stress test: Meredith Whitney Calling "BS" On The Banks
- 05/11/09 11:01 AM
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 … (6 comments)
stress test: Stress Test Mess II
- 05/09/09 08:52 AM
A couple of days ago I wrote a bit about the fiasco known as the Federal Reserve's stress test. Two significant points jumped out at me from the report other than the fact that the whole thing appeared more like a public relations effort more than an actual banking evaluation: "First, that Bank of America needs an additional $33.9 billion in capital. Wasn't CEO Ken Lewis quoted as saying as recently as a few weeks ago that Bank of America was going to repay the TARP in 2009? And second, Citigroup is estimated to need only $5.5 billion in additional capital. Hmm, … (1 comments)
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." 
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