THE financial crisis will probably not end until next year or even 2010, Germany's Handelsblatt newspaper quoted Morgan Stanley co-President Walid Chammah as saying in a preview of its edition today.
Chammah also expected more banks to fall victim to the crisis, the paper said.
"We will likely see more insolvencies among small US regional banks that have focused on mortgage business," the paper quoted him as saying.
Chammah also said return-on-equity rates of 25 per cent were a thing of the past for the investment banking industry, the paper reported.
"I estimate returns in the industry will be more like 15 to 20 per cent as a rule," the paper quoted him as saying. Heading here
In Washington, analysts see no end to falling house prices or recovery in the housing market before 2009 as the US economy appears more than ever linked to the health of the ailing sector.
After several years of a sizzling boom, housing prices in the United States have fallen for the past year and a half, according to the closely watched S&P/Case-Shiller index. Reuters, AFP
Monday, August 18, 2008
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