Morgan Stanley to sell compressed natural gas business

Morgan Stanley has agreed to sell a compressed natural gas business that came under regulatory scrutiny shortly after its launch last year, according to a document obtained by Reuters and three people familiar with the matter.

Under the agreement, Morgan Stanley reportedly will transfer the business, Wentworth, to a newly formed company called Pentagon Energy LLC. Two Morgan Stanley managers involved in Wentworth will join the new company as principals.

Wentworth faced pressure last year from the U.S. Federal Reserve, which has been examining banks' physical commodity operations.

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