Financial system may need over $1 trillion: dealmakers

Cohen said the crisis was likely to lead toward a single regulator, as there is an effort to ensure financial institutions that compete with regulated entities are also regulated.

The U.S. Federal Reserve is that logical regulator, he said.

Over the coming months, the priority of financial institutions should be to start working through some issues, such as finding ways of funding, recapitalization and strengthening balance sheets, Parr said.

"I frankly don't think strategic positioning is the priority for major financial institutions," Parr said. "The priority of the next 12-18 months is to live to fight another day."

(Editing by Jeffrey Benkoe and Tim Dobbyn)