Morgan Stanley may sell stake in unit

Morgan Stanley HQ

Morgan Stanley continues to get its act together.

Morgan Stanley is exploring various options for its multibillion dollar commodities business, with the sale of a minority stake being one possibility.

Reuters has reported that Morgan Stanley is exploring various options for its multibillion dollar commodities business, with sources saying the sale of a minority stake is a possibility.

The business, which includes three U.S. power plants, a 49 percent stake in a tanker fleet and a pipeline and logistics firm, has been shopped for more than a year. But the bank is not in any hurry to sell a stake at any price and is not close to a deal.

Morgan Stanley executives have said that all options are on the table. The sources said the bank is not being pressed to sell the entire business, despite increasing scrutiny of Wall Street's commodity trade in Washington.

It has also been more blunt than its rivals Goldman Sachs and JPMorgan Chase & Co about the pressures on the business - both in terms of rising capital requirements and falling trading margins - as well the regulatory question marks over its commercial activities beyond derivatives.

The most critical regulatory decision rests with the Federal Reserve, which by September is expected to decide how much latitude to grant Morgan Stanley and Goldman Sachs to invest and trade in physical commodity markets such as metals, warehouses and tankers.

To access the full Reuters story hit the link below: 

Morgan Stanley may sell minority stake in commodities unit

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