BUZZ-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 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)

((ArasuKannagi.Basil@thomsonreuters.com;))