Meredith Whitney is Not Buying What Vikram Pandit is Selling

Meredith Whitney clearly got out of the wrong side of the bed today, and her assault of Vikram Pandit continues. Meredith is not buying into any of the “broad themes” Pandit laid out last week, and continues to believe Citigroup’s C:NYSE) profit outlook looks punk over the next 3 to 5 years; the $21 billion in annualized profits they reached a few years back is likely to be the high water point for many years.

``The presentation was glaringly light on actual mechanics, and run-rate earnings figures seemed to cherry pick revenue and credit scenarios from recent years,’’ Whitney wrote in a note today. Pandit ``set no delivery date as far as execution,’’ she wrote.....``The credit outlooks and the loss assumptions for banks across the board are way too low,’’ Whitney said in the interview. ``The outlook for earnings across the board is going to be much worse than people expect.’’ Bloomberg

Whitney continues to stress the challenges Citi faces in upgrading their computer networks, which is a hodgepodge legacy system left over from their acquisition spree. Whitney missed the bottom in Citi and the financials, but it does not appear she is going to get constructive on this stock anytime soon.

Citi’s Pandit Faces `Impossible Feat,’ Whitney Says
Bloomberg
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