we posed that question to meredith whitney. she's ceo of meredith whitney advisory group. good to see you. >> good to see you. >> i want to get your take on where people are allocating money. what's your reaction to the bank stress tests? >> the assumptions were draconian. the severe scenarios that were imposed upon the banks. i don't know that it's surprising, other than it came two days earlier than expected. we had a buy on jpmorgan for a long time. we've had a sell on suntrust, which failed. and citi failed. i think citi failed because it asked for too much and maybe didn't have an appropriate accepts of what the fed was expecting. they can resubmit and pass. >> so you think citi has enough capital? >> i don't know that -- citi is -- citi's not creating a lot of capital. they still have that sizeable deferred tax asset. so the quality of their capital is not terrific. and they have risky assets, which is clearly demonstrated in the stress test. i found the stress test illuminating to read. in march of '08 when i first started coming on your show, i said the banks shoul

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coming up later in the day, we'll be speaking exclusively to meredith whitney who made her name with a 2007 call that citi would need to raise its capital and call its dividend. that's at 3:10 eastern time on "closing bell." >>> all right. it's time for your global markets report. let's start here in the united states and take a look at the futures, see how we're poised for trade after the melt-up rally on wall street yesterday. it does look like it's going go a slightly higher open. the dow higher by 11, nasdaq by 0.50 and change. we saw the dow, the nasdaq, and the s&p posting their largest percentage day gains for the year. so there us with no real catalyst early on in trade, becky. the announcement was in line with expectations but it was really the announcement from jpmorgan and the bank stress tests that pushed the markets higher. i do want to note we made a little bit of history yesterday as well. it was first time the dow closed above 13,000 and the nasdaq closed above 3,000 on exactly the same day. becky, over to you. >> we like those little snippets of information. thanks s

according to meredith whitney in our most recent conversation this week, it's going to get worse beforet gets better. >> there was been every effort to prevent the tidal wave of default. it's going to happen sooner or later. look, it's happening at an accelerating pace. >> so there has been a lot of criticism around meredith whitney's call. is she right about the danger in muni bonds? joining us out of the rbc capital trading floor, getting the guys behind me, rbc trading floor. chief u.s. economist. thank you so much for joining us. what do you make of the view on the muni situation? >> we expect that to be the case going forward. and we are concerned about the fiscal health of local governments but most of them will manage their affairs in an appropriate way. if they run into financial trouble, it's our view that most of the states will institute the kind of oversight and dimension mechanisms necessary to manage the problem going -- you know, as it arises. >> when they first made that call a couple of years ago, we haven't seen the kind of default that she obviously predicted. what ki

says tom i was in your program every day enjoy your show i was watching c m d c and they had on meredith whitney was an economic advisor and she was saying right to work states are doing much better than other states and oklahoma is the model is this true or is this just more b.s. coming from the right well it's b.s. coming from the right as the new york times pointed out about four years ago oklahoma is doing great i mean look at there down south it rivals venice italy but at the same as the same new york times article shows the reason is really simple over the past decade they've discovered a hell of a lot of oil in oklahoma and with oil prices at an all time high they're getting rich the caption reads oklahoma city of those is resurgence and the escalating price of crude oil and gas oil derricks can be seen all over town including on the grounds of the state capitol it has nothing whatsoever to do with right for work and the right to work for less nothing and next comment of the night comes from an anonymous caller on our viewer rant line here's what he had to say about the republican platfor

. >> meredith whitney was out earlier in the day. she said there's -- under no circumstances would she buy citi. marina asked when wha would change your mind, she said a new brain. she can't see a reason to own citi group under any circumstances. >> we have to look at the bigger picture. as the global economy improves particularly here in the u.s., it's going to lift all boats. citi will be lifted with the others. but you look at the condition of these banks compared to three years ago. it's totally different. and it's only going to get better as the economy improves. >> we're going to have sally smith on minneapolis, u.s. bancorp. we're trading at levels we haven't seen since 2008. do they deserve -- i think they do -- in your opinion, do they deserve a valuation higher than their peers? >> certainly they are the best bank stock in the united states today. in terms of management, they have delivered on the numbers. they came through the crisis well. they have real growth opportunities. it's their business mix. they've got a strong b

first it's meredith whitney telling us whether he's chanshe changing her tune following the banks' stressa, and sheila bair gives us her take on what the stress tests say about the state of the banking industry and we'll get the outlook for oil and natural gas prices. talk to the chairman and ceo of chevron, john watson joining us, coming up, we look forward to seeing you at the top of the hour on the new york stock exchange. mandy? >> thank you very much for that, bill. >>> this is straight out of darren rovell, we've got news on maddy square gua madison square garden has something going on. >> the stock is down, mike d'antoni the coach of the new york knicks have parted ways, from multiple reports led by yahoo! the, the knicks lost six straight ten games after linsanity, and the stock is moving down. right now the knicks are trying to get season tickets for next year. they are trying to sell them, they announced a 9% increase after a 49% increase this last year. all was seeming to do well with linsanity and everything else, and then they go on this skid, carmelo anthony comes back and n