Morgan Stanley sees more finance crisis pain: paper

FRANKFURT (Reuters) –

The financial crisis will probably

not end until next year or even 2010, Germany’s Handelsblatt

newspaper quoted Morgan Stanley (MS.N) co-President Walid

Chammah as saying in a preview of its Monday edition.

Chammah also expected more banks to fall victim to the

crisis, the paper said.

“We will likely see more insolvencies among small U.S.

regional banks that have focused on mortgage business,” the

paper quoted him as saying.

Chammah also said return-on-equity rates of 25 percent 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 percent as a rule,” the paper quoted him as saying.

(Reporting by James Regan; editing by Rory Channing)