Friday, 28 March 2008

Whitney - A Rude Awakening For US Banks In 1Q08

I've mentioned Meredith Whitey numerous times in recent months. She has been out in front on the problems facing US banks and Brokers. In this interview she says the banks are in for a bad 1Q08 earnings season. Click on the image to watch the interview.

Some points of note, Whitney expects $50 billion in writedowns and $8 billion in additional loan loss reserves for the first quarter from US banks. She believes that Citigroup has to completely eliminate their dividend to preserve capital. Wachovia is also in the same boat. If she's right, and you would be brave to bet against her, you can expect to see some more carnage in the US financial sector in April.