Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

Goldman Sachs and Morgan Stanley Near Bottom of Stress Tests

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Goldman Sachs and Morgan Stanley may face resistance from regulators if they attempt to significantly increase their dividends or share buybacks this year.

The Federal Reserve estimates that in a stress scenario, the Tier One common ratio, the ratio of common equity to overall assets, for both Goldman Sachs and Morgan Stanley could come very close to the five-percent minimum required for banks to pay dividends or engage in buybacks.