Jun
28
Goldman Sachs, Morgan Stanley Dinged in Fed Stress Tests
ByThe two banks can’t raise shareholder payouts beyond recent levels after falling below minimum ratios on exams
Regulators cleared most of the largest U.S. banks to increase their dividends and share buybacks, but forced two Wall Street titans, Goldman Sachs Group Inc. and Morgan Stanley, to freeze those payouts at recent levels.
Thirty-four of the nation’s 35 biggest lenders passed the second round of the Federal Reserve’s annual “stress tests,” which gauge whether banks are healthy enough to keep lending through an economic meltdown. They can now buy back shares and pay dividends, rewarding investors who have been eager to share in…
