Morgan Stanley finance chief Colm Kelleher today dismissed the need to merge with a deposit-taking bank.

Kelleher said Morgan was poised to take advantage of what was left in the market after the current meltdown.

“We have the ammunition and firepower to take advantage of these markets,” he said. “Some of these prices have gotten to silly and irrational levels, so we're going to have the ability to take advantage of that.”

Net profit fell 7.6% to $1.43 billion (£804.9 million) from $1.54 billion this time last year. Net revenue rose 1% to $8.05 billion, well above consensus forecasts for turnover of $6.32 billion.

With three of the top US investment banks crashing or merging with commercial banks, analysts have questioned whether broker-dealers, without the recourse to deposits, are too vulnerable in a financial crisis.

Kelleher dismissed that idea.

“The diversification of the businesses in capital markets is what drives the broker-dealer model,” he said.

“More important, investment banks have the ability to reinvent themselves and innovate.

“It's just been a remarkable time of turbulence, where fear is ruling,” he said. “If you can be confident and instill confidence, you're going to come out of this very strongly.”