Goldman, Morgan Stanley Say Test Scores May Not Curb Payouts
- The two firms had lowest leverage ratios in annual stress test
- All 35 banks in the exam showed they could withstand a crisis
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Goldman Sachs Group Inc. and Morgan Stanley are imploring investors not to get spooked.
The investment banks had the two lowest capital levels by one key measure in stress test results released Thursday by the Federal Reserve, threatening to limit how much cash they’ll be able to return to shareholders through dividends and stock buybacks. But both firms say they may be able to return more than Thursday’s figures would suggest.