In fate of the states, whitney argues that a new map of prosperity is emerging in the wake of the bust, with jobs moving away from the coasts and toward 17 central corridor states in the. Citigroup would need either to raise capital, sell assets or slash its dividend. The dire condition of state and local finances threatens the countrys economic recovery and must be addressed immediately, prominent analyst meredith whitney wrote. Meredith ann whitney born november 20, 19691 is an american businesswoman hailed as the oracle of wall street by bloomberg. There was no scandal or reversal, i assumed, that could sink the system. Bank of america rallied after influential analyst meredith whitney said the bank wont need more capital. Meredith whitneys out on a limb with this citi bashing. Meredith whitney shut her fledgling hedge fund, a setback for the exbanking analyst who became one of wall streets highestprofile women in the last financial crisis but ran into challenges. The analyst who famously predicted disaster for the entire market on national tv now she says that new governors have been elected and states have begun reforming. If an investor sold citi the next day, they would have saved themselves a 92.
Its the investor who seeks to derive meaning from the signs as opposed to imposing meaning on the signs that has the most success. When are analyst recommendation changes influential. She is known for successfully forecasting the difficulties of citigroup and other major banks during the financial crisis of 20072008. Meredith whitneys citigroup downgrade on november 1, 2007, was associated with a drop in citigroups stock price of 6. Now that bank of america has gotten the junk out of the trunk, and even after a yearlong rally, meredith whitney thinks the stock is a big opportunity.
From collective indifference, to panic, and back again. Thomson streeteventsthomson streetevents is a leading provider of webbased solutions for the investment community, offering services that transform the way companies communicate and meet disclosure requirements while assisting investors in managing and leveraging this information. Stateissued go muni bonds are safe may 7, 20 by ben huebscher meredith whitney has softened her tone regarding muni bonds. Meredith whitney is one of the few people in finance who, so far at least, has come out with her reputation enhanced, having foreseen citigroup imploding as it did. Whitney appears poised to leave the industry that lifted her to fame. Citigroup is a vast and uniquely well diversified company with an international presence no other financial services firm can duplicate. Meredith whitney is one of the most influential women on wall street. Businessday afteryearofheavylosses,citigroup findsaprofit byericdash april17,2009 afte.
Meredith whitney, banking analyst for bloomberg news, on april 9th, 2008. Meredith whitney still cautious on citigroup c even with. Meredith whitney more fund problems business insider. Yet, as a wall street journal recently reported, other analysts in the weeks before downgraded the stock with reports that had similar content. View after year of losses, citigroup has a profit the new york times. On behalf of our client, citigroup global markets inc. Citis feud with meredith whitney continues, as bank tells clients to ignore her media hype. Meredith whitney is still right tuesday, january 02, 2018 9. C faces further credit losses and share dilution even after the new government bailout plan. She is best known for her pessimistic forecast of citigroup during the financial crisis and then predicting significant municipal bond defaults. Whitney expects citigroup to cut its dividend to replenish its capital. Sometimes theyre subtle like meredith whitney predicting a dividend cut, sometimes theyre obvious like citigroup actually cutting its dividend. Meredith whitney redraws map of prosperity usa today.
Dubbed an oracle by the big short author michael lewis, whitney made a prescient downgrade of citigroup and predicted the bank would be forced to do the unheard ofcut their dividend. Meredith whitney of cibc world markets inc late wednesday downgraded citigroup to sector underperformer, saying the largest u. October 31, meredith whitney caused the market in financial stocks to crash. Meredith whitney, who made the prescient call in 2007 that citigroup would cut its dividend, has now upgraded the very stock that brought her celebrity status during the credit crisis.
The brokerage arm of the meredith whitney advisory group deregistered from finra, the securities industrys selfregulatory body, on aug. Thomson streetevents service offers institutional investors a onestop solution for managing corporate. Citi is taking steps to cut its costs by reducing its workforce by 5%. Whitney of cibc world markets, downgraded citigroups stock to sector underperform, from sector perform, and called for the bank to. C here, and she also issued a report in which she lowered goldmans, lehmans, morgan. Meredith whitney was a motivated and businessminded child from the start, and would wake up at 5am on weekends to deliver papers. Michael armstrong co the corporate secretary citigroup inc. Bofa has been beaten down on worries about its balance sheet.
Citigroups tangible equity to tangible assets ratio fell to 2. Forbes listed whitney as the secondbest stock picker in 2007 and new york post named her one of. She is known for successfully forecasting the difficulties of citigroup and other. Whitneys fund was down 11% yeartodate and that a large investor is taking legal action. Analyst raises doubts about citigroup dividend the new.
Meredith whitney seems best known for her analysis of citigroup at the end of october 2007. But unabashed, meredith whitney did just that, making one of the great contrarian predictions by any financial analyst. The epic rise and potential fall of meredith whitney. Star analyst who predicted bank collapse is ducking the spotlight meredith whitney catapulted to fame after her prescient report on citigroup but the accolades later turned to schadenfreude. Meredith whitney was flatout wrong about municipal bonds. Municipal bond market an evolution in thinking about. A swot analysis a look at strengths, weaknesses, opportunities, and threats is a good way to evaluate a companys business operations. Meredith whitney isnt running into the loving arms of. After year of losses, citigroup has a profit the new. Whitney of cibc world markets, downgraded citigroup s stock to sector underperform, from sector perform, and called for the bank to bring precariously low capital levels. Bank of america stock boosted by meredith whitney comments.
Meredith ann whitney born november 20, 1969 is an american businesswoman hailed as the oracle of wall street by bloomberg. While in high school, she would dress the part of a. Citis feud with meredith whitney continues, as bank tells. Today, she was on cnbc talking about citigroup again. After the legendary citigroup call, whitney used her stature and fame to launch her own hedge fund aptly named the american revival fund. An evolution in thinking about municipal credit pnc. She didnt just send citi a resume and cover letter indicating her interest and qualifications anyone can do that. Bbc says citi seeking emergency cash posted on november 23, 2008 by yves smith meredith whitney, the most accurate of the banking analysts and even she has said she was too conservative on how bad the losses would be has deemed citi to be beyond redemption.
Whitney was an obscure analyst of financial firms for oppenheimer securities who, on october 31, 2007, ceased to be obscure. Citi analyst applicant creates 11page presentation on why she. Earlier today, we wondered if, in light of the news that vikram pandit had resigned as ceo of citigroup, analyst meredith whitneys opinion of the. Star analyst who predicted bank collapse is ducking the. Whitneys analysis related to citigroup is one of the key reasons. Citigroup saw no red flags even as it made bolder bets. Report sends citis stock to fouryear low the new york. Meredith whitney made her name by correctly trashing citigroup. Whitney made a name for herself during the financial crisis when she correctly predicted that citigroup would be forced to cut its. But she also spent a lot of time discussing the results of citigroup, the biggest and most notable of the financial institutions that failed the stress. Citi analyst applicant creates 11page presentation on why. Whitneys analysis related to citigroup is one of the key reasons municipal bond investors responded to. Meredith whitney the reader wiki, reader view of wikipedia. Meredith whitney isnt running into the loving arms of citigroup.
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