Meredith Whitney appeared on CNBC's Closing Bell with Maria Bartiromo today and had some interesting thoughts on Goldman Sachs: Maria: "Do I want to sell shares in Goldman Sachs if I'm an investor right now?"Very interesting stuff from Whitney. She suggests that GS shares will be worth looking at with another 20% haircut bringing them down to book value. And, I assume she would say investors will need to have patience in order to see the possibility of out-sized returns given the "lack of momentum" surrounding their primary businesses.
Meredith: "I think Goldman's support is right at book value which is in the $120s. It's a good franchise and they'll continue to do well. People never assume that they're going to make money. If they make a low-teens ROE, that's twice what the banks are making. That's stil a pretty good return. But, it's going to very difficult for them to catch momentum. Since last summer when the stock did so well, there hasn't been momentum around any of the businesses and so I think the momentum has clearly been taken away from Goldman."
Republicans successfully filibustered the banking reform bill in the Senate today. Ahh, politics.