Meredith Whitney saw the troubles in the world's financial sector long before they became reality. Now, one year into running her own firm, Meredith Whitney Advisory Group, she's still believes major banks are not out of the Woods.
Speaking to me today on the "Closing Bell", Whitney told me bank regulation will certainly bring higher capital levels which will ultimately translate into lower returns.
Declining bank assets have pushed Whitney's profit expectations to be 30% below Wall Street's expectations. Primarily, Whitney points to lending portfolios which she says are down four to twenty percent so far this year, with another 10 to 15% drop yet to come.