,515)Commitments, guarantees and loans7,956 15,523 Equity investments(50)(279)Other credit risk1,469 865 Total change in credit risk RWA$10,251 $18,571 Balance at December 31, 2024$417,982 $316,429 Market risk RWABalance at December 31, 2023$48,322 $48,201 Change related to the following items:Regulatory VaR124 124 Regulatory stressed VaR643 643 Incremental risk charge1,577 1,577 Comprehensive risk measure(98)493 Specific risk3,284 3,284 Total change in market risk RWA$5,530 $6,121 Balance at December 31, 2024$53,852 $54,322 Operational risk RWABalance at December 31, 2023N/A$102,095 Change in operational risk RWAN/A4,485 Balance at December 31, 2024N/A$106,580 Total RWA$471,834 $477,331 Regulatory VaR—VaR for regulatory capital requirements In 2024, Credit risk RWA increased under both the Standardized and Advanced Approaches. Under the Standardized Approach, the increase was primarily due to higher Securities financing transactions, growth in Corporate lending, as well as an increase in Other credit risk driven by securitizations. These increases were partially offset by decreased exposure in derivatives. Under the Advanced Approach, the increase was primarily due to growth in Corporate lending, increase in Derivatives driven by counterparty credit risk, and higher Securities financing transactions. These increases were partially offset by decreased exposure in investment securities. Market risk RWA increased in 2024 under both the Standardized and Advanced Approaches, primarily driven by higher charges on Specific risk and Incremental risk due to increased exposures. The increase in Operational risk RWA in 2024 is related to legal expenses and execution losses.",
      "prior_body": "$ in millionsStandardizedAdvancedCredit risk RWABalance at December 31, 2022$397,275 $285,638 Change related to the following items:Derivatives6,065 660 Securities financing transactions2,924 (354)Investment securities(1,316)385 Commitments, guarantees and loans(2,606)6,903 Equity investments1,621 1,964 Other credit risk3,768 2,662 Total change in credit risk RWA$10,456 $12,220 Balance at December 31, 2023$407,731 $297,858 Market risk RWABalance at December 31, 2022$50,574 $50,563 Change related to the following items:Regulatory VaR(3,946)(3,946)Regulatory stressed VaR(5,017)(5,017)Incremental risk charge94 94 Comprehensive risk measure341 231 Specific risk6,276 6,276 Total change in market risk RWA$(2,252)$(2,362)Balance at December 31, 2023$48,322 $48,201 Operational risk RWABalance at December 31, 2022N/A$102,605 Change in operational risk RWAN/A(510)Balance at December 31, 2023N/A$102,095 Total RWA$456,053 $448,154 Regulatory VaR—VaR for regulatory capital requirements In 2023, Credit risk RWA increased under the Standardized and Advanced Approaches. Under the Standardized Approach, the increase was primarily driven by higher derivatives, higher securities financing transactions, higher equity investments, as well as an increase in Other credit risk driven by higher deferred tax assets and securitizations. These increases were partially offset by decreases in lending activity. Under the Advanced Approach, the increase was primarily driven by growth in Corporate lending, higher equity investments, higher derivatives, as well as increase in Other credit risk driven by higher deferred tax assets and securitizations. Market risk RWA decreased in 2023 under both the Standardized and Advanced Approaches, primarily due to lower Regulatory VaR and stressed VaR driven by reductions in macro and commodities businesses, partially offset by higher Specific risk charges on securitization and non-securitization standardized charges. Operational risk RWA in 2023 remained relatively unchanged."
    },
    {
      "status": "MODIFIED",
      "current_title": "Borrowings by Maturity at December 31, 20241",
      "prior_title": "Borrowings by Remaining Maturity at December 31, 20231",
      "similarity_score": 0.653,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"$ in millionsParentCompanySubsidiariesTotalOriginal maturities of one year or less$— $4,512 $4,512 Original maturities greater than one year2025$7,544 $14,377 $21,921 202624,738 13,231 37,969 202720,716 13,334 34,050 202813,844 14,875 28,719 202916,318 9,841 26,159 Thereafter98,886 36,603 135,489 Total greater than one year$182,046 $102,261 $284,307 Total$182,046 $106,773 $288,819 1.Original maturity in the table is generally based on contractual final maturity.\"",
        "Added sentence: \"In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments.\"",
        "Added sentence: \"Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types.\"",
        "Added sentence: \"The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit.\"",
        "Added sentence: \"We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities.For further information on Borrowings, see Note 13 to the financial statements.Credit RatingsWe rely on external sources to finance a significant portion of our daily operations.\""
      ],
      "current_body": "$ in millionsParentCompanySubsidiariesTotalOriginal maturities of one year or less$— $4,512 $4,512 Original maturities greater than one year2025$7,544 $14,377 $21,921 202624,738 13,231 37,969 202720,716 13,334 34,050 202813,844 14,875 28,719 202916,318 9,841 26,159 Thereafter98,886 36,603 135,489 Total greater than one year$182,046 $102,261 $284,307 Total$182,046 $106,773 $288,819 1.Original maturity in the table is generally based on contractual final maturity. For borrowings with put options, maturity represents the earliest put date. Borrowings of $289 billion at December 31, 2024 increased when compared with $264 billion at December 31, 2023, primarily due to issuances net of maturities and redemptions. We believe that accessing debt investors through multiple distribution channels helps provide consistent access to the unsecured markets. In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments. Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types. The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit. We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities.For further information on Borrowings, see Note 13 to the financial statements.Credit RatingsWe rely on external sources to finance a significant portion of our daily operations. Our credit ratings are one of the factors in the cost and availability of financing and can have an impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as certain OTC derivative transactions. When determining credit ratings, rating agencies consider both company-specific and industry-wide factors. See also “Risk Factors—Liquidity Risk.”Parent Company and U.S. Bank Subsidiaries Issuer Ratings at February 14, 2025Parent CompanyShort-Term DebtLong-Term DebtRating OutlookDBRS, Inc.R-1 (middle)A (high)PositiveFitch Ratings, Inc.F1A+StableMoody’s Investors Service, Inc.P-1A1StableRating and Investment Information, Inc.a-1A+StableS&P Global RatingsA-2A-StableMSBNAShort-Term DebtLong-Term DebtRating OutlookFitch Ratings, Inc.F1+AA-StableMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableMSPBNAShort-Term DebtLong-Term DebtRating OutlookMoody’s Investors Service, Inc.P-1Aa3StableS&P Global RatingsA-1A+StableIncremental Collateral or Terminating PaymentsIn connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities We believe that accessing debt investors through multiple distribution channels helps provide consistent access to the unsecured markets. In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments. Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types. The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit. We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities. For further information on Borrowings, see Note 13 to the financial statements.",
      "prior_body": "$ in millionsParentCompanySubsidiariesTotalOriginal maturities of one year or less$— $3,188 $3,188 Original maturities greater than one year2024$8,915 $11,236 $20,151 202522,030 13,493 35,523 202624,516 10,907 35,423 202719,282 6,056 25,338 202811,432 9,807 21,239 Thereafter90,635 32,235 122,870 Total greater than one year$176,810 $83,734 $260,544 Total$176,810 $86,922 $263,732 1.Original maturity in the table is generally based on contractual final maturity. For borrowings with put options, remaining maturity represents the earliest put date. Borrowings of $264 billion at December 31, 2023 increased from $238 billion at December 31, 2022, primarily due to issuances net of maturities and redemptions and mark-to-market adjustments on equity-linked borrowings driven by market factors. We believe that accessing debt investors through multiple distribution channels helps provide consistent access to the unsecured markets. In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments. Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types. The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit. We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities. For further information on Borrowings, see Note 13 to the financial statements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Common Stock Dividend Announcement",
      "prior_title": "Capital Management",
      "similarity_score": 0.645,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Announcement dateJanuary 16, 2025Amount per share$0.925Date paidFebruary 14, 2025Shareholders of record as ofJanuary 31, 2025 For additional information on our common stock dividends, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.\"",
        "Added sentence: \"The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act.\"",
        "Added sentence: \"For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S.\"",
        "Added sentence: \"Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC.\"",
        "Added sentence: \"In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants.\""
      ],
      "current_body": "Announcement dateJanuary 16, 2025Amount per share$0.925Date paidFebruary 14, 2025Shareholders of record as ofJanuary 31, 2025 For additional information on our common stock dividends, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein. For additional information on our common stock and information on our preferred stock, see Note 17 to the financial statements.Off-Balance Sheet Arrangements We enter into various off-balance sheet arrangements, including through unconsolidated SPEs and lending-related financial instruments (e.g., guarantees and commitments), primarily in connection with the Institutional Securities and Investment Management business segments.We utilize SPEs primarily in connection with securitization activities. For information on our securitization activities, see Note 15 to the financial statements.For information on our commitments, obligations under certain guarantee arrangements and indemnities, see Note 14 to the financial statements. For a further discussion of our lending commitments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Loans and Lending Commitments” herein.Regulatory RequirementsRegulatory Capital FrameworkWe are an FHC under the BHC Act and are subject to the regulation and oversight of the Federal Reserve. The Federal Reserve establishes capital requirements for us, including “well-capitalized” standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and standards for our U.S. Bank Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 16 to the financial statements.Regulatory Capital RequirementsWe are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For additional information on TLAC, see “Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” herein.Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 (“CET1”) For additional information on our common stock and information on our preferred stock, see Note 17 to the financial statements.",
      "prior_body": "We view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements and rating agency guidelines. In the future, we may expand or contract our capital base to address the changing needs of our businesses. Common Stock Repurchasesin millions, except for per share data202320222021Number of shares62 113 126 Average price per share$85.35 $87.25 $91.13 Total$5,300 $9,865 $11,464 For additional information on our common stock repurchases, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein and Note 17 to the financial statements.For a description of our capital plan, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.Common Stock Dividend AnnouncementAnnouncement dateJanuary 16, 2024Amount per share$0.85Date paidFebruary 15, 2024Shareholders of record as ofJanuary 31, 2024For additional information on our common stock dividends, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.For additional information on our common stock and information on our preferred stock, see Note 17 to the financial statements.Off-Balance Sheet Arrangements We enter into various off-balance sheet arrangements, including through unconsolidated SPEs and lending-related financial instruments (e.g., guarantees and commitments), primarily in connection with the Institutional Securities and Investment Management business segments.We utilize SPEs primarily in connection with securitization activities. For information on our securitization activities, see Note 15 to the financial statements.For information on our commitments, obligations under certain guarantee arrangements and indemnities, see Note 14 to the financial statements. For a further discussion of our lending commitments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Loans and Lending Commitments” herein.Regulatory RequirementsRegulatory Capital FrameworkWe are an FHC under the BHC Act and are subject to the regulation and oversight of the Federal Reserve. The Federal Reserve establishes capital requirements for us, including “well-capitalized” standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and standards for our U.S. Bank"
    },
    {
      "status": "MODIFIED",
      "current_title": "We may be unable to fully capture the expected value from acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances, and certain acquisitions may subject our business to new or increased risk.",
      "prior_title": "We may be unable to fully capture the expected value from acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances, and certain acquisitions may subject our business to new or increased risk.",
      "similarity_score": 0.643,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"(“MUFG”)), we face numerous risks and uncertainties in combining, transferring, separating or integrating the relevant businesses and systems that may present operational and other risks, including the need to combine or separate accounting, data processing, technology and other systems, management controls and legal entities, and to integrate relationships with clients, trading counterparties and business partners.\"",
        "Reworded sentence: \"In the case of joint ventures, partnerships and minority stakes, we are subject to additional risks and uncertainties because we may be dependent upon, and subject to liability, losses or franchise and reputational damage relating to systems, controls and personnel that are not under our control, and conflicts or disagreements between us and any of our partners may negatively impact the benefits to be achieved by the relevant partnerships.\"",
        "Reworded sentence: \"Certain of our business initiatives, including expansions of existing businesses or the introduction of new products, may change our client or account profile or bring us into contact, directly or indirectly, with individuals and entities that are not within our traditional client and counterparty base and may expose us to new asset classes, services, competitors and new markets.\"",
        "Reworded sentence: \"For more information regarding the regulatory environment in which we operate, see also “Business—Supervision and Regulation.” December 2024 Form 10-K24 December 2024 Form 10-K24 December 2024 Form 10-K24 24 Table of Contents Table of Contents Table of Contents CybersecurityFor a discussion of cybersecurity, see “Quantitative and Qualitative Disclosures about Risk— Operational Risk— Cybersecurity.” CybersecurityFor a discussion of cybersecurity, see “Quantitative and Qualitative Disclosures about Risk— Operational Risk— Cybersecurity.”\""
      ],
      "current_body": "In connection with past or future acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances (including with Mitsubishi UFJ Financial Group, Inc. (“MUFG”)), we face numerous risks and uncertainties in combining, transferring, separating or integrating the relevant businesses and systems that may present operational and other risks, including the need to combine or separate accounting, data processing, technology and other systems, management controls and legal entities, and to integrate relationships with clients, trading counterparties and business partners. Certain of these strategic initiatives, and integration thereof, may cause us to incur incremental expenses and may also require incremental financial, management and other resources. In the case of joint ventures, partnerships and minority stakes, we are subject to additional risks and uncertainties because we may be dependent upon, and subject to liability, losses or franchise and reputational damage relating to systems, controls and personnel that are not under our control, and conflicts or disagreements between us and any of our partners may negatively impact the benefits to be achieved by the relevant partnerships. There is no assurance that any of our acquisitions, divestitures or investments will be successfully integrated or disaggregated or yield all of the positive benefits and synergies anticipated. If we are not able to integrate or disaggregate successfully our past and future acquisitions or dispositions, including aligning the processes, policies and procedures of the acquired entities with our standards, there is a risk that our results of operations, financial condition and cash flows may be materially and adversely affected. Certain of our business initiatives, including expansions of existing businesses or the introduction of new products, may change our client or account profile or bring us into contact, directly or indirectly, with individuals and entities that are not within our traditional client and counterparty base and may expose us to new asset classes, services, competitors and new markets. These business activities expose us to new and enhanced risks, greater regulatory scrutiny of these activities, increased credit-related, sovereign, compliance and operational risks, as well as franchise and reputational concerns regarding the manner in which these assets are being operated or held, or services are being delivered. For more information regarding the regulatory environment in which we operate, see also “Business—Supervision and Regulation.” December 2024 Form 10-K24 December 2024 Form 10-K24 December 2024 Form 10-K24 24 Table of Contents Table of Contents Table of Contents CybersecurityFor a discussion of cybersecurity, see “Quantitative and Qualitative Disclosures about Risk— Operational Risk— Cybersecurity.” CybersecurityFor a discussion of cybersecurity, see “Quantitative and Qualitative Disclosures about Risk— Operational Risk— Cybersecurity.”",
      "prior_body": "In connection with past or future acquisitions, divestitures, joint ventures, partnerships, minority stakes or strategic alliances (including with Mitsubishi UFJ Financial Group, Inc. (“MUFG”)), we face numerous risks and uncertainties in combining, transferring, separating or integrating the relevant businesses and systems that may present operational and other risks, including the need to combine or separate accounting, data processing and other systems, management controls and legal entities, and to integrate relationships with clients, trading counterparties and business partners. Certain of these strategic initiatives, and integration thereof, may cause us to incur incremental expenses and may also require incremental financial, management and other resources. In the case of joint ventures, partnerships and minority stakes, we are subject to additional risks and uncertainties because December 2023 Form 10-K24 December 2023 Form 10-K24 December 2023 Form 10-K24 24 Table of Contents Table of Contents Table of Contents we may be dependent upon, and subject to liability, losses or reputational damage relating to systems, controls and personnel that are not under our control, and conflicts or disagreements between us and any of our joint venture partners or partners may negatively impact the benefits to be achieved by the relevant joint venture or partnership, respectively.There is no assurance that any of our acquisitions, divestitures or investments will be successfully integrated or disaggregated or yield all of the positive benefits and synergies anticipated. If we are not able to integrate or disaggregate successfully our past and future acquisitions or dispositions, including aligning the processes, policies and procedures of the acquired entities with our standards, there is a risk that our results of operations, financial condition and cash flows may be materially and adversely affected.Certain of our business initiatives, including expansions of existing businesses, may change our client or account profile or bring us into contact, directly or indirectly, with individuals and entities that are not within our traditional client and counterparty base and may expose us to new asset classes, services, competitors and new markets. These business activities expose us to new and enhanced risks, greater regulatory scrutiny of these activities, increased credit-related, sovereign, compliance and operational risks, as well as franchise and reputational concerns regarding the manner in which these assets are being operated or held, or services are being delivered.For more information regarding the regulatory environment in which we operate, see also “Business—Supervision and Regulation.” we may be dependent upon, and subject to liability, losses or reputational damage relating to systems, controls and personnel that are not under our control, and conflicts or disagreements between us and any of our joint venture partners or partners may negatively impact the benefits to be achieved by the relevant joint venture or partnership, respectively.There is no assurance that any of our acquisitions, divestitures or investments will be successfully integrated or disaggregated or yield all of the positive benefits and synergies anticipated. If we are not able to integrate or disaggregate successfully our past and future acquisitions or dispositions, including aligning the processes, policies and procedures of the acquired entities with our standards, there is a risk that our results of operations, financial condition and cash flows may be materially and adversely affected.Certain of our business initiatives, including expansions of existing businesses, may change our client or account profile or bring us into contact, directly or indirectly, with individuals and entities that are not within our traditional client and counterparty base and may expose us to new asset classes, services, competitors and new markets. These business activities expose us to new and enhanced risks, greater regulatory scrutiny of these activities, increased credit-related, sovereign, compliance and operational risks, as well as franchise and reputational concerns regarding the manner in which these assets are being operated or held, or services are being delivered.For more information regarding the regulatory environment in which we operate, see also “Business—Supervision and Regulation.” we may be dependent upon, and subject to liability, losses or reputational damage relating to systems, controls and personnel that are not under our control, and conflicts or disagreements between us and any of our joint venture partners or partners may negatively impact the benefits to be achieved by the relevant joint venture or partnership, respectively. There is no assurance that any of our acquisitions, divestitures or investments will be successfully integrated or disaggregated or yield all of the positive benefits and synergies anticipated. If we are not able to integrate or disaggregate successfully our past and future acquisitions or dispositions, including aligning the processes, policies and procedures of the acquired entities with our standards, there is a risk that our results of operations, financial condition and cash flows may be materially and adversely affected. Certain of our business initiatives, including expansions of existing businesses, may change our client or account profile or bring us into contact, directly or indirectly, with individuals and entities that are not within our traditional client and counterparty base and may expose us to new asset classes, services, competitors and new markets. These business activities expose us to new and enhanced risks, greater regulatory scrutiny of these activities, increased credit-related, sovereign, compliance and operational risks, as well as franchise and reputational concerns regarding the manner in which these assets are being operated or held, or services are being delivered. For more information regarding the regulatory environment in which we operate, see also “Business—Supervision and Regulation.” 25December 2023 Form 10-K 25December 2023 Form 10-K 25December 2023 Form 10-K 25 Table of Contents Table of Contents Table of Contents CybersecurityRisk management and strategyWe, our businesses, and the broader financial services industry face an increasingly complex and evolving threat environment. We have made and continue to make substantial investments in cybersecurity and fraud prevention technology, and employ experienced talent to lead our Cybersecurity and Information Security organizations and program under the oversight of our Board of Directors (“Board”) and the Operations and Technology Committee of the Board (“BOTC”). See “Risk Factors—Operational Risk” for information on risks to the Firm from cybersecurity threats.As part of our enterprise risk management (“ERM”) framework, we have implemented and maintain a program to assess, identify and manage risks arising from the cybersecurity threats confronting the Firm (“Cybersecurity Program”). Our Cybersecurity Program helps protect our clients, customers, employees, property, products, services and reputation by seeking to preserve the confidentiality, integrity and availability of information, enable the secure delivery of financial services, and protect the business and the safe operation of our technology systems. We continually adjust our Cybersecurity Program to address the evolving cybersecurity threat landscape and comply with extensive legal and regulatory expectations.Processes for assessing, identifying and managing material risks from cybersecurity threatsOur Cybersecurity Program takes into account industry best practices and addresses risks from cybersecurity threats to our network, infrastructure, computing environment and the third parties that we rely on. We periodically assess the design of our cybersecurity controls against the Cyber Risk Institute Cyber Profile, which is based on the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework for Improving Critical Infrastructure Cybersecurity, as well as global cybersecurity regulations, and develop improvements to those controls in response to that assessment. Our Cybersecurity Program also includes cybersecurity and information security policies, procedures and technologies that are designed to address regulatory requirements and protect our clients’, employees’ and own data against unauthorized disclosure, modification and misuse. These policies, procedures and technologies cover a broad range of areas, including: identification of internal and external threats, access control, data security, protective controls, detection of malicious or unauthorized activity, incident response, and recovery planning. Our threat intelligence function within the Cybersecurity Program actively engages in private and public information sharing communities and leverages both commercial and proprietary products to collect a wide variety of industry and governmental information regarding the latest cybersecurity threats, which informs our cybersecurity risk assessments and strategy. This information is also provided to an internal forensics team, which develops and implements technologies designed to help detect these cybersecurity threats across our environment. Where a potential threat is identified in our environment, our incident response team evaluates the potential impact to the Firm and coordinates remediation where required. These groups, as well as the Operational Risk Department, review external cybersecurity incidents that may be relevant to the Firm, and the outcomes of these incidents further inform the design of our Cybersecurity Program. In addition, we maintain a robust global training program on cybersecurity risks and requirements and conduct regular phishing email simulations for our employees and consultants.Our processes are designed to help oversee, identify and mitigate cybersecurity risks associated with our use of third-party vendors. We maintain a third-party risk management program that includes evaluation of, and response to, cybersecurity risks at our third-party vendors. Prior to engaging third-party vendors to provide services to the Firm, we conduct assessments of the third-party vendors’ cybersecurity programs to identify the impact of their services on the cybersecurity risks to the Firm. Once on-boarded, third-party vendors’ cybersecurity programs are subject to risk-based oversight, which may include security questionnaires, submission of independent security audit reports or a Firm audit of the third-party vendor’s security program, and, with limited exceptions, third-party vendors are required to meet our cybersecurity standards. Where a third-party vendor cannot meet those standards, its services, and the residual risk to the Firm, are subject to review, challenge and escalation through our risk management processes and ERM committees, which may ultimately result in requesting increased security measures or ceasing engagement with such third-party vendor. Our Cybersecurity Program is regularly assessed by the Internal Audit Department (“IAD”) through various assurance activities, with the results reported to the Audit Committee of the Board (“BAC”) and the BOTC. Annually, certain elements of the Cybersecurity Program are subject to an audit by an independent consultant, as well as an assessment by a separate, independent third party, the results of which, including opportunities identified for improvement and related remediation plans, are reviewed with the BOTC. Our Cybersecurity Program is also examined regularly by the Firm’s prudential and conduct regulators within the scope of their jurisdiction.GovernanceManagement’s role in assessing and managing material risks from cybersecurity threatsOur Cybersecurity Program is operated and maintained by management, including the Chief Information Officer of Cyber, Data, Risk and Resilience (“CIO”) and the Chief Information Security Officer (“CISO”). These senior officers CybersecurityRisk management and strategyWe, our businesses, and the broader financial services industry face an increasingly complex and evolving threat environment. We have made and continue to make substantial investments in cybersecurity and fraud prevention technology, and employ experienced talent to lead our Cybersecurity and Information Security organizations and program under the oversight of our Board of Directors (“Board”) and the Operations and Technology Committee of the Board (“BOTC”). See “Risk Factors—Operational Risk” for information on risks to the Firm from cybersecurity threats.As part of our enterprise risk management (“ERM”) framework, we have implemented and maintain a program to assess, identify and manage risks arising from the cybersecurity threats confronting the Firm (“Cybersecurity Program”). Our Cybersecurity Program helps protect our clients, customers, employees, property, products, services and reputation by seeking to preserve the confidentiality, integrity and availability of information, enable the secure delivery of financial services, and protect the business and the safe operation of our technology systems. We continually adjust our Cybersecurity Program to address the evolving cybersecurity threat landscape and comply with extensive legal and regulatory expectations.Processes for assessing, identifying and managing material risks from cybersecurity threatsOur Cybersecurity Program takes into account industry best practices and addresses risks from cybersecurity threats to our network, infrastructure, computing environment and the third parties that we rely on. We periodically assess the design of our cybersecurity controls against the Cyber Risk Institute Cyber Profile, which is based on the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework for Improving Critical Infrastructure Cybersecurity, as well as global cybersecurity regulations, and develop improvements to those controls in response to that assessment. Our Cybersecurity Program also includes cybersecurity and information security policies, procedures and technologies that are designed to address regulatory requirements and protect our clients’, employees’ and own data against unauthorized disclosure, modification and misuse. These policies, procedures and technologies cover a broad range of areas, including: identification of internal and external threats, access control, data security, protective controls, detection of malicious or unauthorized activity, incident response, and recovery planning. Our threat intelligence function within the Cybersecurity Program actively engages in private and public information sharing communities and leverages both commercial and proprietary products to collect a wide variety of industry and governmental information regarding the latest cybersecurity threats, which informs our cybersecurity risk assessments and"
    },
    {
      "status": "MODIFIED",
      "current_title": "Investment Banking Revenues",
      "prior_title": "Investment Banking Revenues",
      "similarity_score": 0.643,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Net revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues.\""
      ],
      "current_body": "Net revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues. •Advisory revenues increased primarily due to higher completed M&A transactions. •Equity underwriting revenues increased primarily on higher initial public offerings and follow-on offerings. •Fixed income underwriting revenues increased primarily reflecting higher bond issuances, non-investment grade loan issuances and securitized products revenues. While Investment Banking results improved from the prior year, we continue to operate in a market environment with lower completed M&A activity relative to longer-term averages.See “Investment Banking Volumes” herein.Equity, Fixed Income and Other Net RevenuesEquity and Fixed Income Net Revenues 2024$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$8,135 $566 $(2,840)$17 $5,878 Execution services3,702 2,591 (291)350 6,352 Total Equity$11,837 $3,157 $(3,131)$367 $12,230 Total Fixed income$8,464 $394 $(730)$290 $8,418 2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 1.Includes Commissions and fees and Asset management revenues.2.Includes funding costs, which are allocated to the businesses based on funding usage. 3.Includes Investments and Other revenues.EquityNet revenues of $12,230 million in 2024 increased 22% compared with the prior year, reflecting an increase in both Execution services and Financing, particularly in Asia and the Americas.•Financing revenues increased primarily due to higher client activity and lower funding and liquidity costs.•Execution services revenues increased primarily due to higher gains on inventory held to facilitate client activity and increased client activity in derivatives and cash equities.Fixed IncomeNet revenues of $8,418 million in 2024 increased 10% compared with the prior year, reflecting an increase across businesses, particularly in Credit and Global macro products.•Global macro products increased primarily due to lower losses on foreign exchange products and higher gains on rates products, on inventory held to facilitate client activity.•Credit products revenues increased primarily due to higher lending and securitized products revenues and lower losses While Investment Banking results improved from the prior year, we continue to operate in a market environment with lower completed M&A activity relative to longer-term averages. See “Investment Banking Volumes” herein.",
      "prior_body": "Net revenues of $4,578 million in 2023 decreased 13% compared with the prior year, primarily reflecting lower Advisory revenues. •Advisory revenues decreased primarily due to fewer completed M&A transactions on lower market volumes. •Equity underwriting revenues increased on higher volumes, primarily in secondary offerings and convertible issuances, partially offset by lower revenues from initial public offerings. •Fixed income underwriting revenues were relatively unchanged from the prior year, primarily reflecting higher investment-grade loan and bond issuances, offset by lower non-investment grade loan issuances. Investment Banking continues to operate in a market environment characterized by lower completed M&A and underwriting activity amid market uncertainty, including the future path of interest rates.See “Investment Banking Volumes” herein.Equity, Fixed Income and Other Net RevenuesEquity and Fixed Income Net Revenues 2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 2021$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$4,110 $508 $520 $8 $5,146 Execution services3,327 2,648 (226)540 6,289 Total Equity$7,437 $3,156 $294 $548 $11,435 Total Fixed income$5,098 $307 $1,835 $276 $7,516 1.Includes Commissions and fees and Asset management revenues.2.Includes funding costs, which are allocated to the businesses based on funding usage. 3.Includes Investments and Other revenues.EquityNet revenues of $9,986 million in 2023 decreased 7% compared with the prior year, reflecting decreases in Financing and Execution services.•Financing revenues decreased primarily due to higher funding and liquidity costs compared with the prior year.•Execution services revenues decreased primarily due to lower gains on inventory held to facilitate client activity in derivatives and cash equities and lower client activity in cash equities, partially offset by mark-to-market gains on business-related investments compared with losses in the prior year.Fixed IncomeNet revenues of $7,673 million in 2023 decreased 15% compared with the prior year, primarily reflecting a decrease in foreign exchange and commodities products.•Global macro products revenues decreased primarily due to a decline in foreign exchange products.•Credit products revenues decreased primarily due to lower client activity across products. Investment Banking continues to operate in a market environment characterized by lower completed M&A and underwriting activity amid market uncertainty, including the future path of interest rates. See “Investment Banking Volumes” herein."
    },
    {
      "status": "MODIFIED",
      "current_title": "We may be responsible for representations and warranties associated with commercial and residential real estate loans and may incur losses in excess of our reserves.",
      "prior_title": "We may be responsible for representations and warranties associated with commercial and residential real estate loans and may incur losses in excess of our reserves.",
      "similarity_score": 0.642,
      "confidence": "medium",
      "key_changes": [
        "Added sentence: \"A failure to address conflicts of interest appropriately could adversely affect our businesses and reputation.As a global financial services firm that provides products and services to a large and diversified group of clients, including corporations, governments, financial institutions and individuals, we face potential conflicts of interest in the normal course of business.\"",
        "Added sentence: \"For example, potential conflicts can occur when there is a divergence of interests between us and a client, among clients, between an employee on the one hand and us or a client on the other, or situations in which we may be a creditor of a client.\"",
        "Added sentence: \"Moreover, we utilize multiple brands and business channels, including those resulting from our acquisitions, and continue to enhance the collaboration across business segments, which may heighten the potential conflicts of interest or the risk of improper sharing of information.We have policies, procedures and controls that are designed to identify and address potential conflicts of interest, and we utilize various measures, such as the use of disclosure, to manage these potential conflicts.\"",
        "Added sentence: \"However, identifying and mitigating potential conflicts of interest can be complex and challenging and can become the focus of media and regulatory scrutiny.\"",
        "Added sentence: \"Indeed, actions that merely appear to create a conflict can put our reputation at risk even if the likelihood of an actual conflict has been mitigated.\""
      ],
      "current_body": "We originate loans secured by commercial and residential properties. Further, we securitize and trade in a wide range of commercial and residential real estate and real estate-related assets and products. In connection with these activities, we have provided, or otherwise agreed to be responsible for, certain representations and warranties. Under certain circumstances, we may be required to repurchase such assets or make other payments related to such assets if such representations and warranties were breached, and may incur losses as a result. We have also made representations and warranties in connection with our role as an originator of certain loans that we securitized in CMBS and RMBS. For additional information, see Note 14 to the financial statements. A failure to address conflicts of interest appropriately could adversely affect our businesses and reputation.As a global financial services firm that provides products and services to a large and diversified group of clients, including corporations, governments, financial institutions and individuals, we face potential conflicts of interest in the normal course of business. For example, potential conflicts can occur when there is a divergence of interests between us and a client, among clients, between an employee on the one hand and us or a client on the other, or situations in which we may be a creditor of a client. Moreover, we utilize multiple brands and business channels, including those resulting from our acquisitions, and continue to enhance the collaboration across business segments, which may heighten the potential conflicts of interest or the risk of improper sharing of information.We have policies, procedures and controls that are designed to identify and address potential conflicts of interest, and we utilize various measures, such as the use of disclosure, to manage these potential conflicts. However, identifying and mitigating potential conflicts of interest can be complex and challenging and can become the focus of media and regulatory scrutiny. Indeed, actions that merely appear to create a conflict can put our reputation at risk even if the likelihood of an actual conflict has been mitigated. It is possible that potential conflicts could give rise to litigation or enforcement actions, which may lead to our clients being less willing to enter into transactions in which a conflict may occur and could adversely affect our businesses and reputation.Our regulators also have the ability to scrutinize our activities for potential conflicts of interest, including through detailed examinations of specific transactions. For example, our status as a BHC supervised by the Federal Reserve subjects us to direct Federal Reserve scrutiny with respect to transactions between our U.S. Bank Subsidiaries and their affiliates. Further, the Volcker Rule subjects us to regulatory scrutiny regarding certain transactions between us and our clients.Risk ManagementOur risk management strategies, models and processes may not be fully effective in mitigating our risk exposures in all market environments or against all types of risk, which could result in unexpected losses.We have devoted significant resources to develop our risk management strategies, models and processes, including our use of various risk models for assessing market, credit, liquidity and operational exposures and hedging strategies, stress testing and other analysis capabilities, and expect to continue to do so in the future. Nonetheless, our risk management capabilities may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk, including risks that are unidentified or unanticipated.",
      "prior_body": "We originate loans secured by commercial and residential properties. Further, we securitize and trade in a wide range of commercial and residential real estate and real estate-related assets and products. In connection with these activities, we have provided, or otherwise agreed to be responsible for, certain representations and warranties. Under certain circumstances, we may be required to repurchase such assets or make other payments related to such assets if such representations and warranties were breached, and may incur losses as a result. We have also made representations and warranties in connection with our role as an originator of certain loans that we securitized in CMBS and RMBS. For additional information, see Note 14 to the financial statements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Required ratios3",
      "prior_title": "Regulatory Capital Ratios",
      "similarity_score": 0.642,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.\""
      ],
      "current_body": "1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions. 2.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures. 3.Required ratios are inclusive of any buffers applicable as of the date presented. Regulatory Capital$ in millionsAtDecember 31,2024AtDecember 31,2023 ChangeCET1 capitalCommon shareholders’ equity$94,761 $90,288 $4,473 Regulatory adjustments and deductions:Net goodwill(16,354)(16,394)40 Net intangible assets(5,003)(5,509)506 Impact of CECL transition62 124 (61)Other adjustments and deductions11,629 939 690 Total CET1 capital$75,095 $69,448 $5,647 Additional Tier 1 capitalPreferred stock$9,750 $8,750 $1,000 Noncontrolling interests807 758 49 Additional Tier 1 capital$10,557 $9,508 $1,049 Deduction for investments in covered funds(862)(773)(89)Total Tier 1 capital$84,790 $78,183 $6,607 Standardized Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible ACL2,065 2,051 14 Other adjustments and deductions(139)(120)(19)Total Standardized Tier 2 capital$10,777 $10,691 $86 Total Standardized capital$95,567 $88,874 $6,693 Advanced Tier 2 capitalSubordinated debt$8,851 $8,760 $91 Eligible credit reserves1,344 1,367 (23)Other adjustments and deductions(139)(120)(19)Total Advanced Tier 2 capital$10,056 $10,007 $49 Total Advanced capital$94,846 $88,190 $6,656 1.Other adjustments and deductions used in the calculation of CET1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets.",
      "prior_body": "$ in millionsRequiredRatio1At December 31, 2023RequiredRatio1At December 31, 2022Risk-based capital— StandardizedCommon Equity Tier 1 capital$69,448 $68,670 Tier 1 capital78,183 77,191 Total capital88,874 86,575 Total RWA456,053 447,849 Common Equity Tier 1 capital ratio12.9 %15.2 %13.3 %15.3 %Tier 1 capital ratio14.4 %17.1 %14.8 %17.2 %Total capital ratio16.4 %19.5 %16.8 %19.3 % RequiredRatio1 RequiredRatio1 $ in millionsRequiredRatio1At December 31, 2023At December 31, 2022Risk-based capital—AdvancedCommon Equity Tier 1 capital$69,448 $68,670 Tier 1 capital 78,183 77,191 Total capital 88,190 86,159 Total RWA 448,154 438,806 Common Equity Tier 1 capital ratio10.0 %15.5 %15.6 %Tier 1 capital ratio11.5 %17.4 %17.6 %Total capital ratio13.5 %19.7 %19.6 %$ in millionsRequired Ratio1At December 31, 2023At December 31, 2022Leverage-based capitalAdjusted average assets2$1,159,626 $1,150,772 Tier 1 leverage ratio4.0 %6.7 %6.7 %Supplementary leverage exposure3$1,429,552 $1,399,403 SLR5.0 %5.5 %5.5 % RequiredRatio1 Required Ratio1 Adjusted average assets2 Supplementary leverage exposure3 SLR 1.Required ratios are inclusive of any buffers applicable as of the date presented. 2.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions. 3.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures. Regulatory Capital$ in millionsAtDecember 31,2023AtDecember 31,2022 ChangeCommon Equity Tier 1 capitalCommon shareholders’ equity$90,288 $91,391 $(1,103)Regulatory adjustments and deductions:Net goodwill(16,394)(16,393)(1)Net intangible assets(5,509)(6,048)539 Impact of CECL transition124 185 (61)Other adjustments and deductions1939 (465)1,404 Total Common Equity Tier 1 capital$69,448 $68,670 $778 Additional Tier 1 capitalPreferred stock$8,750 $8,750 $— Noncontrolling interests758 552 206 Additional Tier 1 capital$9,508 $9,302 $206 Deduction for investments in covered funds(773)(781)8 Total Tier 1 capital$78,183 $77,191 $992 Standardized Tier 2 capitalSubordinated debt$8,760 $7,846 $914 Eligible ACL2,051 1,613 438 Other adjustments and deductions(120)(75)(45)Total Standardized Tier 2 capital$10,691 $9,384 $1,307 Total Standardized capital$88,874 $86,575 $2,299 Advanced Tier 2 capitalSubordinated debt$8,760 $7,846 $914 Eligible credit reserves1,367 1,197 170 Other adjustments and deductions(120)(75)(45)Total Advanced Tier 2 capital$10,007 $8,968 $1,039 Total Advanced capital$88,190 $86,159 $2,031 1.Other adjustments and deductions used in the calculation of Common Equity Tier 1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets."
