Analyst: Downgrades will pressure banks in 2009

01/7/2009 | Reuters

Prominent banking analyst Meredith Whitney says she believes the industry will face more pressure in 2009. Whitney attributes the ongoing problems to a sharp increase in credit-rating downgrades on mortgage-related securities and a need to raise more capital. "From July 2007 to date, over $5 trillion worth of securities have been downgraded, but our concern here is that the pace of downgrades has only accelerated through 2008," Whitney, an Oppenheimer analyst, wrote.

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