NEW YORK – Morgan Stanley is selling its oil storage and transport business, which has drawn scrutiny from Congress, to commodities trading company Castleton.
Continue Reading Below
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.
In November a Senate investigation said Morgan Stanley and other Wall Street 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 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.