Meredith Whitney on Her Bear Stearns Call

June 16, 2011 at 9:00 PM UTC

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This article is part of the June 20, 2011 issue of businessweek.

When I issued my report on Citigroup, I didn't realize the impact it would have. It was a straightforward look at their leverage and the fact that they didn't have the earnings to maintain their dividend. The power was in the simplicity of the description of Citi's fragile financial position. I didn't overanalyze it—I didn't think it was a huge call—but it set off a firestorm. I issued it on a Wednesday night and [Citigroup CEO] Chuck Prince was out by Monday.

Suddenly, I was under a bright spotlight. From October up to the collapse of Bear Stearns in March, my calls were having an unprecedented influence. If I made a call, it moved the market. I was very aware of the influence I had, and it was daunting. I was very careful with it.