Whitney on the State of Banks and IB's

Meredith Whitney was on CNBC Thursday sharing her usually cheery outlook on US banks. If you are not familiar with Whitney the preceding sentence was meant to be sarcastic. She has been one of if not the most negative analyst on banks and Investment banks and that makes the most accurate analyst over the last 9 months or so. Click on the image below to listen to the interview:



Whitney still believes we are in the early stages of the credit crunch, a view I wholeheartedly agree with. I mentioned here months ago, once all the writedowns related to CDO's and MBS are cleared, banks are still left with a massive amonut of non-performing loans on their balance sheets of all varieties.

Amongst other things Whitney's sees around -30% downside to go for some US financials. Also thinks that dividends for all the banks are under threat. Interesting stuff.