Meredith Whitney Cuts Earnings View On Goldman Sachs And Morgan Stanley (GS, MS, XLF)

This morning Meredith Whitney and her firm, Meredith Whitney Advisory Group, lowered estimates on Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS).

When Meredith Whitney makes comments, the market listens and her call is putting pressure on both GS and MS and the Financial Select Sector SPDR (ETF) (NYSE: XLF) in pre-market trading.

Meredith lowered her Q4 estimate on Goldman Sachs from $6.38 to $6.00 versus Street consensus of $5.59.
Whitney lowered her full-year view from $19.95 to $19.57 versus consensus of $19.29. Lastly, she lowered her FY10 $21.73 to $19.75 versus consensus of $18.78 and her FY11 view from $24.05 to $20.60.

On Morgan Stanley, Whitney cut her FY10 view from $2.66 to $2.63 versus Street view of $3.32. Whitney cut her FY11 view from $3.28 to $2.75.

She has a Neutral rating on both Goldman and Morgan Stanley's stocks.

Whitney has said many times that she is unable to find where these banks are going to find future earnings growth as the consumer and the economic climate should only get worse in the years to come. Meredith believes Government spending and stimulus will slow which will in effect hurt the banks.