Whitney believes believes the US banking system will lose 30% more than consensus estimates due to shrinking loan portfolios, and the possible end of extraordinary bond, currency and commodity trading gains.
“Your good borrowers don’t want to borrow, and your bad borrowers you’re trying to kick out of the system,” she said. “So on average lending portfolios are down 4 to 20 percent and we think they’re going to be down another 10 to 15 percent for all the big banks this year.”
