Money u Talk i Talk

Chief Executive Kenneth Lewis said on Thursday he is 'optimistic' the financial system is near the end of a painful deleveraging process that has throttled credit markets and dethroned some of Wall Street's mightiest names.

Mr Lewis however warned 2009 would be another 'tough year' for the finance industry with credit costs unchanged, if not higher, than in 2008, and rising charge-offs in credit cards as the economy worsens and unemployment climbs.

Banks have been shoring up balance sheets by raising capital and writing down toxic debt securities since the credit crisis began over a year ago.

In a speech to the Executives' Club of Chicago and a subsequent press conference, Mr Lewis said BOA believes the process is near an end.

'We do think we're getting close,' he said. 'Our best guess is sometime next year,' he added.

Asked if the unnerving, seemingly unending series of multibillion-dollar writedowns by banks was at an end, however, Mr Lewis said, 'I could answer that question with great confidence today and feel like a fool tomorrow. We'll just have to let it play out.'

Looking further down the road, he suggested the days of exorbitant Wall Street salaries might be coming to an end as the industry becomes more conservative, subject to more regulatory oversight, and focused more on simpler products.