"I think that in financial institutions, we're going to see more losses in a while," said Chief Executive Robert P. Kelly. He anticipates more capital raising and dividend cuts from the banking sector and that banks may start to sell off assets and reduce leverage.
Commenting on the U.S. housing market, where losses have led to huge write-downs at some of the world's top banks, Kelly said: "It will take us a while to get out of it ... This could go on for a while."
Kelly said that although the American economic downturn would affect the rest of the world, growth in countries such as Brazil, Russia, India and China would cushion the blow.
"I think there has to be some contagion from the rest of the world as the United States slows down.
"This is a global slowdown, not a recession. If it is a recession, it will be shallow."
Bank of New York Mellon was formed in 2007 from the merger of Mellon Financial Corp with Bank of New York, creating one of America's largest banks.
Founded in 1784 by Alexander Hamilton, Bank of New York is the oldest U.S. banking company. Mellon was founded in 1869 and grew to prominence under financier Andrew Mellon.