Meredith Whitney Takes An Ax To Bank Estimates Again

Outspoken banking analyst Meredith Whitney of Oppenheimer & Co. cut earnings estimates on banks for 2008/2009 by 17% and said U.S. banks may post $44 billion in losses in the fourth quarter. Whitney also expects banks to post more loan loss reserves over the next 12 months.

In an interview with Bloomberg today, Whitney said the government cash given to the banking industry, and particularly the new Citigroup (NYSE: C) rescue, is just going to "plug holes" in balance sheets. She said capital ratios which are looking great now, will likely move down to third quarter levels.

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