    },
    {
      "status": "MODIFIED",
      "current_title": "Morgan Stanley",
      "prior_title": "Morgan Stanley",
      "similarity_score": 0.635,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"1.Includes Investments and Trading, Net interest and Other revenues.\""
      ],
      "current_body": "1.Includes Investments and Trading, Net interest and Other revenues. Net RevenuesAsset Management and Related FeesAsset management and related fees of $5,627 million in 2024 increased 8% compared with the prior year, primarily driven by higher average AUM on higher market levels.Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. While higher market levels drove increases in average AUM in the current year period, there were continued net outflows in the Equity asset class, which may be influenced by the structure and performance of our investment strategies and products relative to their benchmarks, offset by higher net inflows in the Alternatives and Solutions and Fixed Income asset classes reflecting client preferences. To the extent these conditions continue, we would expect our Asset management revenue to continue to be impacted.See “Assets Under Management or Supervision” herein.Performance-based Income and OtherPerformance-based income and other revenues increased to $234 million in 2024, from $139 million in the prior year, primarily due to higher accrued carried interest in infrastructure and real estate funds, partially offset by lower accrued carried interest in certain private equity funds. Non-Interest ExpensesNon-interest expenses of $4,724 million in 2024 increased 4% from the prior year, as a result of higher Non-compensation and Compensation and benefits expenses. •Compensation and benefits expenses increased primarily due to higher compensation associated with carried interest.•Non-compensation expenses increased primarily due to higher distribution expenses on higher AUM.",
      "prior_body": "1.Includes Investments, Trading, Commissions and fees, Net interest and Other revenues. Net RevenuesAsset Management and Related FeesAsset management and related fees of $5,231 million in 2023 decreased 2% compared with the prior year, primarily due to a shift in the mix of average AUM, driven by the cumulative effect of net flows.Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. The market environment and client preferences in recent quarters have impacted the mix of our average Long-Term AUM level across certain asset classes. To the extent these conditions continue, we would expect our Asset management revenue to continue to be negatively impacted.See “Assets Under Management or Supervision” herein.Performance-based Income and OtherPerformance-based income and other revenues increased to $139 million in 2023, from $43 million in the prior year, primarily due to mark-to-market gains in 2023 compared with losses in the prior year on DCP investments and investments in public funds, partially offset by lower accrued carried interest in certain private funds. Non-Interest ExpensesNon-interest expenses of $4,528 million in 2023 decreased 1% from the prior year, primarily due to lower Compensation and benefits expenses. •Compensation and benefits expenses decreased primarily due to lower expenses related to compensation associated with carried interest, partially offset by higher expenses related to DCP.•Non-compensation expenses were relatively unchanged for the current year."
    },
    {
      "status": "MODIFIED",
      "current_title": "Compensation Expense",
      "prior_title": "Compensation Expense",
      "similarity_score": 0.62,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Compensation and benefits expenses include base salaries and fixed allowances, formulaic programs, discretionary incentive compensation, amortization of deferred cash and equity awards, changes in the fair value of DCP investments, carried interest allocated to employees, severance costs, and other items such as health and welfare benefits.\"",
        "Reworded sentence: \"Compensation for other employees, including revenue-producing employees in the Institutional Securities business segment and employees in corporate support functions, include base salary and benefits and may also include incentive compensation that is determined following the assessment of the performance of the Firm, business unit and individual.\""
      ],
      "current_body": "Compensation and benefits expenses include base salaries and fixed allowances, formulaic programs, discretionary incentive compensation, amortization of deferred cash and equity awards, changes in the fair value of DCP investments, carried interest allocated to employees, severance costs, and other items such as health and welfare benefits. For additional information on DCP, refer to “Other Matters” herein. The factors that drive compensation for our employees vary from period to period, from segment to segment and within a segment. For certain revenue-producing employees in the Wealth Management and Investment Management business segments, compensation is largely paid on the basis of formulaic payouts that link employee compensation to revenues. Compensation for other employees, including revenue-producing employees in the Institutional Securities business segment and employees in corporate support functions, include base salary and benefits and may also include incentive compensation that is determined following the assessment of the performance of the Firm, business unit and individual.",
      "prior_body": "Compensation and benefits expenses include base salaries and fixed allowances, formulaic programs, discretionary incentive compensation, amortization of deferred cash and equity awards, changes in the fair value of DCP investments, including the Firm’s share price for certain awards, carried interest allocated to employees, severance costs, and other items such as health and welfare benefits. The factors that drive compensation for our employees vary from period to period, from segment to segment and within a segment. For certain revenue-producing employees in the Wealth Management and Investment Management business segments, compensation is largely paid on the basis of formulaic payouts that link employee compensation to revenues. Compensation for other employees, including revenue-producing employees in the Institutional Securities business segment, include base salary and benefits and may also include incentive compensation that is determined following the assessment of the performance of the Firm, business unit and individual. Compensation expense for DCP is recognized over the relevant vesting period and is adjusted based on the fair value of the referenced investments until distribution. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments made by the Firm, there is typically a timing difference between the 35December 2023 Form 10-K 35December 2023 Form 10-K 35December 2023 Form 10-K 35 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents immediate recognition of gains and losses on the Firm's investments and the compensation expense recognized over the vesting period.Income TaxesThe Income tax provision for our business segments is generally determined based on the revenues, expenses and activities directly attributable to each business segment. Certain items have been allocated to each business segment, generally in proportion to its respective net revenues or other relevant measures. immediate recognition of gains and losses on the Firm's investments and the compensation expense recognized over the vesting period.Income TaxesThe Income tax provision for our business segments is generally determined based on the revenues, expenses and activities directly attributable to each business segment. Certain items have been allocated to each business segment, generally in proportion to its respective net revenues or other relevant measures. immediate recognition of gains and losses on the Firm's investments and the compensation expense recognized over the vesting period."
    },
    {
      "status": "MODIFIED",
      "current_title": "Institutional Securities Allowance for Credit Losses—Loans and Lending Commitments",
      "prior_title": "Institutional Securities Allowance for Credit Losses—Loans and Lending Commitments",
      "similarity_score": 0.619,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Year Ended December 31, 2024$ in millionsCorporate Secured Lending FacilitiesCRESBL and OtherTotalACL—LoansBeginning balance$241 $153 $463 $17 $874 Gross charge-offs(39)(11)(165)— (215)Recoveries— — 4 1 5 Net (charge-offs)/recoveries(39)(11)(161)1 (210)Provision (release)2 1 77 1 81 Other(4)(3)(6)(2)(15)Ending balance$200 $140 $373 $17 $730 ACL—Lending commitmentsBeginning balance$431 $70 $26 $6 $533 Provision (release)86 19 16 — 121 Other(10)(1)(2)(1)(14)Ending balance$507 $88 $40 $5 $640 Total ending balance$707 $228 $413 $22 $1,370\""
      ],
      "current_body": "Year Ended December 31, 2024$ in millionsCorporate Secured Lending FacilitiesCRESBL and OtherTotalACL—LoansBeginning balance$241 $153 $463 $17 $874 Gross charge-offs(39)(11)(165)— (215)Recoveries— — 4 1 5 Net (charge-offs)/recoveries(39)(11)(161)1 (210)Provision (release)2 1 77 1 81 Other(4)(3)(6)(2)(15)Ending balance$200 $140 $373 $17 $730 ACL—Lending commitmentsBeginning balance$431 $70 $26 $6 $533 Provision (release)86 19 16 — 121 Other(10)(1)(2)(1)(14)Ending balance$507 $88 $40 $5 $640 Total ending balance$707 $228 $413 $22 $1,370",
      "prior_body": "Year Ended December 31, 2023$ in millionsCorporate Secured Lending FacilitiesCREOtherTotalACL—LoansBeginning balance$235 $153 $275 $11 $674 Gross charge-offs(34)— (129)(1)(164)Recoveries1 — — — 1 Net (charge-offs) recoveries(33)— (129)(1)(163)Provision (release)37 — 314 5 356 Other2 — 3 2 7 Ending balance$241 $153 $463 $17 $874 ACL—Lending commitmentsBeginning balance$411 $51 $15 $7 $484 Provision (release)16 18 11 — 45 Other4 1 — (1)4 Ending balance$431 $70 $26 $6 $533 Total ending balance$672 $223 $489 $23 $1,407"
    },
    {
      "status": "MODIFIED",
      "current_title": "Income Statement Information",
      "prior_title": "Income Statement Information",
      "similarity_score": 0.597,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"% Change$ in millions20242023202220242023RevenuesAsset management and related fees$5,627 $5,231 $5,332 8 %(2)%Performance-based income and other1234 139 43 68 %N/MNet revenues5,861 5,370 5,375 9 %— %Compensation and benefits2,302 2,217 2,273 4 %(2)%Non-compensation expenses2,422 2,311 2,295 5 %1 %Total non-interest expenses4,724 4,528 4,568 4 %(1)%Income before provision for income taxes1,137 842 807 35 %4 %Provision for income taxes275 199 162 38 %23 %Net income862 643 645 34 %— %Net income applicable to noncontrolling interests3 4 (15)(25)%127 %Net income applicable to Morgan Stanley$859 $639 $660 34 %(3)% Asset management and related fees Performance-based income and other1 Net income applicable to noncontrolling interests\""
      ],
      "current_body": "% Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%",
      "prior_body": "% Change$ in millions20232022202120232022RevenuesAdvisory$2,244 $2,946 $3,487 (24)%(16)%Equity889 851 4,437 4 %(81)%Fixed income1,445 1,438 2,348 — %(39)%Total Underwriting2,334 2,289 6,785 2 %(66)%Total Investment banking4,578 5,235 10,272 (13)%(49)%Equity9,986 10,769 11,435 (7)%(6)%Fixed income7,673 9,022 7,516 (15)%20 %Other823 (633)610 N/MN/MNet revenues23,060 24,393 29,833 (5)%(18)%Provision for credit losses401 211 (7)90 %N/MCompensation and benefits8,369 8,246 9,165 1 %(10)%Non-compensation expenses9,814 9,221 8,861 6 %4 %Total non-interest expenses18,183 17,467 18,026 4 %(3)%Income before provision for income taxes4,476 6,715 11,814 (33)%(43)%Provision for income taxes884 1,308 2,746 (32)%(52)%Net income3,592 5,407 9,068 (34)%(40)%Net income applicable to noncontrolling interests139 165 111 (16)%49 %Net income applicable to Morgan Stanley$3,453 $5,242 $8,957 (34)%(41)%"
    },
    {
      "status": "MODIFIED",
      "current_title": "2024$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$8,135 $566 $(2,840)$17 $5,878 Execution services3,702 2,591 (291)350 6,352 Total Equity$11,837 $3,157 $(3,131)$367 $12,230 Total Fixed income$8,464 $394 $(730)$290 $8,418",
      "prior_title": "2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673",
      "similarity_score": 0.596,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Fees1 Net Interest2 All Other3 2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673 Fees1 Net Interest2 All Other3 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 Fees1 Net Interest2 All Other3 1.Includes Commissions and fees and Asset management revenues.\"",
        "Reworded sentence: \"Equity Net revenues of $12,230 million in 2024 increased 22% compared with the prior year, reflecting an increase in both Execution services and Financing, particularly in Asia and the Americas.\""
      ],
      "current_body": "Fees1 Net Interest2 All Other3 2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673 Fees1 Net Interest2 All Other3 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 Fees1 Net Interest2 All Other3 1.Includes Commissions and fees and Asset management revenues. 2.Includes funding costs, which are allocated to the businesses based on funding usage. 3.Includes Investments and Other revenues. Equity Net revenues of $12,230 million in 2024 increased 22% compared with the prior year, reflecting an increase in both Execution services and Financing, particularly in Asia and the Americas. •Financing revenues increased primarily due to higher client activity and lower funding and liquidity costs. •Execution services revenues increased primarily due to higher gains on inventory held to facilitate client activity and increased client activity in derivatives and cash equities.",
      "prior_body": "Fees1 Net Interest2 All Other3 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 Fees1 Net Interest2 All Other3 2021$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$4,110 $508 $520 $8 $5,146 Execution services3,327 2,648 (226)540 6,289 Total Equity$7,437 $3,156 $294 $548 $11,435 Total Fixed income$5,098 $307 $1,835 $276 $7,516 Fees1 Net Interest2 All Other3 1.Includes Commissions and fees and Asset management revenues. 2.Includes funding costs, which are allocated to the businesses based on funding usage. 3.Includes Investments and Other revenues. Equity Net revenues of $9,986 million in 2023 decreased 7% compared with the prior year, reflecting decreases in Financing and Execution services. •Financing revenues decreased primarily due to higher funding and liquidity costs compared with the prior year. •Execution services revenues decreased primarily due to lower gains on inventory held to facilitate client activity in derivatives and cash equities and lower client activity in cash equities, partially offset by mark-to-market gains on business-related investments compared with losses in the prior year."
    },
    {
      "status": "MODIFIED",
      "current_title": "Average AUM",
      "prior_title": "Average AUM",
      "similarity_score": 0.593,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"$ in billions202420232022Equity$305 $279 $298 Fixed income180 170 186 Alternatives and Solutions557 466 435 Long-Term AUM Subtotal1,042 915 919 Liquidity and Overlay Services498 464 462 Total AUM$1,540 $1,379 $1,381 Long-Term AUM Subtotal\""
      ],
      "current_body": "$ in billions202420232022Equity$305 $279 $298 Fixed income180 170 186 Alternatives and Solutions557 466 435 Long-Term AUM Subtotal1,042 915 919 Liquidity and Overlay Services498 464 462 Total AUM$1,540 $1,379 $1,381 Long-Term AUM Subtotal",
      "prior_body": "$ in billions202320222021Equity$279 $298 $362 Fixed income170 186 181 Alternatives and Solutions466 435 380 Long-Term AUM Subtotal915 919 923 Liquidity and Overlay Services464 462 430 Total AUM$1,379 $1,381 $1,353 Long-Term AUM Subtotal"
    },
    {
      "status": "MODIFIED",
      "current_title": "Total Eligible HQLA",
      "prior_title": "Total Eligible HQLA1",
      "similarity_score": 0.586,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"1.Primarily includes U.S.\""
      ],
      "current_body": "1.Primarily includes U.S. Treasuries, U.S. agency mortgage-backed securities, sovereign bonds and investment grade corporate bonds.",
      "prior_body": "1.Under the LCR rule, Eligible HQLA is calculated using weightings and excluding certain HQLA held in subsidiaries. 2.Primarily includes U.S. Treasuries, U.S. agency mortgage-backed securities, sovereign bonds and investment grade corporate bonds."
    },
    {
      "status": "MODIFIED",
      "current_title": "Institutional Securities Event-Driven Loans and Lending Commitments",
      "prior_title": "Institutional Securities Loans and Lending Commitments Held for Investment",
      "similarity_score": 0.57,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"At December 31, 2024 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$2,253 $2,839 $733 $5,825 Lending commitments5,153 2,152 2,918 10,223 Total exposure$7,406 $4,991 $3,651 $16,048 At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$1,974 $2,564 $2,580 $7,118 Lending commitments3,564 685 549 4,798 Total exposure$5,538 $3,249 $3,129 $11,916 Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as merger, acquisition, recapitalization or project finance activities.\"",
        "Reworded sentence: \"While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given the sector’s sensitivity to economic and secular factors, credit conditions, and difficulties specific to certain property types, most notably office.As of December 31, 2024 and December 31, 2023, our lending against commercial real estate (“CRE”) properties within the Institutional Securities business segment totaled $10.7 billion and $9.4 billion, respectively.\""
      ],
      "current_body": "At December 31, 2024 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$2,253 $2,839 $733 $5,825 Lending commitments5,153 2,152 2,918 10,223 Total exposure$7,406 $4,991 $3,651 $16,048 At December 31, 2023 Contractual Years to Maturity $ in millions<11-55-15TotalLoans, net of ACL$1,974 $2,564 $2,580 $7,118 Lending commitments3,564 685 549 4,798 Total exposure$5,538 $3,249 $3,129 $11,916 Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as merger, acquisition, recapitalization or project finance activities. Balances may fluctuate as such lending is related to transactions that vary in timing and size from period to period. Institutional Securities Loans and Lending Commitments Held for InvestmentAt December 31, 2024$ in millionsLoansLending CommitmentsTotalCorporate$6,889 $105,824 $112,713 Secured lending facilities48,842 20,971 69,813 Commercial real estate8,412 1,249 9,661 Securities-based lending and Other2,876 1,504 4,380 Total, before ACL$67,019 $129,548 $196,567 ACL$(730)$(640)$(1,370)At December 31, 2023$ in millionsLoansLending CommitmentsTotalCorporate$6,758 $91,752 $98,510 Secured lending facilities39,498 15,589 55,087 Commercial real estate8,678 266 8,944 Securities-based lending and Other2,818 915 3,733 Total, before ACL$57,752 $108,522 $166,274 ACL$(874)$(533)$(1,407)Institutional Securities Commercial Real Estate Loans and Lending CommitmentsBy RegionAt December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalAmericas$5,066 $820 $5,886 $5,410 $289 $5,699 EMEA3,806 522 4,328 3,127 56 3,183 Asia467 13 480 485 — 485 Total$9,339 $1,355 $10,694 $9,022 $345 $9,367 By Property TypeAt December 31, 2024At December 31, 2023$ in millionsLoans1LC1TotalLoans1LC1TotalOffice$2,846 $109 $2,955 $3,310 $186 $3,496 Industrial2,610 125 2,735 2,435 5 2,440 Multifamily2,042 80 2,122 1,715 74 1,789 Retail1,105 971 2,076 842 7 849 Hotel736 70 806 718 73 791 Other— — — 2 — 2 Total$9,339 $1,355 $10,694 $9,022 $345 $9,367 LC–Lending Commitments1. Amounts include HFI, HFS and FVO loans and lending commitments. HFI loans are presented net of ACL.The current economic environment and changes in business and consumer behavior have adversely impacted commercial real estate borrowers due to pressure from higher interest rates, tenant lease renewals, and elevated refinancing risks for loans with near-term maturities, among other issues. While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given the sector’s sensitivity to economic and secular factors, credit conditions, and difficulties specific to certain property types, most notably office.As of December 31, 2024 and December 31, 2023, our lending against commercial real estate (“CRE”) properties within the Institutional Securities business segment totaled $10.7 billion and $9.4 billion, respectively. This represents",
      "prior_body": "At December 31, 2023$ in millionsLoansLending CommitmentsTotalCorporate$6,758 $91,752 $98,510 Secured lending facilities39,498 15,589 55,087 Commercial real estate8,678 266 8,944 Other2,818 915 3,733 Total, before ACL$57,752 $108,522 $166,274 ACL$(874)$(533)$(1,407)At December 31, 2022$ in millionsLoansLending CommitmentsTotalCorporate$6,589 $79,882 $86,471 Secured lending facilities35,606 12,803 48,409 Commercial real estate8,515 374 8,889 Other2,865 985 3,850 Total, before ACL$53,575 $94,044 $147,619 ACL$(674)$(484)$(1,158) Institutional Securities Commercial Real Estate Loans and Lending CommitmentsBy RegionAt December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalAmericas$5,410 $289 $5,699 $6,320 $378 $6,698 EMEA3,127 56 3,183 3,040 79 3,119 Asia485 — 485 445 5 450 Total$9,022 $345 $9,367 $9,805 $462 $10,267 By Property TypeAt December 31, 2023At December 31, 2022$ in millionsLoans1LC1TotalLoans1LC1TotalOffice$3,310 $186 $3,496 $3,861 $301 $4,162 Industrial2,435 5 2,440 2,561 25 2,586 Multifamily1,715 74 1,789 1,889 85 1,974 Retail842 7 849 659 6 665 Hotel718 73 791 780 45 825 Other2 — 2 55 — 55 Total$9,022 $345 $9,367 $9,805 $462 $10,267 LC–Lending Commitments1. Amounts include HFI, HFS and FVO loans and lending commitments. HFI loans are presented net of ACL.The current economic environment and changes in business and consumer behavior have adversely impacted commercial real estate borrowers due to pressure from higher interest rates, tenant lease renewals, and elevated refinancing risks for loans with near-term maturities, among other issues. While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given the sector’s sensitivity to economic and secular factors, credit conditions, and difficulties specific to certain property types, most notably office.As of December 31, 2023 and December 31, 2022, our lending against commercial real estate (“CRE”) properties totaled $9.4 billion and $10.3 billion within the Institutional Securities business segment, which represents 4.5% and 5.3% of total exposure reflected in the Institutional Securities Loans and Lending Commitments table above. Those CRE loans are originated for experienced sponsors and are generally secured by specific institutional CRE properties. In many cases, loans are subsequently syndicated or securitized on a full or partial basis, reducing our ongoing exposure.In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above. These secured lending facilities benefit from structural protections including cross-collateralization and diversification across property types."
    },
    {
      "status": "MODIFIED",
      "current_title": "Net Income Applicable to Morgan Stanley by Segment1",
      "prior_title": "Provision for Credit Losses",
      "similarity_score": 0.562,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"($ in millions) 1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations.\"",
        "Reworded sentence: \"•Institutional Securities net revenues of $28,080 million in 2024 increased 22% from the prior year, reflecting higher results across businesses, particularly in Equity and underwriting results within Investment Banking.\""
      ],
      "current_body": "($ in millions) 1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 22 to the financial statements for details of intersegment eliminations. •Institutional Securities net revenues of $28,080 million in 2024 increased 22% from the prior year, reflecting higher results across businesses, particularly in Equity and underwriting results within Investment Banking. •Wealth Management net revenues of $28,420 million in 2024 increased 8% from the prior year, primarily reflecting higher Asset management revenues and Transactional revenues, partially offset by lower Net interest income. •Investment Management net revenues of $5,861 million in 2024 increased 9% from the prior year, primarily reflecting higher Asset management and related fees and higher Performance-based income and other revenues.",
      "prior_body": "The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. The Provision for credit losses on loans and lending commitments of $280 million in 2022 was due to portfolio growth and deterioration in the macroeconomic outlook. For further information on the Provision for credit losses, see “Credit Risk” herein. Business Segment ResultsNet Revenues by Segment1($ in millions)Net Income Applicable to Morgan Stanley by Segment1($ in millions)1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 22 to the financial statements for details of intersegment eliminations. •Institutional Securities net revenues of $23,060 million in 2023 decreased 5% from the prior year, primarily reflecting lower results across businesses.•Wealth Management net revenues of $26,268 million in 2023 increased 8% from the prior year, primarily reflecting gains on DCP investments compared with losses in the prior year and higher Net interest revenues.•Investment Management net revenues of $5,370 million in 2023 were relatively unchanged from the prior year, reflecting a decrease in Asset management and related fees revenues offset by an increase in Performance based income and other revenues."
    },
    {
      "status": "MODIFIED",
      "current_title": "Provision for Credit Losses by Business Segment",
      "prior_title": "Provision for Credit Losses by Business Segment",
      "similarity_score": 0.55,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Year Ended December 31, 2024$ in millionsISWMTotalLoans$81 $65 $146 Lending commitments121 (3)118 Total$202 $62 $264 Credit exposure arising from our loans and lending commitments is measured in accordance with our internal risk management standards.\"",
        "Reworded sentence: \"The allowance for credit losses for loans and lending commitments was relatively unchanged since December 31, 2023, reflecting provisions for certain specific commercial real estate loans and growth in the corporate loan portfolio, offset by charge-offs related to commercial real estate lending, mainly in the office sector, and improvements in the macroeconomic outlook.\""
      ],
      "current_body": "Year Ended December 31, 2024$ in millionsISWMTotalLoans$81 $65 $146 Lending commitments121 (3)118 Total$202 $62 $264 Credit exposure arising from our loans and lending commitments is measured in accordance with our internal risk management standards. Risk factors considered in determining the allowance for credit losses for loans and lending commitments include the borrower’s financial strength, industry, facility structure, LTV ratio, debt service ratio, collateral and covenants. Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio and lending terms, and volume and severity of past due loans may also be considered. The allowance for credit losses for loans and lending commitments was relatively unchanged since December 31, 2023, reflecting provisions for certain specific commercial real estate loans and growth in the corporate loan portfolio, offset by charge-offs related to commercial real estate lending, mainly in the office sector, and improvements in the macroeconomic outlook. The base scenario used in our ACL models as of December 31, 2024 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. This scenario assumes continued economic growth as well as lower interest rates relative to the prior year forecast. The ACL calculation incorporates key macroeconomic variables, including U.S. real GDP growth rate. The significance of key macroeconomic variables on the ACL calculation varies depending on portfolio composition and economic conditions.",
      "prior_body": "Year Ended December 31, 2023$ in millionsISWMTotalLoans$356 $132 $488 Lending commitments45 (1)44 Total$401 $131 $532 Credit exposure arising from our loans and lending commitments is measured in accordance with our internal risk management standards. Risk factors considered in determining the allowance for credit losses for loans and lending commitments include the borrower’s financial strength, industry, facility structure, LTV ratio, debt service ratio, collateral and covenants. Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio and lending terms, and volume and severity of past due loans may also be considered. The allowance for credit losses for loans and lending commitments increased in 2023, primarily related to deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. Charge-offs in 2023 were primarily related to Commercial real estate and Corporate loans.The base scenario used in our ACL models as of December 31, 2023 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models, and assumes slow economic growth in 2024, followed by a gradual improvement in 2025. Given the nature of our lending portfolio, the most sensitive model input is U.S. gross domestic product (“GDP”).Forecasted U.S. Real GDP Growth Rates in Base Scenario4Q 20244Q 2025Year-over-year growth rate0.9 %2.0 %See Note 2 to the financial statements for a discussion of the Firm’s ACL methodology under CECL.Status of Loans Held for InvestmentAt December 31, 2023At December 31, 2022ISWMISWMAccrual98.9 %99.8 %99.3 %99.9 %Nonaccrual11.1 %0.2 %0.7 %0.1 %1.Nonaccrual loans are loans where principal or interest is not expected when contractually due or are past due 90 days or more.Net Charge-off Ratios for Loans Held for Investment$ in millionsCorporate Secured Lending FacilitiesCREResidential Real EstateSBL and OtherTotal2023Net charge-off ratio10.47 %— %1.50 %— %— %0.08 %Average loans$7,062 $37,702 $8,590 $57,177 $91,126 $201,657 2022Net charge-off ratio1(0.09)%0.01 %0.09 %— %0.02 %0.01 %Average loans$6,544 $33,172 $8,234 $49,937 $93,427 $191,314 2021Net charge-off ratio10.44 %0.24 %0.38 %— %0.01 %0.08 %Average loans$5,184 $27,833 $7,089 $39,111 $75,230 $154,447 CRE—Commercial real estateSBL—Securities-based lending 1.Net charge-off ratio represents gross charge-offs net of recoveries divided by total average loans held for investment before ACL. deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. Charge-offs in 2023 were primarily related to Commercial real estate and Corporate loans. The base scenario used in our ACL models as of December 31, 2023 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models, and assumes slow economic growth in 2024, followed by a gradual improvement in 2025. Given the nature of our lending portfolio, the most sensitive model input is U.S. gross domestic product (“GDP”)."
    },
    {
      "status": "MODIFIED",
      "current_title": "Net Interest",
      "prior_title": "Net Interest",
      "similarity_score": 0.546,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Net interest revenues of $7,313 million in 2024 decreased 10% compared with the prior year, primarily due to lower average sweep deposits, partially offset by higher yields on our investment portfolio and lending growth.\""
      ],
      "current_body": "Interest income and Interest expense are functions of the level and mix of total assets and liabilities, including Trading assets and Trading liabilities, Investment securities, Securities borrowed or purchased under agreements to resell, Securities loaned or sold under agreements to repurchase, Loans, Deposits and Borrowings. Within the Institutional Securities business segment, Net interest is a function of market-making strategies, client activity, and the prevailing level, term structure and volatility of interest rates. Net interest is impacted by market-making, lending and financing activities as we generally earn interest on securities held by the Firm, Securities borrowed, Securities purchased under agreements to resell, Loans and margin loans, while Borrowings, Securities loaned and Securities sold under agreements to repurchase generally incur interest expense. Within the Wealth Management business segment, Interest income is driven by assets held including Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. Other Other revenues for Institutional Securities include revenues and losses from equity method investments, fees earned in association with lending activities, mark-to-market gains and losses on loans and lending commitments held for sale, as well as gains and losses on economic derivative hedges associated with certain held-for-sale and held-for-investment loans and lending commitments. Other revenues for Wealth Management include realized gains and losses on AFS securities, account handling fees, referral fees and other miscellaneous revenues.",
      "prior_body": "Interest income and Interest expense are functions of the level and mix of total assets and liabilities, including Trading assets and Trading liabilities, Investment securities, Securities borrowed or purchased under agreements to resell, Securities loaned or sold under agreements to repurchase, Loans, Deposits and Borrowings. Within the Institutional Securities business segment, Net interest is a function of market-making strategies, client activity, and the prevailing level, term structure and volatility of interest rates. Net interest is impacted by market-making, lending and financing activities as we generally earn interest on securities held by the Firm, Securities borrowed, Securities purchased under agreements to resell, Loans and margin loans, while Borrowings, Securities loaned and Securities sold under agreements to repurchase generally incur interest expense. Within the Wealth Management business segment, Interest income is driven by assets held including Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. Other Other revenues for Institutional Securities include revenues and losses from equity method investments, fees earned in association with lending activities, mark-to-market gains and losses on loans and lending commitments held for sale, as well as gains and losses on economic derivative hedges associated with certain held-for-sale and held-for-investment loans and lending commitments. Other revenues for Wealth Management include realized gains and losses on AFS securities, account handling fees, referral fees and other miscellaneous revenues."
    },
    {
      "status": "MODIFIED",
      "current_title": "Forecasted U.S. Real GDP Growth Rates in Base Scenario",
      "prior_title": "Status of Loans Held for Investment",
      "similarity_score": 0.537,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"4Q 20254Q 2026Year-over-year growth rate1.9 %2.1 % December 2024 Form 10-K64 December 2024 Form 10-K64 December 2024 Form 10-K64 64 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Other key macroeconomic variables used in the ACL calculation include corporate credit spreads, interest rates and commercial real estate indices.\""
      ],
      "current_body": "4Q 20254Q 2026Year-over-year growth rate1.9 %2.1 % December 2024 Form 10-K64 December 2024 Form 10-K64 December 2024 Form 10-K64 64 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Other key macroeconomic variables used in the ACL calculation include corporate credit spreads, interest rates and commercial real estate indices. See Note 2 to the financial statements for a discussion of the Firm’s ACL methodology under CECL.Status of Loans Held for InvestmentAt December 31, 2024At December 31, 2023ISWMISWMAccrual99.2 %99.7 %98.9 %99.8 %Nonaccrual10.8 %0.3 %1.1 %0.2 %1.Nonaccrual loans are loans where principal or interest is not expected when contractually due or are past due 90 days or more.Net Charge-off Ratios for Loans Held for Investment$ in millionsCorporate Secured Lending FacilitiesCREResidential Real EstateSBL and OtherTotal2024Net charge-off ratio 10.57 %0.03 %1.87 %— %0.03 %0.11 %Average loans$6,895 $43,158 $8,620 $63,204 $91,221 $213,098 2023Net charge-off ratio 10.47 %— %1.50 %— %— %0.08 %Average loans$7,062 $37,702 $8,590 $57,177 $91,126 $201,657 2022Net charge-off ratio 1(0.09)%0.01 %0.09 %— %0.02 %0.01 %Average loans$6,544 $33,172 $8,234 $49,937 $93,427 $191,314 CRE—Commercial real estateSBL—Securities-based lending 1.Net charge-off ratio represents gross charge-offs net of recoveries divided by total average loans held for investment before ACL.Institutional Securities Loans and Lending Commitments1 At December 31, 2024 Contractual Years to Maturity $ in millions< 11-55-15>15TotalLoansAA$3 $575 $187 $— $765 A894 588 164 — 1,646 BBB5,165 13,185 91 124 18,565 BB11,235 24,467 2,592 358 38,652 Other NIG8,520 12,776 1,673 145 23,114 Unrated2227 1,176 420 2,503 4,326 Total loans, net of ACL26,044 52,767 5,127 3,130 87,068 Lending commitmentsAAA— 75 — — 75 AA2,560 4,285 88 — 6,933 A8,226 21,372 1,091 — 30,689 BBB10,135 54,752 1,507 146 66,540 BB3,174 23,239 3,062 941 30,416 Other NIG1,074 17,436 3,956 2 22,468 Unrated214 93 33 — 140 Total lendingcommitments25,183 121,252 9,737 1,089 157,261 Total exposure$51,227 $174,019 $14,864 $4,219 $244,329 At December 31, 2023 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$3 $11 $216 $— $230 A1,054 950 182 — 2,186 BBB7,117 10,076 346 — 17,539 BB11,723 16,367 1,775 277 30,142 Other NIG9,586 12,961 2,924 156 25,627 Unrated2111 1,036 62 2,910 4,119 Total loans, net of ACL29,594 41,401 5,505 3,343 79,843 Lending commitmentsAAA— 50 — — 50 AA2,610 3,064 154 — 5,828 A7,704 21,256 593 — 29,553 BBB9,161 46,304 106 — 55,571 BB4,069 16,431 1,594 414 22,508 Other NIG1,916 13,842 1,077 3 16,838 Unrated26 7 — — 13 Total lendingcommitments25,466 100,954 3,524 417 130,361 Total exposure$55,060 $142,355 $9,029 $3,760 $210,204 NIG–Non-investment grade1.Counterparty credit ratings are internally determined by the CRM.2.Unrated loans and lending commitments are primarily trading positions that are measured at fair value and risk-managed as a component of market risk. For a further discussion of our market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk” herein.Institutional Securities Loans and Lending Commitments by Industry$ in millionsAtDecember 31,2024AtDecember 31,2023Financials$68,512 $57,804 Real estate40,041 35,342 Communications services20,425 15,301 Industrials20,024 18,056 Information technology15,666 12,430 Healthcare15,455 14,274 Consumer discretionary14,699 12,190 Consumer staples12,098 9,305 Utilities11,755 11,522 Energy9,036 9,156 Materials7,378 6,503 Insurance6,812 6,486 Other2,428 1,835 Total exposure$244,329 $210,204 Institutional Securities Lending ActivitiesThe Institutional Securities business segment lending activities include Corporate, Secured lending facilities, Commercial and Residential real estate, and Securities-based lending and Other. As of December 31, 2024 and December 31, 2023, over 90% of our total lending exposure, which consists of loans and lending commitments, was investment grade and/or secured by collateral. Corporate comprises relationship and event-driven loans and lending commitments supporting general and event-driven financing needs for our institutional clients, which typically consist of revolving lines of credit, term loans and bridge loans; may have varying terms; may be senior or Other key macroeconomic variables used in the ACL calculation include corporate credit spreads, interest rates and commercial real estate indices. See Note 2 to the financial statements for a discussion of the Firm’s ACL methodology under CECL.Status of Loans Held for InvestmentAt December 31, 2024At December 31, 2023ISWMISWMAccrual99.2 %99.7 %98.9 %99.8 %Nonaccrual10.8 %0.3 %1.1 %0.2 %1.Nonaccrual loans are loans where principal or interest is not expected when contractually due or are past due 90 days or more.Net Charge-off Ratios for Loans Held for Investment$ in millionsCorporate Secured Lending FacilitiesCREResidential Real EstateSBL and OtherTotal2024Net charge-off ratio 10.57 %0.03 %1.87 %— %0.03 %0.11 %Average loans$6,895 $43,158 $8,620 $63,204 $91,221 $213,098 2023Net charge-off ratio 10.47 %— %1.50 %— %— %0.08 %Average loans$7,062 $37,702 $8,590 $57,177 $91,126 $201,657 2022Net charge-off ratio 1(0.09)%0.01 %0.09 %— %0.02 %0.01 %Average loans$6,544 $33,172 $8,234 $49,937 $93,427 $191,314 CRE—Commercial real estateSBL—Securities-based lending 1.Net charge-off ratio represents gross charge-offs net of recoveries divided by total average loans held for investment before ACL.Institutional Securities Loans and Lending Commitments1 At December 31, 2024 Contractual Years to Maturity $ in millions< 11-55-15>15TotalLoansAA$3 $575 $187 $— $765 A894 588 164 — 1,646 BBB5,165 13,185 91 124 18,565 BB11,235 24,467 2,592 358 38,652 Other NIG8,520 12,776 1,673 145 23,114 Unrated2227 1,176 420 2,503 4,326 Total loans, net of ACL26,044 52,767 5,127 3,130 87,068 Lending commitmentsAAA— 75 — — 75 AA2,560 4,285 88 — 6,933 A8,226 21,372 1,091 — 30,689 BBB10,135 54,752 1,507 146 66,540 BB3,174 23,239 3,062 941 30,416 Other NIG1,074 17,436 3,956 2 22,468 Unrated214 93 33 — 140 Total lendingcommitments25,183 121,252 9,737 1,089 157,261 Total exposure$51,227 $174,019 $14,864 $4,219 $244,329 Other key macroeconomic variables used in the ACL calculation include corporate credit spreads, interest rates and commercial real estate indices. See Note 2 to the financial statements for a discussion of the Firm’s ACL methodology under CECL.",
      "prior_body": "At December 31, 2023At December 31, 2022ISWMISWMAccrual98.9 %99.8 %99.3 %99.9 %Nonaccrual11.1 %0.2 %0.7 %0.1 % Nonaccrual1 1.Nonaccrual loans are loans where principal or interest is not expected when contractually due or are past due 90 days or more. Net Charge-off Ratios for Loans Held for Investment$ in millionsCorporate Secured Lending FacilitiesCREResidential Real EstateSBL and OtherTotal2023Net charge-off ratio10.47 %— %1.50 %— %— %0.08 %Average loans$7,062 $37,702 $8,590 $57,177 $91,126 $201,657 2022Net charge-off ratio1(0.09)%0.01 %0.09 %— %0.02 %0.01 %Average loans$6,544 $33,172 $8,234 $49,937 $93,427 $191,314 2021Net charge-off ratio10.44 %0.24 %0.38 %— %0.01 %0.08 %Average loans$5,184 $27,833 $7,089 $39,111 $75,230 $154,447 Net charge-off ratio1 Net charge-off ratio1 Net charge-off ratio1 CRE—Commercial real estate SBL—Securities-based lending 1.Net charge-off ratio represents gross charge-offs net of recoveries divided by total average loans held for investment before ACL. December 2023 Form 10-K70 December 2023 Form 10-K70 December 2023 Form 10-K70 70 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Institutional Securities Loans and Lending Commitments1 At December 31, 2023 Contractual Years to Maturity $ in millions< 11-55-15>15TotalLoansAA$3 $11 $216 $— $230 A1,054 950 182 — 2,186 BBB7,117 10,076 346 — 17,539 BB11,723 16,367 1,775 277 30,142 Other NIG9,586 12,961 2,924 156 25,627 Unrated2111 1,036 62 2,910 4,119 Total loans, net of ACL29,594 41,401 5,505 3,343 79,843 Lending commitmentsAAA— 50 — — 50 AA2,610 3,064 154 — 5,828 A7,704 21,256 593 — 29,553 BBB9,161 46,304 106 — 55,571 BB4,069 16,431 1,594 414 22,508 Other NIG1,916 13,842 1,077 3 16,838 Unrated26 7 — — 13 Total lendingcommitments25,466 100,954 3,524 417 130,361 Total exposure$55,060 $142,355 $9,029 $3,760 $210,204 At December 31, 2022 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$66 $— $139 $— $205 A1,331 787 185 — 2,303 BBB5,632 10,712 465 — 16,809 BB11,045 19,219 796 162 31,222 Other NIG7,274 10,249 3,945 139 21,607 Unrated295 924 624 2,066 3,709 Total loans, net of ACL25,443 41,891 6,154 2,367 75,855 Lending commitmentsAAA— 50 — — 50 AA2,515 2,935 11 — 5,461 A5,030 19,717 202 330 25,279 BBB10,263 39,615 566 — 50,444 BB3,691 17,656 1,416 96 22,859 Other NIG1,173 13,872 530 — 15,575 Unrated2— 20 — 3 23 Total lendingcommitments22,672 93,865 2,725 429 119,691 Total exposure$48,115 $135,756 $8,879 $2,796 $195,546 NIG–Non-investment grade1.Counterparty credit ratings are internally determined by the CRM.2.Unrated loans and lending commitments are primarily trading positions that are measured at fair value and risk-managed as a component of market risk. For a further discussion of our market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk” herein.Institutional Securities Loans and Lending Commitments by Industry$ in millionsAtDecember 31,2023AtDecember 31,2022Financials$57,804 $54,222 Real estate35,342 32,358 Industrials18,056 14,557 Communications services15,301 15,336 Healthcare14,274 12,353 Information technology12,430 13,790 Consumer discretionary12,190 11,592 Utilities11,522 10,542 Consumer staples9,305 7,823 Energy9,156 9,115 Materials6,503 6,102 Insurance6,486 5,925 Other1,835 1,831 Total exposure$210,204 $195,546 Institutional Securities Lending ActivitiesThe Institutional Securities business segment lending activities include Corporate, Secured lending facilities, Commercial and Residential real estate, and Securities-based lending and Other. As of December 31, 2023 and December 31, 2022, over 90% of our total lending exposure, which consists of loans and lending commitments, is investment grade and/or secured by collateral. Corporate comprises relationship and event-driven loans and lending commitments supporting general and event-driven financing needs for our institutional clients, which typically consist of revolving lines of credit, term loans and bridge loans; may have varying terms; may be senior or subordinated; may be secured or unsecured; are generally contingent upon representations, warranties and contractual conditions applicable to the borrower; and may be syndicated, traded or hedged. Relationship loans and lending commitments are extended to select institutional clients, primarily for general corporate purposes and generally with the intent to hold for the foreseeable future. Event-driven loans and lending commitments are extended in connection with specific client transactions and are explained in further detail in “Institutional Securities Event-Driven Loans and Lending Commitments” herein.Secured lending facilities include loans provided to clients, which are collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other assets. These facilities generally provide for overcollateralization. Credit risk with respect to these loans and lending commitments arises from the failure of a borrower to perform according to the terms of the loan agreement and/or a decline in the underlying collateral value. The Firm monitors collateral levels against the requirements of lending agreements. See Note 15 to the financial statements for information about our securitization activities. Institutional Securities Loans and Lending Commitments1 At December 31, 2023 Contractual Years to Maturity $ in millions< 11-55-15>15TotalLoansAA$3 $11 $216 $— $230 A1,054 950 182 — 2,186 BBB7,117 10,076 346 — 17,539 BB11,723 16,367 1,775 277 30,142 Other NIG9,586 12,961 2,924 156 25,627 Unrated2111 1,036 62 2,910 4,119 Total loans, net of ACL29,594 41,401 5,505 3,343 79,843 Lending commitmentsAAA— 50 — — 50 AA2,610 3,064 154 — 5,828 A7,704 21,256 593 — 29,553 BBB9,161 46,304 106 — 55,571 BB4,069 16,431 1,594 414 22,508 Other NIG1,916 13,842 1,077 3 16,838 Unrated26 7 — — 13 Total lendingcommitments25,466 100,954 3,524 417 130,361 Total exposure$55,060 $142,355 $9,029 $3,760 $210,204 At December 31, 2022 Contractual Years to Maturity$ in millions< 11-55-15>15TotalLoansAA$66 $— $139 $— $205 A1,331 787 185 — 2,303 BBB5,632 10,712 465 — 16,809 BB11,045 19,219 796 162 31,222 Other NIG7,274 10,249 3,945 139 21,607 Unrated295 924 624 2,066 3,709 Total loans, net of ACL25,443 41,891 6,154 2,367 75,855 Lending commitmentsAAA— 50 — — 50 AA2,515 2,935 11 — 5,461 A5,030 19,717 202 330 25,279 BBB10,263 39,615 566 — 50,444 BB3,691 17,656 1,416 96 22,859 Other NIG1,173 13,872 530 — 15,575 Unrated2— 20 — 3 23 Total lendingcommitments22,672 93,865 2,725 429 119,691 Total exposure$48,115 $135,756 $8,879 $2,796 $195,546 NIG–Non-investment grade1.Counterparty credit ratings are internally determined by the CRM.2.Unrated loans and lending commitments are primarily trading positions that are measured at fair value and risk-managed as a component of market risk. For a further discussion of our market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk” herein."
