Banking analyst Meredith Whitneyduring a CNBC interview continues to call "bs" on the banking system, "The government enabled the banks to have better than expected first quarter earnings."
While not directly naming names, one can only think that Whitney is referring to the earnings reports of Bank of America and Wells Fargo both of whom were beneficiaries of Wall St.'s quiet bailout.
Not surprisingly, Whitney goes on to say, "The underlying core earnings power of these banks is negligible." In other words, it is unsustainable. And yet here Wall St. is rallying proving once again that the stock market is no longer an economic, banking, or housing indicator.
Additionally Whitney predicts that despite the recent stress test, the banks will still have insufficient capital reserves in order to remain solvent, "I don't think this is the last time a lot of these banks raise money".
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