Markets

Nov 10: Meredith Whitney expects banks will need more government aid

Meredith Whitney, managing director at Oppenheimer and one of the first analysts to predict in 2007 that banks would face enormous write-downs and balance sheet problems as a result of the housing downturn, expects the US government to have to take further measures to back the banking system, "either by raising capital for these banks or do a stimulus program directly to the consumer". She finds it hard to see how a new US administration under president-elect Barack Obama will be able to "rerail the economy after after it's been derailed." She says the economic crisis is not just Wall Street's issue; Washington was also involved.