Brokerage Stocks May Drop 50 Percent, Says Oppenheimer Analyst
Meredith Whitney, the Wall Street analyst who received death threats after writing a negative report about Citigroup, has predicted that financial stocks could plummet by as much as half in the wake of the Bear Stearns fire sale.
In a note released today, the Oppenheimer analyst says Merrill Lynch, UBS and Citigroup will be the worst hit. Lehman brothers shares are already down 30 per cent in pre-opening trading.
This is likely to be the start of a string of bad news banking stories this week as three leading investment banks are set to announce billions of dollars worth of write-offs owing to the credit crisis.