    },
    {
      "status": "MODIFIED",
      "current_title": "Total Assets by Business Segment",
      "prior_title": "Total Assets by Business Segment",
      "similarity_score": 0.521,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"At December 31, 2024$ in millionsISWMIMTotalAssetsCash and cash equivalents$74,079 $31,072 $235 $105,386 Trading assets at fair value320,003 6,915 4,966 331,884 Investment securities38,096 121,583 — 159,679 Securities purchased under agreements to resell100,404 18,161 — 118,565 Securities borrowed121,901 1,958 — 123,859 Customer and other receivables47,321 37,196 1,641 86,158 Loans178,607 159,542 4 238,153 Goodwill435 10,190 6,081 16,706 Intangible assets27 2,939 3,487 6,453 Other assets215,735 11,292 1,201 28,228 Total assets$796,608 $400,848 $17,615 $1,215,071 Loans1 Goodwill Intangible assets Other assets2 At December 31, 2023$ in millionsISWMIMTotalAssetsCash and cash equivalents$72,928 $16,172 $132 $89,232 Trading assets at fair value353,841 7,962 5,271 367,074 Investment securities39,212 115,595 — 154,807 Securities purchased under agreements to resell90,701 20,039 — 110,740 Securities borrowed119,823 1,268 — 121,091 Customer and other receivables47,333 31,237 1,535 80,105 Loans172,110 146,526 4 218,640 Goodwill424 10,199 6,084 16,707 Intangible assets26 3,427 3,602 7,055 Other assets214,108 12,743 1,391 28,242 Total assets$810,506 $365,168 $18,019 $1,193,693 Loans1 Goodwill Intangible assets Other assets2 1.Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements).\"",
        "Removed sentence: \"Total assets of $1,194 billion at December 31, 2023 were relatively unchanged from $1,180 billion at December 31, 2022.Liquidity Risk Management FrameworkThe primary goal of our Liquidity Risk Management Framework is to ensure that we have access to adequate funding across a wide range of market conditions and time horizons.\"",
        "Removed sentence: \"The framework is designed to enable us to fulfill our financial obligations and support the execution of our business strategies.The following principles guide our Liquidity Risk Management Framework:•Sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”) should be maintained to cover maturing liabilities and other planned and contingent outflows;•Maturity profile of assets and liabilities should be aligned, with limited reliance on short-term funding;•Source, counterparty, currency, region and term of funding should be diversified; and•Liquidity Stress Tests should anticipate, and account for, periods of limited access to funding.The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile.Required Liquidity FrameworkOur Required Liquidity Framework establishes the amount of liquidity we must hold in both normal and stressed environments to ensure that our financial condition and overall soundness are not adversely affected by an inability (or perceived inability) to meet our financial obligations in a timely manner.\"",
        "Removed sentence: \"The Required Liquidity Framework considers the most constraining liquidity requirement to satisfy all regulatory and internal limits at a consolidated and legal entity level.Liquidity Stress TestsWe use Liquidity Stress Tests to model external and intercompany liquidity flows across multiple scenarios and a range of time horizons.\"",
        "Removed sentence: \"These scenarios contain various combinations of idiosyncratic and systemic stress events of different severity and duration.\""
      ],
      "current_body": "At December 31, 2024$ in millionsISWMIMTotalAssetsCash and cash equivalents$74,079 $31,072 $235 $105,386 Trading assets at fair value320,003 6,915 4,966 331,884 Investment securities38,096 121,583 — 159,679 Securities purchased under agreements to resell100,404 18,161 — 118,565 Securities borrowed121,901 1,958 — 123,859 Customer and other receivables47,321 37,196 1,641 86,158 Loans178,607 159,542 4 238,153 Goodwill435 10,190 6,081 16,706 Intangible assets27 2,939 3,487 6,453 Other assets215,735 11,292 1,201 28,228 Total assets$796,608 $400,848 $17,615 $1,215,071 Loans1 Goodwill Intangible assets Other assets2 At December 31, 2023$ in millionsISWMIMTotalAssetsCash and cash equivalents$72,928 $16,172 $132 $89,232 Trading assets at fair value353,841 7,962 5,271 367,074 Investment securities39,212 115,595 — 154,807 Securities purchased under agreements to resell90,701 20,039 — 110,740 Securities borrowed119,823 1,268 — 121,091 Customer and other receivables47,333 31,237 1,535 80,105 Loans172,110 146,526 4 218,640 Goodwill424 10,199 6,084 16,707 Intangible assets26 3,427 3,602 7,055 Other assets214,108 12,743 1,391 28,242 Total assets$810,506 $365,168 $18,019 $1,193,693 Loans1 Goodwill Intangible assets Other assets2 1.Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements). 2.Other assets primarily includes premises, equipment and software, ROU assets related to leases, other investments and deferred tax assets. A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities and short-term receivables. In the Institutional Securities business segment, these arise from market-making, financing and prime brokerage activities, and in the Wealth Management business segment, these arise from banking activities, including management of the investment portfolio.",
      "prior_body": "At December 31, 2023$ in millionsISWMIMTotalAssetsCash and cash equivalents$72,928 $16,172 $132 $89,232 Trading assets at fair value353,841 7,962 5,271 367,074 Investment securities39,212 115,595 — 154,807 Securities purchased under agreements to resell90,701 20,039 — 110,740 Securities borrowed119,823 1,268 — 121,091 Customer and other receivables47,333 31,237 1,535 80,105 Loans172,110 146,526 4 218,640 Goodwill424 10,199 6,084 16,707 Intangible assets26 3,427 3,602 7,055 Other assets214,108 12,743 1,391 28,242 Total assets$810,506 $365,168 $18,019 $1,193,693 Loans1 Goodwill Intangible assets Other assets2 At December 31, 2022$ in millionsISWMIMTotalAssetsCash and cash equivalents$88,362 $39,539 $226 $128,127 Trading assets at fair value294,884 1,971 4,460 301,315 Investment securities40,481 119,450 — 159,931 Securities purchased under agreements to resell102,511 11,396 — 113,907 Securities borrowed132,619 755 — 133,374 Customer and other receivables47,515 29,620 1,405 78,540 Loans167,676 146,105 4 213,785 Goodwill429 10,202 6,021 16,652 Intangible assets36 3,911 3,671 7,618 Other assets215,324 10,356 1,302 26,982 Total assets$789,837 $373,305 $17,089 $1,180,231 Loans1 Goodwill Intangible assets Other assets2 1.Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements). 2.Other assets primarily includes premises, equipment and software, ROU assets related to leases, other investments and deferred tax assets. A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities and short-term receivables. In the Institutional Securities business segment, these arise from market-making, financing and prime brokerage activities, and in the Wealth Management business segment, these arise from banking activities, including management of the investment portfolio. Total assets of $1,194 billion at December 31, 2023 were relatively unchanged from $1,180 billion at December 31, 2022.Liquidity Risk Management FrameworkThe primary goal of our Liquidity Risk Management Framework is to ensure that we have access to adequate funding across a wide range of market conditions and time horizons. The framework is designed to enable us to fulfill our financial obligations and support the execution of our business strategies.The following principles guide our Liquidity Risk Management Framework:•Sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”) should be maintained to cover maturing liabilities and other planned and contingent outflows;•Maturity profile of assets and liabilities should be aligned, with limited reliance on short-term funding;•Source, counterparty, currency, region and term of funding should be diversified; and•Liquidity Stress Tests should anticipate, and account for, periods of limited access to funding.The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile.Required Liquidity FrameworkOur Required Liquidity Framework establishes the amount of liquidity we must hold in both normal and stressed environments to ensure that our financial condition and overall soundness are not adversely affected by an inability (or perceived inability) to meet our financial obligations in a timely manner. The Required Liquidity Framework considers the most constraining liquidity requirement to satisfy all regulatory and internal limits at a consolidated and legal entity level.Liquidity Stress TestsWe use Liquidity Stress Tests to model external and intercompany liquidity flows across multiple scenarios and a range of time horizons. These scenarios contain various combinations of idiosyncratic and systemic stress events of different severity and duration. The methodology, implementation, production and analysis of our Liquidity Stress Tests are important components of the Required Liquidity Framework.The assumptions used in our various Liquidity Stress Test scenarios include, but are not limited to, the following:•No government support;•No access to equity and limited access to unsecured debt markets; $1,194 billion at December 31, 2023 were relatively unchanged from $1,180 billion at December 31, 2022."
    },
    {
      "status": "MODIFIED",
      "current_title": "2024 Compared with 2023",
      "prior_title": "2023 Compared with 2022",
      "similarity_score": 0.52,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"•We reported net revenues of $61.8 billion in 2024, which increased by 14% compared with $54.1 billion in 2023.\""
      ],
      "current_body": "•We reported net revenues of $61.8 billion in 2024, which increased by 14% compared with $54.1 billion in 2023. Net income applicable to Morgan Stanley was $13.4 billion in 2024, which increased by 47% compared with $9.1 billion in 2023. Diluted earnings per common share was $7.95 in 2024, which increased by 53% compared with $5.18 in 2023. December 2024 Form 10-K26 December 2024 Form 10-K26 December 2024 Form 10-K26 26 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Non-Interest Expenses($ in millions)•Compensation and benefits expenses of $26,178 million in 2024 increased 7% from the prior year, primarily due to an increase in the formulaic payout to Wealth Management representatives and higher discretionary incentive compensation, both on higher revenues, partially offset by lower severance costs.In 2023, Compensation and benefits expenses included severance costs of $353 million, primarily associated with a specific Firmwide reduction in workforce during the second quarter of 2023. We recorded severance costs of $220 million in the Institutional Securities business segment, $105 million in the Wealth Management business segment, and $28 million in the Investment Management business segment for 2023. In 2022, Compensation and benefits expenses included severance costs of $133 million, associated with a specific Firmwide reduction in workforce during the fourth quarter of 2022. We recorded severance costs of $88 million in the Institutional Securities business segment, $30 million in the Wealth Management business segment, and $15 million in the Investment Management business segment for 2022. These specific reductions in workforce occurred across the Firm’s business segments and geographic regions, impacted approximately 4% and 1% of the Firm’s global workforce in 2023 and 2022, respectively, and resulted from the Firm’s review of its global workforce, operating expenses and the business environment following the acquisitions of E*TRADE Financial Corporation (“E*TRADE”) and Eaton Vance Corp. (“Eaton Vance”), rather than a change in strategy or exit of businesses. These costs were primarily incurred in the Americas and EMEA, with the majority in the Americas.•Non-compensation expenses of $17,723 million in 2024 increased 3% from the prior year, primarily driven by higher execution-related expenses and increased technology spend, partially offset by lower legal expenses and lower FDIC special assessment cost. In 2023, integration-related expenses were $293 million, of which $201 million related to the integration of E*TRADE within the Wealth Management business segment and $92 million related to the integration of Eaton Vance within the Investment Management business segment. In 2022, integration-related expenses were $470 million, of which $357 million related to the integration of E*TRADE within the Wealth Management business segment and $113 million related to the integration of Eaton Vance within the Investment Management business segment. Integration-related expenses primarily included non-compensation expenses such as information technology expense related to the consolidation of platforms, and professional fees related to changes in legal entity structures and the integration of clients, within both Wealth Management and Investment Management business segments. Integration-related activities were substantially completed as of December 31, 2023.Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios.For further information on the Provision for credit losses, see “Credit Risk” herein.Business Segment ResultsNet Revenues by Segment1($ in millions) Non-Interest Expenses($ in millions)•Compensation and benefits expenses of $26,178 million in 2024 increased 7% from the prior year, primarily due to an increase in the formulaic payout to Wealth Management representatives and higher discretionary incentive compensation, both on higher revenues, partially offset by lower severance costs.In 2023, Compensation and benefits expenses included severance costs of $353 million, primarily associated with a specific Firmwide reduction in workforce during the second quarter of 2023. We recorded severance costs of $220 million in the Institutional Securities business segment, $105 million in the Wealth Management business segment, and $28 million in the Investment Management business segment for 2023. In 2022, Compensation and benefits expenses included severance costs of $133 million, associated with a specific Firmwide reduction in workforce during the fourth quarter of 2022. We recorded severance costs of $88 million in the Institutional Securities business segment, $30 million in the Wealth Management business segment, and $15 million in the Investment Management business segment for 2022. These specific reductions in workforce occurred across the Firm’s business segments and geographic regions, impacted approximately 4% and 1% of the Firm’s global workforce in 2023 and 2022, respectively, and resulted from the Firm’s review of its global workforce, operating expenses and the business environment following the acquisitions of E*TRADE Financial Corporation (“E*TRADE”) and Eaton Vance Corp. (“Eaton Vance”), rather than a change in strategy or exit of businesses. These costs were primarily incurred in the Americas and EMEA, with the majority in the Americas.•Non-compensation expenses of $17,723 million in 2024 increased 3% from the prior year, primarily driven by higher execution-related expenses and increased technology spend, partially offset by lower legal expenses and lower FDIC special assessment cost.",
      "prior_body": "•We reported net revenues of $54.1 billion in 2023 compared with $53.7 billion in 2022. For 2023, net income applicable to Morgan Stanley was $9.1 billion, or $5.18 per diluted common share, compared with $11.0 billion, or $6.15 per diluted common share in 2022. 29December 2023 Form 10-K 29December 2023 Form 10-K 29December 2023 Form 10-K 29 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Non-Interest Expenses($ in millions)•Compensation and benefits expenses of $24,558 million in 2023 increased 7% from the prior year, primarily due to higher expenses related to certain employee deferred cash-based compensation plans linked to investment performance (“DCP”) and higher salary expenses, partially offset by lower expenses related to outstanding deferred equity compensation.2023 Compensation and benefits expenses included $353 million of severance costs, primarily associated with the employee action recorded in the second quarter of 2023.•Non-compensation expenses of $17,240 million in 2023 increased 6% from the prior year, primarily driven by an FDIC special assessment of $286 million, increased spend on technology, higher costs related to exits of real estate and higher legal expenses, including $249 million related to a specific matter. Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. The Provision for credit losses on loans and lending commitments of $280 million in 2022 was due to portfolio growth and deterioration in the macroeconomic outlook.For further information on the Provision for credit losses, see “Credit Risk” herein.Business Segment ResultsNet Revenues by Segment1($ in millions)Net Income Applicable to Morgan Stanley by Segment1($ in millions)1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 22 to the financial statements for details of intersegment eliminations. •Institutional Securities net revenues of $23,060 million in 2023 decreased 5% from the prior year, primarily reflecting lower results across businesses.•Wealth Management net revenues of $26,268 million in 2023 increased 8% from the prior year, primarily reflecting gains on DCP investments compared with losses in the prior year and higher Net interest revenues.•Investment Management net revenues of $5,370 million in 2023 were relatively unchanged from the prior year, reflecting a decrease in Asset management and related fees revenues offset by an increase in Performance based income and other revenues. Non-Interest Expenses($ in millions)•Compensation and benefits expenses of $24,558 million in 2023 increased 7% from the prior year, primarily due to higher expenses related to certain employee deferred cash-based compensation plans linked to investment performance (“DCP”) and higher salary expenses, partially offset by lower expenses related to outstanding deferred equity compensation.2023 Compensation and benefits expenses included $353 million of severance costs, primarily associated with the employee action recorded in the second quarter of 2023.•Non-compensation expenses of $17,240 million in 2023 increased 6% from the prior year, primarily driven by an FDIC special assessment of $286 million, increased spend on technology, higher costs related to exits of real estate and higher legal expenses, including $249 million related to a specific matter. Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to deteriorating conditions in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. The Provision for credit losses on loans and lending commitments of $280 million in 2022 was due to portfolio growth and deterioration in the macroeconomic outlook.For further information on the Provision for credit losses, see “Credit Risk” herein."
    },
    {
      "status": "MODIFIED",
      "current_title": "Income Statement Information",
      "prior_title": "Income Statement Information",
      "similarity_score": 0.514,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"% Change$ in millions20242023202220242023RevenuesAsset management$16,501 $14,019 $13,872 18 %1 %Transactional13,864 3,556 2,473 9 %44 %Net interest7,313 8,118 7,429 (10)%9 %Other2742 575 643 29 %(11)%Net revenues28,420 26,268 24,417 8 %8 %Provision for credit losses62 131 69 (53)%90 %Compensation and benefits15,207 13,972 12,534 9 %11 %Non-compensation expenses5,411 5,635 5,231 (4)%8 %Total non-interest expenses20,618 19,607 17,765 5 %10 %Income before provision for income taxes7,740 6,530 6,583 19 %(1)%Provision for income taxes1,852 1,508 1,444 23 %4 %Net income applicable to Morgan Stanley$5,888 $5,022 $5,139 17 %(2)% Transactional1 Other2 1.Transactional includes Investment banking, Trading, and Commissions and fees revenues.\""
      ],
      "current_body": "% Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%",
      "prior_body": "% Change$ in millions20232022202120232022RevenuesAdvisory$2,244 $2,946 $3,487 (24)%(16)%Equity889 851 4,437 4 %(81)%Fixed income1,445 1,438 2,348 — %(39)%Total Underwriting2,334 2,289 6,785 2 %(66)%Total Investment banking4,578 5,235 10,272 (13)%(49)%Equity9,986 10,769 11,435 (7)%(6)%Fixed income7,673 9,022 7,516 (15)%20 %Other823 (633)610 N/MN/MNet revenues23,060 24,393 29,833 (5)%(18)%Provision for credit losses401 211 (7)90 %N/MCompensation and benefits8,369 8,246 9,165 1 %(10)%Non-compensation expenses9,814 9,221 8,861 6 %4 %Total non-interest expenses18,183 17,467 18,026 4 %(3)%Income before provision for income taxes4,476 6,715 11,814 (33)%(43)%Provision for income taxes884 1,308 2,746 (32)%(52)%Net income3,592 5,407 9,068 (34)%(40)%Net income applicable to noncontrolling interests139 165 111 (16)%49 %Net income applicable to Morgan Stanley$3,453 $5,242 $8,957 (34)%(41)%"
    },
    {
      "status": "MODIFIED",
      "current_title": "Net Revenues by Region1",
      "prior_title": "Capital ratios9",
      "similarity_score": 0.49,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"($ in millions) 1.For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements.\""
      ],
      "current_body": "($ in millions) 1.For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements. •Americas net revenues in 2024 increased 13% from the prior year, primarily driven by higher Asset management revenues within the Wealth Management business segment and higher results across businesses within the Institutional Securities business segment. •EMEA net revenues in 2024 increased 19% from the prior year, primarily driven by higher results across businesses within the Institutional Securities business segment. •Asia net revenues in 2024 increased 19% from the prior year, primarily driven by higher results from Equity and Investment Banking within the Institutional Securities business segment. Selected Financial Information and Other Statistical Data$ in millions, except per share data202420232022Consolidated resultsNet revenues$61,761 $54,143 $53,668 Earnings applicable to Morgan Stanley common shareholders$12,800 $8,530 $10,540 Earnings per diluted common share$7.95 $5.18 $6.15 Consolidated financial measuresExpense efficiency ratio171 %77 %73 %ROE214.0 %9.4 %11.2 %ROTCE2,318.8 %12.8 %15.3 %Pre-tax margin428 %22 %26 %Effective tax rate 23.1 %21.9 %20.7 %Pre-tax margin by segment4Institutional Securities31 %19 %28 %Wealth Management27 %25 %27 %Investment Management19 %16 %15 %$ in millions, except per share data, worldwide employees and client assetsAtDecember 31,2024AtDecember 31,2023Average liquidity resources for three months ended5$345,440 $314,504 Loans6$246,814 $226,828 Total assets$1,215,071 $1,193,693 Deposits$376,007 $351,804 Borrowings$288,819 $263,732 Common equity$94,761 $90,288 Tangible common equity3$71,604 $66,527 Common shares outstanding1,607 1,627 Book value per common share7$58.98 $55.50 Tangible book value per common share3,7$44.57 $40.89 Worldwide employees (in thousands)80 80 Client assets8 (in billions)$7,860 $6,588 Capital ratios9Common Equity Tier 1 capital—Standardized15.9 %15.2 %Tier 1 capital—Standardized18.0 %17.1 %Common Equity Tier 1 capital—Advanced15.7 %15.5 %Tier 1 capital—Advanced17.8 %17.4 %Tier 1 leverage6.9 %6.7 %SLR5.6 %5.5 %1.The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues. 2.ROE and ROTCE represent earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity and average tangible common equity, respectively.3.Represents a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein.4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.5.For a discussion of Liquidity resources, see “Liquidity and Capital Resources— Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources” herein.6.Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet.7.Book value per common share and tangible book value per common share equal common equity and tangible common equity, respectively, divided by common shares outstanding. •EMEA net revenues in 2024 increased 19% from the prior year, primarily driven by higher results across businesses within the Institutional Securities business segment. •Asia net revenues in 2024 increased 19% from the prior year, primarily driven by higher results from Equity and Investment Banking within the Institutional Securities business segment.",
      "prior_body": "1.The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues. 2.ROE and ROTCE represent earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity and average tangible common equity, respectively. 3.Represents a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein. 4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues. 5.For a discussion of Liquidity resources, see “Liquidity and Capital Resources— Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources” herein. 6.Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet. 7.Book value per common share and tangible book value per common share equal common shareholders’ equity and tangible common shareholders’ equity, respectively, divided by common shares outstanding. 8.Client assets represents Wealth Management client assets and Investment Management AUM. Certain Wealth Management client assets are invested in Investment Management products and are also included in Investment Management’s AUM. 9.For a discussion of our capital ratios, see “Liquidity and Capital Resources—Regulatory Requirements” herein."
    },
    {
      "status": "MODIFIED",
      "current_title": "Liquidity Coverage Ratio",
      "prior_title": "Liquidity Coverage Ratio",
      "similarity_score": 0.487,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Eligible HQLA Cash deposits with central banks$53,836 $40,406 Securities1213,394 234,710 Total Eligible HQLA$267,230 $275,116 Net cash outflows$205,780 $205,868 LCR130 %134 %\""
      ],
      "current_body": "Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024September 30, 2024Eligible HQLA Cash deposits with central banks$53,836 $40,406 Securities1213,394 234,710 Total Eligible HQLA$267,230 $275,116 Net cash outflows$205,780 $205,868 LCR130 %134 %",
      "prior_body": "Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2023September 30, 2023Eligible HQLA1 Cash deposits with central banks$58,047 $60,163 Securities2194,970 181,010 Total Eligible HQLA1$253,017 $241,173 Net cash outflows$196,488 $190,336 LCR129 %127 %"
    },
    {
      "status": "MODIFIED",
      "current_title": "A default by a large financial institution could adversely affect financial markets.",
      "prior_title": "A default by a large financial institution could adversely affect financial markets.",
      "similarity_score": 0.475,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"As a result, concerns about, or a default or threatened default by, one or more such entities could lead to significant market-wide liquidity and credit problems, losses or defaults by other institutions, or require financial commitments to multilateral actions intended to support market stability.\""
      ],
      "current_body": "The commercial soundness of many financial institutions and certain other large financial services firms may be closely interrelated as a result of credit, trading, clearing or other relationships among such entities. Increased centralization of trading activities through particular clearinghouses, central agents or exchanges may increase our concentration of risk with respect to these entities. As a result, concerns about, or a default or threatened default by, one or more such entities could lead to significant market-wide liquidity and credit problems, losses or defaults by other institutions, or require financial commitments to multilateral actions intended to support market stability. This is sometimes referred to as systemic risk and may adversely affect financial intermediaries, such as clearinghouses, clearing agencies, exchanges, banks and securities firms, with which we interact on a daily basis and, therefore, could adversely affect us. See also “Systemic Risk Regime” under “Business—Supervision and Regulation—Financial Holding Company.”",
      "prior_body": "The commercial soundness of many financial institutions and certain other large financial services firms may be closely interrelated as a result of credit, trading, clearing or other relationships among such entities. Increased centralization of trading activities through particular clearinghouses, central agents or exchanges may increase our concentration of risk with respect to these entities. As a result, concerns about, or a default or threatened default by, one or more such entities could lead to significant market-wide liquidity and credit problems, losses or defaults by other institutions, or require December 2023 Form 10-K14 December 2023 Form 10-K14 December 2023 Form 10-K14 14 Table of Contents Table of Contents Table of Contents financial commitments to multi-lateral actions intended to support market stability. This is sometimes referred to as systemic risk and may adversely affect financial intermediaries, such as clearinghouses, clearing agencies, exchanges, banks and securities firms, with which we interact on a daily basis and, therefore, could adversely affect us. See also “Systemic Risk Regime” under “Business—Supervision and Regulation—Financial Holding Company.”Operational RiskOperational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, from human factors (e.g., inappropriate or unlawful conduct) or from external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal, regulatory and compliance risks, or damage to physical assets. We may incur operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (e.g., information technology (\"IT\") and trade processing). Legal, regulatory and compliance risk is included in the scope of operational risk and is discussed below under “Legal, Regulatory and Compliance Risk.” For more information on how we monitor and manage operational risk, see “Quantitative and Qualitative Disclosures about Risk—Operational Risk.”We are subject to operational risks, including a failure, breach or other disruption of our operations or security systems or those of our third parties (or third parties thereof), as well as human error or malfeasance, which could adversely affect our businesses or reputation.Our businesses are highly dependent on our ability to process and report, on a daily basis, a large number of transactions across numerous and diverse markets in many currencies. We may introduce new products or services or change processes or reporting, including in connection with new regulatory requirements, or integration of processes or systems of acquired companies, resulting in new operational risk that we may not fully appreciate or identify. The trend toward direct access to automated, electronic markets and the move to more automated trading platforms has resulted in the use of increasingly complex technology that relies on the continued effectiveness of the programming code and integrity of the data to process the trades. We rely on the ability of our employees, our consultants, our internal systems and systems at technology centers maintained by unaffiliated third parties to operate our different businesses and process a high volume of transactions. Unusually high trading volumes or site usage could cause our systems to operate at an unacceptably slow speed or even fail. Disruptions to, destruction of, instability of or other failure to effectively maintain our IT systems or external technology that allows our clients and customers to use our products and services (including our self-directed brokerage platform) could harm our business and our reputation. As a major participant in the global capital markets, we face the risk of incorrect valuation or risk management of our trading positions due to flaws in data, models, electronic trading systems or processes, or due to fraud or cyberattack. We also face the risk of operational failure or disruption of any of the clearing agents, exchanges, clearinghouses or other financial intermediaries we use to facilitate our lending, securities and derivatives transactions. In addition, in the event of a breakdown or improper operation or disposal of our or a direct or indirect third party’s systems (or third parties thereof), processes or information assets, or improper or unauthorized action by third parties, including consultants and subcontractors or our employees, we have received in the past and may receive in the future regulatory sanctions, and could suffer financial loss, an impairment to our liquidity position, a disruption of our businesses or damage to our reputation. In addition, the interconnectivity of multiple financial institutions with central agents, exchanges and clearinghouses, and the increased importance of these entities, increases the risk that an operational failure at one institution or entity may cause an industrywide operational failure that could materially impact our ability to conduct business. Furthermore, the concentration of Firm and personal information held by a small number of third parties increases the risk that a breach or disruption at a key third party may cause an industrywide event that could significantly increase the cost and risk of conducting business. These risks may be heightened to the extent that we rely on third parties that are concentrated in a geographic area.There can be no assurance that our business contingency and security response plans fully mitigate all potential risks to us. Our ability to conduct business may be adversely affected by a disruption in the infrastructure that supports our businesses and the communities where we are located. This may include a disruption involving physical site access; software flaws and vulnerabilities; cybersecurity incidents; terrorist activities; political unrest; disease pandemics; catastrophic events; climate-related incidents and natural disasters (such as earthquakes, tornadoes, floods, hurricanes and wildfires); electrical outages; environmental hazards; computer servers; communication platforms or other services we use; new technologies (such as generative artificial intelligence); and our employees or third parties with whom we conduct business. Although we employ backup systems for our data, those backup systems may be unavailable following a disruption, the affected data may not have been backed up or may not be recoverable from the backup, or the backup data may be costly to recover, which could adversely affect our business.Notwithstanding evolving technology and technology-based risk and control systems, our businesses ultimately rely on people, including our employees and those of third parties with whom we conduct business. As a result of human error or engagement in violations of applicable policies, laws, rules or procedures, certain errors or violations are not always discovered immediately by our technological processes or by financial commitments to multi-lateral actions intended to support market stability. This is sometimes referred to as systemic risk and may adversely affect financial intermediaries, such as clearinghouses, clearing agencies, exchanges, banks and securities firms, with which we interact on a daily basis and, therefore, could adversely affect us. See also “Systemic Risk Regime” under “Business—Supervision and Regulation—Financial Holding Company.”Operational RiskOperational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, from human factors (e.g., inappropriate or unlawful conduct) or from external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal, regulatory and compliance risks, or damage to physical assets. We may incur operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (e.g., information technology (\"IT\") and trade processing). Legal, regulatory and compliance risk is included in the scope of operational risk and is discussed below under “Legal, Regulatory and Compliance Risk.” For more information on how we monitor and manage operational risk, see “Quantitative and Qualitative Disclosures about Risk—Operational Risk.”We are subject to operational risks, including a failure, breach or other disruption of our operations or security systems or those of our third parties (or third parties thereof), as well as human error or malfeasance, which could adversely affect our businesses or reputation.Our businesses are highly dependent on our ability to process and report, on a daily basis, a large number of transactions across numerous and diverse markets in many currencies. We may introduce new products or services or change processes or reporting, including in connection with new regulatory requirements, or integration of processes or systems of acquired companies, resulting in new operational risk that we may not fully appreciate or identify. The trend toward direct access to automated, electronic markets and the move to more automated trading platforms has resulted in the use of increasingly complex technology that relies on the continued effectiveness of the programming code and integrity of the data to process the trades. We rely on the ability of our employees, our consultants, our internal systems and systems at technology centers maintained by unaffiliated third parties to operate our different businesses and process a high volume of transactions. Unusually high trading volumes or site usage could cause our systems to operate at an unacceptably slow speed or even fail. Disruptions to, destruction of, instability of or other failure to effectively maintain our IT systems or external technology that allows our clients and customers to use our products and services (including our self-directed brokerage platform) could harm our business and our reputation. financial commitments to multi-lateral actions intended to support market stability. This is sometimes referred to as systemic risk and may adversely affect financial intermediaries, such as clearinghouses, clearing agencies, exchanges, banks and securities firms, with which we interact on a daily basis and, therefore, could adversely affect us. See also “Systemic Risk Regime” under “Business—Supervision and Regulation—Financial Holding Company.”"
