Goldman Sachs (GS) and Morgan Stanley (MS) should be prevented from returning capital to...

|About: Goldman Sachs Group Inc. (GS)|By:, SA News Editor

Goldman Sachs (GS) and Morgan Stanley (MS) should be prevented from returning capital to shareholders, says Sheila Bair, as any distribution would bring their leverage to greater than 25:1. "This underscores (a) weakness of the tests: They didn't really stress liquidity," says Bair noting the IBs - without deposit bases - are especially vulnerable.