Oppenheimer & Co. Financial Analyst Meredith Whitney warned that the credit crisis is nowhere near over in an interview in Fortune Magazine’s upcoming issue.
Meredith Whitney is known for correctly predicting that the tenuous relationship between banks and credit-rating agencies would tumble. Banks are not reporting all of their credit losses, Whitney says, meaning that the current credit crisis could take longer to recover than expected.
Meredith Whitney predicts that the housing prices will experience a dramatic 40 percent loss, almost twice the drop most banks estimate. She also thinks banks need to lay off as much as 25 percent of their workforce to right the sinking ship of mortgage loans. They have currently laid off about 7 percent.
Fortune’s full article with Meredith Whitney will be available on newsstands this week.
Source: CNN Money