    },
    {
      "status": "MODIFIED",
      "current_title": "Non-GAAP Financial Measures by Business Segment",
      "prior_title": "Non-GAAP Financial Measures by Business Segment",
      "similarity_score": 0.467,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"$ in billions202420232022Average common equity1Institutional Securities$45.0 $45.6 $48.8 Wealth Management29.1 28.8 31.0 Investment Management10.8 10.4 10.6 ROE2Institutional Securities14 %7 %10 %Wealth Management20 %17 %16 %Investment Management8 %6 %6 %Average tangible common equity1Institutional Securities$44.6 $45.2 $48.3 Wealth Management15.5 14.8 16.3 Investment Management1.1 0.7 0.8 ROTCE2Institutional Securities14 %7 %10 %Wealth Management37 %33 %31 %Investment Management76 %88 %86 %\""
      ],
      "current_body": "$ in billions202420232022Average common equity1Institutional Securities$45.0 $45.6 $48.8 Wealth Management29.1 28.8 31.0 Investment Management10.8 10.4 10.6 ROE2Institutional Securities14 %7 %10 %Wealth Management20 %17 %16 %Investment Management8 %6 %6 %Average tangible common equity1Institutional Securities$44.6 $45.2 $48.3 Wealth Management15.5 14.8 16.3 Investment Management1.1 0.7 0.8 ROTCE2Institutional Securities14 %7 %10 %Wealth Management37 %33 %31 %Investment Management76 %88 %86 %",
      "prior_body": "$ in billions202320222021Average common equity2Institutional Securities$45.6 $48.8 $43.5 Wealth Management28.8 31.0 28.6 Investment Management10.4 10.6 8.8 ROE3Institutional Securities7 %10 %20 %Wealth Management17 %16 %16 %Investment Management6 %6 %15 %Average tangible common equity2Institutional Securities$45.2 $48.3 $42.9 Wealth Management14.8 16.3 13.4 Investment Management0.7 0.8 0.9 ROTCE3Institutional Securities7 %10 %20 %Wealth Management33 %31 %34 %Investment Management88 %86 %144 %"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Attribution of Average Common Equity According to the Required Capital Framework",
      "prior_title": "Attribution of Average Common Equity According to the Required Capital Framework",
      "current_body": "Our required capital (“Required Capital”) estimation is based on the Required Capital framework, an internal capital adequacy measure. Common equity attribution to the business segments is based on capital usage calculated under the Required Capital framework, as well as each business segment’s relative contribution to our total Required Capital. The Required Capital framework is a risk-based and leverage-based capital measure, which is compared with our regulatory capital to ensure that we maintain an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). We define the difference between our total average common equity and the sum of the average common equity amounts allocated to our business segments as Parent Company common equity. We generally hold Parent Company common equity for prospective regulatory requirements, organic growth, potential future acquisitions and other capital needs."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Automated trading markets and the introduction and application of new technologies may adversely affect our business and may increase competition.",
      "prior_title": "Automated trading markets and the introduction and application of new technologies may adversely affect our business and may increase competition.",
      "current_body": "We continue to experience price competition in some of our businesses. In particular, the ability to execute securities, derivatives and other financial instrument trades electronically on exchanges, swap execution facilities and other automated trading platforms, and the introduction and application of new technologies, including generative artificial intelligence, will likely continue the pressure on revenues. The trend toward direct access to automated, electronic markets will likely continue as additional markets move to more automated trading platforms. We have experienced, and will likely continue to experience, competitive pressures in these and other areas in the future."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Credit Risk",
      "prior_title": "Credit Risk",
      "current_body": "Credit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. For more information on how we monitor and manage credit risk, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk.”"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Asset Management Revenue Sensitivity",
      "prior_title": "Asset Management Revenue Sensitivity",
      "current_body": "Certain asset management revenues in the Wealth Management and Investment Management business segments are derived from management fees, which are based on fee-based client assets in Wealth Management or AUM in Investment Management (together, “client holdings”). The assets underlying client holdings are primarily composed of equity, fixed income and alternative investments and are sensitive to changes in related markets. These revenues depend on multiple factors including, but not limited to, the level and duration of a market increase or decline, price volatility, the geographic and industry mix of client assets, and client behavior such as the rate and magnitude of client investments and redemptions. Therefore, overall revenues may not correlate completely with changes in the related markets."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Morgan Stanley Board of Directors",
      "prior_title": "Morgan Stanley Board of Directors",
      "current_body": "The Board has oversight of the ERM framework and is responsible for helping to ensure that our risks are managed in a sound manner. The Board has authorized the committees within the ERM framework to help facilitate our risk oversight responsibilities. As set forth in the Board’s Corporate Governance Policies, the Board also oversees, and receives reports on, our financial performance, strategy and business plans, as well as our practices and procedures relating to reputational and franchise risk, and culture, values and conduct."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Off-Balance Sheet Arrangements",
      "prior_title": "Off-Balance Sheet Arrangements",
      "current_body": "We enter into various off-balance sheet arrangements, including through unconsolidated SPEs and lending-related financial instruments (e.g., guarantees and commitments), primarily in connection with the Institutional Securities and Investment Management business segments. We utilize SPEs primarily in connection with securitization activities. For information on our securitization activities, see Note 15 to the financial statements. For information on our commitments, obligations under certain guarantee arrangements and indemnities, see Note 14 to the financial statements. For a further discussion of our lending commitments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Loans and Lending Commitments” herein."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Institutional Securities—Other Net Revenues",
      "prior_title": "Institutional Securities—Other Net Revenues",
      "current_body": "Other net revenues include impacts from certain treasury functions, such as liquidity and funding costs and gains and losses on economic hedges related to certain borrowings. Other net revenues also include mark-to-market gains and losses on held-for-sale corporate loans and lending commitments, as well as net interest and gain and losses on economic hedges associated with held-for-sale and held-for-investment corporate loans and lending commitments. Also included are gains and losses from financial instruments used to economically hedge compensation expense related to certain DCP, income and losses from the equity method investment related to our Japanese securities joint venture with MUFG, as well as Investments and Other revenues that are not directly attributable to Fixed income and Equities businesses."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Investments",
      "prior_title": "Investments",
      "current_body": "Investments revenues are composed of realized and unrealized gains and losses derived from investments, including those associated with employee deferred compensation and co-investment plans. Estimates of the fair value of the investments that produce these revenues may involve significant judgment and may fluctuate significantly over time in light of business, market, economic and financial conditions, generally or in relation to specific transactions. Within the Institutional Securities segment, gains and losses are primarily from business-related investments. Certain investments are subject to sale restrictions. Within the Investment Management business segment, Investments revenues are primarily from performance-based fees in the form of carried interest, a portion of which is subject to reversal, and gains and losses from investments. The business is entitled to receive carried interest when the return in certain funds exceeds specified performance targets. Additionally, we consolidate certain sponsored Investment Management funds where revenues are primarily attributable to holders of noncontrolling interests."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Market Risk",
      "prior_title": "Market Risk",
      "current_body": "Market risk refers to the risk that a change in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity, will result in losses for a position or portfolio. We have direct exposure to market risk. In addition, market risk may also impact our clients and markets in a manner that may indirectly impact us. For more information on how we monitor and manage market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk.”"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Required Liquidity Framework",
      "prior_title": "Required Liquidity Framework",
      "current_body": "Our Required Liquidity Framework establishes the amount of liquidity we must hold in both normal and stressed environments to ensure that our financial condition and overall soundness are not adversely affected by an inability (or perceived inability) to meet our financial obligations in a timely manner. The Required Liquidity Framework considers the most constraining liquidity requirement to satisfy all regulatory and internal limits at a consolidated and legal entity level."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Our liquidity and financial condition have in the past been, and in the future could be, adversely affected by U.S. and international markets and economic conditions.",
      "prior_title": "Our liquidity and financial condition have in the past been, and in the future could be, adversely affected by U.S. and international markets and economic conditions.",
      "current_body": "Our ability to raise funding in the long-term or short-term debt capital markets or the equity markets, or to access secured lending markets, has in the past been, and could in the future be, adversely affected by conditions in the U.S. and international markets and economies. In particular, our cost and availability of funding in the past have been, and may in the future be, adversely affected by illiquid credit markets, interest rates and wider credit spreads. Significant turbulence in the U.S., the E.U. and other international markets and economies could adversely affect our liquidity and financial condition and the willingness of certain counterparties and customers to do business with us."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Risk Factors",
      "prior_title": "Risk Factors",
      "current_body": "For a discussion of the risks and uncertainties that may affect our future results and strategic objectives, see “Forward-Looking Statements” preceding “Business” and “Return on Tangible Common Equity Goal” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Risk Committee of the Board",
      "prior_title": "Risk Committee of the Board",
      "current_body": "The BRC assists the Board in its oversight of the ERM framework; oversees significant financial risk exposures of the Firm, including market, credit, model and liquidity risk, against established risk measurement methodologies and the steps management has taken to monitor and control such exposures; oversees our risk appetite statement, including risk tolerance levels and limits; reviews capital, liquidity and funding strategy and planning and related guidelines and policies; reviews the contingency funding plan and capital planning process; oversees our significant risk governance, risk management and risk assessment guidelines and policies; oversees the performance of the Chief Risk Officer; reviews reports from our Strategic Transactions Committee, CCAR Committee and RRP Committee; reviews significant new product risk, emerging risks, regulatory matters and climate risk; and reviews reports from the Chief Audit Officer regarding the results of reviews and assessments of the risk management, liquidity and capital functions. The BRC reports to the Board on a regular basis and coordinates with the Board and other Board committees with respect to oversight of risk management and risk assessment guidelines."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Return on Tangible Common Equity Goal",
      "prior_title": "Return on Tangible Common Equity Goal",
      "current_body": "We have an ROTCE goal of 20%. Our ROTCE goal is a forward-looking statement that is based on a normal market environment and may be materially affected by many factors. See “Risk Factors” and “Forward-Looking Statements” herein for further information on market and economic conditions and their potential effects on our future operating results. ROTCE represents a non-GAAP financial measure. For further information on non-GAAP measures, see “Selected Non-GAAP Financial Information” herein."
    },
    {
      "status": "UNCHANGED",
      "current_title": "U.S. Bank Subsidiaries",
      "prior_title": "U.S. Bank Subsidiaries",
      "current_body": "Our U.S. Bank Subsidiaries accept deposits, provide loans to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals, and invest in securities. Lending activity in our U.S. Bank Subsidiaries from the Institutional Securities business segment primarily includes Secured lending facilities, Commercial and Residential real estate and Corporate loans. Lending activity in our U.S. Bank Subsidiaries from the Wealth Management business segment primarily includes Securities-based lending, which allows clients to borrow money against the value of qualifying securities, and Residential real estate loans. For a further discussion of our credit risks, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein. For a further discussion about loans and lending commitments, see Notes 9 and 14 to the financial statements."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Net Interest",
      "prior_title": "Net Interest",
      "current_body": "Interest income and Interest expense are functions of the level and mix of total assets and liabilities, including Trading assets and Trading liabilities, Investment securities, Securities borrowed or purchased under agreements to resell, Securities loaned or sold under agreements to repurchase, Loans, Deposits and Borrowings. Within the Institutional Securities business segment, Net interest is a function of market-making strategies, client activity, and the prevailing level, term structure and volatility of interest rates. Net interest is impacted by market-making, lending and financing activities as we generally earn interest on securities held by the Firm, Securities borrowed, Securities purchased under agreements to resell, Loans and margin loans, while Borrowings, Securities loaned and Securities sold under agreements to repurchase generally incur interest expense. Within the Wealth Management business segment, Interest income is driven by assets held including Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. Other Other revenues for Institutional Securities include revenues and losses from equity method investments, fees earned in association with lending activities, mark-to-market gains and losses on loans and lending commitments held for sale, as well as gains and losses on economic derivative hedges associated with certain held-for-sale and held-for-investment loans and lending commitments. Other revenues for Wealth Management include realized gains and losses on AFS securities, account handling fees, referral fees and other miscellaneous revenues."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Funding Management",
      "prior_title": "Funding Management",
      "current_body": "We manage our funding in a manner that reduces the risk of disruption to our operations. We pursue a strategy of diversification of secured and unsecured funding sources (by product, investor and region) and attempt to ensure that the tenor of our liabilities equals or exceeds the expected holding period of the assets being financed. Our goal is to achieve an optimal mix of durable secured and unsecured financing. We fund our balance sheet on a global basis through diverse sources. These sources include our equity capital, borrowings, bank notes, securities sold under agreements to repurchase, securities lending, deposits, letters of credit and lines of credit. We have active financing programs for both standard and structured products targeting global investors and currencies. Treasury allocates interest expense to our businesses based on the tenor and interest rate profile of the assets being funded. Treasury similarly allocates interest income to businesses carrying deposit products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Independent Risk Management Functions",
      "prior_title": "Independent Risk Management Functions",
      "current_body": "The Financial Risk Management functions (Market Risk, Credit Risk, Model Risk and Liquidity Risk Management Departments) and Non-Financial Risk Management functions (Compliance, Global Financial Crimes, and Operational Risk Departments) are independent of our business units and report to the Chief Risk Officer and Head of Non-Financial Risk, respectively. These functions assist senior management and the FRC in monitoring and controlling our risk through a number of control processes. Each function maintains its own risk governance structure with specified individuals and committees responsible for aspects of managing risk. Further discussion about the responsibilities of the risk management functions may be found under “Market Risk,” “Credit Risk,” “Operational Risk,” “Model Risk,” “Liquidity Risk,” and “Legal, Regulatory and Compliance Risk” herein."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Deferred Cash-Based Compensation",
      "prior_title": "Deferred Cash-Based Compensation",
      "current_body": "The Firm sponsors a number of deferred cash-based compensation programs for current and former employees, which generally contain vesting, clawback and cancellation provisions. Employees are permitted to allocate the value of their deferred awards among a menu of notional investments, whereby the value of their awards will track the performance of the referenced notional investments. The menu of investments, which is selected by the Firm, includes fixed income, equity, commodity and money market funds. Compensation expense for DCP awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards. We invest directly, as principal, in financial instruments and other investments to economically hedge certain of our obligations under these DCP awards. Changes in the fair value of such investments, net of financing costs, are recorded in net revenues, and included in Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments recognized in net revenues, there is typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period. While this timing difference may not be material to our Income before provision for income taxes in any individual period, it may impact the Wealth Management business segment reported ratios and operating metrics in certain periods due to potentially significant impacts to net revenues and compensation expenses. At December 31, 2024 and December 31, 2023, substantially all employee-referenced investments that subjected the Firm to price risk were economically hedged."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Holding large and concentrated positions may expose us to losses.",
      "prior_title": "Holding large and concentrated positions may expose us to losses.",
      "current_body": "Concentration of risk may reduce revenues or result in losses in our market-making, investing, underwriting (including block trading) and lending businesses (including margin lending) in the event of unfavorable market movements. We commit substantial amounts of capital to these businesses, which often results in our taking large positions in the securities of, or making large loans to, a particular issuer or issuers in a particular industry, country or region. In the event we hold a concentrated position larger than those held by competitors, we may incur larger losses. For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risk.”"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Commissions and Fees",
      "prior_title": "Commissions and Fees",
      "current_body": "Commissions and fees result from arrangements in which the client is charged a fee for executing transactions related to securities, services related to sales and trading activities, and sales of other products. Within the Institutional Securities business segment, commissions and fees include fees earned from market-making activities, such as executing and clearing client transactions on major stock and derivative exchanges, as well as from OTC derivatives. Within the Wealth Management business segment, commissions and fees arise from client transactions including in equity securities, insurance products, mutual funds, alternative investments, futures and options. Wealth Management also earns revenues from order flow payments for directing customer orders to broker-dealers, exchanges and market centers for execution."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Audit Committee of the Board",
      "prior_title": "Audit Committee of the Board",
      "current_body": "The Audit Committee of the Board (“BAC”) oversees the integrity of our financial statements, compliance with legal and regulatory requirements, and system of internal controls; oversees risk management and risk assessment guidelines in coordination with the Board and other Board committees; reviews the major legal, compliance and financial crime risk exposures of the Firm and the steps management has taken to monitor and control such exposures; appoints, compensates, retains, oversees, evaluates and, when appropriate, replaces the independent auditor; oversees the qualifications, performance and independence of our independent auditor and pre-approves audit and permitted non-audit services; oversees the performance of our Chief Audit Officer; and, after review, recommends to the Board the acceptance and inclusion of the annual audited financial statements in the Firm’s annual report on Form 10-K. The BAC reports to the Board on a regular basis. Operations and Technology Committee of the BoardThe Operations and Technology Committee of the Board (“BOTC”) oversees our operations and technology strategy and significant investments in support of such strategy; oversees operational risk, including information technology, information security, fraud, third-party oversight, business disruption and resilience and cybersecurity risks and the steps management has taken to monitor and control such exposures. The BOTC reviews and approves significant operations and technology policies. The BOTC also reviews risk management and risk assessment guidelines in coordination with the Board and other Board committees, and policies regarding operational risk. The BOTC reports to the Board on a regular basis.Firm Risk CommitteeThe Board has also authorized the Firm Risk Committee (“FRC”), a management committee appointed and co-chaired by the Chief Executive Officer and Chief Risk Officer, which includes the most senior officers of the Firm from the business, independent risk functions and control groups, to help oversee the ERM framework. The FRC’s responsibilities include: oversight of our risk management principles, procedures, limits and tolerances; the monitoring of capital levels and material market, credit, model, operational, liquidity, legal, compliance, reputational and other risks, as appropriate; and the steps management has taken to monitor and manage such risks. The FRC also establishes and communicates risk appetite, including aggregate Firm limits and tolerances, as appropriate. The Governance Process Review Subcommittee of the FRC oversees governance and process issues on behalf of the FRC. The FRC reports to the Board, the BAC, the BOTC and the BRC through the Chief Risk Officer, Chief Financial Officer, Chief Legal Officer and Head of Non-Financial Risk.Functional Risk and Control CommitteesFunctional risk and control committees and other committees within the ERM framework facilitate efficient and comprehensive supervision of our risk exposures and processes.Each business segment has a risk committee that is responsible for helping to ensure that the business segment, as applicable, adheres to established limits for market, credit, operational and other risks; implements risk measurement, monitoring, and management policies, procedures, controls and systems that are consistent with the risk framework established by the FRC; and reviews, on a periodic basis, our aggregate risk exposures, risk exception experience, and the efficacy of our risk identification, measurement, monitoring and management policies and procedures, and related controls."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Risk Governance Structure",
      "prior_title": "Risk Governance Structure",
      "current_body": "Risk management at the Firm requires independent Firm-level oversight, accountability of our business segments and effective communication of risk matters across the Firm, to senior management and ultimately to the Board. Our risk governance structure is set forth in the following chart and also includes risk managers, committees and groups within and across business segments and operating legal entities. The ERM framework, composed of independent but complementary entities, facilitates efficient and comprehensive supervision of our risk exposures and processes. RRP—Resolution and Recovery Planning 1.Committees include the Capital Commitment Committee, Equity Underwriting Committee, Global Large Loan Committee, Leveraged Finance Underwriting Committee and Municipal Capital Commitment Committee. 2.Committees include the Investment Management Risk Committee, Securities Risk Committee and Wealth Management Risk Committee. 55December 2024 Form 10-K 55December 2024 Form 10-K 55December 2024 Form 10-K 55 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Morgan Stanley Board of DirectorsThe Board has oversight of the ERM framework and is responsible for helping to ensure that our risks are managed in a sound manner. The Board has authorized the committees within the ERM framework to help facilitate our risk oversight responsibilities. As set forth in the Board’s Corporate Governance Policies, the Board also oversees, and receives reports on, our financial performance, strategy and business plans, as well as our practices and procedures relating to reputational and franchise risk, and culture, values and conduct.Risk Committee of the BoardThe BRC assists the Board in its oversight of the ERM framework; oversees significant financial risk exposures of the Firm, including market, credit, model and liquidity risk, against established risk measurement methodologies and the steps management has taken to monitor and control such exposures; oversees our risk appetite statement, including risk tolerance levels and limits; reviews capital, liquidity and funding strategy and planning and related guidelines and policies; reviews the contingency funding plan and capital planning process; oversees our significant risk governance, risk management and risk assessment guidelines and policies; oversees the performance of the Chief Risk Officer; reviews reports from our Strategic Transactions Committee, CCAR Committee and RRP Committee; reviews significant new product risk, emerging risks, regulatory matters and climate risk; and reviews reports from the Chief Audit Officer regarding the results of reviews and assessments of the risk management, liquidity and capital functions. The BRC reports to the Board on a regular basis and coordinates with the Board and other Board committees with respect to oversight of risk management and risk assessment guidelines.Audit Committee of the BoardThe Audit Committee of the Board (“BAC”) oversees the integrity of our financial statements, compliance with legal and regulatory requirements, and system of internal controls; oversees risk management and risk assessment guidelines in coordination with the Board and other Board committees; reviews the major legal, compliance and financial crime risk exposures of the Firm and the steps management has taken to monitor and control such exposures; appoints, compensates, retains, oversees, evaluates and, when appropriate, replaces the independent auditor; oversees the qualifications, performance and independence of our independent auditor and pre-approves audit and permitted non-audit services; oversees the performance of our Chief Audit Officer; and, after review, recommends to the Board the acceptance and inclusion of the annual audited financial statements in the Firm’s annual report on Form 10-K. The BAC reports to the Board on a regular basis.Operations and Technology Committee of the BoardThe Operations and Technology Committee of the Board (“BOTC”) oversees our operations and technology strategy and significant investments in support of such strategy; oversees operational risk, including information technology, information security, fraud, third-party oversight, business disruption and resilience and cybersecurity risks and the steps management has taken to monitor and control such exposures. The BOTC reviews and approves significant operations and technology policies. The BOTC also reviews risk management and risk assessment guidelines in coordination with the Board and other Board committees, and policies regarding operational risk. The BOTC reports to the Board on a regular basis.Firm Risk CommitteeThe Board has also authorized the Firm Risk Committee (“FRC”), a management committee appointed and co-chaired by the Chief Executive Officer and Chief Risk Officer, which includes the most senior officers of the Firm from the business, independent risk functions and control groups, to help oversee the ERM framework. The FRC’s responsibilities include: oversight of our risk management principles, procedures, limits and tolerances; the monitoring of capital levels and material market, credit, model, operational, liquidity, legal, compliance, reputational and other risks, as appropriate; and the steps management has taken to monitor and manage such risks. The FRC also establishes and communicates risk appetite, including aggregate Firm limits and tolerances, as appropriate. The Governance Process Review Subcommittee of the FRC oversees governance and process issues on behalf of the FRC. The FRC reports to the Board, the BAC, the BOTC and the BRC through the Chief Risk Officer, Chief Financial Officer, Chief Legal Officer and Head of Non-Financial Risk.Functional Risk and Control CommitteesFunctional risk and control committees and other committees within the ERM framework facilitate efficient and comprehensive supervision of our risk exposures and processes.Each business segment has a risk committee that is responsible for helping to ensure that the business segment, as applicable, adheres to established limits for market, credit, operational and other risks; implements risk measurement, monitoring, and management policies, procedures, controls and systems that are consistent with the risk framework established by the FRC; and reviews, on a periodic basis, our aggregate risk exposures, risk exception experience, and the efficacy of our risk identification, measurement, monitoring and management policies and procedures, and related controls. Morgan Stanley Board of DirectorsThe Board has oversight of the ERM framework and is responsible for helping to ensure that our risks are managed in a sound manner. The Board has authorized the committees within the ERM framework to help facilitate our risk oversight responsibilities. As set forth in the Board’s Corporate Governance Policies, the Board also oversees, and receives reports on, our financial performance, strategy and business plans, as well as our practices and procedures relating to reputational and franchise risk, and culture, values and conduct.Risk Committee of the BoardThe BRC assists the Board in its oversight of the ERM framework; oversees significant financial risk exposures of the Firm, including market, credit, model and liquidity risk, against established risk measurement methodologies and the steps management has taken to monitor and control such exposures; oversees our risk appetite statement, including risk tolerance levels and limits; reviews capital, liquidity and funding strategy and planning and related guidelines and policies; reviews the contingency funding plan and capital planning process; oversees our significant risk governance, risk management and risk assessment guidelines and policies; oversees the performance of the Chief Risk Officer; reviews reports from our Strategic Transactions Committee, CCAR Committee and RRP Committee; reviews significant new product risk, emerging risks, regulatory matters and climate risk; and reviews reports from the Chief Audit Officer regarding the results of reviews and assessments of the risk management, liquidity and capital functions. The BRC reports to the Board on a regular basis and coordinates with the Board and other Board committees with respect to oversight of risk management and risk assessment guidelines.Audit Committee of the BoardThe Audit Committee of the Board (“BAC”) oversees the integrity of our financial statements, compliance with legal and regulatory requirements, and system of internal controls; oversees risk management and risk assessment guidelines in coordination with the Board and other Board committees; reviews the major legal, compliance and financial crime risk exposures of the Firm and the steps management has taken to monitor and control such exposures; appoints, compensates, retains, oversees, evaluates and, when appropriate, replaces the independent auditor; oversees the qualifications, performance and independence of our independent auditor and pre-approves audit and permitted non-audit services; oversees the performance of our Chief Audit Officer; and, after review, recommends to the Board the acceptance and inclusion of the annual audited financial statements in the Firm’s annual report on Form 10-K. The BAC reports to the Board on a regular basis."
    },
    {
      "status": "UNCHANGED",
      "current_title": "G-SIB Capital Surcharge",
      "prior_title": "G-SIB Capital Surcharge",
      "current_body": "We and other U.S. G-SIBs are subject to an additional risk-based capital surcharge, the G-SIB capital surcharge, which must be satisfied using CET1 capital and which functions as an extension of the capital conservation buffer. The surcharge is calculated based on the G-SIB’s size, interconnectedness, cross-jurisdictional activity, and complexity and substitutability (“Method 1”) or use of short-term wholesale funding (“Method 2”), whichever is higher.Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company RequirementsThe Federal Reserve has established external TLAC, long-term debt (“LTD”) and clean holding company requirements for top-tier BHCs of U.S. G-SIBs (“covered BHCs”), including the Parent Company. These requirements are designed to ensure that covered BHCs will have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of eligible LTD to equity or otherwise by imposing losses on eligible LTD or other forms of TLAC where an SPOE resolution strategy is used (see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk”).These TLAC and eligible LTD requirements include various restrictions, such as requiring eligible LTD to: be issued by the covered BHC; be unsecured; have a maturity of one year or more from the date of issuance; and not contain certain embedded features, such as a principal or redemption amount subject to reduction based on the performance of an asset, entity or index, or a similar feature. In addition, the requirements provide permanent grandfathering for debt instruments issued prior to December 31, 2016 that would be eligible LTD but for having impermissible acceleration clauses or being governed by foreign law. A covered BHC is also required to maintain minimum external TLAC equal to the greater of (i) 18% of total RWA or (ii) 7.5% of its total leverage exposure (the denominator of its SLR). Covered BHCs must also meet a minimum external LTD requirement equal to the greater of (i) total RWA multiplied by the sum of 6% plus the higher of the Method 1 or Method 2 G-SIB capital surcharge applicable to the Parent Company or (ii) 4.5% of its total leverage exposure. TLAC buffer requirements are imposed on top of both the risk-based and leverage exposure-based external TLAC minimum requirements. The risk-based TLAC buffer is equal to the sum of 2.5%, our Method 1 G-SIB surcharge and the CCyB, if any, as a percentage of total RWA. The leverage exposure-based TLAC buffer is equal to 2% of our total leverage exposure. Failure to maintain the buffers would result in restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. substitutability (“Method 1”) or use of short-term wholesale funding (“Method 2”), whichever is higher."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Firm Risk Committee",
      "prior_title": "Firm Risk Committee",
      "current_body": "The Board has also authorized the Firm Risk Committee (“FRC”), a management committee appointed and co-chaired by the Chief Executive Officer and Chief Risk Officer, which includes the most senior officers of the Firm from the business, independent risk functions and control groups, to help oversee the ERM framework. The FRC’s responsibilities include: oversight of our risk management principles, procedures, limits and tolerances; the monitoring of capital levels and material market, credit, model, operational, liquidity, legal, compliance, reputational and other risks, as appropriate; and the steps management has taken to monitor and manage such risks. The FRC also establishes and communicates risk appetite, including aggregate Firm limits and tolerances, as appropriate. The Governance Process Review Subcommittee of the FRC oversees governance and process issues on behalf of the FRC. The FRC reports to the Board, the BAC, the BOTC and the BRC through the Chief Risk Officer, Chief Financial Officer, Chief Legal Officer and Head of Non-Financial Risk."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Operations and Technology Committee of the Board",
      "prior_title": "Operations and Technology Committee of the Board",
      "current_body": "The Operations and Technology Committee of the Board (“BOTC”) oversees our operations and technology strategy and significant investments in support of such strategy; oversees operational risk, including information technology, information security, fraud, third-party oversight, business disruption and resilience and cybersecurity risks and the steps management has taken to monitor and control such exposures. The BOTC reviews and approves significant operations and technology policies. The BOTC also reviews risk management and risk assessment guidelines in coordination with the Board and other Board committees, and policies regarding operational risk. The BOTC reports to the Board on a regular basis."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Primary Market Risk Exposures and Market Risk Management",
      "prior_title": "Primary Market Risk Exposures and Market Risk Management",
      "current_body": "We have exposures to a wide range of risks related to interest rates and credit spreads, equity prices, foreign exchange rates and commodity prices as well as the associated implied volatilities, correlations and spreads of the global markets in which we conduct our trading activities. We are exposed to interest rate and credit spread risk as a result of our market-making activities and other trading in interest rate-sensitive financial instruments (i.e., risk arising from changes in the level or implied volatility of interest rates, the timing of mortgage prepayments, the shape of the yield curve and/or credit spreads). The activities from which those exposures arise and the markets in which we are active include, but are not limited to: derivatives, corporate and government debt across both developed and emerging markets and asset-backed debt, including mortgage-related securities. We are exposed to equity price, correlation and implied volatility risk as a result of making markets in equity securities and derivatives and maintaining other positions, including positions in non-public entities. Positions in non-public entities may include, but are not limited to, exposures to private equity, venture capital, private partnerships, real estate funds and other funds. Such positions are less liquid, have longer investment horizons and are more difficult to hedge than listed equities. We are exposed to foreign exchange rate, correlation and implied volatility risk as a result of making markets in foreign currencies and foreign currency derivatives, from maintaining foreign exchange positions and from holding non-U.S. dollar-denominated financial instruments. We are exposed to commodity price and implied volatility risk as a result of market-making activities in commodity products related primarily to electricity, natural gas, oil and precious metals. Commodity exposures are subject to periods of high price volatility as a result of changes in supply and demand. These changes can be caused by weather conditions, physical production and transportation, or geopolitical and other events that affect the available supply and level of demand for these commodities. We manage our trading positions by employing a variety of risk-mitigation strategies. These strategies include diversification of risk exposures and hedging. Hedging activities consist of the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). Hedging activities may not always provide effective mitigation against trading losses due to differences in the terms, specific characteristics or other basis risks that may exist between the hedge instrument and the risk exposure that is being hedged.We manage the market risk associated with our trading activities on a Firmwide basis, on a worldwide trading division level and on an individual product basis. We manage and monitor our market risk exposures in such a way as to maintain a portfolio that we believe is well diversified in the aggregate with respect to market risk factors and that reflects our aggregate risk tolerance as established by our senior management.Aggregate market risk limits have been approved for the Firm across all divisions worldwide. Additional market risk limits are assigned to trading desks and, as appropriate, products and regions. Trading division risk managers, desk risk managers, traders and the Market Risk Department monitor market risk measures against limits in accordance with policies set by our senior management.Value-at-RiskThe statistical technique known as VaR is one of the tools we use to measure, monitor and review the market risk exposures of our trading portfolios. The Market Risk Department calculates and distributes daily VaR-based risk measures to various levels of management.We estimate VaR using a model based on a one-year equal-weighted historical simulation for general market risk factors and name-specific risk in corporate equities and related derivatives, and Monte Carlo simulation for name-specific risk in bonds, loans and related derivatives. The model constructs a distribution of hypothetical daily changes in the value of trading portfolios based on historical observation of daily changes in key market indices or other market risk factors, and information on the sensitivity of the portfolio values to these market risk factor changes.VaR for risk management purposes (“Management VaR”) is computed at a 95% level of confidence over a one-day time horizon, which is a useful indicator of possible trading losses resulting from adverse daily market moves. The 95%/one-day VaR corresponds to the unrealized loss in portfolio value that, based on historically observed market risk factor movements, would have been exceeded with a frequency of 5%, or five times in every 100 trading days, if the portfolio were held constant for one day.Our VaR model generally takes into account linear and non-linear exposures to equity and commodity price risk, interest rate risk, credit spread risk and foreign exchange rates. The model also takes into account linear exposures to implied volatility risks for all asset classes and non-linear exposures to implied volatility risks for equity, commodity and foreign securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). Hedging activities may not always provide effective mitigation against trading losses due to differences in the terms, specific characteristics or other basis risks that may exist between the hedge instrument and the risk exposure that is being hedged. We manage the market risk associated with our trading activities on a Firmwide basis, on a worldwide trading division level and on an individual product basis. We manage and monitor our market risk exposures in such a way as to maintain a portfolio that we believe is well diversified in the aggregate with respect to market risk factors and that reflects our aggregate risk tolerance as established by our senior management. Aggregate market risk limits have been approved for the Firm across all divisions worldwide. Additional market risk limits are assigned to trading desks and, as appropriate, products and regions. Trading division risk managers, desk risk managers, traders and the Market Risk Department monitor market risk measures against limits in accordance with policies set by our senior management."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Risk Management",
      "prior_title": "Risk Management",
      "current_body": "Overview Risk is an inherent part of our businesses and activities. We believe effective risk management is vital to the success of our business activities. Accordingly, we have an Enterprise Risk Management (“ERM”) framework to integrate the diverse roles of risk management into a holistic enterprise structure and to facilitate the incorporation of risk assessment into decision-making processes across the Firm. We have policies and procedures in place to identify, measure, monitor, escalate, mitigate and control the principal risks involved in the activities of the Institutional Securities, Wealth Management and Investment Management business segments, significant operating subsidiaries, as well as at the Parent Company level. The principal risks involved in our business activities are both financial and non-financial and include market (including non-trading interest rate risk), credit, liquidity, model, operational (including cybersecurity), compliance (including conduct), financial crimes, strategic and reputational risks. Strategic risk is integrated into our business planning, embedded in the evaluation of all principal risks and overseen by the Board. The cornerstone of our risk management philosophy is the pursuit of risk-adjusted returns through prudent risk taking that protects our capital base and franchise. This philosophy is implemented through the ERM framework. Five key principles underlie this philosophy: integrity, comprehensiveness, independence, accountability and transparency. To help ensure the efficacy of risk management, which is an essential component of our reputation, senior management requires thorough and frequent reporting and the appropriate escalation of risk matters. The fast-paced, complex and constantly evolving nature of global financial markets requires us to maintain a risk management culture that is incisive, knowledgeable about specialized products and markets, and subject to ongoing review and enhancement.Our risk appetite defines the aggregate level and types of risk that the Firm is willing to accept to achieve its business objectives, taking into account the interests of clients and fiduciary duties to shareholders, as well as capital and other regulatory requirements. This risk appetite is embedded in our risk culture and linked to our short-term and long-term strategic, capital and financial plans, as well as compensation programs. This risk appetite and the related Board-level risk limits and risk tolerance statements are reviewed and approved by the Risk Committee of the Board (“BRC”) and the Board on at least an annual basis.Risk Governance StructureRisk management at the Firm requires independent Firm-level oversight, accountability of our business segments and effective communication of risk matters across the Firm, to senior management and ultimately to the Board. Our risk governance structure is set forth in the following chart and also includes risk managers, committees and groups within and across business segments and operating legal entities. The ERM framework, composed of independent but complementary entities, facilitates efficient and comprehensive supervision of our risk exposures and processes. management requires thorough and frequent reporting and the appropriate escalation of risk matters. The fast-paced, complex and constantly evolving nature of global financial markets requires us to maintain a risk management culture that is incisive, knowledgeable about specialized products and markets, and subject to ongoing review and enhancement. Our risk appetite defines the aggregate level and types of risk that the Firm is willing to accept to achieve its business objectives, taking into account the interests of clients and fiduciary duties to shareholders, as well as capital and other regulatory requirements. This risk appetite is embedded in our risk culture and linked to our short-term and long-term strategic, capital and financial plans, as well as compensation programs. This risk appetite and the related Board-level risk limits and risk tolerance statements are reviewed and approved by the Risk Committee of the Board (“BRC”) and the Board on at least an annual basis."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Culture, Values and Conduct of Employees",
