Morgan Stanley was forced to write off losses of more than $1.3bn (£748m) in the three months to August. The Daily Telegraph. The Times. The Independent. The Guardian. Financial Times

As a result America’s second-largest investment bank’s profits fell by 17% in the third quarter, the first quarterly dip under chairman and chief executive John Mack.

Overall, Morgan Stanley made a profit of $1.54bn in the period, down from $1.85bn in the same quarter last year.

Revenues rose by 13% to $7.96bn.