UNITED STATES NEWS

Morgan Stanley selling oil storage and transport business

May 11, 2015, 3:24 PM

NEW YORK (AP) — Morgan Stanley is selling its oil storage and transport business, which has drawn scrutiny from Congress, to commodities trading company Castleton.

Castleton is buying oil terminal storage agreements, inventory, oil purchase and sale and supply deals, and freight shipping contracts. The companies say they hope to complete the deal in 2015. They did not disclose terms of the sale.

Morgan Stanley says the sale won’t have a significant effect on its financial results.

In November a Senate investigation said banks that owned commodities like oil and aluminum and uranium exposed themselves to big risks and gave themselves unfair trading advantages in financial markets. The report said Goldman Sachs Group Inc. and JPMorgan Chase & Co. had at times manipulated prices, making more money at the expense of consumers.

Lawmakers and federal regulators asked if banks should be allowed to control power plants, warehouses, oil refineries and pipelines and the Federal Reserve proposed restricting banks’ activities in markets for physical commodities.

The report said Morgan Stanley got important non-public information about oil shipments and pipelines and could’ve used that information to make bigger profits in trading. Goldman Sachs later agreed to sell its metals storage business.

Morgan Stanley agreed to sell the oil storage and transport unit to Rosneft, the Russian state-controlled oil company, in December 2013. However the deal fell through.

The New York bank said Monday that the sale does not include any other commodities business or its client-facilitation oil trading business.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

United States News

Anti-Abortion activists rally outside the Supreme Court, Wednesday, April 24, 2024, in Washington. ...

Associated Press

Supreme Court justices unconvinced state abortion bans conflict with federal health care law

Conservative Supreme Court justices are skeptical that state abortion bans enacted after the overturning of Roe v. Wade violate federal law.

4 hours ago

Lisa Pisano looks at photos of her dog after her surgeries at NYU Langone Health in New York on Mon...

Associated Press

New Jersey woman becomes second patient to receive kidney from gene-edited pig

A New Jersey woman who was near death received a transplanted pig kidney that stabilized her failing heart.

4 hours ago

Associated Press

Instagram fraudster ‘Jay Mazini’ has been sentenced for his crypto scheme that preyed on Muslims

NEW YORK (AP) — The former Instagram influencer known as “ swindled millions of dollars from online followers and a network of Muslims during the pandemic was sentenced to seven years in prison on Wednesday, prosecutors said. Jebara Igbara, 28, of New Jersey, had pleaded guilty to fraud charges, admitting that he created a Ponzi […]

4 hours ago

Associated Press

Connecticut Senate passes wide-ranging bill to regulate AI. But its fate remains uncertain

HARTFORD (AP) — The Connecticut Senate pressed ahead Wednesday with one of the first major legislative proposals in the U.S. to reign in bias in artificial intelligence decision-making and protect people from harm, including manufactured videos or deepfakes. The vote was held despite concerns the bill might stifle innovation, become a burden for small businesses […]

5 hours ago

Associated Press

Judge orders anonymous jury for trial of self-exiled Chinese businessman, citing his past acts

NEW YORK (AP) — A self-exiled Chinese businessman is set to face an anonymous jury at his trial next month on fraud charges after a judge on Wednesday cited his past willingness to tamper with judicial proceedings as reason for concern. Guo Wengui goes to trial May 22 in Manhattan federal court, where jurors will […]

6 hours ago

Associated Press

New California rule aims to limit health care cost increases to 3% annually

SACRAMENTO, Calif. (AP) — Doctors, hospitals and health insurance companies in California will be limited to annual price increases of 3% starting in 2029 under a new rule state regulators approved Wednesday in the latest attempt to corral the ever-increasing costs of medical care in the United States. The money Californians spent on health care […]

6 hours ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

Morgan Stanley selling oil storage and transport business