Morgan Stanley pays $14 million oil-trading fine

WASHINGTON -- In another black eye for Wall Street, the Commodity Futures Trading Commission late Thursday announced a $14 million fine against Morgan Stanley Capital Group Inc. to settle accusations of hiding its complex oil trades.

The settlement, in which Morgan Stanley did not admit or deny the accusations, comes as oil prices have continued their steady upwards march and have some oil analysts again saying that excessive speculation is again pushing up energy prices. One recent estimate put the cost of that to consumers and businesses at $300 billion annually.

In an announcement after U.S. markets had closed, the CFTC said that a trader from Morgan Stanley conspired on Feb. 6, 2009, with a counterpart from Swiss financial firm UBS Securities to hide from authorities a prohibited trading activity.

Continue to full article.

Synopsis: The CFTC is seeking to take a more active role in the regulation of markets, and this fine against Morgan Stanley (UBS was also fined) could be a sign of this new attitude.

CFTC moves to clamp down on speculation for oil, gas

The Commodity Futures Trading Commission aims to impose trading restrictions on oil and gas to prevent excessive speculation from distorting markets. The agency said the limits would apply to 10 large firms but declined to name them. "While the proposed limits err on the high side, such levels would still ensure that the very largest traders' positions, those with the greatest potential for causing market contortions, would be limited," said CFTC Commissioner Bart Chilton.

more at http://www.washingtonpost.com/wp-dyn/content/article/2010/01/14/AR2010011404472.html

Stop Oil Speculation Now

Stop Oil Speculation Now is a multi-industry coalition of businesses, associations and concerned citizens united in support of responsible energy policies and prices. Public outrage and congressional debate helped deflate the oil bubble and return prices to reasonable levels. You can help make a difference again this year.

While fuel costs have declined this year in comparison to last, there is still quite a bit of volatility in the prices that affect not only our business, but you personally-- in the prices you pay for fuel for your vehicles as well as goods that are transported to the stores.

Increasingly over the past few years, a growing group of financial players with no direct stake in the physical delivery of oil has exercised undue and unchecked influence on the price of oil, causing great pain for consumers and wreaking havoc on American businesses of all kinds - including airlines and their customers. Recently, the Wall Street Journal reported that continued speculation could "worsen the global economic downturn." We cannot allow this to happen.

We need your help. Get more information and contact Congress by visiting the
S.O.S. Now website. http://www.stopoilspeculationnow.com/

You can also follow S.O.S. Now on Facebook and Twitter.