Times are tough — and they are about to get a whole lot tougher, according to equity analysts who cover the financial services industry. They believe the credit crisis will continue to wreak havoc in the U.S. economy for at least two more years.

Last month, as Treasury Secretary Henry Paulson Jr. and Federal Reserve Board chairman Ben Bernanke were making their case to Congress on the need for an urgent, $700 billion bailout of the faltering U.S. financial system, Institutional Investor hosted a roundtable discussion on the future of American finance. The participants were Todd Bault of Sanford C. ...