Morgan Stanley returns to the physical commodity markets

Morgan Stanley (NYSE:MS) is filing plans to build, own and operate one of the first U.S. compressed natural gas export facilities and submitted its application to the Department of Energy in May.

The move is the first sign that the bank is returning to the physical commodity markets even as it sells its global oil business.

Morgan Stanley, along with Goldman, are the only two Wall Street banks that are allowed to own and operate infrastructure of raw materials due to their "grandfather" status for any commodities activities they engaged in before 1997.

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Comments (4)
  • Kaiserdog76
    , contributor
    Comments (166) | Send Message
    Very, very interesting. Thank you for this news nugget. I am an MS share holder and believe that this creates a unrealized value In the stock. 44$ PT is too low now. I love it.
    29 Aug 2014, 03:04 AM Reply Like
  • Harm Elderman
    , contributor
    Comments (2499) | Send Message
    You sure about that? The spark spread has been negative for years and many asset backed commodity trading houses have closed whilst others are making heavy losses like Eon, RWE etc.
    29 Aug 2014, 04:04 AM Reply Like
  • padoc1
    , contributor
    Comments (182) | Send Message
    Morgan Stanley in commodities? I seem to recall seeing mounds and mounds of aluminum stockpiles that Morgan sat on, running up the price until they were good and ready to sell; all the while cramping the world economy in that market.
    Now, they want to build, own and operate one of the first U.S. compressed natural gas export facilities?
    I say no, No, NO!!!
    29 Aug 2014, 08:59 AM Reply Like
  • 11146471
    , contributor
    Comments (1397) | Send Message
    The best investor in raw materials globally is the Chinese state. They have built enormous amounts of stockpiles in China and still continue to pile up more and more for the future!
    29 Aug 2014, 12:15 PM Reply Like
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