Most of the big banks got a passing grade, but the U.S. banking regulator wants New York-based Morgan Stanley to come up with a new capital plan by the end of the year. And the capital plans of two other firms have been rejected by the regulator in its latest capital planning exercise.

The U.S. Federal Reserve Board (Fed) released the results of its latest capital planning exercise, known as the Comprehensive Capital Analysis and Review (CCAR), which evaluates the capital planning processes and capital adequacy of the largest U.S.-based bank holding companies.

In the latest review, the Fed gave the green light to plans from 30 banks, including BMO Financial Corp. and TD Group U.S. Holdings LLC. While it did not object to the plan from Morgan Stanley, the Fed is requiring the firm to submit a new plan “to address certain weaknesses” by the end of the year.

The Fed rejected the plans from Deutsche Bank Trust Corp. and Santander Holdings USA, Inc., based on qualitative concerns. When the Fed objects to a plan, the firms in question must get regulatory approval to make capital distributions.

The CCAR, which is carried out in addition to the Fed’s stress testing exercise, aims to ensure that the largest banks operating in the U.S. have strong capital levels and can accommodate financial stress.”Over the six years in which CCAR has been in place, the participating firms have strengthened their capital positions and improved their risk-management capacities,” said Fed governor Daniel Tarullo. “Continued progress in both areas will further enhance the resiliency of the nation’s largest banks.”