      "prior_title": "Culture, Values and Conduct of Employees",
      "current_body": "Employees of the Firm are accountable for conducting themselves in accordance with our core values: Put Clients First, Do the Right Thing, Lead with Exceptional Ideas, Commit to Diversity and Inclusion, and Give Back. We are committed to reinforcing and confirming adherence to our core values through our governance framework, tone from the top, management oversight, risk management and controls, and three lines of defense structure (risk owners within the business, our independent risk management functions, including the Financial Risk Management and Non-Financial Risk Management functions, and IAD). The Board is responsible for overseeing the Firm’s practices and procedures relating to culture, values and conduct, as set forth in the Board’s Corporate Governance Policies. Senior management committees oversee the Firmwide culture, values and conduct program and report regularly to the Board. A 57December 2024 Form 10-K 57December 2024 Form 10-K 57December 2024 Form 10-K 57 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents fundamental building block of these programs is the Firm’s Code of Conduct, which establishes standards for employee conduct that further reinforce the Firm’s commitment to integrity and ethical conduct. Every new hire and every employee annually is required to certify to their understanding of and adherence to the Code of Conduct. The Firm’s Global Conduct Risk Management Policy also sets out a consistent global framework for managing conduct risk (i.e., the risk arising from misconduct by employees or contingent workers) and conduct risk incidents at the Firm.The employee annual performance review process includes evaluation of employee conduct related to risk management practices and the Firm’s expectations. We also have several mutually reinforcing processes to identify employee conduct that may have an impact on employment status, current-year compensation and/or prior-year compensation. For example, the Global Incentive Compensation Discretion Policy sets forth standards for managers when making annual compensation decisions and specifically provides that managers must consider whether their employees effectively managed and/or supervised risk control practices during the performance year. Control function management meets to discuss employees whose conduct is not in line with our expectations. These results are incorporated into identified employees’ performance reviews and compensation and promotion decisions.The Firm’s clawback and cancellation provisions apply to deferred incentive compensation and cover a broad scope of employee conduct, including any act or omission (including with respect to direct supervisory responsibilities) that constitutes a breach of obligation to the Firm or causes a restatement of the Firm’s financial results, constitutes a violation of the Firm’s global risk management principles, policies and standards, or causes a loss of revenue associated with a position on which the employee was paid and the employee operated outside of risk management policies.Risk Limits FrameworkRisk limits and quantitative metrics provide the basis for monitoring risk-taking activity and avoiding outsized risk taking. Our risk-taking capacity is sized through the Firm’s capital planning process where losses are estimated under the Firm’s BHC Severely Adverse stress testing scenario. We also maintain a comprehensive suite of risk limits and quantitative metrics to support and implement our risk-appetite statement. Our risk limits support linkages between the overall risk appetite, which is reviewed by the Board, and more granular risk-taking decisions and activities.Risk limits, once established, are reviewed and updated on an annual basis, with more frequent updates as necessary. Board-level risk limits address the most important Firmwide aggregations of risk. Additional risk limits approved by the FRC address more specific types of risk and are bound by the higher-level Board risk limits.Risk Management ProcessIn subsequent sections, we discuss our risk management policies and procedures for our primary risks involved in the activities of our Institutional Securities, Wealth Management and Investment Management business segments. These sections and the estimated amounts of our risk exposure generated by our statistical analyses are forward-looking statements. However, the analyses used to assess such risks are not predictions of future events, and actual results may vary significantly from such analyses due to events in the markets in which we operate and certain other factors described in the following paragraphs.Market RiskMarket risk refers to the risk that a change in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity, will result in losses for a position or portfolio. Generally, we incur market risk as a result of trading, investing and client facilitation activities, principally within the Institutional Securities business segment where the substantial majority of our VaR for market risk exposures is generated. In addition, we incur non-trading market risk, principally within the Wealth Management and Investment Management business segments. The Wealth Management business segment primarily incurs non-trading market risk (including interest rate risk) from lending and deposit-taking activities. The Investment Management business segment primarily incurs non-trading market risk from capital investments in its funds. Market risk also includes non-trading interest rate risk. Non-trading interest rate risk in the banking book (amounts classified for regulatory capital purposes under the banking book regime) refers to the exposure that a change in interest rates will result in prospective earnings and fair value changes for assets and liabilities in the banking book.Sound market risk management is an integral part of our culture. The various business units and trading desks are responsible for ensuring that market risk exposures are well-managed and prudent. The Firm’s control functions help ensure that these risks are measured and closely monitored and are made transparent to senior management. The Market Risk Department is responsible for ensuring the transparency of material market risks, monitoring compliance with established limits and escalating risk concentrations to appropriate senior management.To execute these responsibilities, the Market Risk Department monitors our risk against limits on aggregate risk exposures, performs a variety of risk analyses, routinely reports risk summaries, and maintains our VaR and scenario analysis systems. Market risk is also monitored through various measures: by use of statistics (including VaR and related analytical measures), by measures of position size and sensitivity, and through routine stress testing, which measures the impact on the value of existing portfolios of specified fundamental building block of these programs is the Firm’s Code of Conduct, which establishes standards for employee conduct that further reinforce the Firm’s commitment to integrity and ethical conduct. Every new hire and every employee annually is required to certify to their understanding of and adherence to the Code of Conduct. The Firm’s Global Conduct Risk Management Policy also sets out a consistent global framework for managing conduct risk (i.e., the risk arising from misconduct by employees or contingent workers) and conduct risk incidents at the Firm.The employee annual performance review process includes evaluation of employee conduct related to risk management practices and the Firm’s expectations. We also have several mutually reinforcing processes to identify employee conduct that may have an impact on employment status, current-year compensation and/or prior-year compensation. For example, the Global Incentive Compensation Discretion Policy sets forth standards for managers when making annual compensation decisions and specifically provides that managers must consider whether their employees effectively managed and/or supervised risk control practices during the performance year. Control function management meets to discuss employees whose conduct is not in line with our expectations. These results are incorporated into identified employees’ performance reviews and compensation and promotion decisions.The Firm’s clawback and cancellation provisions apply to deferred incentive compensation and cover a broad scope of employee conduct, including any act or omission (including with respect to direct supervisory responsibilities) that constitutes a breach of obligation to the Firm or causes a restatement of the Firm’s financial results, constitutes a violation of the Firm’s global risk management principles, policies and standards, or causes a loss of revenue associated with a position on which the employee was paid and the employee operated outside of risk management policies.Risk Limits FrameworkRisk limits and quantitative metrics provide the basis for monitoring risk-taking activity and avoiding outsized risk taking. Our risk-taking capacity is sized through the Firm’s capital planning process where losses are estimated under the Firm’s BHC Severely Adverse stress testing scenario. We also maintain a comprehensive suite of risk limits and quantitative metrics to support and implement our risk-appetite statement. Our risk limits support linkages between the overall risk appetite, which is reviewed by the Board, and more granular risk-taking decisions and activities.Risk limits, once established, are reviewed and updated on an annual basis, with more frequent updates as necessary. Board-level risk limits address the most important Firmwide aggregations of risk. Additional risk limits approved by the FRC address more specific types of risk and are bound by the higher-level Board risk limits. fundamental building block of these programs is the Firm’s Code of Conduct, which establishes standards for employee conduct that further reinforce the Firm’s commitment to integrity and ethical conduct. Every new hire and every employee annually is required to certify to their understanding of and adherence to the Code of Conduct. The Firm’s Global Conduct Risk Management Policy also sets out a consistent global framework for managing conduct risk (i.e., the risk arising from misconduct by employees or contingent workers) and conduct risk incidents at the Firm. The employee annual performance review process includes evaluation of employee conduct related to risk management practices and the Firm’s expectations. We also have several mutually reinforcing processes to identify employee conduct that may have an impact on employment status, current-year compensation and/or prior-year compensation. For example, the Global Incentive Compensation Discretion Policy sets forth standards for managers when making annual compensation decisions and specifically provides that managers must consider whether their employees effectively managed and/or supervised risk control practices during the performance year. Control function management meets to discuss employees whose conduct is not in line with our expectations. These results are incorporated into identified employees’ performance reviews and compensation and promotion decisions. The Firm’s clawback and cancellation provisions apply to deferred incentive compensation and cover a broad scope of employee conduct, including any act or omission (including with respect to direct supervisory responsibilities) that constitutes a breach of obligation to the Firm or causes a restatement of the Firm’s financial results, constitutes a violation of the Firm’s global risk management principles, policies and standards, or causes a loss of revenue associated with a position on which the employee was paid and the employee operated outside of risk management policies."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Market Risk",
      "prior_title": "Market Risk",
      "current_body": "Market risk refers to the risk that a change in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity, will result in losses for a position or portfolio. We have direct exposure to market risk. In addition, market risk may also impact our clients and markets in a manner that may indirectly impact us. For more information on how we monitor and manage market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk.”"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Value-at-Risk",
      "prior_title": "Value-at-Risk",
      "current_body": "The statistical technique known as VaR is one of the tools we use to measure, monitor and review the market risk exposures of our trading portfolios. The Market Risk Department calculates and distributes daily VaR-based risk measures to various levels of management. We estimate VaR using a model based on a one-year equal-weighted historical simulation for general market risk factors and name-specific risk in corporate equities and related derivatives, and Monte Carlo simulation for name-specific risk in bonds, loans and related derivatives. The model constructs a distribution of hypothetical daily changes in the value of trading portfolios based on historical observation of daily changes in key market indices or other market risk factors, and information on the sensitivity of the portfolio values to these market risk factor changes. VaR for risk management purposes (“Management VaR”) is computed at a 95% level of confidence over a one-day time horizon, which is a useful indicator of possible trading losses resulting from adverse daily market moves. The 95%/one-day VaR corresponds to the unrealized loss in portfolio value that, based on historically observed market risk factor movements, would have been exceeded with a frequency of 5%, or five times in every 100 trading days, if the portfolio were held constant for one day. Our VaR model generally takes into account linear and non-linear exposures to equity and commodity price risk, interest rate risk, credit spread risk and foreign exchange rates. The model also takes into account linear exposures to implied volatility risks for all asset classes and non-linear exposures to implied volatility risks for equity, commodity and foreign 59December 2024 Form 10-K 59December 2024 Form 10-K 59December 2024 Form 10-K 59 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents exchange referenced products. The VaR model also captures certain implied correlation risks associated with portfolio credit derivatives, as well as certain basis risks (e.g., corporate debt and related credit derivatives).We use VaR as one of a range of risk management tools. Among their benefits, VaR models permit estimation of a portfolio’s aggregate market risk exposure, incorporating a range of varied market risks and portfolio assets. One key element of the VaR model is that it reflects risk reduction due to portfolio diversification or hedging activities. However, VaR has various limitations, which include, but are not limited to: use of historical changes in market risk factors, which may not be accurate predictors of future market conditions and may not fully incorporate the risk of extreme market events that are outsized relative to observed historical market behavior or reflect the historical distribution of results beyond the 95% confidence interval; and reporting of losses in a single day, which does not reflect the risk of positions that cannot be liquidated or hedged in one day. A small proportion of market risk generated by trading positions is not included in VaR.The modeling of the risk characteristics of some positions relies on approximations that, under certain circumstances, could produce significantly different results from those produced using more precise measures. VaR is most appropriate as a risk measure for trading positions in liquid financial markets and will understate the risk associated with severe events, such as periods of extreme illiquidity. We are aware of these and other limitations and, therefore, use VaR as only one component in our risk management oversight process. This process also incorporates stress testing and scenario analyses and extensive risk monitoring, analysis and control at the trading desk, division and Firm levels.We update our VaR model in response to changes in the composition of trading portfolios and to improvements in modeling techniques and systems capabilities. We are committed to continuous review and enhancement of VaR methodologies and assumptions in order to capture evolving risks associated with changes in market structure and dynamics. As part of our regular process improvements, additional systematic and name-specific risk factors may be added to improve the VaR model’s ability to more accurately estimate risks to specific asset classes or industry sectors.Since the reported VaR statistics are estimates based on historical data, VaR should not be viewed as predictive of our future revenues or financial performance or of our ability to monitor and manage risk. There can be no assurance that our actual losses on a particular day will not exceed the VaR amounts indicated in the following tables or that such losses will not occur more than five times in 100 trading days for a 95%/one-day VaR. VaR does not predict the magnitude of losses that, should they occur, may be significantly greater than the VaR amount.VaR statistics are not readily comparable across firms because of differences in the firms’ portfolios, modeling assumptions and methodologies. These differences can result in materially different VaR estimates across firms for similar portfolios. The impact of such differences varies depending on the factor history assumptions, the frequency with which the factor history is updated and the confidence level. As a result, VaR statistics are more useful when interpreted as indicators of trends in a firm’s risk profile rather than as an absolute measure of risk to be compared across firms.Our regulators have approved the same VaR model we use for risk management purposes for use in regulatory calculations.The portfolio of positions used for Management VaR differs from that used for Regulatory VaR. Management VaR contains certain positions that are excluded from Regulatory VaR. 95%/One-Day Management VaR 2024$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$23 $31 $52 $19 Equity price21 23 39 17 Foreign exchange rate10 10 15 6 Commodity price18 15 23 10 Less: Diversification benefit2(37)(37)N/AN/APrimary Risk Categories$35 $42 $59 $32 Credit Portfolio20 24 26 20 Less: Diversification benefit2(16)(17)N/AN/ATotal Management VaR$39 $49 $66 $39 2023$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$29 $34 $43 $27 Equity price19 24 38 15 Foreign exchange rate6 9 18 5 Commodity price11 17 35 10 Less: Diversification benefit2(27)(40)N/AN/APrimary Risk Categories$38 $44 $60 $33 Credit Portfolio25 21 25 18 Less: Diversification benefit2(22)(15)N/AN/ATotal Management VaR$41 $50 $72 $41 1.The high and low VaR values for the Total Management VaR and each of the component VaRs might have occurred on different days during the quarter, and, therefore, the diversification benefit is not an applicable measure. 2.Diversification benefit equals the difference between the total VaR and the sum of the component VaRs. This benefit arises because the simulated one-day losses for each of the components occur on different days. Similar diversification benefits are also taken into account within each component. Average Total Management VaR and average Management VaR for the Primary Risk Categories decreased from 2023, primarily driven by lower market volatility.Distribution of VaR Statistics and Net RevenuesWe evaluate the reasonableness of our VaR model by comparing the potential declines in portfolio values generated by the model with corresponding actual trading results for the Firm, as well as individual business units. For days where losses exceed the VaR statistic, we examine the drivers of exchange referenced products. The VaR model also captures certain implied correlation risks associated with portfolio credit derivatives, as well as certain basis risks (e.g., corporate debt and related credit derivatives).We use VaR as one of a range of risk management tools. Among their benefits, VaR models permit estimation of a portfolio’s aggregate market risk exposure, incorporating a range of varied market risks and portfolio assets. One key element of the VaR model is that it reflects risk reduction due to portfolio diversification or hedging activities. However, VaR has various limitations, which include, but are not limited to: use of historical changes in market risk factors, which may not be accurate predictors of future market conditions and may not fully incorporate the risk of extreme market events that are outsized relative to observed historical market behavior or reflect the historical distribution of results beyond the 95% confidence interval; and reporting of losses in a single day, which does not reflect the risk of positions that cannot be liquidated or hedged in one day. A small proportion of market risk generated by trading positions is not included in VaR.The modeling of the risk characteristics of some positions relies on approximations that, under certain circumstances, could produce significantly different results from those produced using more precise measures. VaR is most appropriate as a risk measure for trading positions in liquid financial markets and will understate the risk associated with severe events, such as periods of extreme illiquidity. We are aware of these and other limitations and, therefore, use VaR as only one component in our risk management oversight process. This process also incorporates stress testing and scenario analyses and extensive risk monitoring, analysis and control at the trading desk, division and Firm levels.We update our VaR model in response to changes in the composition of trading portfolios and to improvements in modeling techniques and systems capabilities. We are committed to continuous review and enhancement of VaR methodologies and assumptions in order to capture evolving risks associated with changes in market structure and dynamics. As part of our regular process improvements, additional systematic and name-specific risk factors may be added to improve the VaR model’s ability to more accurately estimate risks to specific asset classes or industry sectors.Since the reported VaR statistics are estimates based on historical data, VaR should not be viewed as predictive of our future revenues or financial performance or of our ability to monitor and manage risk. There can be no assurance that our actual losses on a particular day will not exceed the VaR amounts indicated in the following tables or that such losses will not occur more than five times in 100 trading days for a 95%/one-day VaR. VaR does not predict the magnitude of losses that, should they occur, may be significantly greater than the VaR amount. exchange referenced products. The VaR model also captures certain implied correlation risks associated with portfolio credit derivatives, as well as certain basis risks (e.g., corporate debt and related credit derivatives). We use VaR as one of a range of risk management tools. Among their benefits, VaR models permit estimation of a portfolio’s aggregate market risk exposure, incorporating a range of varied market risks and portfolio assets. One key element of the VaR model is that it reflects risk reduction due to portfolio diversification or hedging activities. However, VaR has various limitations, which include, but are not limited to: use of historical changes in market risk factors, which may not be accurate predictors of future market conditions and may not fully incorporate the risk of extreme market events that are outsized relative to observed historical market behavior or reflect the historical distribution of results beyond the 95% confidence interval; and reporting of losses in a single day, which does not reflect the risk of positions that cannot be liquidated or hedged in one day. A small proportion of market risk generated by trading positions is not included in VaR. The modeling of the risk characteristics of some positions relies on approximations that, under certain circumstances, could produce significantly different results from those produced using more precise measures. VaR is most appropriate as a risk measure for trading positions in liquid financial markets and will understate the risk associated with severe events, such as periods of extreme illiquidity. We are aware of these and other limitations and, therefore, use VaR as only one component in our risk management oversight process. This process also incorporates stress testing and scenario analyses and extensive risk monitoring, analysis and control at the trading desk, division and Firm levels. We update our VaR model in response to changes in the composition of trading portfolios and to improvements in modeling techniques and systems capabilities. We are committed to continuous review and enhancement of VaR methodologies and assumptions in order to capture evolving risks associated with changes in market structure and dynamics. As part of our regular process improvements, additional systematic and name-specific risk factors may be added to improve the VaR model’s ability to more accurately estimate risks to specific asset classes or industry sectors. Since the reported VaR statistics are estimates based on historical data, VaR should not be viewed as predictive of our future revenues or financial performance or of our ability to monitor and manage risk. There can be no assurance that our actual losses on a particular day will not exceed the VaR amounts indicated in the following tables or that such losses will not occur more than five times in 100 trading days for a 95%/one-day VaR. VaR does not predict the magnitude of losses that, should they occur, may be significantly greater than the VaR amount. VaR statistics are not readily comparable across firms because of differences in the firms’ portfolios, modeling assumptions and methodologies. These differences can result in materially different VaR estimates across firms for similar portfolios. The impact of such differences varies depending on the factor history assumptions, the frequency with which the factor history is updated and the confidence level. As a result, VaR statistics are more useful when interpreted as indicators of trends in a firm’s risk profile rather than as an absolute measure of risk to be compared across firms.Our regulators have approved the same VaR model we use for risk management purposes for use in regulatory calculations.The portfolio of positions used for Management VaR differs from that used for Regulatory VaR. Management VaR contains certain positions that are excluded from Regulatory VaR. 95%/One-Day Management VaR 2024$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$23 $31 $52 $19 Equity price21 23 39 17 Foreign exchange rate10 10 15 6 Commodity price18 15 23 10 Less: Diversification benefit2(37)(37)N/AN/APrimary Risk Categories$35 $42 $59 $32 Credit Portfolio20 24 26 20 Less: Diversification benefit2(16)(17)N/AN/ATotal Management VaR$39 $49 $66 $39 2023$ in millionsPeriodEndAverageHigh1Low1Interest rate and credit spread$29 $34 $43 $27 Equity price19 24 38 15 Foreign exchange rate6 9 18 5 Commodity price11 17 35 10 Less: Diversification benefit2(27)(40)N/AN/APrimary Risk Categories$38 $44 $60 $33 Credit Portfolio25 21 25 18 Less: Diversification benefit2(22)(15)N/AN/ATotal Management VaR$41 $50 $72 $41 1.The high and low VaR values for the Total Management VaR and each of the component VaRs might have occurred on different days during the quarter, and, therefore, the diversification benefit is not an applicable measure. 2.Diversification benefit equals the difference between the total VaR and the sum of the component VaRs. This benefit arises because the simulated one-day losses for each of the components occur on different days. Similar diversification benefits are also taken into account within each component. Average Total Management VaR and average Management VaR for the Primary Risk Categories decreased from 2023, primarily driven by lower market volatility.Distribution of VaR Statistics and Net RevenuesWe evaluate the reasonableness of our VaR model by comparing the potential declines in portfolio values generated by the model with corresponding actual trading results for the Firm, as well as individual business units. For days where losses exceed the VaR statistic, we examine the drivers of VaR statistics are not readily comparable across firms because of differences in the firms’ portfolios, modeling assumptions and methodologies. These differences can result in materially different VaR estimates across firms for similar portfolios. The impact of such differences varies depending on the factor history assumptions, the frequency with which the factor history is updated and the confidence level. As a result, VaR statistics are more useful when interpreted as indicators of trends in a firm’s risk profile rather than as an absolute measure of risk to be compared across firms. Our regulators have approved the same VaR model we use for risk management purposes for use in regulatory calculations. The portfolio of positions used for Management VaR differs from that used for Regulatory VaR. Management VaR contains certain positions that are excluded from Regulatory VaR."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Operational Risk",
      "prior_title": "Operational Risk",
      "current_body": "Operational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, human factors (e.g., inappropriate or unlawful conduct) or external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal, regulatory and compliance risks, or damage to physical assets. We may experience operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (e.g., information technology (“IT”) and trade processing). Legal, regulatory and compliance risk is included in the scope of operational risk and is discussed below under “Legal, Regulatory and Compliance Risk.” For more information on how we monitor and manage operational risk, see “Quantitative and Qualitative Disclosures about Risk—Operational Risk.”"
    },
    {
      "status": "UNCHANGED",
      "current_title": "The application of regulatory requirements and strategies in the U.S. or other jurisdictions to facilitate the orderly resolution of large financial institutions may pose a greater risk of loss for our security holders and subject us to other restrictions.",
      "prior_title": "The application of regulatory requirements and strategies in the U.S. or other jurisdictions to facilitate the orderly resolution of large financial institutions may pose a greater risk of loss for our security holders and subject us to other restrictions.",
      "current_body": "We are required to submit once every two years to the Federal Reserve and the FDIC a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of material financial distress or failure. If the Federal Reserve and the FDIC were to jointly determine that our resolution plan submission was not credible or would not facilitate an orderly resolution, and if we were unsuccessful in addressing any deficiencies identified by the regulators, we or any of our subsidiaries may be subject to more stringent capital, leverage or liquidity requirements or restrictions on our growth, activities or operations, or after a two-year period, we may be required to divest assets or operations. In addition, provided that certain procedures are met, we can be subject to a resolution proceeding under the orderly liquidation authority under Title II of the Dodd-Frank Act with the FDIC being appointed as receiver instead of being resolved under the U.S. Bankruptcy Code. The FDIC’s power under the orderly liquidation authority to disregard the priority of creditor claims and treat similarly situated creditors differently in certain circumstances, subject to certain limitations, could adversely impact holders of our unsecured debt. See “Business—Supervision and Regulation” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements.” Further, because both our resolution plan contemplates an SPOE strategy under the U.S. Bankruptcy Code and the FDIC has indicated that it expects to use an SPOE strategy through which it may apply its orderly liquidation authority powers for a U.S. G-SIB, we believe that the application of an SPOE strategy is the reasonably likely outcome if either our resolution plan were implemented or a resolution proceeding were commenced under the orderly liquidation authority. An SPOE strategy generally contemplates the provision of adequate capital and liquidity by the Parent Company to certain of its subsidiaries so that such subsidiaries have the resources necessary to implement the resolution strategy, and the Parent Company has entered into a secured amended and restated support agreement with such entities, pursuant to which it would provide such capital and liquidity to such entities. In addition, a wholly owned, direct subsidiary of the Parent Company, Morgan Stanley Holdings LLC (“Funding IHC”), serves as a resolution funding vehicle. The Parent Company has transferred, and has agreed to transfer on an ongoing basis, certain assets to the Funding IHC. In the event of a resolution scenario, the Parent Company would be obligated to contribute all of its material assets that can be contributed under the terms of the amended and restated support 19December 2024 Form 10-K 19December 2024 Form 10-K 19December 2024 Form 10-K 19 Table of Contents Table of Contents Table of Contents agreement (other than shares in subsidiaries of the Parent Company and certain other assets) to the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to certain supported subsidiaries, pursuant to the terms of the secured amended and restated support agreement.The obligations of the Parent Company and of the Funding IHC, respectively, under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets), and the assets of the Funding IHC, as applicable. As a result, claims of certain supported subsidiaries, including the Funding IHC, against the assets of the Parent Company with respect to such secured assets are effectively senior to unsecured obligations of the Parent Company.Although an SPOE strategy, whether applied pursuant to our resolution plan or in a resolution proceeding under the orderly liquidation authority, is intended to result in better outcomes for creditors overall, there is no guarantee that the application of an SPOE strategy, including the provision of support to the Parent Company’s supported subsidiaries pursuant to the secured amended and restated support agreement, will not result in greater losses for holders of our securities compared with a different resolution strategy for us.Regulators have taken and proposed various actions to facilitate an SPOE strategy under the U.S. Bankruptcy Code, the orderly liquidation authority and other resolution regimes. For example, the Federal Reserve requires top-tier BHCs of U.S. G-SIBs, including the Firm, to maintain adequate TLAC, including equity and eligible long-term debt, in order to ensure that such institutions have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of debt to equity or otherwise by imposing losses on eligible TLAC where the SPOE strategy is used. The combined implication of the SPOE resolution strategy and the TLAC requirement is that our losses will be imposed on the holders of eligible long-term debt and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on the creditors of our supported subsidiaries without requiring taxpayer or government financial support.In addition, certain jurisdictions, including the U.K. and E.U. jurisdictions, have implemented changes to resolution regimes to provide resolution authorities with the ability to recapitalize a failing entity organized in such jurisdiction by writing down certain unsecured liabilities or converting certain unsecured liabilities into equity. Such “bail-in” powers are intended to enable the recapitalization of a failing institution by allocating losses to its shareholders and unsecured creditors. This may increase the overall level of capital and liquidity required by us on a consolidated basis and may result in limitations on our ability to efficiently distribute capital and liquidity among our affiliated entities, including in times of stress. Non-U.S. regulators are also considering requirements that certain subsidiaries of large financial institutions maintain minimum amounts of TLAC that would pass losses up from the subsidiaries to the Parent Company and, ultimately, to security holders of the Parent Company in the event of failure.We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements.We are subject to comprehensive consolidated supervision, regulation and examination by the Federal Reserve, including with respect to regulatory capital requirements, stress testing and capital planning. We submit, on at least an annual basis, a capital plan to the Federal Reserve describing proposed dividend payments to shareholders, proposed repurchases of our outstanding securities and other proposed capital actions that we intend to take. Our ability to take capital actions described in the capital plan is dependent on, among other factors, the results of supervisory stress tests conducted by the Federal Reserve and our compliance with regulatory capital requirements imposed by the Federal Reserve.In addition, the Federal Reserve may change regulatory capital requirements to impose higher requirements that restrict our ability to take capital actions or may modify or impose other regulatory standards or restrictions that increase our operating expenses or constrain our ability to take capital actions. For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”The financial services industry faces substantial litigation and is subject to extensive regulatory and law enforcement investigations, and we may face damage to our reputation and legal liability.As a global financial services firm, we face the risk of investigations and proceedings by governmental and self-regulatory organizations in all countries in which we conduct our business. These investigations and proceedings, as well as the amount of penalties and fines sought, continue to impact the financial services industry. Certain U.S. and international governmental entities have brought criminal actions against, or have sought criminal convictions, pleas, deferred prosecution agreements or non-prosecution agreements from financial institutions. Significant regulatory or law enforcement action against us could materially adversely affect our business, reputation, financial condition or results of operations, and increase our exposure to civil litigation.Investigations and proceedings initiated by these authorities may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions or other relief, and have included and may in the future include requirements that the Firm admit certain conduct, which may result in increased exposure to civil litigation. In addition, these measures have caused and may in the future cause collateral consequences. For example, such matters could impact our ability to engage in, or impose limitations on, certain of our businesses. agreement (other than shares in subsidiaries of the Parent Company and certain other assets) to the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to certain supported subsidiaries, pursuant to the terms of the secured amended and restated support agreement.The obligations of the Parent Company and of the Funding IHC, respectively, under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets), and the assets of the Funding IHC, as applicable. As a result, claims of certain supported subsidiaries, including the Funding IHC, against the assets of the Parent Company with respect to such secured assets are effectively senior to unsecured obligations of the Parent Company.Although an SPOE strategy, whether applied pursuant to our resolution plan or in a resolution proceeding under the orderly liquidation authority, is intended to result in better outcomes for creditors overall, there is no guarantee that the application of an SPOE strategy, including the provision of support to the Parent Company’s supported subsidiaries pursuant to the secured amended and restated support agreement, will not result in greater losses for holders of our securities compared with a different resolution strategy for us.Regulators have taken and proposed various actions to facilitate an SPOE strategy under the U.S. Bankruptcy Code, the orderly liquidation authority and other resolution regimes. For example, the Federal Reserve requires top-tier BHCs of U.S. G-SIBs, including the Firm, to maintain adequate TLAC, including equity and eligible long-term debt, in order to ensure that such institutions have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of debt to equity or otherwise by imposing losses on eligible TLAC where the SPOE strategy is used. The combined implication of the SPOE resolution strategy and the TLAC requirement is that our losses will be imposed on the holders of eligible long-term debt and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on the creditors of our supported subsidiaries without requiring taxpayer or government financial support.In addition, certain jurisdictions, including the U.K. and E.U. jurisdictions, have implemented changes to resolution regimes to provide resolution authorities with the ability to recapitalize a failing entity organized in such jurisdiction by writing down certain unsecured liabilities or converting certain unsecured liabilities into equity. Such “bail-in” powers are intended to enable the recapitalization of a failing institution by allocating losses to its shareholders and unsecured creditors. This may increase the overall level of capital and liquidity required by us on a consolidated basis and may result in limitations on our ability to efficiently distribute capital and liquidity among our affiliated entities, including in times of stress. Non-U.S. regulators are also considering requirements that certain subsidiaries of large financial institutions maintain minimum agreement (other than shares in subsidiaries of the Parent Company and certain other assets) to the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to certain supported subsidiaries, pursuant to the terms of the secured amended and restated support agreement. The obligations of the Parent Company and of the Funding IHC, respectively, under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets), and the assets of the Funding IHC, as applicable. As a result, claims of certain supported subsidiaries, including the Funding IHC, against the assets of the Parent Company with respect to such secured assets are effectively senior to unsecured obligations of the Parent Company. Although an SPOE strategy, whether applied pursuant to our resolution plan or in a resolution proceeding under the orderly liquidation authority, is intended to result in better outcomes for creditors overall, there is no guarantee that the application of an SPOE strategy, including the provision of support to the Parent Company’s supported subsidiaries pursuant to the secured amended and restated support agreement, will not result in greater losses for holders of our securities compared with a different resolution strategy for us. Regulators have taken and proposed various actions to facilitate an SPOE strategy under the U.S. Bankruptcy Code, the orderly liquidation authority and other resolution regimes. For example, the Federal Reserve requires top-tier BHCs of U.S. G-SIBs, including the Firm, to maintain adequate TLAC, including equity and eligible long-term debt, in order to ensure that such institutions have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of debt to equity or otherwise by imposing losses on eligible TLAC where the SPOE strategy is used. The combined implication of the SPOE resolution strategy and the TLAC requirement is that our losses will be imposed on the holders of eligible long-term debt and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on the creditors of our supported subsidiaries without requiring taxpayer or government financial support. In addition, certain jurisdictions, including the U.K. and E.U. jurisdictions, have implemented changes to resolution regimes to provide resolution authorities with the ability to recapitalize a failing entity organized in such jurisdiction by writing down certain unsecured liabilities or converting certain unsecured liabilities into equity. Such “bail-in” powers are intended to enable the recapitalization of a failing institution by allocating losses to its shareholders and unsecured creditors. This may increase the overall level of capital and liquidity required by us on a consolidated basis and may result in limitations on our ability to efficiently distribute capital and liquidity among our affiliated entities, including in times of stress. Non-U.S. regulators are also considering requirements that certain subsidiaries of large financial institutions maintain minimum amounts of TLAC that would pass losses up from the subsidiaries to the Parent Company and, ultimately, to security holders of the Parent Company in the event of failure.We may be prevented from paying dividends or taking other capital actions because of regulatory constraints or revised regulatory capital requirements.We are subject to comprehensive consolidated supervision, regulation and examination by the Federal Reserve, including with respect to regulatory capital requirements, stress testing and capital planning. We submit, on at least an annual basis, a capital plan to the Federal Reserve describing proposed dividend payments to shareholders, proposed repurchases of our outstanding securities and other proposed capital actions that we intend to take. Our ability to take capital actions described in the capital plan is dependent on, among other factors, the results of supervisory stress tests conducted by the Federal Reserve and our compliance with regulatory capital requirements imposed by the Federal Reserve.In addition, the Federal Reserve may change regulatory capital requirements to impose higher requirements that restrict our ability to take capital actions or may modify or impose other regulatory standards or restrictions that increase our operating expenses or constrain our ability to take capital actions. For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”The financial services industry faces substantial litigation and is subject to extensive regulatory and law enforcement investigations, and we may face damage to our reputation and legal liability.As a global financial services firm, we face the risk of investigations and proceedings by governmental and self-regulatory organizations in all countries in which we conduct our business. These investigations and proceedings, as well as the amount of penalties and fines sought, continue to impact the financial services industry. Certain U.S. and international governmental entities have brought criminal actions against, or have sought criminal convictions, pleas, deferred prosecution agreements or non-prosecution agreements from financial institutions. Significant regulatory or law enforcement action against us could materially adversely affect our business, reputation, financial condition or results of operations, and increase our exposure to civil litigation.Investigations and proceedings initiated by these authorities may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions or other relief, and have included and may in the future include requirements that the Firm admit certain conduct, which may result in increased exposure to civil litigation. In addition, these measures have caused and may in the future cause collateral consequences. For example, such matters could impact our ability to engage in, or impose limitations on, certain of our businesses. amounts of TLAC that would pass losses up from the subsidiaries to the Parent Company and, ultimately, to security holders of the Parent Company in the event of failure."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Quantitative and Qualitative Disclosures about Risk",
      "prior_title": "Quantitative and Qualitative Disclosures about Risk",
