Meredith Whitney Is Not Well

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We suggested last week that Oppenheimer analyst and erstwhile Citi hater Meredith Whitney had grown tired of Panditville. Her last report, in which she concluded, "We wish [Citi's] management team all the best in their ambitious endeavors, but we fear [it] is past the point of fixing," seemed to imply that her interest in relentlessly defecating all over the C was waning, and that she'd be scaling back her life's work, perhaps to devote more time and energy to hawking her husband's liquid Viagra. But we never thought for a second we were on to something. Then lo and behold:

The analyst [Meredith Whitney] lowered her 2008 outlook for JPMorgan Chase, Citigroup, Bank of America and Wachovia. She, however, cut her second-quarter earnings view for Bank of America and JPMorgan while raising it by a cent each for Citigroup and Wachovia.

We're just going to assume that this is Part One of a two part rope-a-dope scheme in which Whitney gets Citi's hopes up and then body slams them in a way only a woman who's husband is a former pro-wrestler and is now trying to sell a berry-flavored "sexual endurance drink" called Mamajuana knows how.
Oppenheimer's Whitney Sees Credit Crisis Well into '09 [CNBC]

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Meredith Whitney: Citigroup Should Just Give Up

Earlier today, we wondered if, in light of the news that Vikram Pandit had resigned as CEO of Citigroup, analyst Meredith Whitney's opinion of the bank had changed. Choice comments that Whitney has made about the Big C in the past have included: "Citigroup is in such a mess Stephen Hawking couldn’t turn this company around"; "Citi is like an old broken-down Victorian house"; and Citi “has no earnings power, isn’t going to grow, hasn’t been investable in four years." She also once told Maria Bartiromo that the only way she'd change her mind about company would be if she received "a new brain." Still, sometimes analysts change their tune when new blood is brought in and, like former FDIC chair Sheila Bair, perhaps some of her beef with the bank had been a personal dislike of Uncle V. Now that he's gone, is she seeing Citigroup in a new light? Not so much, no. In the wake of CEO Vikram Pandit‘s surprise departure this morning, Whitney, founder and CEO of Meredith Whtney Advisory Group LLC, issued a note cautioning clients to be wary of Citigroup even under new leadership. “Citigroup is ‘the incredible shrinking bank,’ and the least interest of the big four, in our opinion,” Whitney said. “No CEO will be able to change these facts in the near-term. It appears the board feels the same way, as they have appointed an unknown to the outside to the new CEO position, Mike Corbat.” [...] On Tuesday, the stock has wavered between gains and losses on heavy trading volume in reaction to Pandit’s resignation. Shares are up 29% this year through Monday’s close. Despite signs of incremental improvement, Whitney isn’t backing down from her bearish stance. “Any seat in Citigroup’s court should come with a warning label,” Whitney says. Meredith Whitney: No CEO Can Fix Citigroup [WSJ] Earlier: Meredith Whitney Cannot Stress Enough How Little She Thinks Of Citigroup