BlackRock's Doll sees credit crisis lasting 2-4 yrs

By Saeed Azhar

SINGAPORE (Reuters) - Fund manager BlackRock (BLK.N: Quote, Profile, Research, Stock Buzz) expects the global credit crisis to last another two to four years as a weakening U.S. economy triggers more writedowns by banks, its chief investment officer for equities said on Monday.

The prediction was one of the starkest so far by a global investor about the length of a crisis that began last year with the collapse of the U.S. subprime mortgage market, roiling financial markets.

The turmoil has led the $1.4 trillion money manager to be underweight on financial shares.

"The credit crisis will be with us for a long time," said Bob Doll, also vice chairman of BlackRock.

"The deleveraging of the financial system, which is the outgrowth of the credit crunch, will likely last a couple of more years -- two, three, four."

But BlackRock has also benefited from the crisis, acting as a top adviser to troubled banks, who have been trying to restructure distressed assets.

Recently it purchased a massive subprime portfolio from UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz), which analysts saw as a sign investors were returning to assets previously considered too risky.

Doll, an ex-Merrill Lynch executive, said the worst of the crisis has passed after the Federal Reserve-led rescue of crippled investment bank Bear Stearns BSC.N in March, but warned a slowdown in the United States threatens more credit-related problems in the months and years ahead.