The power that rating agencies and the illiquid credit default swap market holds over the economy has been dubbed "insane" by a UBS analyst, as Morgan Stanley and Goldman Sachs take an unwarranted hit on their share price despite having sufficient liquidity and capital.

In a research note published by UBS Investment Research's New York Office, Glenn Schorr says: "In terms of MS & GS, if this is not an issue of liquidity like Bear, and not an issue of solvency like Lehman, isn't this a bit insane that the illiquid CDS market (or the rating agencies) can decide the fate of these companies and alter the landscape of the brokerage industry forever?"