The banks saw trading revenues surge in the first quarter of the year as the wave of cheap, three-year loans that the ECB began in December revived appetite to make bets across a range of asset classes.
Bank of America's trading revenue hit $5.2bn (£3.2bn), more than double what the bank hauled in during the fourth quarter, and higher than the $5bn it generated in the first quarter of 2011.
That was echoed at Morgan Stanley, where trading revenues jumped to a better-than-expected $2.5bn, from $1.25bn in the last quarter of 2011.
Last year both banks were caught in the crosshairs of shareholders in different ways.
Fears over Bank of America's capital position drove the shares below $5 a piece, while Morgan Stanley's chief executive James Gorman spent the summer trying to allay fears about the bank's exposure to European government debt.
Shares in Bank of America were up almost 2pc in early trading to $9 on Thursday, while Morgan Stanley's shares climbed 3.6pc to $18.3.
However, serious concerns remain over whether the favourable conditions that banks enjoyed in the first quarter will last. Bank of America, which also has a vast retail business in the US, did offer more encouragement on its capital position.
The bank's tier one capital ratio - a key measure of a bank's strength - rose to 13.37pc in the first quarter from 12.4pc in the fourth quarter.
The bank also put aside less money for bad loans.Bank of America's overall profits fell in the quarter because of an accounting rule requiring banks to take a charge of how much it would cost to buy back their debt.
Profits fell to $653m from $2.05bn a year earlier. The accounting rule drove Morgan Stanley to a loss of $95m in the first quarter from a profit of $968m a year earlier.
telegraph.co.uk
Bank of America's trading revenue hit $5.2bn (£3.2bn), more than double what the bank hauled in during the fourth quarter, and higher than the $5bn it generated in the first quarter of 2011.
That was echoed at Morgan Stanley, where trading revenues jumped to a better-than-expected $2.5bn, from $1.25bn in the last quarter of 2011.
Last year both banks were caught in the crosshairs of shareholders in different ways.
Fears over Bank of America's capital position drove the shares below $5 a piece, while Morgan Stanley's chief executive James Gorman spent the summer trying to allay fears about the bank's exposure to European government debt.
Shares in Bank of America were up almost 2pc in early trading to $9 on Thursday, while Morgan Stanley's shares climbed 3.6pc to $18.3.
However, serious concerns remain over whether the favourable conditions that banks enjoyed in the first quarter will last. Bank of America, which also has a vast retail business in the US, did offer more encouragement on its capital position.
The bank's tier one capital ratio - a key measure of a bank's strength - rose to 13.37pc in the first quarter from 12.4pc in the fourth quarter.
The bank also put aside less money for bad loans.Bank of America's overall profits fell in the quarter because of an accounting rule requiring banks to take a charge of how much it would cost to buy back their debt.
Profits fell to $653m from $2.05bn a year earlier. The accounting rule drove Morgan Stanley to a loss of $95m in the first quarter from a profit of $968m a year earlier.
telegraph.co.uk
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