Morgan Stanley queried, KKR said to bid for JPMorgan unit

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The Securities and Exchange Commission asked Morgan Stanley about 'multiple significant deficiencies' in its financial reporting after the firm corrected accounting errors involving loan cash flows, income taxes and derivatives contracts.

Bloomberg News reports that Morgan Stanley said that while its Sarbanes-Oxley program identified defects that affected risk assessment and monitoring controls, the 'overall design and operation of its control framework' was effective.

In the meantime, Bloomberg also reports that KKR & Co, the private-equity firm run by Henry Kravis and George Roberts, together with Castleton Commodities International LLC bid for JPMorgan’s physical commodities unit, SparkSpread reported Tuesday without saying where it got the information.

KKR-led group and Carlyle Group LP are among private equity firms shortlisted to participate in the sale, SparkSpread said.

Morgan Stanley Queried by SEC Over Accounting Mistakes

KKR Bids for JPMorgan’s Commodities Unit, SparkSpread Says

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