      "current_body": "Risk ManagementOverviewRisk is an inherent part of our businesses and activities. We believe effective risk management is vital to the success of our business activities. Accordingly, we have an Enterprise Risk Management (“ERM”) framework to integrate the diverse roles of risk management into a holistic enterprise structure and to facilitate the incorporation of risk assessment into decision-making processes across the Firm.We have policies and procedures in place to identify, measure, monitor, escalate, mitigate and control the principal risks involved in the activities of the Institutional Securities, Wealth Management and Investment Management business segments, significant operating subsidiaries, as well as at the Parent Company level. The principal risks involved in our business activities are both financial and non-financial and include market (including non-trading interest rate risk), credit, liquidity, model, operational (including cybersecurity), compliance (including conduct), financial crimes, strategic and reputational risks. Strategic risk is integrated into our business planning, embedded in the evaluation of all principal risks and overseen by the Board.The cornerstone of our risk management philosophy is the pursuit of risk-adjusted returns through prudent risk taking that protects our capital base and franchise. This philosophy is implemented through the ERM framework. Five key principles underlie this philosophy: integrity, comprehensiveness, independence, accountability and transparency. To help ensure the efficacy of risk management, which is an essential component of our reputation, senior management requires thorough and frequent reporting and the appropriate escalation of risk matters. The fast-paced, complex and constantly evolving nature of global financial markets requires us to maintain a risk management culture that is incisive, knowledgeable about specialized products and markets, and subject to ongoing review and enhancement.Our risk appetite defines the aggregate level and types of risk that the Firm is willing to accept to achieve its business objectives, taking into account the interests of clients and fiduciary duties to shareholders, as well as capital and other regulatory requirements. This risk appetite is embedded in our risk culture and linked to our short-term and long-term strategic, capital and financial plans, as well as compensation programs. This risk appetite and the related Board-level risk limits and risk tolerance statements are reviewed and approved by the Risk Committee of the Board (“BRC”) and the Board on at least an annual basis.Risk Governance StructureRisk management at the Firm requires independent Firm-level oversight, accountability of our business segments and effective communication of risk matters across the Firm, to senior management and ultimately to the Board. Our risk governance structure is set forth in the following chart and also includes risk managers, committees and groups within and across business segments and operating legal entities. The ERM framework, composed of independent but complementary entities, facilitates efficient and comprehensive supervision of our risk exposures and processes. Risk ManagementOverviewRisk is an inherent part of our businesses and activities. We believe effective risk management is vital to the success of our business activities. Accordingly, we have an Enterprise Risk Management (“ERM”) framework to integrate the diverse roles of risk management into a holistic enterprise structure and to facilitate the incorporation of risk assessment into decision-making processes across the Firm.We have policies and procedures in place to identify, measure, monitor, escalate, mitigate and control the principal risks involved in the activities of the Institutional Securities, Wealth Management and Investment Management business segments, significant operating subsidiaries, as well as at the Parent Company level. The principal risks involved in our business activities are both financial and non-financial and include market (including non-trading interest rate risk), credit, liquidity, model, operational (including cybersecurity), compliance (including conduct), financial crimes, strategic and reputational risks. Strategic risk is integrated into our business planning, embedded in the evaluation of all principal risks and overseen by the Board.The cornerstone of our risk management philosophy is the pursuit of risk-adjusted returns through prudent risk taking that protects our capital base and franchise. This philosophy is implemented through the ERM framework. Five key principles underlie this philosophy: integrity, comprehensiveness, independence, accountability and transparency. To help ensure the efficacy of risk management, which is an essential component of our reputation, senior"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Asset Management",
      "prior_title": "Asset Management",
      "current_body": "Asset management revenues include fees associated with the management and supervision of assets and the distribution of funds and similar products. Within the Wealth Management business segment, Asset management revenues are related to advisory services associated with fee-based assets, account service and administration, as well as distribution of products. These revenues are generally based on the net asset value of the account in which a client is invested.Within the Investment Management business segment, Asset management revenues are primarily composed of fees received from investment vehicles on the basis of assets under management. Performance-based fees, not in the form of carried interest, are earned on certain products and separately managed accounts as a percentage of appreciation in value and, in certain cases, are based upon the achievement of performance criteria. These performance fees are generally recognized on a quarterly or annual basis. Net InterestInterest income and Interest expense are functions of the level and mix of total assets and liabilities, including Trading assets and Trading liabilities, Investment securities, Securities borrowed or purchased under agreements to resell, Securities loaned or sold under agreements to repurchase, Loans, Deposits and Borrowings. Within the Institutional Securities business segment, Net interest is a function of market-making strategies, client activity, and the prevailing level, term structure and volatility of interest rates. Net interest is impacted by market-making, lending and financing activities as we generally earn interest on securities held by the Firm, Securities borrowed, Securities purchased under agreements to resell, Loans and margin loans, while Borrowings, Securities loaned and Securities sold under agreements to repurchase generally incur interest expense. Within the Wealth Management business segment, Interest income is driven by assets held including Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. OtherOther revenues for Institutional Securities include revenues and losses from equity method investments, fees earned in association with lending activities, mark-to-market gains and losses on loans and lending commitments held for sale, as well as gains and losses on economic derivative hedges associated with certain held-for-sale and held-for-investment loans and lending commitments.Other revenues for Wealth Management include realized gains and losses on AFS securities, account handling fees, referral fees and other miscellaneous revenues.Provision for Credit LossesThe Provision for credit losses includes the provision for credit losses for loans and lending commitments held for investment. associated with fee-based assets, account service and administration, as well as distribution of products. These revenues are generally based on the net asset value of the account in which a client is invested. Within the Investment Management business segment, Asset management revenues are primarily composed of fees received from investment vehicles on the basis of assets under management. Performance-based fees, not in the form of carried interest, are earned on certain products and separately managed accounts as a percentage of appreciation in value and, in certain cases, are based upon the achievement of performance criteria. These performance fees are generally recognized on a quarterly or annual basis."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements",
      "prior_title": "Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements",
      "current_body": "The Federal Reserve has established external TLAC, long-term debt (“LTD”) and clean holding company requirements for top-tier BHCs of U.S. G-SIBs (“covered BHCs”), including the Parent Company. These requirements are designed to ensure that covered BHCs will have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of eligible LTD to equity or otherwise by imposing losses on eligible LTD or other forms of TLAC where an SPOE resolution strategy is used (see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk”). These TLAC and eligible LTD requirements include various restrictions, such as requiring eligible LTD to: be issued by the covered BHC; be unsecured; have a maturity of one year or more from the date of issuance; and not contain certain embedded features, such as a principal or redemption amount subject to reduction based on the performance of an asset, entity or index, or a similar feature. In addition, the requirements provide permanent grandfathering for debt instruments issued prior to December 31, 2016 that would be eligible LTD but for having impermissible acceleration clauses or being governed by foreign law. A covered BHC is also required to maintain minimum external TLAC equal to the greater of (i) 18% of total RWA or (ii) 7.5% of its total leverage exposure (the denominator of its SLR). Covered BHCs must also meet a minimum external LTD requirement equal to the greater of (i) total RWA multiplied by the sum of 6% plus the higher of the Method 1 or Method 2 G-SIB capital surcharge applicable to the Parent Company or (ii) 4.5% of its total leverage exposure. TLAC buffer requirements are imposed on top of both the risk-based and leverage exposure-based external TLAC minimum requirements. The risk-based TLAC buffer is equal to the sum of 2.5%, our Method 1 G-SIB surcharge and the CCyB, if any, as a percentage of total RWA. The leverage exposure-based TLAC buffer is equal to 2% of our total leverage exposure. Failure to maintain the buffers would result in restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. December 2024 Form 10-K52 December 2024 Form 10-K52 December 2024 Form 10-K52 52 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Required and Actual TLAC and Eligible LTD Ratios ActualAmount/Ratio$ in millionsRegulatory MinimumRequired Ratio1AtDecember 31,2024 AtDecember 31,2023 External TLAC2$266,146 $250,914 External TLAC as a % of RWA18.0 %21.5 %55.8 %55.0 %External TLAC as a % of leverage exposure7.5 %9.5 %17.5 %17.6 %Eligible LTD3$169,690 $162,547 Eligible LTD as a % of RWA9.0 %9.0 %35.5 %35.6 %Eligible LTD as a % of leverage exposure4.5 %4.5 %11.2 %11.4 %1.Required ratios are inclusive of applicable buffers.2.External TLAC consists of CET1 capital and Additional Tier 1 capital (each excluding any noncontrolling minority interests), as well as eligible LTD.3.Consists of TLAC-eligible LTD reduced by 50% for amounts of unpaid principal due to be paid in more than one year but less than two years from each respective balance sheet date. Furthermore, under the clean holding company requirements, a covered BHC is prohibited from incurring any external debt with an original maturity of less than one year or certain other liabilities, regardless of whether the liabilities are fully secured or otherwise senior to eligible LTD, or entering into certain other prohibited transactions. Certain other external liabilities, including those with certain embedded features noted above, are subject to a cap equal to 5% of the covered BHC’s outstanding external TLAC amount. Additionally, as of April 1, 2021, we and our U.S. Bank Subsidiaries are required to make certain deductions from regulatory capital for investments in certain unsecured debt instruments (including eligible LTD in the TLAC framework) issued by the Parent Company or other G-SIBs.We are in compliance with all TLAC requirements as of December 31, 2024 and December 31, 2023.Capital Plans, Stress Tests and the Stress Capital BufferThe Federal Reserve has capital planning and stress test requirements for large BHCs, which form part of the Federal Reserve’s annual CCAR framework.We must submit, on at least an annual basis, a capital plan to the Federal Reserve, taking into account the results of separate annual stress tests designed by us and the Federal Reserve, so that the Federal Reserve may assess our systems and processes that incorporate forward-looking projections of revenues and losses to monitor and maintain our internal capital adequacy. As banks with less than $250 billion of total assets, our U.S. Bank Subsidiaries are not subject to company-run stress test regulatory requirements.The capital plan must include a description of all planned capital actions over a nine-quarter planning horizon, including any issuance or redemption of a debt or equity capital instrument, any capital distribution (i.e., payments of dividends or stock repurchases) and any similar action that the Federal Reserve determines could impact our consolidated capital. The capital plan must include a discussion of how we will maintain capital above the minimum regulatory capital ratios and how we will serve as a source of strength to our U.S. Bank Subsidiaries under supervisory stress scenarios. In addition, the Federal Reserve has issued guidance setting out its heightened expectations for capital planning practices at certain large financial institutions, including us.As part of its annual capital supervisory stress testing process, the Federal Reserve determines an SCB for each large BHC, including us. The SCB applies only with respect to Standardized Approach risk-based capital requirements and replaced the CET1 capital conservation buffer of 2.5%. The SCB is the greater of (i) the maximum decline in our Common Equity Tier 1 capital ratio under the severely adverse scenario over the supervisory stress test measurement period plus the sum of the four quarters of planned common stock dividends divided by the projected RWAs from the quarter in which the Firm’s projected Common Equity Tier 1 capital ratio reaches its minimum in the supervisory stress test and (ii) 2.5%. The supervisory stress test assumes that BHCs generally maintain a constant level of assets and RWAs throughout the projection period.A firm’s SCB is subject to revision each year, taking effect from October 1 to reflect the results of the Federal Reserve’s annual supervisory stress test. The Federal Reserve has discretion to recalculate a firm’s SCB outside of the October 1 annual cycle and to require approval for certain actions, in some circumstances. The Federal Reserve also has the authority to impose restrictions on capital actions as a supervisory matter.For the 2024 capital planning and stress test cycle, we submitted our capital plan and company-run stress test results to the Federal Reserve on April 5, 2024. On June 26, 2024, the Federal Reserve published summary results of its supervisory stress tests of each large BHC, in which the projected decline in our CET1 ratio in the severely adverse scenario increased from the prior annual supervisory stress test by 50 basis points, from 4.1% to 4.6%. Following the publication of the supervisory stress test results, we announced that our SCB will be 6.0% from October 1, 2024 through September 30, 2025. In addition to the projected decline in our Common Equity Tier 1 ratio in the severely adverse scenario, our SCB reflects the increase in our common stock dividend in the dividend add-on. Together with other features of the regulatory capital framework, this SCB results in an aggregate Standardized Approach Common Equity Tier 1 ratio of 13.5%. Generally, our SCB is determined annually based on the results of the supervisory stress test.We also disclosed a summary of the results of our company-run stress tests on our Investor Relations website and increased our quarterly common stock dividend to $0.925 per share from $0.85, beginning with the common stock dividend announced on July 16, 2024. Required and Actual TLAC and Eligible LTD Ratios ActualAmount/Ratio$ in millionsRegulatory MinimumRequired Ratio1AtDecember 31,2024 AtDecember 31,2023 External TLAC2$266,146 $250,914 External TLAC as a % of RWA18.0 %21.5 %55.8 %55.0 %External TLAC as a % of leverage exposure7.5 %9.5 %17.5 %17.6 %Eligible LTD3$169,690 $162,547 Eligible LTD as a % of RWA9.0 %9.0 %35.5 %35.6 %Eligible LTD as a % of leverage exposure4.5 %4.5 %11.2 %11.4 %1.Required ratios are inclusive of applicable buffers.2.External TLAC consists of CET1 capital and Additional Tier 1 capital (each excluding any noncontrolling minority interests), as well as eligible LTD.3.Consists of TLAC-eligible LTD reduced by 50% for amounts of unpaid principal due to be paid in more than one year but less than two years from each respective balance sheet date. Furthermore, under the clean holding company requirements, a covered BHC is prohibited from incurring any external debt with an original maturity of less than one year or certain other liabilities, regardless of whether the liabilities are fully secured or otherwise senior to eligible LTD, or entering into certain other prohibited transactions. Certain other external liabilities, including those with certain embedded features noted above, are subject to a cap equal to 5% of the covered BHC’s outstanding external TLAC amount. Additionally, as of April 1, 2021, we and our U.S. Bank Subsidiaries are required to make certain deductions from regulatory capital for investments in certain unsecured debt instruments (including eligible LTD in the TLAC framework) issued by the Parent Company or other G-SIBs.We are in compliance with all TLAC requirements as of December 31, 2024 and December 31, 2023.Capital Plans, Stress Tests and the Stress Capital BufferThe Federal Reserve has capital planning and stress test requirements for large BHCs, which form part of the Federal Reserve’s annual CCAR framework.We must submit, on at least an annual basis, a capital plan to the Federal Reserve, taking into account the results of separate annual stress tests designed by us and the Federal Reserve, so that the Federal Reserve may assess our systems and processes that incorporate forward-looking projections of revenues and losses to monitor and maintain our internal capital adequacy. As banks with less than $250 billion of total assets, our U.S. Bank Subsidiaries are not subject to company-run stress test regulatory requirements.The capital plan must include a description of all planned capital actions over a nine-quarter planning horizon, including any issuance or redemption of a debt or equity capital instrument, any capital distribution (i.e., payments of dividends or stock repurchases) and any similar action that the Federal Reserve determines could impact our consolidated capital. The capital plan must include a discussion of how we"
    },
    {
      "status": "UNCHANGED",
      "current_title": "A cyberattack, information or security breach or a technology failure of ours or a third party could adversely affect our ability to conduct our business or manage our exposure to risk, or result in disclosure or misuse of personal, confidential or proprietary information and otherwise adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm.",
      "prior_title": "A cyberattack, information or security breach or a technology failure of ours or a third party could adversely affect our ability to conduct our business or manage our exposure to risk, or result in disclosure or misuse of personal, confidential or proprietary information and otherwise adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm.",
      "current_body": "Cybersecurity risks for financial institutions have significantly increased in recent years, in part because of the proliferation of new technologies; the use of the internet, mobile telecommunications and cloud technologies to conduct financial transactions; and the increased sophistication and activities of organized crime, hackers, terrorists, nation-states, state-sponsored actors and other parties. Any of these parties may also attempt to fraudulently induce employees, customers, clients, vendors or other third parties or users of our systems to disclose sensitive information in order to gain access to our networks, systems or data or those of our employees or clients, and such parties may see their effectiveness enhanced by the use of artificial intelligence. Global events and geopolitical instability have also led to increased nation-state targeting of financial institutions in the U.S. and abroad. Information security risks may also derive from human error, fraud or malice on the part of our employees or third parties, software bugs, server malfunctions, software or hardware failure or other technological failure. For example, human error has led to the loss of the Firm's physical data-bearing devices in the past. These risks may be heightened by several factors, including remote work, reliance on new technologies (such as generative artificial intelligence) or as a result of the integration of acquisitions and other strategic initiatives that may subject us to new technology, customers or third-party providers. In addition, third parties with whom we do business or share information, and each of their service providers, our regulators and the third parties with whom our customers and clients share information used for authentication, may also be sources of cybersecurity and information security risks, particularly where these activities are beyond our security and control systems. There is no guarantee that the measures we take will provide absolute security or recoverability given that the techniques used in cyberattacks are complex, frequently change and are difficult to anticipate. Like other financial services firms, the Firm, its third-party providers and its clients continue to be the subject of unauthorized access attacks; mishandling, loss, theft or misuse of information; computer viruses or malware; cyberattacks designed to obtain confidential information, destroy data, disrupt or degrade service, sabotage systems or networks, impede our ability to execute or confirm settlement of transactions or cause other damage; ransomware; denial of December 2024 Form 10-K16 December 2024 Form 10-K16 December 2024 Form 10-K16 16 Table of Contents Table of Contents Table of Contents service attacks; data breaches; social engineering attacks; phishing attacks; and other events. There can be no assurance that such unauthorized access, mishandling or misuse of information, or cybersecurity incidents will not occur in the future and they could occur more frequently and on a more significant scale.We maintain a significant amount of personal and confidential information on our customers, clients and certain counterparties that we are required to protect under various state, federal and international data protection and privacy laws. These laws may be in conflict with one another or courts and regulators may interpret them in ways that we had not anticipated or that adversely affect our business. A cyberattack, information or security breach, or a technology failure of ours or of a third party could jeopardize our or our clients’, employees’, partners’, vendors’ or counterparties’ personal, confidential, proprietary or other information processed and stored in, and transmitted through, our and our third parties’ computer systems and networks. Furthermore, such events could cause interruptions or malfunctions in our, our clients’, partners’, vendors’, counterparties’ or third parties’ operations, as well as the unauthorized release, gathering, monitoring, misuse, loss or destruction of personal, confidential, proprietary and other information of ours, our employees, our customers or of other third parties. Any of these events could result in reputational damage with our clients and the market, client dissatisfaction, additional costs to us to maintain and update our operational and security systems and infrastructure, violation of the applicable data protection and privacy laws, regulatory investigations and enforcement actions, litigation exposure, or fines or penalties, any of which could adversely affect our business, financial condition or results of operations.Given our global footprint and the high volume of transactions we process; the large number of clients, partners, vendors and counterparties we interact with to conduct business; and the increasing sophistication of cyberattacks; a cyberattack or information or security breach could occur and persist for an extended period of time without detection. It could take considerable time for us to determine the scope, extent, amount and type of information compromised, and the impact of such an attack may not be fully understood. During such time, we would not necessarily know the extent of the harm or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, if at all, all or any of which would further increase the costs and consequences of a cyberattack or information security incident.While many of our agreements with partners and third parties include indemnification provisions, we may not be able to recover sufficiently, or at all, under such provisions to adequately offset any losses we may incur. In addition, although we maintain insurance coverage that may, subject to policy terms and conditions, cover certain aspects of cyber and information security risks, such insurance coverage may be insufficient to cover any or all losses we may incur, and we cannot be sure that such insurance will continue to be available to us on commercially reasonable terms, or at all, or that our insurers will not deny coverage as to any future claim.We continue to make investments with a view toward maintaining and enhancing our cybersecurity, resilience and information security posture, including investments in technology and associated technology risk management activities. The cost of managing cybersecurity and information security risks and attacks, along with complying with new, increasingly expansive and evolving regulatory requirements, could adversely affect our results of operations and business.Liquidity RiskLiquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern, as well as the associated funding risks triggered by the market or idiosyncratic stress events that may negatively affect our liquidity and may impact our ability to raise new funding or the cost of new funding. For more information on how we monitor and manage liquidity risk, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” and “Quantitative and Qualitative Disclosures about Risk—Liquidity Risk.”Liquidity is essential to our businesses and we rely on external sources to finance a significant portion of our operations.Liquidity is essential to our businesses. Our liquidity could be negatively affected by our inability to raise funding in the long-term or short-term debt capital markets, our inability to access the secured lending markets, our inability to attract and retain deposits, or unanticipated outflows of cash or collateral by customers or clients. Factors that we cannot control, such as volatility and disruption of the financial markets or negative views about the financial services industry generally, including concerns regarding fiscal matters in the U.S. and other geographic areas, could impair our ability to raise funding.In addition, our ability to raise funding could be impaired if investors, depositors or lenders develop a negative perception of our long-term or short-term financial prospects due to factors such as an incurrence of large trading, credit or operational losses, a downgrade by the rating agencies, a decline in the level of our business activity, if regulatory authorities take significant action against us or our industry, or if we discover significant employee misconduct or illegal activity. service attacks; data breaches; social engineering attacks; phishing attacks; and other events. There can be no assurance that such unauthorized access, mishandling or misuse of information, or cybersecurity incidents will not occur in the future and they could occur more frequently and on a more significant scale.We maintain a significant amount of personal and confidential information on our customers, clients and certain counterparties that we are required to protect under various state, federal and international data protection and privacy laws. These laws may be in conflict with one another or courts and regulators may interpret them in ways that we had not anticipated or that adversely affect our business. A cyberattack, information or security breach, or a technology failure of ours or of a third party could jeopardize our or our clients’, employees’, partners’, vendors’ or counterparties’ personal, confidential, proprietary or other information processed and stored in, and transmitted through, our and our third parties’ computer systems and networks. Furthermore, such events could cause interruptions or malfunctions in our, our clients’, partners’, vendors’, counterparties’ or third parties’ operations, as well as the unauthorized release, gathering, monitoring, misuse, loss or destruction of personal, confidential, proprietary and other information of ours, our employees, our customers or of other third parties. Any of these events could result in reputational damage with our clients and the market, client dissatisfaction, additional costs to us to maintain and update our operational and security systems and infrastructure, violation of the applicable data protection and privacy laws, regulatory investigations and enforcement actions, litigation exposure, or fines or penalties, any of which could adversely affect our business, financial condition or results of operations.Given our global footprint and the high volume of transactions we process; the large number of clients, partners, vendors and counterparties we interact with to conduct business; and the increasing sophistication of cyberattacks; a cyberattack or information or security breach could occur and persist for an extended period of time without detection. It could take considerable time for us to determine the scope, extent, amount and type of information compromised, and the impact of such an attack may not be fully understood. During such time, we would not necessarily know the extent of the harm or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, if at all, all or any of which would further increase the costs and consequences of a cyberattack or information security incident.While many of our agreements with partners and third parties include indemnification provisions, we may not be able to recover sufficiently, or at all, under such provisions to adequately offset any losses we may incur. In addition, although we maintain insurance coverage that may, subject to policy terms and conditions, cover certain aspects of cyber and information security risks, such insurance coverage may be insufficient to cover any or all losses we may incur, and we service attacks; data breaches; social engineering attacks; phishing attacks; and other events. There can be no assurance that such unauthorized access, mishandling or misuse of information, or cybersecurity incidents will not occur in the future and they could occur more frequently and on a more significant scale. We maintain a significant amount of personal and confidential information on our customers, clients and certain counterparties that we are required to protect under various state, federal and international data protection and privacy laws. These laws may be in conflict with one another or courts and regulators may interpret them in ways that we had not anticipated or that adversely affect our business. A cyberattack, information or security breach, or a technology failure of ours or of a third party could jeopardize our or our clients’, employees’, partners’, vendors’ or counterparties’ personal, confidential, proprietary or other information processed and stored in, and transmitted through, our and our third parties’ computer systems and networks. Furthermore, such events could cause interruptions or malfunctions in our, our clients’, partners’, vendors’, counterparties’ or third parties’ operations, as well as the unauthorized release, gathering, monitoring, misuse, loss or destruction of personal, confidential, proprietary and other information of ours, our employees, our customers or of other third parties. Any of these events could result in reputational damage with our clients and the market, client dissatisfaction, additional costs to us to maintain and update our operational and security systems and infrastructure, violation of the applicable data protection and privacy laws, regulatory investigations and enforcement actions, litigation exposure, or fines or penalties, any of which could adversely affect our business, financial condition or results of operations. Given our global footprint and the high volume of transactions we process; the large number of clients, partners, vendors and counterparties we interact with to conduct business; and the increasing sophistication of cyberattacks; a cyberattack or information or security breach could occur and persist for an extended period of time without detection. It could take considerable time for us to determine the scope, extent, amount and type of information compromised, and the impact of such an attack may not be fully understood. During such time, we would not necessarily know the extent of the harm or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, if at all, all or any of which would further increase the costs and consequences of a cyberattack or information security incident. While many of our agreements with partners and third parties include indemnification provisions, we may not be able to recover sufficiently, or at all, under such provisions to adequately offset any losses we may incur. In addition, although we maintain insurance coverage that may, subject to policy terms and conditions, cover certain aspects of cyber and information security risks, such insurance coverage may be insufficient to cover any or all losses we may incur, and we cannot be sure that such insurance will continue to be available to us on commercially reasonable terms, or at all, or that our insurers will not deny coverage as to any future claim.We continue to make investments with a view toward maintaining and enhancing our cybersecurity, resilience and information security posture, including investments in technology and associated technology risk management activities. The cost of managing cybersecurity and information security risks and attacks, along with complying with new, increasingly expansive and evolving regulatory requirements, could adversely affect our results of operations and business.Liquidity RiskLiquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern, as well as the associated funding risks triggered by the market or idiosyncratic stress events that may negatively affect our liquidity and may impact our ability to raise new funding or the cost of new funding. For more information on how we monitor and manage liquidity risk, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” and “Quantitative and Qualitative Disclosures about Risk—Liquidity Risk.”Liquidity is essential to our businesses and we rely on external sources to finance a significant portion of our operations.Liquidity is essential to our businesses. Our liquidity could be negatively affected by our inability to raise funding in the long-term or short-term debt capital markets, our inability to access the secured lending markets, our inability to attract and retain deposits, or unanticipated outflows of cash or collateral by customers or clients. Factors that we cannot control, such as volatility and disruption of the financial markets or negative views about the financial services industry generally, including concerns regarding fiscal matters in the U.S. and other geographic areas, could impair our ability to raise funding.In addition, our ability to raise funding could be impaired if investors, depositors or lenders develop a negative perception of our long-term or short-term financial prospects due to factors such as an incurrence of large trading, credit or operational losses, a downgrade by the rating agencies, a decline in the level of our business activity, if regulatory authorities take significant action against us or our industry, or if we discover significant employee misconduct or illegal activity. cannot be sure that such insurance will continue to be available to us on commercially reasonable terms, or at all, or that our insurers will not deny coverage as to any future claim. We continue to make investments with a view toward maintaining and enhancing our cybersecurity, resilience and information security posture, including investments in technology and associated technology risk management activities. The cost of managing cybersecurity and information security risks and attacks, along with complying with new, increasingly expansive and evolving regulatory requirements, could adversely affect our results of operations and business."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Required and Actual TLAC and Eligible LTD Ratios",
      "prior_title": "Required and Actual TLAC and Eligible LTD Ratios",
      "current_body": "ActualAmount/Ratio$ in millionsRegulatory MinimumRequired Ratio1AtDecember 31,2024 AtDecember 31,2023 External TLAC2$266,146 $250,914 External TLAC as a % of RWA18.0 %21.5 %55.8 %55.0 %External TLAC as a % of leverage exposure7.5 %9.5 %17.5 %17.6 %Eligible LTD3$169,690 $162,547 Eligible LTD as a % of RWA9.0 %9.0 %35.5 %35.6 %Eligible LTD as a % of leverage exposure4.5 %4.5 %11.2 %11.4 % Required Ratio1 External TLAC2 Eligible LTD3 1.Required ratios are inclusive of applicable buffers. 2.External TLAC consists of CET1 capital and Additional Tier 1 capital (each excluding any noncontrolling minority interests), as well as eligible LTD. 3.Consists of TLAC-eligible LTD reduced by 50% for amounts of unpaid principal due to be paid in more than one year but less than two years from each respective balance sheet date. Furthermore, under the clean holding company requirements, a covered BHC is prohibited from incurring any external debt with an original maturity of less than one year or certain other liabilities, regardless of whether the liabilities are fully secured or otherwise senior to eligible LTD, or entering into certain other prohibited transactions. Certain other external liabilities, including those with certain embedded features noted above, are subject to a cap equal to 5% of the covered BHC’s outstanding external TLAC amount. Additionally, as of April 1, 2021, we and our U.S. Bank Subsidiaries are required to make certain deductions from regulatory capital for investments in certain unsecured debt instruments (including eligible LTD in the TLAC framework) issued by the Parent Company or other G-SIBs. We are in compliance with all TLAC requirements as of December 31, 2024 and December 31, 2023."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Investment Banking",
      "prior_title": "Investment Banking",
      "current_body": "Investment banking revenues are derived from client engagements in which we act as an advisor, underwriter or distributor of capital. Within the Institutional Securities business segment, these revenues are primarily composed of fees earned from underwriting equity and fixed income securities, syndicating loans and advisory services in relation to mergers and acquisitions, divestitures and corporate restructurings. Within the Wealth Management business segment, these revenues are derived from the distribution of newly issued securities. Trading Trading revenues include the realized gains and losses from transactions in financial instruments, unrealized gains and losses from ongoing changes in the fair value of our positions, and gains and losses from financial instruments used to economically hedge compensation expense related to DCP. Within the Institutional Securities business segment, Trading revenues arise from transactions in cash instruments and derivatives in which we act as a market maker for our clients. In this role, we stand ready to buy, sell or otherwise transact with customers under a variety of market conditions and to provide firm or indicative prices in response to customer requests. Our liquidity obligations can be explicit in some cases, and in others, customers expect us to be willing to transact with them. In order to most effectively fulfill our market-making function, we engage in activities across all of our trading businesses that include, but are not limited to: •taking positions in anticipation of, and in response to, customer demand to buy or sell and—depending on the liquidity of the relevant market and the size of the position—to hold those positions for a period of time; •building, maintaining and rebalancing inventory held to facilitate client activity through trades with other market participants; •managing and assuming basis risk (risk associated with imperfect hedging) between risks incurred from the facilitation of client transactions and the standardized products available in the market to hedge those risks; •trading in the market to remain current on pricing and trends; and •engaging in other activities to provide efficiency and liquidity for markets. In many markets, the realized and unrealized gains and losses from purchase and sale transactions will include any spreads between bids and offers. Certain fees received on loans carried at fair value and dividends from equity securities are also recorded in Trading revenues since they relate to positions carried at fair value. December 2024 Form 10-K30 December 2024 Form 10-K30 December 2024 Form 10-K30 30 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Within the Wealth Management business segment, Trading revenues primarily include revenues from customers’ purchases and sales of fixed income instruments in which we act as principal, as well as gains and losses related to DCP investments.InvestmentsInvestments revenues are composed of realized and unrealized gains and losses derived from investments, including those associated with employee deferred compensation and co-investment plans. Estimates of the fair value of the investments that produce these revenues may involve significant judgment and may fluctuate significantly over time in light of business, market, economic and financial conditions, generally or in relation to specific transactions.Within the Institutional Securities segment, gains and losses are primarily from business-related investments. Certain investments are subject to sale restrictions.Within the Investment Management business segment, Investments revenues are primarily from performance-based fees in the form of carried interest, a portion of which is subject to reversal, and gains and losses from investments. The business is entitled to receive carried interest when the return in certain funds exceeds specified performance targets. Additionally, we consolidate certain sponsored Investment Management funds where revenues are primarily attributable to holders of noncontrolling interests. Commissions and Fees Commissions and fees result from arrangements in which the client is charged a fee for executing transactions related to securities, services related to sales and trading activities, and sales of other products. Within the Institutional Securities business segment, commissions and fees include fees earned from market-making activities, such as executing and clearing client transactions on major stock and derivative exchanges, as well as from OTC derivatives. Within the Wealth Management business segment, commissions and fees arise from client transactions including in equity securities, insurance products, mutual funds, alternative investments, futures and options. Wealth Management also earns revenues from order flow payments for directing customer orders to broker-dealers, exchanges and market centers for execution. Asset ManagementAsset management revenues include fees associated with the management and supervision of assets and the distribution of funds and similar products.Within the Wealth Management business segment, Asset management revenues are related to advisory services associated with fee-based assets, account service and administration, as well as distribution of products. These revenues are generally based on the net asset value of the account in which a client is invested.Within the Investment Management business segment, Asset management revenues are primarily composed of fees received from investment vehicles on the basis of assets under management. Performance-based fees, not in the form of carried interest, are earned on certain products and separately managed accounts as a percentage of appreciation in value and, in certain cases, are based upon the achievement of performance criteria. These performance fees are generally recognized on a quarterly or annual basis. Net InterestInterest income and Interest expense are functions of the level and mix of total assets and liabilities, including Trading assets and Trading liabilities, Investment securities, Securities borrowed or purchased under agreements to resell, Securities loaned or sold under agreements to repurchase, Loans, Deposits and Borrowings. Within the Institutional Securities business segment, Net interest is a function of market-making strategies, client activity, and the prevailing level, term structure and volatility of interest rates. Net interest is impacted by market-making, lending and financing activities as we generally earn interest on securities held by the Firm, Securities borrowed, Securities purchased under agreements to resell, Loans and margin loans, while Borrowings, Securities loaned and Securities sold under agreements to repurchase generally incur interest expense. Within the Wealth Management business segment, Interest income is driven by assets held including Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. OtherOther revenues for Institutional Securities include revenues and losses from equity method investments, fees earned in association with lending activities, mark-to-market gains and losses on loans and lending commitments held for sale, as well as gains and losses on economic derivative hedges associated with certain held-for-sale and held-for-investment loans and lending commitments.Other revenues for Wealth Management include realized gains and losses on AFS securities, account handling fees, referral fees and other miscellaneous revenues.Provision for Credit LossesThe Provision for credit losses includes the provision for credit losses for loans and lending commitments held for investment. Within the Wealth Management business segment, Trading revenues primarily include revenues from customers’ purchases and sales of fixed income instruments in which we act as principal, as well as gains and losses related to DCP investments.InvestmentsInvestments revenues are composed of realized and unrealized gains and losses derived from investments, including those associated with employee deferred compensation and co-investment plans. Estimates of the fair value of the investments that produce these revenues may involve significant judgment and may fluctuate significantly over time in light of business, market, economic and financial conditions, generally or in relation to specific transactions.Within the Institutional Securities segment, gains and losses are primarily from business-related investments. Certain investments are subject to sale restrictions.Within the Investment Management business segment, Investments revenues are primarily from performance-based fees in the form of carried interest, a portion of which is subject to reversal, and gains and losses from investments. The business is entitled to receive carried interest when the return in certain funds exceeds specified performance targets. Additionally, we consolidate certain sponsored Investment Management funds where revenues are primarily attributable to holders of noncontrolling interests. Commissions and Fees Commissions and fees result from arrangements in which the client is charged a fee for executing transactions related to securities, services related to sales and trading activities, and sales of other products. Within the Institutional Securities business segment, commissions and fees include fees earned from market-making activities, such as executing and clearing client transactions on major stock and derivative exchanges, as well as from OTC derivatives. Within the Wealth Management business segment, commissions and fees arise from client transactions including in equity securities, insurance products, mutual funds, alternative investments, futures and options. Wealth Management also earns revenues from order flow payments for directing customer orders to broker-dealers, exchanges and market centers for execution. Asset ManagementAsset management revenues include fees associated with the management and supervision of assets and the distribution of funds and similar products.Within the Wealth Management business segment, Asset management revenues are related to advisory services Within the Wealth Management business segment, Trading revenues primarily include revenues from customers’ purchases and sales of fixed income instruments in which we act as principal, as well as gains and losses related to DCP investments."
