For Doll, the bottom also won't come until banks that can't raise capital themselves join and do so together.
"We have to have a consolidation in the sector," he said. "We still have in this country thousands of banks. We don't need thousands of banks. Pick your favorite European country--you can count the number of banks on one, maybe two hands."
Watch the discussion with Doll and Kaminsky at left.
"That will be the sign that we have a financial system that's back on track," he added. "But there's no sign of that yet."
Still, Doll said BlackRock is cautiously buying financials, though it remains underweight on the sector. He advises caution as the sector undergoes major changes in the way it does business, particularly in light of new controls the government is likely to impose.
"People say financials are cheap," he said. "Well compared to yesterday's model, yes that's probably true. But that's gone, that model's gone, whether it's for the investment banks or the commercial banks."
"It's going to be a lot of what these firms used to do but in a less risky way, less leverage, more regulation," he said. "The price of the Fed opening the (discount) window is, 'I'm going to control and regulate your business a bit more.' All of that is yet to be sorted out, and therefore the uncertainty. That's why the stocks have been so volatile."
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