Never a Greater Need for Banker Prozac: Strategist
Uncertainty is likely to continue in the financial sector for at least another two weeks, causing more depression, Ralph Silva, research director at TowerGroup, told CNBC on Thursday.
Speaking from a banking conference in Austria, Silva said banks needed a period to digest the news over the past few days in order to trust each other.
"I'm surrounded by 10,000 bankers and I've never seen a greater number of depressed people in my life, I've never seen a greater need for Prozac in my life, these people are really depressed.
But the problem really lies in the fact that nobody knows what's going on," he said.
(Watch Ralph Silva from TowerGroup and Georg Grodzki from Legal & General Investment Management in full above).
Of the two still-standing independent investment banks in the U.S., one will probably have to be bought up, according to Silva.
"I think we may have enough business to support one of them … I do think one of them is going to be bought up in the next couple of weeks," he said.
Goldman Sachs looks the most fit of the two, he added.
As for the Chinese banks, which many have seen as possible white knights for Wall Street banks, they may bide their time and hand-pick only the assets they want rather than buy the whole banks, like Barclays did with Lehman .
"Waiting might actually make sense for the Chinese banks at this time," he said.