    },
    {
      "status": "UNCHANGED",
      "current_title": "We are subject to operational risks, including a failure, breach or other disruption of our operations or security systems or those of our third parties (or third parties thereof), as well as human error or malfeasance, which could adversely affect our businesses or reputation.",
      "prior_title": "We are subject to operational risks, including a failure, breach or other disruption of our operations or security systems or those of our third parties (or third parties thereof), as well as human error or malfeasance, which could adversely affect our businesses or reputation.",
      "current_body": "Our businesses are highly dependent on our ability to process and report, on a daily basis, a large number of transactions across numerous and diverse markets in many currencies. We may introduce new products or services or change processes or reporting, including in connection with new regulatory requirements, or integration of processes or systems of acquired companies, resulting in new operational risk that we may not fully appreciate or identify. The trend toward direct access to automated, electronic markets, and the move to more automated trading platforms has resulted in the use of increasingly complex technology that relies on the continued effectiveness of the programming code and integrity of the data to process the trades. We rely on the ability of our employees, our consultants, our internal systems and systems at technology centers maintained by unaffiliated third parties to operate our different businesses and process a high volume of transactions. Unusually high trading volumes or site usage could cause our systems to operate at an unacceptably slow speed or even fail. Disruptions to, destruction of, instability of or other failure to effectively maintain our IT systems or external technology that allows our clients and customers to use our products and services (including our self-directed brokerage platform and mobile services) could harm our business and our reputation. As a major participant in the global capital markets, we face the risk of incorrect valuation or risk management of our trading positions due to flaws in data, models, electronic trading systems or processes, or due to fraud or cyberattacks. We also face the risk of operational failure or disruption of any of the clearing agents, exchanges, clearinghouses or other financial intermediaries we use to facilitate our lending, securities and derivatives transactions. In addition, in the event of a breakdown or improper operation or disposal of our, or a direct or indirect third party’s (or third parties thereof) systems, processes or information assets, or improper or unauthorized action by third parties, including consultants and subcontractors or our employees, we have received in the past and may receive in the future regulatory sanctions, and could suffer financial loss, an impairment to our liquidity position, a disruption of our businesses or damage to our reputation. In addition, the interconnectivity of multiple financial institutions with central agents, exchanges and clearinghouses, and the increased importance of these entities, increases the risk that an operational failure at one institution or entity may cause an industrywide operational failure that could materially impact our ability to conduct business. Furthermore, the concentration of Firm and personal information held by a small number of third parties increases the risk that a breach or disruption at a key third party may cause an industrywide event that could significantly increase the cost and risk of conducting business. These risks may be heightened to the extent that we rely on third parties that are concentrated in a geographic area.There can be no assurance that our or our third parties’ business contingency and security response plans fully mitigate all potential risks to us. Our ability to conduct business may be adversely affected by a disruption in the infrastructure that supports our businesses and the communities where we are located. This may include a disruption involving physical site access; software flaws and acquired companies, resulting in new operational risk that we may not fully appreciate or identify. The trend toward direct access to automated, electronic markets, and the move to more automated trading platforms has resulted in the use of increasingly complex technology that relies on the continued effectiveness of the programming code and integrity of the data to process the trades. We rely on the ability of our employees, our consultants, our internal systems and systems at technology centers maintained by unaffiliated third parties to operate our different businesses and process a high volume of transactions. Unusually high trading volumes or site usage could cause our systems to operate at an unacceptably slow speed or even fail. Disruptions to, destruction of, instability of or other failure to effectively maintain our IT systems or external technology that allows our clients and customers to use our products and services (including our self-directed brokerage platform and mobile services) could harm our business and our reputation. As a major participant in the global capital markets, we face the risk of incorrect valuation or risk management of our trading positions due to flaws in data, models, electronic trading systems or processes, or due to fraud or cyberattacks. We also face the risk of operational failure or disruption of any of the clearing agents, exchanges, clearinghouses or other financial intermediaries we use to facilitate our lending, securities and derivatives transactions. In addition, in the event of a breakdown or improper operation or disposal of our, or a direct or indirect third party’s (or third parties thereof) systems, processes or information assets, or improper or unauthorized action by third parties, including consultants and subcontractors or our employees, we have received in the past and may receive in the future regulatory sanctions, and could suffer financial loss, an impairment to our liquidity position, a disruption of our businesses or damage to our reputation. In addition, the interconnectivity of multiple financial institutions with central agents, exchanges and clearinghouses, and the increased importance of these entities, increases the risk that an operational failure at one institution or entity may cause an industrywide operational failure that could materially impact our ability to conduct business. Furthermore, the concentration of Firm and personal information held by a small number of third parties increases the risk that a breach or disruption at a key third party may cause an industrywide event that could significantly increase the cost and risk of conducting business. These risks may be heightened to the extent that we rely on third parties that are concentrated in a geographic area. There can be no assurance that our or our third parties’ business contingency and security response plans fully mitigate all potential risks to us. Our ability to conduct business may be adversely affected by a disruption in the infrastructure that supports our businesses and the communities where we are located. This may include a disruption involving physical site access; software flaws and 15December 2024 Form 10-K 15December 2024 Form 10-K 15December 2024 Form 10-K 15 Table of Contents Table of Contents Table of Contents vulnerabilities; cybersecurity incidents; terrorist activities; political unrest; disease pandemics; catastrophic events; climate-related incidents and natural disasters (such as earthquakes, tornadoes, floods, hurricanes and wildfires); electrical outages; environmental hazards; computer servers; internet outages; client access to our digital platforms and mobile applications; communication platforms or other services we use; new technologies (such as generative artificial intelligence); and our employees or third parties with whom we conduct business. Although we and the third parties with whom we conduct business employ backup systems for data, those backup systems may be unavailable following a disruption, the affected data may not have been backed up or may not be recoverable from the backup, the backup systems may not process data as accurately or efficiently as the primary systems or the backup data may be costly to recover, any of which could adversely affect our business.Notwithstanding evolving technology and technology-based risk and control systems, our businesses ultimately rely on people, including our employees and those of our third parties (or third parties thereof). As a result of human error or engagement in violations of applicable policies, laws, rules or procedures, certain errors or violations are not always discovered immediately by our technological processes or by our controls and other procedures that are intended to prevent and detect such errors or violations. These can include calculation or input errors, inadvertent or duplicate payments, mistakes in addressing emails or other communications, errors in software or model development or implementation, or errors in judgment, as well as intentional efforts to disregard or circumvent applicable policies, laws, rules or procedures. Our use of new technologies may be undermined by such human errors or misconduct due to undetected flaws or biases in the algorithms or data utilized by such technologies. Human errors and malfeasance, even if promptly discovered and remediated, can result in material losses and liabilities for us, and negatively impact our reputation in the future.We conduct business in various jurisdictions outside the U.S., including jurisdictions that may not have comparable levels of protection for their corporate assets, such as intellectual property, trademarks, trade secrets, know-how, and customer information and records. The protection afforded in those jurisdictions may be less established and/or predictable than in the U.S. or other jurisdictions in which we operate. As a result, there may also be heightened risks associated with the potential theft of their data, technology and intellectual property in those jurisdictions by domestic or foreign actors, including private parties and those affiliated with or controlled by state actors. Additionally, we are subject to complex and evolving U.S. and international laws and regulations governing areas such as cybersecurity, privacy and data governance, transfer and protection, which may differ and potentially conflict, in various jurisdictions. Any theft of data, technology or intellectual property may negatively impact our operations and reputation, including disrupting the business activities of our subsidiaries, affiliates, joint ventures or clients conducting business in those jurisdictions.A cyberattack, information or security breach or a technology failure of ours or a third party could adversely affect our ability to conduct our business or manage our exposure to risk, or result in disclosure or misuse of personal, confidential or proprietary information and otherwise adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm.Cybersecurity risks for financial institutions have significantly increased in recent years, in part because of the proliferation of new technologies; the use of the internet, mobile telecommunications and cloud technologies to conduct financial transactions; and the increased sophistication and activities of organized crime, hackers, terrorists, nation-states, state-sponsored actors and other parties. Any of these parties may also attempt to fraudulently induce employees, customers, clients, vendors or other third parties or users of our systems to disclose sensitive information in order to gain access to our networks, systems or data or those of our employees or clients, and such parties may see their effectiveness enhanced by the use of artificial intelligence. Global events and geopolitical instability have also led to increased nation-state targeting of financial institutions in the U.S. and abroad. Information security risks may also derive from human error, fraud or malice on the part of our employees or third parties, software bugs, server malfunctions, software or hardware failure or other technological failure. For example, human error has led to the loss of the Firm's physical data-bearing devices in the past. These risks may be heightened by several factors, including remote work, reliance on new technologies (such as generative artificial intelligence) or as a result of the integration of acquisitions and other strategic initiatives that may subject us to new technology, customers or third-party providers. In addition, third parties with whom we do business or share information, and each of their service providers, our regulators and the third parties with whom our customers and clients share information used for authentication, may also be sources of cybersecurity and information security risks, particularly where these activities are beyond our security and control systems. There is no guarantee that the measures we take will provide absolute security or recoverability given that the techniques used in cyberattacks are complex, frequently change and are difficult to anticipate. Like other financial services firms, the Firm, its third-party providers and its clients continue to be the subject of unauthorized access attacks; mishandling, loss, theft or misuse of information; computer viruses or malware; cyberattacks designed to obtain confidential information, destroy data, disrupt or degrade service, sabotage systems or networks, impede our ability to execute or confirm settlement of transactions or cause other damage; ransomware; denial of vulnerabilities; cybersecurity incidents; terrorist activities; political unrest; disease pandemics; catastrophic events; climate-related incidents and natural disasters (such as earthquakes, tornadoes, floods, hurricanes and wildfires); electrical outages; environmental hazards; computer servers; internet outages; client access to our digital platforms and mobile applications; communication platforms or other services we use; new technologies (such as generative artificial intelligence); and our employees or third parties with whom we conduct business. Although we and the third parties with whom we conduct business employ backup systems for data, those backup systems may be unavailable following a disruption, the affected data may not have been backed up or may not be recoverable from the backup, the backup systems may not process data as accurately or efficiently as the primary systems or the backup data may be costly to recover, any of which could adversely affect our business.Notwithstanding evolving technology and technology-based risk and control systems, our businesses ultimately rely on people, including our employees and those of our third parties (or third parties thereof). As a result of human error or engagement in violations of applicable policies, laws, rules or procedures, certain errors or violations are not always discovered immediately by our technological processes or by our controls and other procedures that are intended to prevent and detect such errors or violations. These can include calculation or input errors, inadvertent or duplicate payments, mistakes in addressing emails or other communications, errors in software or model development or implementation, or errors in judgment, as well as intentional efforts to disregard or circumvent applicable policies, laws, rules or procedures. Our use of new technologies may be undermined by such human errors or misconduct due to undetected flaws or biases in the algorithms or data utilized by such technologies. Human errors and malfeasance, even if promptly discovered and remediated, can result in material losses and liabilities for us, and negatively impact our reputation in the future.We conduct business in various jurisdictions outside the U.S., including jurisdictions that may not have comparable levels of protection for their corporate assets, such as intellectual property, trademarks, trade secrets, know-how, and customer information and records. The protection afforded in those jurisdictions may be less established and/or predictable than in the U.S. or other jurisdictions in which we operate. As a result, there may also be heightened risks associated with the potential theft of their data, technology and intellectual property in those jurisdictions by domestic or foreign actors, including private parties and those affiliated with or controlled by state actors. Additionally, we are subject to complex and evolving U.S. and international laws and regulations governing areas such as cybersecurity, privacy and data governance, transfer and protection, which may differ and potentially conflict, in various jurisdictions. Any theft of data, technology or intellectual property may negatively impact our operations and reputation, including disrupting the business activities of our subsidiaries, affiliates, vulnerabilities; cybersecurity incidents; terrorist activities; political unrest; disease pandemics; catastrophic events; climate-related incidents and natural disasters (such as earthquakes, tornadoes, floods, hurricanes and wildfires); electrical outages; environmental hazards; computer servers; internet outages; client access to our digital platforms and mobile applications; communication platforms or other services we use; new technologies (such as generative artificial intelligence); and our employees or third parties with whom we conduct business. Although we and the third parties with whom we conduct business employ backup systems for data, those backup systems may be unavailable following a disruption, the affected data may not have been backed up or may not be recoverable from the backup, the backup systems may not process data as accurately or efficiently as the primary systems or the backup data may be costly to recover, any of which could adversely affect our business. Notwithstanding evolving technology and technology-based risk and control systems, our businesses ultimately rely on people, including our employees and those of our third parties (or third parties thereof). As a result of human error or engagement in violations of applicable policies, laws, rules or procedures, certain errors or violations are not always discovered immediately by our technological processes or by our controls and other procedures that are intended to prevent and detect such errors or violations. These can include calculation or input errors, inadvertent or duplicate payments, mistakes in addressing emails or other communications, errors in software or model development or implementation, or errors in judgment, as well as intentional efforts to disregard or circumvent applicable policies, laws, rules or procedures. Our use of new technologies may be undermined by such human errors or misconduct due to undetected flaws or biases in the algorithms or data utilized by such technologies. Human errors and malfeasance, even if promptly discovered and remediated, can result in material losses and liabilities for us, and negatively impact our reputation in the future. We conduct business in various jurisdictions outside the U.S., including jurisdictions that may not have comparable levels of protection for their corporate assets, such as intellectual property, trademarks, trade secrets, know-how, and customer information and records. The protection afforded in those jurisdictions may be less established and/or predictable than in the U.S. or other jurisdictions in which we operate. As a result, there may also be heightened risks associated with the potential theft of their data, technology and intellectual property in those jurisdictions by domestic or foreign actors, including private parties and those affiliated with or controlled by state actors. Additionally, we are subject to complex and evolving U.S. and international laws and regulations governing areas such as cybersecurity, privacy and data governance, transfer and protection, which may differ and potentially conflict, in various jurisdictions. Any theft of data, technology or intellectual property may negatively impact our operations and reputation, including disrupting the business activities of our subsidiaries, affiliates, joint ventures or clients conducting business in those jurisdictions.A cyberattack, information or security breach or a technology failure of ours or a third party could adversely affect our ability to conduct our business or manage our exposure to risk, or result in disclosure or misuse of personal, confidential or proprietary information and otherwise adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm.Cybersecurity risks for financial institutions have significantly increased in recent years, in part because of the proliferation of new technologies; the use of the internet, mobile telecommunications and cloud technologies to conduct financial transactions; and the increased sophistication and activities of organized crime, hackers, terrorists, nation-states, state-sponsored actors and other parties. Any of these parties may also attempt to fraudulently induce employees, customers, clients, vendors or other third parties or users of our systems to disclose sensitive information in order to gain access to our networks, systems or data or those of our employees or clients, and such parties may see their effectiveness enhanced by the use of artificial intelligence. Global events and geopolitical instability have also led to increased nation-state targeting of financial institutions in the U.S. and abroad. Information security risks may also derive from human error, fraud or malice on the part of our employees or third parties, software bugs, server malfunctions, software or hardware failure or other technological failure. For example, human error has led to the loss of the Firm's physical data-bearing devices in the past. These risks may be heightened by several factors, including remote work, reliance on new technologies (such as generative artificial intelligence) or as a result of the integration of acquisitions and other strategic initiatives that may subject us to new technology, customers or third-party providers. In addition, third parties with whom we do business or share information, and each of their service providers, our regulators and the third parties with whom our customers and clients share information used for authentication, may also be sources of cybersecurity and information security risks, particularly where these activities are beyond our security and control systems. There is no guarantee that the measures we take will provide absolute security or recoverability given that the techniques used in cyberattacks are complex, frequently change and are difficult to anticipate. Like other financial services firms, the Firm, its third-party providers and its clients continue to be the subject of unauthorized access attacks; mishandling, loss, theft or misuse of information; computer viruses or malware; cyberattacks designed to obtain confidential information, destroy data, disrupt or degrade service, sabotage systems or networks, impede our ability to execute or confirm settlement of transactions or cause other damage; ransomware; denial of joint ventures or clients conducting business in those jurisdictions."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Functional Risk and Control Committees",
      "prior_title": "Functional Risk and Control Committees",
      "current_body": "Functional risk and control committees and other committees within the ERM framework facilitate efficient and comprehensive supervision of our risk exposures and processes. Each business segment has a risk committee that is responsible for helping to ensure that the business segment, as applicable, adheres to established limits for market, credit, operational and other risks; implements risk measurement, monitoring, and management policies, procedures, controls and systems that are consistent with the risk framework established by the FRC; and reviews, on a periodic basis, our aggregate risk exposures, risk exception experience, and the efficacy of our risk identification, measurement, monitoring and management policies and procedures, and related controls. December 2024 Form 10-K56 December 2024 Form 10-K56 December 2024 Form 10-K56 56 Table of Contents Risk Disclosures Table of Contents Risk Disclosures Table of Contents Chief Risk OfficerThe Chief Risk Officer, who is independent of business units, reports to the BRC and the Chief Executive Officer. The Chief Risk Officer oversees compliance with our financial risk limits; approves exceptions to our financial risk limits; independently reviews material market, credit, model and liquidity risks; and reviews results of risk management processes with the Board, the BRC, the BOTC and the BAC, as appropriate. The Chief Risk Officer oversees the ERM framework, which includes non-financial risk, and coordinates with the the Chief Financial Officer and the Chief Executive Officer regarding capital and liquidity management and works with the Compensation, Management Development and Succession Committee of the Board (“CMDS Committee”) to help ensure that the structure and design of incentive compensation arrangements do not encourage unnecessary and excessive risk taking.Head of Non-Financial RiskThe Head of Non-Financial Risk, who is independent of business units, reports to the Chief Legal Officer and Chief Administrative Officer. The Head of Non-Financial Risk oversees the compliance, financial crimes and operational risk management functions; independently reviews non-financial risks, including compliance (including conduct), financial crimes, and operational (including cybersecurity) risks, as well as material regulatory risks; and reviews results of risk management processes with the Board, the BAC, the BOTC, the BRC, and the CMDS Committee, as appropriate. The Head of Non-Financial Risk also reports to the Chief Risk Officer as part of his oversight of the ERM Framework.Independent Risk Management FunctionsThe Financial Risk Management functions (Market Risk, Credit Risk, Model Risk and Liquidity Risk Management Departments) and Non-Financial Risk Management functions (Compliance, Global Financial Crimes, and Operational Risk Departments) are independent of our business units and report to the Chief Risk Officer and Head of Non-Financial Risk, respectively. These functions assist senior management and the FRC in monitoring and controlling our risk through a number of control processes. Each function maintains its own risk governance structure with specified individuals and committees responsible for aspects of managing risk. Further discussion about the responsibilities of the risk management functions may be found under “Market Risk,” “Credit Risk,” “Operational Risk,” “Model Risk,” “Liquidity Risk,” and “Legal, Regulatory and Compliance Risk” herein.Support and Control FunctionsOur support and control groups include, but are not limited to, Legal, the Finance Division, the Technology Division (“Technology”), the Operations Division (“Operations”), the Human Capital Management, and Firm Strategy and Execution. Our support and control functions coordinate with the business segment control groups to review the risk monitoring and risk management policies and procedures relating to, among other things, controls over financial reporting and disclosure; each business segment’s market, credit and operational risk profile; liquidity risks; model risks; sales practices; reputational, legal enforceability, compliance and regulatory risks; and technological risks. Participation by the senior officers of the Firm and business segment control groups helps ensure that risk policies and procedures, exceptions to risk limits, new products and business ventures, and transactions with risk elements undergo thorough review.Internal Audit DepartmentThe Internal Audit Department (“IAD”) independently identifies and assesses risks facing the Firm and provides independent, objective and timely assurance to stakeholders about the effectiveness of risk management, governance and controls over key risks within the Firm’s businesses and functions. Every activity (including outsourced activities) and every entity of the Firm (including subsidiaries, affiliates and branches) is subject to IAD coverage. IAD develops and executes a comprehensive risk-based assurance plan to fulfill its role and purpose, which includes assessing compliance with policies, procedures and laws and regulations. IAD may also conduct other activities, such as retrospective reviews, pre-implementation reviews and investigations as requested by the BAC, senior management or the Firm’s regulators. IAD executes its activities in accordance with the mandatory elements of The Institute of Internal Auditors’ International Professional Practices Framework as well as the Firm’s Code of Ethics and Business Conduct, regulatory requirements, and IAD’s policies, procedures, standards and guidance. The Chief Audit Officer, who reports directly to the Chair of the BAC and administratively to the Firm’s Chief Executive Officer (“CEO”), communicates the results of IAD activities to the BAC on a quarterly basis and periodically to the BRC and BOTC.Culture, Values and Conduct of EmployeesEmployees of the Firm are accountable for conducting themselves in accordance with our core values: Put Clients First, Do the Right Thing, Lead with Exceptional Ideas, Commit to Diversity and Inclusion, and Give Back. We are committed to reinforcing and confirming adherence to our core values through our governance framework, tone from the top, management oversight, risk management and controls, and three lines of defense structure (risk owners within the business, our independent risk management functions, including the Financial Risk Management and Non-Financial Risk Management functions, and IAD).The Board is responsible for overseeing the Firm’s practices and procedures relating to culture, values and conduct, as set forth in the Board’s Corporate Governance Policies. Senior management committees oversee the Firmwide culture, values and conduct program and report regularly to the Board. A Chief Risk OfficerThe Chief Risk Officer, who is independent of business units, reports to the BRC and the Chief Executive Officer. The Chief Risk Officer oversees compliance with our financial risk limits; approves exceptions to our financial risk limits; independently reviews material market, credit, model and liquidity risks; and reviews results of risk management processes with the Board, the BRC, the BOTC and the BAC, as appropriate. The Chief Risk Officer oversees the ERM framework, which includes non-financial risk, and coordinates with the the Chief Financial Officer and the Chief Executive Officer regarding capital and liquidity management and works with the Compensation, Management Development and Succession Committee of the Board (“CMDS Committee”) to help ensure that the structure and design of incentive compensation arrangements do not encourage unnecessary and excessive risk taking.Head of Non-Financial RiskThe Head of Non-Financial Risk, who is independent of business units, reports to the Chief Legal Officer and Chief Administrative Officer. The Head of Non-Financial Risk oversees the compliance, financial crimes and operational risk management functions; independently reviews non-financial risks, including compliance (including conduct), financial crimes, and operational (including cybersecurity) risks, as well as material regulatory risks; and reviews results of risk management processes with the Board, the BAC, the BOTC, the BRC, and the CMDS Committee, as appropriate. The Head of Non-Financial Risk also reports to the Chief Risk Officer as part of his oversight of the ERM Framework.Independent Risk Management FunctionsThe Financial Risk Management functions (Market Risk, Credit Risk, Model Risk and Liquidity Risk Management Departments) and Non-Financial Risk Management functions (Compliance, Global Financial Crimes, and Operational Risk Departments) are independent of our business units and report to the Chief Risk Officer and Head of Non-Financial Risk, respectively. These functions assist senior management and the FRC in monitoring and controlling our risk through a number of control processes. Each function maintains its own risk governance structure with specified individuals and committees responsible for aspects of managing risk. Further discussion about the responsibilities of the risk management functions may be found under “Market Risk,” “Credit Risk,” “Operational Risk,” “Model Risk,” “Liquidity Risk,” and “Legal, Regulatory and Compliance Risk” herein.Support and Control FunctionsOur support and control groups include, but are not limited to, Legal, the Finance Division, the Technology Division (“Technology”), the Operations Division (“Operations”), the Human Capital Management, and Firm Strategy and Execution. Our support and control functions coordinate with"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Credit Risk",
      "prior_title": "Credit Risk",
      "current_body": "Credit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. For more information on how we monitor and manage credit risk, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk.”"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Chief Risk Officer",
      "prior_title": "Chief Risk Officer",
      "current_body": "The Chief Risk Officer, who is independent of business units, reports to the BRC and the Chief Executive Officer. The Chief Risk Officer oversees compliance with our financial risk limits; approves exceptions to our financial risk limits; independently reviews material market, credit, model and liquidity risks; and reviews results of risk management processes with the Board, the BRC, the BOTC and the BAC, as appropriate. The Chief Risk Officer oversees the ERM framework, which includes non-financial risk, and coordinates with the the Chief Financial Officer and the Chief Executive Officer regarding capital and liquidity management and works with the Compensation, Management Development and Succession Committee of the Board (“CMDS Committee”) to help ensure that the structure and design of incentive compensation arrangements do not encourage unnecessary and excessive risk taking."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Provision for Credit Losses",
      "prior_title": "Institutional Securities—Fixed Income and Equities",
      "current_body": "The Provision for credit losses on loans and lending commitments of $264 million in 2024 was primarily related to certain specific commercial real estate loans and growth in the corporate loan portfolio, partially offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $532 million in 2023 was primarily related to credit deterioration in the commercial real estate sector, including provisions for certain specific loans, mainly in the office portfolio, and modest growth in certain other loan portfolios. For further information on the Provision for credit losses, see “Credit Risk” herein."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Head of Non-Financial Risk",
      "prior_title": "Head of Non-Financial Risk",
      "current_body": "The Head of Non-Financial Risk, who is independent of business units, reports to the Chief Legal Officer and Chief Administrative Officer. The Head of Non-Financial Risk oversees the compliance, financial crimes and operational risk management functions; independently reviews non-financial risks, including compliance (including conduct), financial crimes, and operational (including cybersecurity) risks, as well as material regulatory risks; and reviews results of risk management processes with the Board, the BAC, the BOTC, the BRC, and the CMDS Committee, as appropriate. The Head of Non-Financial Risk also reports to the Chief Risk Officer as part of his oversight of the ERM Framework."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Secured Financing",
      "prior_title": "Secured Financing",
      "current_body": "The liquid nature of the marketable securities and short-term receivables arising principally from sales and trading activities in the Institutional Securities business segment provides us with flexibility in managing the composition of our balance sheet. Secured financing investors principally focus on the quality of the eligible collateral posted. Accordingly, we actively manage our secured financings based on the quality of the assets being funded. We have established longer-tenor secured funding requirements for less liquid asset classes, for which funding may be at risk in the event of a market disruption. We define highly liquid assets as government-issued or government-guaranteed securities with a high degree of fundability and less liquid assets as those that do not meet these criteria. To further minimize the refinancing risk of secured financing for less liquid assets, we have established concentration limits to diversify our investor base and reduce the amount of monthly maturities for secured financing of less liquid assets. As a component of the Liquidity Risk Management Framework, we hold a portion of our Liquidity Resources against the potential disruption to our secured financing capabilities.In general, we maintain a pool of liquid and easily fundable securities, which takes into account HQLA classifications consistent with LCR definitions, and other regulatory requirements, and provides a valuable future source of liquidity.Collateralized Financing Transactions$ in millionsAtDecember 31,2024 AtDecember 31,2023 Securities purchased under agreements to resell and Securities borrowed$242,424 $231,831 Securities sold under agreements to repurchase and Securities loaned$65,293 $77,708 Securities received as collateral1$9,625 $6,219 1.Included within Trading assets in the balance sheet. Average Daily BalanceThree Months Ended$ in millionsDecember 31, 2024December 31, 2023Securities purchased under agreements to resell and Securities borrowed$250,354 $235,928 Securities sold under agreements to repurchase and Securities loaned$74,949 $87,285 See “Total Assets by Business Segment” herein for additional information on the assets shown in the previous table and Notes 2 and 8 to the financial statements for additional information on collateralized financing transactions.In addition to the collateralized financing transactions shown in the previous table, we engage in financing transactions collateralized by customer-owned securities, which are segregated in accordance with regulatory requirements. Receivables under these financing transactions, primarily margin loans, are included in Customer and other receivables in the balance sheet, and payables under these financing transactions, primarily to prime brokerage customers, are included in Customer and other payables in the balance sheet. Our risk exposure on these transactions is mitigated by collateral maintenance policies and the elements of our Liquidity Risk Management Framework. Unsecured FinancingWe view deposits and borrowings as stable sources of funding for unencumbered securities and non-security assets. Our unsecured financings include borrowings and certificates of may be at risk in the event of a market disruption. We define highly liquid assets as government-issued or government-guaranteed securities with a high degree of fundability and less liquid assets as those that do not meet these criteria. To further minimize the refinancing risk of secured financing for less liquid assets, we have established concentration limits to diversify our investor base and reduce the amount of monthly maturities for secured financing of less liquid assets. As a component of the Liquidity Risk Management Framework, we hold a portion of our Liquidity Resources against the potential disruption to our secured financing capabilities. In general, we maintain a pool of liquid and easily fundable securities, which takes into account HQLA classifications consistent with LCR definitions, and other regulatory requirements, and provides a valuable future source of liquidity."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Self-Directed Channel",
      "prior_title": "Self-Directed Channel",
      "current_body": "At December 31,2024At December 31,2023Self-directed assets (in billions)1$1,437$1,150Self-directed households (in millions)28.38.1 Self-directed assets (in billions)1 Self-directed households (in millions)2 202420232022Daily average revenue trades (“DARTs”) (in thousands)3837759864 Daily average revenue trades (“DARTs”) (in thousands)3 1.Self-directed client assets represent active accounts which are not advisor led. Active accounts are defined as having at least $25 in assets. 2.Self-directed households represent the total number of households that include at least one active account with self-directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts. 3.DARTs represent the total self-directed trades in a period divided by the number of trading days during that period."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Resolution and Recovery Planning",
      "prior_title": "Resolution and Recovery Planning",
      "current_body": "We are required to submit once every two years to the Federal Reserve and the FDIC (“Agencies”) a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of our material financial distress or failure. We submitted our 2023 full resolution plan on June 30, 2023. In June 2024, we received joint feedback on our 2023 resolution plan from the Agencies, with no shortcomings or deficiencies identified. Our next resolution plan submission will be a targeted resolution plan in July 2025. For more information about resolution planning requirements, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning.” As described in our most recent resolution plan, our preferred resolution strategy is an SPOE strategy. In line with our SPOE strategy, the Parent Company has transferred, and has agreed to transfer on an ongoing basis, certain assets to its wholly owned, direct subsidiary Morgan Stanley Holdings LLC (the “Funding IHC”). In addition, the Parent Company has entered into an amended and restated support agreement with its material entities (including the Funding IHC) and certain other subsidiaries. In the event of a resolution scenario, the Parent Company would be obligated to contribute all of its contributable assets to our supported entities and/or the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to our supported entities. The combined implication of the SPOE resolution strategy and the requirement to maintain certain levels of TLAC is that losses in resolution would be imposed on the holders of eligible LTD and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on creditors of our supported entities and without requiring taxpayer or government financial support.The obligations of the Parent Company and the Funding IHC under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets) and the assets of the Funding IHC. As a result, claims of our supported entities, including the Funding IHC, with respect to the secured assets, are effectively senior to unsecured obligations of the Parent Company.For more information about resolution and recovery planning requirements and our activities in these areas, including the implications of such activities in a resolution scenario, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk.”Regulatory Developments and Other MattersBasel III Endgame and G-SIB Surcharge ProposalsOn July 27, 2023, U.S. banking agencies proposed revisions to risk-based capital and related standards applicable to us and our U.S. Bank Subsidiaries (“Basel III Endgame Proposal”). We continue to monitor developments related to this rulemaking as well as the proposed revisions to the G-SIB capital surcharge framework. SPOE strategy, the Parent Company has transferred, and has agreed to transfer on an ongoing basis, certain assets to its wholly owned, direct subsidiary Morgan Stanley Holdings LLC (the “Funding IHC”). In addition, the Parent Company has entered into an amended and restated support agreement with its material entities (including the Funding IHC) and certain other subsidiaries. In the event of a resolution scenario, the Parent Company would be obligated to contribute all of its contributable assets to our supported entities and/or the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to our supported entities. The combined implication of the SPOE resolution strategy and the requirement to maintain certain levels of TLAC is that losses in resolution would be imposed on the holders of eligible LTD and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on creditors of our supported entities and without requiring taxpayer or government financial support. The obligations of the Parent Company and the Funding IHC under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets) and the assets of the Funding IHC. As a result, claims of our supported entities, including the Funding IHC, with respect to the secured assets, are effectively senior to unsecured obligations of the Parent Company. For more information about resolution and recovery planning requirements and our activities in these areas, including the implications of such activities in a resolution scenario, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk.”"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Income Taxes",
      "prior_title": "Income Taxes",
      "current_body": "The Income tax provision for our business segments is generally determined based on the revenues, expenses and activities directly attributable to each business segment. Certain items have been allocated to each business segment, generally in proportion to its respective net revenues or other relevant measures. December 2024 Form 10-K32 December 2024 Form 10-K32 December 2024 Form 10-K32 32 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Institutional SecuritiesIncome Statement Information % Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%Investment BankingInvestment Banking Volumes$ in billions202420232022Completed mergers and acquisitions1$628 $677 $881 Equity and equity-related offerings2, 363 32 23 Fixed income offerings2, 4323 236 229 Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of January 2, 2025. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.2.Based on full credit for single book managers and equal credit for joint book managers.3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues.•Advisory revenues increased primarily due to higher completed M&A transactions.•Equity underwriting revenues increased primarily on higher initial public offerings and follow-on offerings.•Fixed income underwriting revenues increased primarily reflecting higher bond issuances, non-investment grade loan issuances and securitized products revenues.While Investment Banking results improved from the prior year, we continue to operate in a market environment with lower completed M&A activity relative to longer-term averages.See “Investment Banking Volumes” herein.Equity, Fixed Income and Other Net RevenuesEquity and Fixed Income Net Revenues 2024$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$8,135 $566 $(2,840)$17 $5,878 Execution services3,702 2,591 (291)350 6,352 Total Equity$11,837 $3,157 $(3,131)$367 $12,230 Total Fixed income$8,464 $394 $(730)$290 $8,418 2023$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$7,206 $524 $(2,886)$66 $4,910 Execution services2,919 2,235 (190)112 5,076 Total Equity$10,125 $2,759 $(3,076)$178 $9,986 Total Fixed income$7,848 $375 $(975)$425 $7,673 2022$ in millionsTradingFees1NetInterest2All Other3TotalFinancing$5,223 $535 $(257)$36 $5,537 Execution services2,947 2,462 (81)(96)5,232 Total Equity$8,170 $2,997 $(338)$(60)$10,769 Total Fixed income$7,711 $341 $922 $48 $9,022 1.Includes Commissions and fees and Asset management revenues.2.Includes funding costs, which are allocated to the businesses based on funding usage. 3.Includes Investments and Other revenues.EquityNet revenues of $12,230 million in 2024 increased 22% compared with the prior year, reflecting an increase in both Execution services and Financing, particularly in Asia and the Americas.•Financing revenues increased primarily due to higher client activity and lower funding and liquidity costs.•Execution services revenues increased primarily due to higher gains on inventory held to facilitate client activity and increased client activity in derivatives and cash equities.Fixed IncomeNet revenues of $8,418 million in 2024 increased 10% compared with the prior year, reflecting an increase across businesses, particularly in Credit and Global macro products.•Global macro products increased primarily due to lower losses on foreign exchange products and higher gains on rates products, on inventory held to facilitate client activity.•Credit products revenues increased primarily due to higher lending and securitized products revenues and lower losses Institutional SecuritiesIncome Statement Information % Change$ in millions20242023202220242023RevenuesAdvisory$2,378 $2,244 $2,946 6 %(24)%Equity1,599 889 851 80 %4 %Fixed income2,193 1,445 1,438 52 %— %Total Underwriting3,792 2,334 2,289 62 %2 %Total Investment banking6,170 4,578 5,235 35 %(13)%Equity12,230 9,986 10,769 22 %(7)%Fixed income8,418 7,673 9,022 10 %(15)%Other1,262 823 (633)53 %N/MNet revenues28,080 23,060 24,393 22 %(5)%Provision for credit losses202 401 211 (50)%90 %Compensation and benefits8,669 8,369 8,246 4 %1 %Non-compensation expenses10,460 9,814 9,221 7 %6 %Total non-interest expenses19,129 18,183 17,467 5 %4 %Income before provision for income taxes8,749 4,476 6,715 95 %(33)%Provision for income taxes1,947 884 1,308 120 %(32)%Net income6,802 3,592 5,407 89 %(34)%Net income applicable to noncontrolling interests136 139 165 (2)%(16)%Net income applicable to Morgan Stanley$6,666 $3,453 $5,242 93 %(34)%Investment BankingInvestment Banking Volumes$ in billions202420232022Completed mergers and acquisitions1$628 $677 $881 Equity and equity-related offerings2, 363 32 23 Fixed income offerings2, 4323 236 229 Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of January 2, 2025. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.2.Based on full credit for single book managers and equal credit for joint book managers.3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of $6,170 million in 2024 increased 35% compared with the prior year, reflecting an increase in underwriting and Advisory revenues.•Advisory revenues increased primarily due to higher completed M&A transactions.•Equity underwriting revenues increased primarily on higher initial public offerings and follow-on offerings.•Fixed income underwriting revenues increased primarily reflecting higher bond issuances, non-investment grade loan issuances and securitized products revenues."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Our results of operations may be materially affected by market fluctuations and by global financial market and economic conditions and other factors.",
      "prior_title": "Our results of operations may be materially affected by market fluctuations and by global financial market and economic conditions and other factors.",
