The firm said it believes Apple can become the first company with a $1 trillion market cap, basing its thesis not on "excessive investor exuberance," but rather earnings growth potential. The Federal Reserve ordered Morgan Stanley ( MS) to review foreclosures conducted by its former mortgage servicing unit, Saxon, which it agreed to sell last October. The Fed is requiring the investment bank to appoint an independent consultant to review the foreclosures conducted in 2009 and 2010. Morgan Stanley has agreed to pay civil penalties that the Fed may assess against the unit. Shares shed 2% to close at $19.37. The Commodities Futures Trading Commission has accused Royal Bank of Canada ( RY) of making illegal trades to reap tax benefits. The bank has denied the allegations and vowed to vigorously defend its reputation. Shares fell 2.7% to close at $57.57. May oil futures declined $1.22 to settle at $104.01. In other commodities, June gold futures lost $7.70 to settle at $1678.60 an ounce. -- Written by Shanthi Bharatwaj in New York.