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

The House of Gorman will be saying good-bye to a few thousand Little Jims before year-end. Chairman and Chief Executive James Gorman said the firm's work force at year-end will fall 7% from 2011, reflecting previously announced layoffs as well as the firm's efforts in applying "a high bar for replacing attrition." The forecast implies a reduction of more than 4,000 jobs from the firm's global headcount of 61,899 at Dec. 31. Last winter, Morgan Stanley announced 1,600 job cuts spread across its businesses, which was its largest such cutback since late 2008 and early 2009. The firm completed roughly 4% to 5% of those cuts in January and will complete an additional 2% to 3% by the end of 2012, a spokeswoman said. Morgan Stanley Expects 7& Cut In Its Workforce [WSJ]

The House of Gorman is said to be in the process of letting some employees down easy. Morgan Stanley will this week complete a round of job cuts that will ultimately lead to the company shedding 100 sales and trading staff, underscoring what is expected to prove a dismal second quarter for Wall Street banks. The cuts are across Europe, the Middle East and Asia, according to people familiar with the New York-based bank’s plans. The bank has so far laid off about two-thirds of its original 100-person target, leaving some 33 people to go this week. Morgan Stanle Said To Shed Staff As Deals Fall [FT]

Regardless, know this Michael Platt: Whatever doesn't kill a Meredith Whitney makes it stronger.

Meredith Whitney is a banking analyst made famous by Citigroup downgrading Citigroup in late October 2007, saying that the bank was facing a $30 billion capital shortfall and later telling the press "Citigroup is in such a mess Stephen Hawking couldn’t turn this company around.” In the years since she's had less than flattering things to say about the firm and as recently as March 14, 2012, told CNBC that Citi "has no earnings power, isn't going to grow, hasn’t been investable in four years" and "is like an old broken-down Victorian house." (In the same interview, she told Maria Bartiromo that the only way she'd change her mind about the big C would be if she received "a new brain.") So it probably surprised a few people when, earlier this month, she upgraded the bank. But please, do not get the mistaken impression that she's suddenly in love with the place or has developed any feelings for it whatsoeverWhile her latest move was seen as an endorsement of Citi, Whitney said not to read too much into the call. "It certainly doesn't mean I'm running into the loving arms of Citigroup or I've become bullish on Citigroup. What it means is I don't see any near-term negative catalyst for the company," she said. "In the collective it's not that interesting of a stock." Ya hear that, Citi? Not if you were the last two people on earth! Whitney 'Wildly Bullish' on Certain US Markets, But... [CNBC]