Meredith Whitney's dismal prediction for municipality defaults is wrong and Whitney should probably do some more homework on the muni bond market, said Suzanne Shank, CEO and co-founder of Sibert Brandford Shank & Co, a municipal investment bank.
Now Shank admits she hasn't read Whitney's report on muni defaults in detail, but she sticks by her notion that Whitney's outlook is wrong.
"I have not read her report in detail. I have seen her on television. I admire her predictions of the banks, which she has analyzed for many years," said Shank. "I’m not sure she has the background in the municipal arena…And I just wish she understood the security structure underlying the bonds a little more.”
Check out the video to hear Shank's case.