Goldman's eased capital level opens door for more buybacks, Morgan Stanley says
** Morgan Stanley says the U.S. Federal Reserve shrinking the extra capital level required of Goldman Sachs GS.N opens the door for more buybacks
** The Fed on Wednesday cut GS' stress capital buffer by 20 basis points to 6.2% from the 6.4% suggested in June's annual stress tests
** GS now has more excess capital than prior estimates, Morgan Stanley says
** GS CFO told analysts in July that the firm plans to moderate buybacks versus the levels of the second quarter, given the higher-than-expected capital requirement following the test
** Morgan Stanley says the capital requirement reduction is a win for GS and the broader banking industry
Reporting by Arasu Kannagi Basil in Bengaluru
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