Morgan Stanley to pare assets on balance sheet

Morgan Stanley, the second-biggest U.S. securities firm, will reduce assets on its balance sheet and be "more judicious" in allocating capital, Chief Financial Officer Colm Kelleher said.

"It is our intention to bring down our balance sheet to maintain leverage ratios," Kelleher said Tuesday at an investor conference in New York hosted by Merrill Lynch & Co. "We plan to be more judicious in how we allocate capital."