A “savage” downturn in markets in November plunged Morgan Stanley into a bigger-than-expected $2.2bn loss in the fourth quarter, as the bank’s trading, advisory and prime brokerage operations were hit hard.

Morgan Stanley’s results, which came a day after its rival Goldman Sachs reported its first quarterly loss since listing in 1999, will deepen concerns over their ability to produce earnings growth as traditional profit sources remain under pressure.