Alex Wilmot-Sitwell, global co-head of investment banking at UBS said that the current turmoil will continue for a while and probably longer than anyone anticipated.
"Banks are really struggling to come to terms with unwinding the extent of potential write-offs," he said.
The view was echoed by Jonathon Pierce, an analyst at Credit Suisse, who predicted worse was still to come.
"Things could get worse in our view. It seems increasingly likely that recent events could escalate into a full-blown financial crisis. The issue is one of confidence," he added.
But Mr Willmot-Sitwell still felt it was a good year for UBS as their performance in other areas of investment banking was thriving.
"We are enjoying an unbelievable year, we see our business achieving 40 percent growth year-on-year and we see ourselves finishing in third position in terms of investment banking," he said.