Bank of America, the financial giant that is buying Merrill Lynch, is expecting the financial turmoil to last into the second half of 2009, before the recovery begins in earnest.

Speaking earlier today after the group announced it was to buy Merrill Lynch in a deal worth $50 billion (£28 billion), Ken Lewis, chief executive of Bank of America, said financials had been through their 'golden era'.

He warned there would be fewer businesses going forward which would need to be more efficient to thrive.

Lewis said: 'The remainder of this year and next year will be tough but we think the economy will begin to recover by the middle of 2009. However, revenue opportunities will be tough and we will have to be very focused on being efficient.

'Size is going to matter going forward and having a diversified business will be vital.'

The group added that Merrill would not be converted until 2010 at the earliest. However, it did not foresee any issues with such a merger, and it felt the combined group would be able to deal with nigh on anything.

Lewis said: 'The message we are sending out is the combined company is a much stronger entity and will survive almost anything. This is the strategic deal of a lifetime and longer term, we have prospects to grow and prosper.'