Forget Timothy Geithner – Wall Street trusts Meredith Whitney. The new Treasury secretary may be unveiling a financial rescue plan on Tuesday, but it’s the Oppenheimer analyst who’s got the street cred. If Whitney says that Geithner’s approach won’t work, expect investors to listen.
And why not? Whitney’s been right the whole time. She’s a huge bear on the financials, and recent statements she’s made only emphasize that. She told Bloomberg TV just last week, “Investors should not even consider owning banks at this point on an equity basis.” So if traders take Bank of America, Comerica, BB&T and PNC Financial up after Geithner’s announcement, Whitney’s response will most likely bring them right back down.
And that’s just what Cramer’s predicting for tomorrow. Geithner will get an hour or two grace period, and all the while Whitney will be telling her Oppenheimer clients to sell, sell, sell. Then she’ll go on air and pick apart the Treasury secretary’s plan. The only banks left standing after that, Cramer said, would be Morgan Stanley and Goldman Sachs, which don’t need government handouts to survive.
Cramer’s charitable trust owns Morgan Stanley and Goldman Sachs.
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