Morgan Stanley's efforts to turn round its ailing debt-trading business have been a "failure", chief executive James Gorman conceded yesterday, as the bank's weak fourth-quarter results were salvaged by a strong performance in equities.

Since the financial crisis the bank has pursued what he calls a “balanced” business model, where stable revenues from wealth management and investment management offset the ups and downs of the securities division.

That strategy involved paring back the second- string fixed-income business while breathing new life into equities, where the bank has long held a dominant position.

But Mr Gorman said the bank had “failed to meet its objective” for 2015. - Copyright The Financial Times Ltd 2016