      "current_body": "Our results of operations have been in the past and may, in the future, be materially affected by global financial market and economic conditions, including, in particular, by periods of low or slowing economic growth in the United States and other major markets, both directly and indirectly through their impact on client activity levels. These include the level and volatility of equity, fixed income and commodity prices; the level, term structure and volatility of interest rates; inflation, currency values and unemployment rates; the level of other market indices, fiscal or monetary policies established by governments, central banks and financial regulators; and uncertainty concerning the future path of interest rates, government shutdowns, debt ceilings or funding, which may be driven by economic conditions, recessionary fears, market uncertainty or lack of confidence among investors and clients due to the effects of widespread events such as global pandemics, natural disasters, climate-related incidents, acts of war or aggression, geopolitical instability, changes as a result of global elections, including changes in U.S. presidential administrations or Congress, changes to global trade policies, supply chain complications and the implementation of tariffs, protectionist trade policies, trade sanctions or investment restrictions and other factors, or a combination of these or other factors. The results of our Institutional Securities business segment, particularly results relating to our involvement in primary and secondary markets for all types of financial products, are subject to substantial market fluctuations due to a variety of factors that we cannot control or predict with great certainty. These fluctuations impact results by causing variations in business flows and activity and in the fair value of securities and other financial products. Fluctuations also occur due to the level of global market activity, which, among other things, can be impacted by market uncertainty or lack of investor and client confidence due to unforeseen economic, geopolitical or market conditions that in turn affect the size, number and timing of investment banking client assignments and transactions and the realization of returns from our principal investments.Periods of unfavorable market or economic conditions, including equity market levels and the level and pace of changes in interest rates and asset valuation, may have adverse impacts on the level of individual investor confidence and participation in the global markets and/or the level of and mix of client assets, including deposits. This could also impact the level of net new asset flows and/or flows into fee-based assets. Any of these factors could negatively impact the results of our Wealth Management business segment.Substantial market fluctuations or divergence in asset performance could also cause variations in the value of our investments in our funds, the flow of investment capital into or from AUM, and the way customers allocate capital among money market, equity, fixed income or other investment alternatives, which could negatively impact the results of our Investment Management business segment.The value of our financial instruments may be materially affected by market fluctuations. Market volatility, illiquid market conditions and disruptions in the markets may make it difficult to value and monetize certain of our financial instruments, particularly during periods of market uncertainty or displacement. Subsequent valuations in future periods, in light of factors then prevailing, may result in significant changes in the value of these instruments and may adversely impact historical or prospective fees and performance-based income (also known as incentive fees, which include carried interest) in respect of certain businesses. In addition, at the time of any sales and settlements of these financial instruments, the price we ultimately realize will depend on the demand and liquidity in the market at that time and may be materially lower than their current fair value. Any of these factors could cause a decline in the value of our financial instruments, which may adversely affect our results of operations in future periods.In addition, financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. Under these extreme conditions, hedging and other risk management strategies may not be as effective at mitigating trading losses as they would be under more normal market conditions. Moreover, under these conditions, market participants are particularly exposed to trading strategies employed by many market participants simultaneously and on a large scale, which could lead to increased individual counterparty risk for our businesses. Although our risk management and monitoring processes seek to quantify and mitigate risk to more extreme market moves, severe market events have historically been difficult to predict, and we could realize significant losses if extreme market events were to occur. can be impacted by market uncertainty or lack of investor and client confidence due to unforeseen economic, geopolitical or market conditions that in turn affect the size, number and timing of investment banking client assignments and transactions and the realization of returns from our principal investments. Periods of unfavorable market or economic conditions, including equity market levels and the level and pace of changes in interest rates and asset valuation, may have adverse impacts on the level of individual investor confidence and participation in the global markets and/or the level of and mix of client assets, including deposits. This could also impact the level of net new asset flows and/or flows into fee-based assets. Any of these factors could negatively impact the results of our Wealth Management business segment. Substantial market fluctuations or divergence in asset performance could also cause variations in the value of our investments in our funds, the flow of investment capital into or from AUM, and the way customers allocate capital among money market, equity, fixed income or other investment alternatives, which could negatively impact the results of our Investment Management business segment. The value of our financial instruments may be materially affected by market fluctuations. Market volatility, illiquid market conditions and disruptions in the markets may make it difficult to value and monetize certain of our financial instruments, particularly during periods of market uncertainty or displacement. Subsequent valuations in future periods, in light of factors then prevailing, may result in significant changes in the value of these instruments and may adversely impact historical or prospective fees and performance-based income (also known as incentive fees, which include carried interest) in respect of certain businesses. In addition, at the time of any sales and settlements of these financial instruments, the price we ultimately realize will depend on the demand and liquidity in the market at that time and may be materially lower than their current fair value. Any of these factors could cause a decline in the value of our financial instruments, which may adversely affect our results of operations in future periods. In addition, financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. Under these extreme conditions, hedging and other risk management strategies may not be as effective at mitigating trading losses as they would be under more normal market conditions. Moreover, under these conditions, market participants are particularly exposed to trading strategies employed by many market participants simultaneously and on a large scale, which could lead to increased individual counterparty risk for our businesses. Although our risk management and monitoring processes seek to quantify and mitigate risk to more extreme market moves, severe market events have historically been difficult to predict, and we could realize significant losses if extreme market events were to occur. 13December 2024 Form 10-K 13December 2024 Form 10-K 13December 2024 Form 10-K 13 Table of Contents Table of Contents Table of Contents Significant changes to interest rates could adversely affect our results of operations.Our net interest income is sensitive to changes in interest rates, generally resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios. The level and pace of interest rate changes, along with other developments, such as pricing changes to certain deposit types due to various competitive dynamics and alternative cash-equivalent products available to depositors, have in the past impacted, and could again impact, client preferences for cash allocation and the pace of reallocation of client balances, resulting in changes in the deposit mix and associated interest expense, as well as client demand for loans. These factors have in the past adversely affected, and may in the future adversely affect, our results of operations, including our net interest income.Holding large and concentrated positions may expose us to losses.Concentration of risk may reduce revenues or result in losses in our market-making, investing, underwriting (including block trading) and lending businesses (including margin lending) in the event of unfavorable market movements. We commit substantial amounts of capital to these businesses, which often results in our taking large positions in the securities of, or making large loans to, a particular issuer or issuers in a particular industry, country or region. In the event we hold a concentrated position larger than those held by competitors, we may incur larger losses. For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risk.”Credit RiskCredit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. For more information on how we monitor and manage credit risk, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk.”We are exposed to the risk that third parties that are indebted to us will not perform their obligations.We incur significant credit risk exposure through our Institutional Securities business segment. This risk may arise from a variety of business activities, including, but not limited to: extending credit to clients through various lending commitments; entering into swap or other derivative contracts under which counterparties have obligations to make payments to us; acting as clearing broker for listed and over-the-counter derivatives whereby we guarantee client performance to clearinghouses; providing short- or long-term funding that is secured by physical or financial collateral, including, but not limited to, real estate and marketable securities, whose value may at times be insufficient to fully cover the loan repayment amount; posting margin and/or collateral and other commitments to clearinghouses, clearing agencies, exchanges, banks, securities firms and other financial counterparties; and investing and trading in securities and loan pools, whereby the value of these assets may fluctuate based on realized or expected defaults on the underlying obligations or loans.We also incur credit risk in our Wealth Management business segment lending to mainly individual investors, including, but not limited to, margin- and securities-based loans collateralized by securities, residential mortgage loans, including home equity lines of credit (“HELOCs”), and structured loans to ultra-high net worth clients, that are in most cases secured by various types of collateral whose value may at times be insufficient to fully cover the loan repayment amount, including marketable securities, private investments, commercial real estate and other financial assets.Our valuations related to, and reserves for losses on, credit exposures rely on complex models, estimates and subjective judgments about the future. While we believe current valuations and reserves adequately address our perceived levels of risk, future economic conditions, including inflation and changes in real estate and other asset values, that differ from or are more severe than forecast, inaccurate models or assumptions, or external factors, such as geopolitical events, changes in international trade policies, global pandemics or natural disasters, could lead to inaccurate measurement of or deterioration of credit quality of our borrowers and counterparties or the value of collateral and result in unexpected losses. We may also incur higher-than-anticipated credit losses as a result of (i) disputes with counterparties over the valuation of collateral or (ii) actions taken by other lenders that may negatively impact the valuation of collateral. In cases where we foreclose on collateral, sudden declines in the value or liquidity of collateral may result in significant losses to us despite our (i) credit monitoring, (ii) over-collateralization, (iii) ability to call for additional collateral or (iv) ability to force repayment of the underlying obligation, especially where there is a single type of collateral supporting the obligation. In addition, in the longer term, climate change may have a negative impact on the financial condition of our clients, which may decrease revenues from those clients and increase the credit risk associated with loans and other credit exposures to those clients. Certain of our credit exposures may be concentrated by counterparty, product, sector, portfolio, industry or geographic region. Although our models and estimates account for correlations among related types of exposures, a change in the market or economic environment for a concentrated product or an external factor impacting a concentrated counterparty, sector, portfolio, industry or geographic region may result in credit losses in excess of amounts forecast. For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risk.”In addition, as a clearing member of several central counterparties, we are responsible for the defaults or misconduct of our customers and could incur financial losses Significant changes to interest rates could adversely affect our results of operations.Our net interest income is sensitive to changes in interest rates, generally resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios. The level and pace of interest rate changes, along with other developments, such as pricing changes to certain deposit types due to various competitive dynamics and alternative cash-equivalent products available to depositors, have in the past impacted, and could again impact, client preferences for cash allocation and the pace of reallocation of client balances, resulting in changes in the deposit mix and associated interest expense, as well as client demand for loans. These factors have in the past adversely affected, and may in the future adversely affect, our results of operations, including our net interest income.Holding large and concentrated positions may expose us to losses.Concentration of risk may reduce revenues or result in losses in our market-making, investing, underwriting (including block trading) and lending businesses (including margin lending) in the event of unfavorable market movements. We commit substantial amounts of capital to these businesses, which often results in our taking large positions in the securities of, or making large loans to, a particular issuer or issuers in a particular industry, country or region. In the event we hold a concentrated position larger than those held by competitors, we may incur larger losses. For further information regarding our country risk exposure, see also “Quantitative and Qualitative Disclosures about Risk—Country Risk.”Credit RiskCredit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. For more information on how we monitor and manage credit risk, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk.”We are exposed to the risk that third parties that are indebted to us will not perform their obligations.We incur significant credit risk exposure through our Institutional Securities business segment. This risk may arise from a variety of business activities, including, but not limited to: extending credit to clients through various lending commitments; entering into swap or other derivative contracts under which counterparties have obligations to make payments to us; acting as clearing broker for listed and over-the-counter derivatives whereby we guarantee client performance to clearinghouses; providing short- or long-term funding that is secured by physical or financial collateral, including, but not limited to, real estate and marketable securities, whose value may at times be insufficient to fully cover the loan repayment amount; posting margin and/or"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Financial Instruments Measured at Fair Value",
      "prior_title": "Financial Instruments Measured at Fair Value",
      "current_body": "A significant number of our financial instruments are carried at fair value. The use of fair value to measure financial instruments is fundamental to our risk management practices and is our most critical accounting estimate. We make estimates regarding the valuation of assets and liabilities measured at fair value in preparing the financial statements. These assets and liabilities include, but are not limited to: •Trading assets and Trading liabilities; •Investment Securities—AFS; •Certain Securities purchased under agreements to resell; •Loans held-for-sale (measured at the lower of amortized cost or fair value); •Certain Deposits, primarily certificates of deposit; •Certain Securities sold under agreements to repurchase; •Certain Other secured financings; and •Certain Borrowings. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, we use various valuation approaches. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable prices and inputs, and minimizes the use of unobservable prices and inputs by requiring that the relevant observable inputs be used when available. The hierarchy is broken down into three levels: wherein Level 1 represents quoted prices in active markets, Level 2 represents valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, and Level 3 consists of valuation techniques that incorporate significant unobservable inputs and, therefore, require the greatest use of judgment. The fair values for the substantial majority of our financial assets and liabilities carried at fair value are based on observable prices and inputs and are classified in level 1 or 2, of the fair value hierarchy. Level 3 financial assets represented 0.9% and 1.2% of our total assets, as of December 31, 2024 and December 31, 2023, respectively. In periods of market disruption, the observability of prices and inputs, as well as market liquidity, may be reduced for many instruments, which could cause an instrument to be recategorized from Level 1 to Level 2 or from Level 2 to Level 3. In addition, a downturn in market conditions could lead to declines in the valuation of many instruments carried at fair value. Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. For further information on the definition of fair value, Level 1, Level 2, Level 3 and related valuation techniques, and quantitative information about and sensitivity of significant unobservable inputs used in Level 3 fair value measurements, see Notes 2 and 4 to the financial statements.Where appropriate, valuation adjustments are made to account for various factors, such as liquidity risk (bid-ask adjustments), credit quality, model uncertainty, concentration risk and funding, in order to arrive at fair value. For a further discussion of valuation adjustments that we apply, see Note 2 to the financial statements.Goodwill and Intangible AssetsGoodwillWe test goodwill for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist. Evaluating goodwill for impairment requires management to make significant judgments, including, in part, the use of unobservable inputs that are subject to uncertainty. Goodwill impairment tests are performed at the reporting unit level, which is generally at the level of or one level below our business segments. Goodwill no longer retains its association with a particular acquisition once it has been assigned to a reporting unit. As such, all the activities of a reporting unit, whether acquired or organically developed, are available to support the value of the goodwill.For both the annual and interim tests, we have the option to either (i) perform a quantitative impairment test or (ii) first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, in which case the quantitative test would be performed.When performing a quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, the goodwill impairment loss is equal to the excess of the carrying value over the fair value, limited by the carrying amount of goodwill allocated to that reporting unit.The carrying value of each reporting unit is determined based on the capital allocated to the reporting unit. The estimated fair value of the reporting units is derived based on valuation techniques we believe market participants would use for each of the reporting units. The estimated fair value is generally determined by utilizing a discounted cash flow methodology. In certain instances, we may also utilize methodologies that incorporate price-to-book and price-to-earnings multiples of comparable companies. The discounted cash flow methodology uses projected future cash flows based on the reporting units’ earnings forecast. The discount rate used represents an estimate of the cost of equity for that reporting unit based on the Capital Asset Pricing Model. definition of fair value, Level 1, Level 2, Level 3 and related valuation techniques, and quantitative information about and sensitivity of significant unobservable inputs used in Level 3 fair value measurements, see Notes 2 and 4 to the financial statements. Where appropriate, valuation adjustments are made to account for various factors, such as liquidity risk (bid-ask adjustments), credit quality, model uncertainty, concentration risk and funding, in order to arrive at fair value. For a further discussion of valuation adjustments that we apply, see Note 2 to the financial statements."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Internal Audit Department",
      "prior_title": "Internal Audit Department",
      "current_body": "The Internal Audit Department (“IAD”) independently identifies and assesses risks facing the Firm and provides independent, objective and timely assurance to stakeholders about the effectiveness of risk management, governance and controls over key risks within the Firm’s businesses and functions. Every activity (including outsourced activities) and every entity of the Firm (including subsidiaries, affiliates and branches) is subject to IAD coverage. IAD develops and executes a comprehensive risk-based assurance plan to fulfill its role and purpose, which includes assessing compliance with policies, procedures and laws and regulations. IAD may also conduct other activities, such as retrospective reviews, pre-implementation reviews and investigations as requested by the BAC, senior management or the Firm’s regulators. IAD executes its activities in accordance with the mandatory elements of The Institute of Internal Auditors’ International Professional Practices Framework as well as the Firm’s Code of Ethics and Business Conduct, regulatory requirements, and IAD’s policies, procedures, standards and guidance. The Chief Audit Officer, who reports directly to the Chair of the BAC and administratively to the Firm’s Chief Executive Officer (“CEO”), communicates the results of IAD activities to the BAC on a quarterly basis and periodically to the BRC and BOTC."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Capital Plans, Stress Tests and the Stress Capital Buffer",
      "prior_title": "Capital Plans, Stress Tests and the Stress Capital Buffer",
      "current_body": "The Federal Reserve has capital planning and stress test requirements for large BHCs, which form part of the Federal Reserve’s annual CCAR framework. We must submit, on at least an annual basis, a capital plan to the Federal Reserve, taking into account the results of separate annual stress tests designed by us and the Federal Reserve, so that the Federal Reserve may assess our systems and processes that incorporate forward-looking projections of revenues and losses to monitor and maintain our internal capital adequacy. As banks with less than $250 billion of total assets, our U.S. Bank Subsidiaries are not subject to company-run stress test regulatory requirements. The capital plan must include a description of all planned capital actions over a nine-quarter planning horizon, including any issuance or redemption of a debt or equity capital instrument, any capital distribution (i.e., payments of dividends or stock repurchases) and any similar action that the Federal Reserve determines could impact our consolidated capital. The capital plan must include a discussion of how we will maintain capital above the minimum regulatory capital ratios and how we will serve as a source of strength to our U.S. Bank Subsidiaries under supervisory stress scenarios. In addition, the Federal Reserve has issued guidance setting out its heightened expectations for capital planning practices at certain large financial institutions, including us.As part of its annual capital supervisory stress testing process, the Federal Reserve determines an SCB for each large BHC, including us. The SCB applies only with respect to Standardized Approach risk-based capital requirements and replaced the CET1 capital conservation buffer of 2.5%. The SCB is the greater of (i) the maximum decline in our Common Equity Tier 1 capital ratio under the severely adverse scenario over the supervisory stress test measurement period plus the sum of the four quarters of planned common stock dividends divided by the projected RWAs from the quarter in which the Firm’s projected Common Equity Tier 1 capital ratio reaches its minimum in the supervisory stress test and (ii) 2.5%. The supervisory stress test assumes that BHCs generally maintain a constant level of assets and RWAs throughout the projection period.A firm’s SCB is subject to revision each year, taking effect from October 1 to reflect the results of the Federal Reserve’s annual supervisory stress test. The Federal Reserve has discretion to recalculate a firm’s SCB outside of the October 1 annual cycle and to require approval for certain actions, in some circumstances. The Federal Reserve also has the authority to impose restrictions on capital actions as a supervisory matter.For the 2024 capital planning and stress test cycle, we submitted our capital plan and company-run stress test results to the Federal Reserve on April 5, 2024. On June 26, 2024, the Federal Reserve published summary results of its supervisory stress tests of each large BHC, in which the projected decline in our CET1 ratio in the severely adverse scenario increased from the prior annual supervisory stress test by 50 basis points, from 4.1% to 4.6%. Following the publication of the supervisory stress test results, we announced that our SCB will be 6.0% from October 1, 2024 through September 30, 2025. In addition to the projected decline in our Common Equity Tier 1 ratio in the severely adverse scenario, our SCB reflects the increase in our common stock dividend in the dividend add-on. Together with other features of the regulatory capital framework, this SCB results in an aggregate Standardized Approach Common Equity Tier 1 ratio of 13.5%. Generally, our SCB is determined annually based on the results of the supervisory stress test.We also disclosed a summary of the results of our company-run stress tests on our Investor Relations website and increased our quarterly common stock dividend to $0.925 per share from $0.85, beginning with the common stock dividend announced on July 16, 2024. will maintain capital above the minimum regulatory capital ratios and how we will serve as a source of strength to our U.S. Bank Subsidiaries under supervisory stress scenarios. In addition, the Federal Reserve has issued guidance setting out its heightened expectations for capital planning practices at certain large financial institutions, including us. As part of its annual capital supervisory stress testing process, the Federal Reserve determines an SCB for each large BHC, including us. The SCB applies only with respect to Standardized Approach risk-based capital requirements and replaced the CET1 capital conservation buffer of 2.5%. The SCB is the greater of (i) the maximum decline in our Common Equity Tier 1 capital ratio under the severely adverse scenario over the supervisory stress test measurement period plus the sum of the four quarters of planned common stock dividends divided by the projected RWAs from the quarter in which the Firm’s projected Common Equity Tier 1 capital ratio reaches its minimum in the supervisory stress test and (ii) 2.5%. The supervisory stress test assumes that BHCs generally maintain a constant level of assets and RWAs throughout the projection period. A firm’s SCB is subject to revision each year, taking effect from October 1 to reflect the results of the Federal Reserve’s annual supervisory stress test. The Federal Reserve has discretion to recalculate a firm’s SCB outside of the October 1 annual cycle and to require approval for certain actions, in some circumstances. The Federal Reserve also has the authority to impose restrictions on capital actions as a supervisory matter. For the 2024 capital planning and stress test cycle, we submitted our capital plan and company-run stress test results to the Federal Reserve on April 5, 2024. On June 26, 2024, the Federal Reserve published summary results of its supervisory stress tests of each large BHC, in which the projected decline in our CET1 ratio in the severely adverse scenario increased from the prior annual supervisory stress test by 50 basis points, from 4.1% to 4.6%. Following the publication of the supervisory stress test results, we announced that our SCB will be 6.0% from October 1, 2024 through September 30, 2025. In addition to the projected decline in our Common Equity Tier 1 ratio in the severely adverse scenario, our SCB reflects the increase in our common stock dividend in the dividend add-on. Together with other features of the regulatory capital framework, this SCB results in an aggregate Standardized Approach Common Equity Tier 1 ratio of 13.5%. Generally, our SCB is determined annually based on the results of the supervisory stress test. We also disclosed a summary of the results of our company-run stress tests on our Investor Relations website and increased our quarterly common stock dividend to $0.925 per share from $0.85, beginning with the common stock dividend announced on July 16, 2024. 53December 2024 Form 10-K 53December 2024 Form 10-K 53December 2024 Form 10-K 53 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Attribution of Average Common Equity According to the Required Capital Framework Our required capital (“Required Capital”) estimation is based on the Required Capital framework, an internal capital adequacy measure. Common equity attribution to the business segments is based on capital usage calculated under the Required Capital framework, as well as each business segment’s relative contribution to our total Required Capital. The Required Capital framework is a risk-based and leverage-based capital measure, which is compared with our regulatory capital to ensure that we maintain an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). We define the difference between our total average common equity and the sum of the average common equity amounts allocated to our business segments as Parent Company common equity. We generally hold Parent Company common equity for prospective regulatory requirements, organic growth, potential future acquisitions and other capital needs.Average Common Equity Attribution under the Required Capital Framework1 $ in billions202420232022Institutional Securities$45.0 $45.6 $48.8 Wealth Management29.1 28.8 31.0 Investment Management10.8 10.4 10.6 Parent6.8 6.0 3.5 Total$91.7 $90.8 $93.9 1.The attribution of average common equity to the business segments is a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein. We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate. Resolution and Recovery PlanningWe are required to submit once every two years to the Federal Reserve and the FDIC (“Agencies”) a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of our material financial distress or failure. We submitted our 2023 full resolution plan on June 30, 2023. In June 2024, we received joint feedback on our 2023 resolution plan from the Agencies, with no shortcomings or deficiencies identified. Our next resolution plan submission will be a targeted resolution plan in July 2025. For more information about resolution planning requirements, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning.”As described in our most recent resolution plan, our preferred resolution strategy is an SPOE strategy. In line with our SPOE strategy, the Parent Company has transferred, and has agreed to transfer on an ongoing basis, certain assets to its wholly owned, direct subsidiary Morgan Stanley Holdings LLC (the “Funding IHC”). In addition, the Parent Company has entered into an amended and restated support agreement with its material entities (including the Funding IHC) and certain other subsidiaries. In the event of a resolution scenario, the Parent Company would be obligated to contribute all of its contributable assets to our supported entities and/or the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to our supported entities. The combined implication of the SPOE resolution strategy and the requirement to maintain certain levels of TLAC is that losses in resolution would be imposed on the holders of eligible LTD and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on creditors of our supported entities and without requiring taxpayer or government financial support.The obligations of the Parent Company and the Funding IHC under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets) and the assets of the Funding IHC. As a result, claims of our supported entities, including the Funding IHC, with respect to the secured assets, are effectively senior to unsecured obligations of the Parent Company.For more information about resolution and recovery planning requirements and our activities in these areas, including the implications of such activities in a resolution scenario, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk.”Regulatory Developments and Other MattersBasel III Endgame and G-SIB Surcharge ProposalsOn July 27, 2023, U.S. banking agencies proposed revisions to risk-based capital and related standards applicable to us and our U.S. Bank Subsidiaries (“Basel III Endgame Proposal”). We continue to monitor developments related to this rulemaking as well as the proposed revisions to the G-SIB capital surcharge framework. Attribution of Average Common Equity According to the Required Capital Framework Our required capital (“Required Capital”) estimation is based on the Required Capital framework, an internal capital adequacy measure. Common equity attribution to the business segments is based on capital usage calculated under the Required Capital framework, as well as each business segment’s relative contribution to our total Required Capital. The Required Capital framework is a risk-based and leverage-based capital measure, which is compared with our regulatory capital to ensure that we maintain an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). We define the difference between our total average common equity and the sum of the average common equity amounts allocated to our business segments as Parent Company common equity. We generally hold Parent Company common equity for prospective regulatory requirements, organic growth, potential future acquisitions and other capital needs.Average Common Equity Attribution under the Required Capital Framework1 $ in billions202420232022Institutional Securities$45.0 $45.6 $48.8 Wealth Management29.1 28.8 31.0 Investment Management10.8 10.4 10.6 Parent6.8 6.0 3.5 Total$91.7 $90.8 $93.9 1.The attribution of average common equity to the business segments is a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein. We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate. Resolution and Recovery PlanningWe are required to submit once every two years to the Federal Reserve and the FDIC (“Agencies”) a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of our material financial distress or failure. We submitted our 2023 full resolution plan on June 30, 2023. In June 2024, we received joint feedback on our 2023 resolution plan from the Agencies, with no shortcomings or deficiencies identified. Our next resolution plan submission will be a targeted resolution plan in July 2025. For more information about resolution planning requirements, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning.”As described in our most recent resolution plan, our preferred resolution strategy is an SPOE strategy. In line with our"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Introduction",
      "prior_title": "Introduction",
      "current_body": "Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley,” “Firm,” “us,” “we” or “our” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K. For an analysis of 2023 results compared with 2022 results, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the annual report on Form 10-K for the year ended December 31, 2023 filed with the SEC.A description of the clients and principal products and services of each of our business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Management’s Discussion and Analysis includes certain metrics that we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results. Such metrics, when used, are defined and may be different from or inconsistent with metrics used by other companies.The results of operations in the past have been, and in the future may continue to be, materially affected by: competition; legislative, legal and regulatory developments; and other risk factors. These factors also may have an adverse impact on our ability to achieve our strategic objectives. Additionally, the discussion of our results of operations herein may contain forward-looking statements. These statements, which reflect management’s beliefs and expectations, are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of the risks and uncertainties that may affect our future results, see “Forward-Looking Statements”, “Business—Competition”, “Business—Supervision and Regulation”, “Risk Factors” and “Liquidity and Capital Resources—Regulatory Requirements” herein. Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley,” “Firm,” “us,” “we” or “our” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K. For an analysis of 2023 results compared with 2022 results, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the annual report on Form 10-K for the year ended December 31, 2023 filed with the SEC.A description of the clients and principal products and services of each of our business segments is as follows:Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services. Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley,” “Firm,” “us,” “we” or “our” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-K. For an analysis of 2023 results compared with 2022 results, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the annual report on Form 10-K for the year ended December 31, 2023 filed with the SEC. A description of the clients and principal products and services of each of our business segments is as follows: Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Equity and Fixed Income businesses include sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research. Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.Management’s Discussion and Analysis includes certain metrics that we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results. Such metrics, when used, are defined and may be different from or inconsistent with metrics used by other companies.The results of operations in the past have been, and in the future may continue to be, materially affected by: competition; legislative, legal and regulatory developments; and other risk factors. These factors also may have an adverse impact on our ability to achieve our strategic objectives. Additionally, the discussion of our results of operations herein may contain forward-looking statements. These statements, which reflect management’s beliefs and expectations, are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of the risks and uncertainties that may affect our future results, see “Forward-Looking Statements”, “Business—Competition”, “Business—Supervision and Regulation”, “Risk Factors” and “Liquidity and Capital Resources—Regulatory Requirements” herein. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors. Management’s Discussion and Analysis includes certain metrics that we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results. Such metrics, when used, are defined and may be different from or inconsistent with metrics used by other companies. The results of operations in the past have been, and in the future may continue to be, materially affected by: competition; legislative, legal and regulatory developments; and other risk factors. These factors also may have an adverse impact on our ability to achieve our strategic objectives. Additionally, the discussion of our results of operations herein may contain forward-looking statements. These statements, which reflect management’s beliefs and expectations, are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of the risks and uncertainties that may affect our future results, see “Forward-Looking Statements”, “Business—Competition”, “Business—Supervision and Regulation”, “Risk Factors” and “Liquidity and Capital Resources—Regulatory Requirements” herein. 25December 2024 Form 10-K 25December 2024 Form 10-K 25December 2024 Form 10-K 25 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents Executive SummaryOverview of Financial ResultsConsolidated Results—Full Year Ended December 31, 2024•The Firm reported net revenues of $61.8 billion and net income of $13.4 billion, reflecting strong results across our business segments.•The Firm delivered ROE of 14.0% and ROTCE of 18.8% (see “Selected Non-GAAP Financial Information” herein). •The Firm expense efficiency ratio was 71% compared to 77% in the prior year, reflecting higher revenues and expense discipline. In the prior year, the ratio was negatively impacted by specific severance costs of $353 million, integration-related expenses of $293 million, an FDIC special assessment of $286 million and higher legal expenses related to a $249 million settlement in connection with resolutions of investigations into the Firm’s blocks business. (See “Expenses” herein for more information).•The Firm accreted $5.6 billion of Common Equity Tier 1 capital while supporting clients and returning capital to shareholders. At December 31, 2024, the Firm’s Standardized Common Equity Tier 1 capital ratio was 15.9%.•Institutional Securities net revenues of $28.1 billion reflect higher results across businesses and regions on higher client activity and improved market conditions.•Wealth Management delivered net revenues of $28.4 billion, reflecting higher Asset management and Transactional revenues. The pre-tax margin was 27.2%. Fee-based asset flows were $123 billion and the business added net new assets of $252 billion.•Investment Management reported net revenues of $5.9 billion, primarily driven by asset management revenues on higher average AUM.Net Revenues($ in millions)Net Income Applicable to Morgan Stanley($ in millions)Earnings per Diluted Common Share2024 Compared with 2023 •We reported net revenues of $61.8 billion in 2024, which increased by 14% compared with $54.1 billion in 2023. Net income applicable to Morgan Stanley was $13.4 billion in 2024, which increased by 47% compared with $9.1 billion in 2023. Diluted earnings per common share was $7.95 in 2024, which increased by 53% compared with $5.18 in 2023. Executive SummaryOverview of Financial ResultsConsolidated Results—Full Year Ended December 31, 2024•The Firm reported net revenues of $61.8 billion and net income of $13.4 billion, reflecting strong results across our business segments.•The Firm delivered ROE of 14.0% and ROTCE of 18.8% (see “Selected Non-GAAP Financial Information” herein). •The Firm expense efficiency ratio was 71% compared to 77% in the prior year, reflecting higher revenues and expense discipline. In the prior year, the ratio was negatively impacted by specific severance costs of $353 million, integration-related expenses of $293 million, an FDIC special assessment of $286 million and higher legal expenses related to a $249 million settlement in connection with resolutions of investigations into the Firm’s blocks business. (See “Expenses” herein for more information).•The Firm accreted $5.6 billion of Common Equity Tier 1 capital while supporting clients and returning capital to shareholders. At December 31, 2024, the Firm’s Standardized Common Equity Tier 1 capital ratio was 15.9%.•Institutional Securities net revenues of $28.1 billion reflect higher results across businesses and regions on higher client activity and improved market conditions.•Wealth Management delivered net revenues of $28.4 billion, reflecting higher Asset management and Transactional revenues. The pre-tax margin was 27.2%. Fee-based asset flows were $123 billion and the business added net new assets of $252 billion.•Investment Management reported net revenues of $5.9 billion, primarily driven by asset management revenues on higher average AUM."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Advisor-Led Channel",
      "prior_title": "Advisor-Led Channel",
      "current_body": "$ in billionsAt December 31,2024At December 31,2023Advisor-led client assets1$4,758$3,979Fee-based client assets2$2,347$1,983Fee-based client assets as apercentage of advisor-led clientassets49%50% Advisor-led client assets1 Fee-based client assets2 Fee-based client assets as a percentage of advisor-led client assets 202420232022Fee-based asset flows3$123.1$109.2$162.8 Fee-based asset flows3 1.Advisor-led client assets represent client assets in accounts that have a Wealth Management representative assigned. 2.Fee‐based client assets represent the amount of client assets where the basis of payment for services is a fee calculated on those assets. 3.Fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers, dividends, interest and client fees, and exclude institutional cash management related activity. For a description of the Inflows and Outflows included in Fee-based asset flows, see Fee-based client assets herein."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Support and Control Functions",
      "prior_title": "Support and Control Groups",
      "current_body": "Our support and control groups include, but are not limited to, Legal, the Finance Division, the Technology Division (“Technology”), the Operations Division (“Operations”), the Human Capital Management, and Firm Strategy and Execution. Our support and control functions coordinate with the business segment control groups to review the risk monitoring and risk management policies and procedures relating to, among other things, controls over financial reporting and disclosure; each business segment’s market, credit and operational risk profile; liquidity risks; model risks; sales practices; reputational, legal enforceability, compliance and regulatory risks; and technological risks. Participation by the senior officers of the Firm and business segment control groups helps ensure that risk policies and procedures, exceptions to risk limits, new products and business ventures, and transactions with risk elements undergo thorough review.Internal Audit DepartmentThe Internal Audit Department (“IAD”) independently identifies and assesses risks facing the Firm and provides independent, objective and timely assurance to stakeholders about the effectiveness of risk management, governance and controls over key risks within the Firm’s businesses and functions. Every activity (including outsourced activities) and every entity of the Firm (including subsidiaries, affiliates and branches) is subject to IAD coverage. IAD develops and executes a comprehensive risk-based assurance plan to fulfill its role and purpose, which includes assessing compliance with policies, procedures and laws and regulations. IAD may also conduct other activities, such as retrospective reviews, pre-implementation reviews and investigations as requested by the BAC, senior management or the Firm’s regulators. IAD executes its activities in accordance with the mandatory elements of The Institute of Internal Auditors’ International Professional Practices Framework as well as the Firm’s Code of Ethics and Business Conduct, regulatory requirements, and IAD’s policies, procedures, standards and guidance. The Chief Audit Officer, who reports directly to the Chair of the BAC and administratively to the Firm’s Chief Executive Officer (“CEO”), communicates the results of IAD activities to the BAC on a quarterly basis and periodically to the BRC and BOTC.Culture, Values and Conduct of EmployeesEmployees of the Firm are accountable for conducting themselves in accordance with our core values: Put Clients First, Do the Right Thing, Lead with Exceptional Ideas, Commit to Diversity and Inclusion, and Give Back. We are committed to reinforcing and confirming adherence to our core values through our governance framework, tone from the top, management oversight, risk management and controls, and three lines of defense structure (risk owners within the business, our independent risk management functions, including the Financial Risk Management and Non-Financial Risk Management functions, and IAD).The Board is responsible for overseeing the Firm’s practices and procedures relating to culture, values and conduct, as set forth in the Board’s Corporate Governance Policies. Senior management committees oversee the Firmwide culture, values and conduct program and report regularly to the Board. A the business segment control groups to review the risk monitoring and risk management policies and procedures relating to, among other things, controls over financial reporting and disclosure; each business segment’s market, credit and operational risk profile; liquidity risks; model risks; sales practices; reputational, legal enforceability, compliance and regulatory risks; and technological risks. Participation by the senior officers of the Firm and business segment control groups helps ensure that risk policies and procedures, exceptions to risk limits, new products and business ventures, and transactions with risk elements undergo thorough review."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Goodwill and Intangible Assets",
      "prior_title": "Goodwill and Intangible Assets",
      "current_body": "Goodwill We test goodwill for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist. Evaluating goodwill for impairment requires management to make significant judgments, including, in part, the use of unobservable inputs that are subject to uncertainty. Goodwill impairment tests are performed at the reporting unit level, which is generally at the level of or one level below our business segments. Goodwill no longer retains its association with a particular acquisition once it has been assigned to a reporting unit. As such, all the activities of a reporting unit, whether acquired or organically developed, are available to support the value of the goodwill. For both the annual and interim tests, we have the option to either (i) perform a quantitative impairment test or (ii) first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, in which case the quantitative test would be performed. When performing a quantitative impairment test, we compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, the goodwill impairment loss is equal to the excess of the carrying value over the fair value, limited by the carrying amount of goodwill allocated to that reporting unit. The carrying value of each reporting unit is determined based on the capital allocated to the reporting unit. The estimated fair value of the reporting units is derived based on valuation techniques we believe market participants would use for each of the reporting units. The estimated fair value is generally determined by utilizing a discounted cash flow methodology. In certain instances, we may also utilize methodologies that incorporate price-to-book and price-to-earnings multiples of comparable companies. The discounted cash flow methodology uses projected future cash flows based on the reporting units’ earnings forecast. The discount rate used represents an estimate of the cost of equity for that reporting unit based on the Capital Asset Pricing Model. December 2024 Form 10-K42 December 2024 Form 10-K42 December 2024 Form 10-K42 42 Table of Contents Management’s Discussion and Analysis Table of Contents Management’s Discussion and Analysis Table of Contents At each annual goodwill impairment testing date, each of our reporting units with goodwill had a fair value that was substantially in excess of its carrying value.Intangible AssetsIntangible assets are initially recorded at cost, or in the situation where acquired as part of a business combination, at the fair value determined as part of the acquisition method of accounting. Subsequently, amortizable intangible assets are carried in the balance sheet at amortized cost, where amortization is recognized over their estimated useful lives. Indefinite-lived intangible assets are not amortized but are tested for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist.On a quarterly basis: •All intangible assets are assessed for the presence of impairment indicators. Where such indicators are present, an evaluation for impairment is conducted. •For amortizable intangible assets, an impairment loss exists if the carrying amount of the intangible asset is not recoverable and exceeds its fair value. The carrying amount of the intangible asset is not recoverable if it exceeds the sum of the expected undiscounted cash flows. •For indefinite-lived intangible assets, an impairment exists if the carrying amount of the intangible asset exceeds its fair value. •Amortizable intangible assets are assessed for any indication that the remaining useful life or the finite life classification should be revised. In such cases, the remaining carrying amount is amortized prospectively over the revised useful life, unless it is determined that the life of the intangible asset is indefinite, in which case the intangible asset is not amortized.•Indefinite-lived intangible assets are assessed for any indication that the life of the intangible asset is no longer indefinite; in such cases, the carrying amount of the intangible asset is amortized prospectively over its remaining useful life.The initial valuation of an intangible asset as part of the acquisition method of accounting and the subsequent valuation of intangible assets as part of an impairment assessment are subjective and based, in part, on inputs that are unobservable and can be subject to uncertainty. These inputs include, but are not limited to, forecasted cash flows, revenue growth rates, customer attrition rates and discount rates.For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For amortizable intangible assets, the new cost basis is amortized over the remaining useful life of that asset. Unanticipated declines in our revenue-generating capability, adverse market or economic events, and regulatory actions, could result in material impairment charges in future periods.See Notes 2 and 10 to the financial statements for additional information about goodwill and intangible assets.Legal and Regulatory ContingenciesIn the normal course of business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a global diversified financial services institution.Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our sales and trading businesses and our activities in the capital markets.We are also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding our business, and involving, among other matters, sales, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by us, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief.We contest liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and we can reasonably estimate the amount of that loss or the range of loss, we accrue an estimated loss by a charge to income. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where we have determined that a loss is probable or reasonably possible, or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, we are often unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or At each annual goodwill impairment testing date, each of our reporting units with goodwill had a fair value that was substantially in excess of its carrying value.Intangible AssetsIntangible assets are initially recorded at cost, or in the situation where acquired as part of a business combination, at the fair value determined as part of the acquisition method of accounting. Subsequently, amortizable intangible assets are carried in the balance sheet at amortized cost, where amortization is recognized over their estimated useful lives. Indefinite-lived intangible assets are not amortized but are tested for impairment on an annual basis as of July 1 and on an interim basis when certain events or circumstances exist.On a quarterly basis: •All intangible assets are assessed for the presence of impairment indicators. Where such indicators are present, an evaluation for impairment is conducted. •For amortizable intangible assets, an impairment loss exists if the carrying amount of the intangible asset is not recoverable and exceeds its fair value. The carrying amount of the intangible asset is not recoverable if it exceeds the sum of the expected undiscounted cash flows. •For indefinite-lived intangible assets, an impairment exists if the carrying amount of the intangible asset exceeds its fair value. •Amortizable intangible assets are assessed for any indication that the remaining useful life or the finite life classification should be revised. In such cases, the remaining carrying amount is amortized prospectively over the revised useful life, unless it is determined that the life of the intangible asset is indefinite, in which case the intangible asset is not amortized.•Indefinite-lived intangible assets are assessed for any indication that the life of the intangible asset is no longer indefinite; in such cases, the carrying amount of the intangible asset is amortized prospectively over its remaining useful life.The initial valuation of an intangible asset as part of the acquisition method of accounting and the subsequent valuation of intangible assets as part of an impairment assessment are subjective and based, in part, on inputs that are unobservable and can be subject to uncertainty. These inputs include, but are not limited to, forecasted cash flows, revenue growth rates, customer attrition rates and discount rates.For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For amortizable intangible assets, the new cost basis is amortized over the remaining useful life of that asset. Unanticipated declines in our revenue-generating capability, adverse market or economic events, and regulatory actions, could result in material impairment charges in future periods. At each annual goodwill impairment testing date, each of our reporting units with goodwill had a fair value that was substantially in excess of its carrying value."
    },
    {
      "status": "UNCHANGED",
      "current_title": "The financial services industry is subject to extensive regulation, and changes in regulation will impact our business.",
      "prior_title": "The financial services industry is subject to extensive regulation, and changes in regulation will impact our business.",
      "current_body": "Like other major financial services firms, we are subject to extensive regulation by U.S. federal and state regulatory agencies and securities exchanges, and by regulators and exchanges in each of the major markets where we conduct our business, including an increasing number of complex sanctions and disclosure regimes. These laws and regulations, which may continue to increase in volume and complexity, significantly affect the way and costs of doing business and can restrict the scope of our existing businesses and limit our ability to expand our product offerings and pursue certain investments. The Firm and its employees are subject to wide-ranging regulation and supervision, which, among other things, subject us to intensive scrutiny of our businesses and any plans for expansion of those businesses through acquisitions or otherwise, limitations on activities, a systemic risk regime that imposes heightened capital and liquidity and funding requirements, including the global implementation of capital standards established by the Basel Committee, and other enhanced prudential standards, resolution regimes and resolution planning requirements, requirements for maintaining minimum amounts of TLAC and external long-term debt, restrictions on activities and investments imposed by the Volcker Rule, comprehensive derivatives regulation, interest rate benchmark requirements, commodities regulation, market structure regulation, consumer protection regulation, AML, terrorist financing and anti-corruption rules and regulations, tax regulations and interpretations, antitrust laws, trade and transaction reporting obligations, requirements related to preventing the misuse of confidential information, including material non-public information, record-keeping requirements, broadened fiduciary obligations and disclosure requirements. New laws, rules, regulations and guidelines, as well as ongoing implementation of, our efforts to comply with, and/or changes to laws, rules, regulations and guidelines, including changes in the breadth, application, interpretation or enforcement of laws, rules, regulations and guidelines, could materially impact the profitability of our businesses and the value of assets we hold, impact our income tax provision and effective tax rate, expose us to additional theories of liability and additional costs, require changes to business practices or force us to discontinue businesses, adversely affect our ability to pay dividends and repurchase our stock or require us to raise capital, including in ways that may adversely impact our shareholders or creditors. In addition, regulatory requirements that are imposed by foreign policymakers and regulators may be inconsistent or conflict with regulations that we are subject to in the U.S. and may adversely affect us. The application of regulatory requirements and strategies in the U.S. or other jurisdictions to facilitate the orderly resolution of large financial institutions may pose a greater risk of loss for our security holders and subject us to other restrictions.We are required to submit once every two years to the Federal Reserve and the FDIC a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of material financial distress or failure. If the Federal Reserve and the FDIC were to jointly determine that our resolution plan submission was not credible or would not facilitate an orderly resolution, and if we were unsuccessful in addressing any deficiencies identified by the regulators, we or any of our subsidiaries may be subject to more stringent capital, leverage or liquidity requirements or restrictions on our growth, activities or operations, or after a two-year period, we may be required to divest assets or operations.In addition, provided that certain procedures are met, we can be subject to a resolution proceeding under the orderly liquidation authority under Title II of the Dodd-Frank Act with the FDIC being appointed as receiver instead of being resolved under the U.S. Bankruptcy Code. The FDIC’s power under the orderly liquidation authority to disregard the priority of creditor claims and treat similarly situated creditors differently in certain circumstances, subject to certain limitations, could adversely impact holders of our unsecured debt. See “Business—Supervision and Regulation” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements.”Further, because both our resolution plan contemplates an SPOE strategy under the U.S. Bankruptcy Code and the FDIC has indicated that it expects to use an SPOE strategy through which it may apply its orderly liquidation authority powers for a U.S. G-SIB, we believe that the application of an SPOE strategy is the reasonably likely outcome if either our resolution plan were implemented or a resolution proceeding were commenced under the orderly liquidation authority. An SPOE strategy generally contemplates the provision of adequate capital and liquidity by the Parent Company to certain of its subsidiaries so that such subsidiaries have the resources necessary to implement the resolution strategy, and the Parent Company has entered into a secured amended and restated support agreement with such entities, pursuant to which it would provide such capital and liquidity to such entities.In addition, a wholly owned, direct subsidiary of the Parent Company, Morgan Stanley Holdings LLC (“Funding IHC”), serves as a resolution funding vehicle. The Parent Company has transferred, and has agreed to transfer on an ongoing basis, certain assets to the Funding IHC. In the event of a resolution scenario, the Parent Company would be obligated to contribute all of its material assets that can be contributed under the terms of the amended and restated support"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Daily Net Trading Revenues for 2024",
      "prior_title": "Daily Net Trading Revenues for 2023",
      "current_body": "($ in millions) Daily net trading revenues include profits and losses from Interest rate and credit spread, Equity price, Foreign exchange rate, Commodity price, and Credit Portfolio positions and intraday trading activities for our trading businesses. Certain items such as fees, commissions, net interest income and counterparty default risk are excluded from daily net trading revenues and the VaR model. Revenues required for Regulatory VaR backtesting further exclude intraday trading."
    }
  ]
}