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Meredith Whitney Bashes Banking Stocks (GS, C, BAC, WFC, JPM)

Famous banking analyst Meredith Whitney appeared on CNBC on Tuesday, offering some very bearish comments regarding the near-term prospects for several large bank stocks.

Whitney, who makes her living producing company-specific equity research on financial institutions, said the overall economic environment is not favorable to banking stocks. She noted that Goldman Sachs ( GS

) would likely recover more quickly that other large-cap banks, but that it, too, faces significant headwinds and would likely fall significantly from its current valuation.

Whitney then said that "the big banks" were most vulnerable in the financial sector: JPMorgan ( JPM ) , Citigroup ( C ) , Bank of America ( BAC ) , and Wells Fargo ( WFC ) . She noted those companies face difficult comparisons moving forward, and pointed out that those four banks alone control nearly two-thirds of the entire mortgage industry.

She also predicted further job losses at major companies, citing new federal financial regulations as being a drag on potential earnings.

The Bottom Line

Shares of BAC have a .28% dividend yield, based on last night's closing stock price of $14.34.

Shares of WFC have a .71% dividend yield, based on last night's closing stock price of $28.12.

Shares of JPM have a .49% dividend yield, based on last night's closing stock price of $41.08.

None of the dividend stocks mentioned in this article are currently recommended by Dividend.com.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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