Morgan Stanley named in FCStone saga

Since the disposal was announced, Energy Risk has learned that Morgan Stanley completed the transfer of the account - the value of which was not revealed - in two days after being approached by FCStone, a commodity risk management firm, in early 2009.

FCStone announced in November 2008 that it expected to post a bad debt provision of up to $25m due to losses on an undisclosed customer's energy trading account, for which it provided clearing and execution services. This was increased to between $8