Meredith Whitney: Bank Stocks Are Boring

Meredith Whitney, said that bank stocks are "boring" in an interview with Becky Quick, as she believes that banks will have one more good quarter, before the credit quality of holdings will deteriorate. She went on to say that financials need vibrant operations outside of the U.S., and need strong overseas units for topline growth, which she believes isn't likely to happen, save for a few surprises. Whitney also said that banks can not price risk right now because of financial regulatory reform, and it is hurting business. Whitney went on to say that she believes the issues that the banks are dealing with now are not going anywhere, and this will be a 5+ year issue. Whitney also discussed the middle class, saying she believes they are being squeezed by the lack of credit available to them, and it is pressuring the U.S. economy. Quick asked her which stocks she would recommend, and Whitney said she likes Visa

and Mastercard

, despite recent weakness in shares. She believes the consumer is moving away from cash and checks, and these are two pure plays on this trend.