EXHIBIT 12

Morgan Stanley

Ratio of Earnings to Fixed Charges

and Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

(dollars in millions)

(unaudited)

	Six Months Ended June 30, 2016		2015		2014		2013		2012		2011
Ratio of Earnings to Fixed Charges
Earnings:
Income (loss) before income taxes	$	4,135	$	8,229	$	3,235	$	3,502	$	(29)	$	6,647
Add: Fixed charges, net		1,725		2,987		3,935		4,695		6,152		7,128
Income before income taxes and fixed charges, net	$	5,860	$	11,216	$	7,170	$	8,197	$	6,123	$	13,775
Fixed Charges:
Total interest expense	$	1,602	$	2,742	$	3,679	$	4,414	$	5,858	$	6,842
Interest factor in rents		123		245		256		281		294		286
Total fixed charges	$	1,725	$	2,987	$	3,935	$	4,695	$	6,152	$	7,128
Ratio of earnings to fixed charges		3.4		3.8		1.8		1.7		1.0		1.9
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
Earnings:
Income (loss) before income taxes	$	4,135	$	8,229	$	3,235	$	3,502	$	(29)	$	6,647
Add: Fixed charges, net		1,725		2,987		3,935		4,695		6,152		7,128
Income before income taxes and fixed charges, net	$	5,860	$	11,216	$	7,170	$	8,197	$	6,123	$	13,775
Fixed Charges:
Total interest expense	$	1,602	$	2,742	$	3,679	$	4,414	$	5,858	$	6,842
Interest factor in rents		123		245		256		281		294		286
Preferred stock dividends		352		610		311		150		96		385
Total fixed charges and preferred stock dividends	$	2,077	$	3,597	$	4,246	$	4,845	$	6,248	$	7,513
Ratio of earnings to fixed charges and preferred stock dividends		2.8		3.1		1.7		1.7		1.0		1.8

Income (loss) before income taxes does not include dividends on preferred securities, income (loss) from discontinued operations, noncontrolling interests and income or loss from equity investees.

Fixed charges consist of interest cost, including interest on deposits, interest from discontinued operations, dividends on preferred securities, and that portion of rent expense to be representative of the interest factor.

Fixed charges do not include interest expense on uncertain tax liabilities as the Firm records these amounts within the Provision for income taxes.

The preferred stock dividends amount represents pre-tax earnings required to cover dividends on preferred stock.