US bank earnings: How did Morgan Stanley and Bank of America perform in Q3?

Morgan Stanley and Bank of America Corp. reported mixed third-quarter results on Wednesday, highlighting diverging performances across trading businesses at major US banks amid market volatility, elevated oil prices and geopolitical uncertainty.

Morgan Stanley posted higher profits, supported by stronger-than-expected equity trading revenue and record inflows into its wealth-management business. Bank of America, however, reported a decline in profit after setting aside $1.2 billion to cover regulatory penalties related to alleged failures to detect potential money laundering and other illicit…