Famed equity analyst Meredith Whitney is rumoured to be in
dire straights at her new firm, but being right during the financial crisis was still sweet.
Whitney reflects on the crisis five years on in an interview with Bloomberg Businessweek’s Nick Summers.
Whitney gained notoriety in 2007 for predicting Citigroup would need to cut its dividend due to capital concerns. Later, of course, the firm did.
Whitney became an overnight stock-picking fixture, though the crisis “was a really scary time for everyone.” From Bloomberg Businessweek:
BW: So getting a huge prediction right isn’t all it’s cracked up to be?
Whitney: No, being right is always all it’s cracked up to be.
Though, Whitney says she lost “between a quarter and a half a million dollars on financial positions” during the crisis.
I rode Lehman all the way down to zero. It’s pretty ironic, right? That, I don’t think anyone knows,” she told Businessweek.
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