Meredith Whitney Opines On Banks & The Credit Markets
Meredith Whitney is appearing as a guest host on Squawk Box this morning and below are some of Meredith's thoughts on the banks and credit markets.
- We need solutions now and worry about regulatory changes later.
- Whitney said smaller banks have to grow their originations.
- Meredith said mark-to-market won't solve the problem.
- Banks will start to assets sell off, bringing asset values down, but less bad stuff will be left on banks' balance sheets.
- Whitney doesn't think this year will be any different than last year.
- She says supercharge smaller, local banks so they can lend out to the end market. Insert non-punitive capital into smaller banks that have healthy balance sheets. She thinks that could help move the market. Meredith Whitney said, "Centralized lending is dead as we know it."
- She expects many people who use credit to go in default and deliquencies will only increase.
- Lenders are pulling credit because they don't want to be the last one stuck with outstanding loans.
- Consumer credit continues to shrink faster than many have speculated.
- She said banks are not investable until these banks get some earnings momentum.
- Meredith Whitney believes the stocks of big banks will drop due to lack of growing earnings.
You May Also Be Interested In
- Savient Pharma (SVNT) Moves Higher with Volatility; Bumps Up Against Key Resistance Point
- Sharks Circle Facebook (FB) As Shares Now Free to Short
- Corinthian Colleges (COCO) Bounces Off Intraday Lows into Close
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Meredith WhitneySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
