Sallie Krawcheck says U.S. banks still have issues.
“Accidents can and do happen,” the former head of wealth management at Bank of America (BAC) said during an interview with Yahoo’s The Daily Ticker early Wednesday. “JPMorgan (JPM) was easily able to weather [the London Whale losses], but the next one may not be.”
For investors, this risk and related issues means that they should not put too big a chunk of their portfolio into individual bank stocks.
She acknowledges that banks are “certainly safer than they were” in 2008. “I think banks and money funds will do just fine in a bad market … “But I do worry about a very, very, very, very bad market.”
Her chief concern is that banks continue to be undercapitalized.