Friday, November 20, 2009

Meredith Whitney Says Bank Stocks Are ‘Grossly’ Overvalued 

Nov. 19 “The banks are still grossly overvalued,” Whitney said today in an interview on Bloomberg Radio. “People are expecting something great to happen in 2010 and I think they are going to be severely disappointed.”

The Federal Reserve has begun slowing purchases in the $5 trillion market for so-called agency mortgage-backed securities after announcing in September that it would extend the timeline for its $1.25 trillion program to March 31 from year-end. Whitney said that banks are only originating home loans that they can sell to Fannie Mae and Freddie Mac.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=acyezZUH_MYo

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