Does Morgan Stanley have too much power ?
Morgan Stanley’s involvement in an oil tanker business, petroleum transportation service and crude markets raised concerns at a Senate hearing Tuesday that the owner of the world’s largest brokerage wields too much market power.
Bloomberg News reports that Morgan Stanley’s ownership stake in tanker operator Heidmar and fuel distributor and marketer TransMontaigne could be giving the bank an advantage over others trading oil, Sherrod Brown, an Ohio Democrat and chairman of the Senate’s Subcommittee on Financial Institutions and Consumer Protection, said in a hearing. Brown’s panel took testimony at the meeting on whether banks should control commodities assets.
'You scale back the number of those tankers delivering oil, and you’re also in a position to wager on oil prices', Brown said. 'Is that a concern to you ?'
The subcommittee’s meeting came as the Federal Reserve reconsiders whether banks including Goldman Sachs, Morgan Stanley and JPMorgan Chase should be allowed to store, transport and trade raw materials. Goldman Sachs alone has contracts for fuel from least five U.S. refineries, totaling 586,200 barrels a day in capacity, while JPMorgan had a stake in power plants across the U.S. last year with a generating capacity of almost 8,000 megawatts, federal filings show.
Hit the link below to access the complete Bloomberg article: