Meredith Whitney Says John Paulson Is Wrong On Bank of America (BAC, XLF)

Meredith Whitney of Meredith Whitney says Paulson & Co's John Paulson is wrong on Bank of America (NYSE: BAC).

John Paulson is the hedge fund manager who bet right on the subprime crisis and then in turn got long the financials, Financial Select Sector SPDR (ETF) (NYSE: XLF), at the right time.

In John Paulson's investment letter to his hedge fund investors, he said although Bank of America has risen from the low single digits, he says it has ways to go and could at least double.

Meredith Whitney responded to John Paulson's note by just saying that he is wrong on BAC. She says perhaps in 2015 or sometime after that it could double, but Whitney said Bank of America should not double in the next two years.

Whitney thinks Paulson is making this call too early in the cycle and she said Bank of America will not produce solid and consistent earnings for at least a couple years.