Whitney Tells CNBC She Hasn’t Been ‘This Bearish in a Year’

(Bloomberg) -- Meredith Whitney, the analyst who cut her rating on Goldman Sachs Group Inc. last month, said bank stocks are overvalued after rallying faster than the U.S. economy and share prices will fall to tangible book value. “I haven’t been this bearish in a year,” Whitney, founder of Meredith Whitney Advisory Group LLC, said today in a CNBC television interview. “I think you can sit on cash for a little bit, because you have to wait for a leg down in valuations. The S&P is expensive across the board.” The Standard and Poor’s 500 Index has rallied 64 percent since touching a 13-year low on March 9. The KBW Bank Index has more than doubled in that time.

http://www.bloomberg.com/apps/news?pid=20601087&sid=azJaqGLg0KMw&pos=5