Expect More Writedowns From The Banks

Meredith Whitney has been dead on with respect to US banks. Every one remembers her for the call that she made about Citibank needing to cut their dividend which they subsequently did.

Now she is back claiming that Citibank will need to cut their dividend again and raise more capital. Also she talks about the steepening loss curves on a number of the bank's mortgage portfolios. Again she claims Citi is the worst positioned. Click on the image below to watch a very informative interview.