By Daily Crux Editor Justin Brill:

Well-known bank analyst Meredith Whitney says investors should avoid financial stocks "at all costs," because the Senate's new financial reform bill will hurt bank earnings and dramatically reduce the availability of credit.

She believes the bill's new credit card and fee rules will be especially difficult for small banks. In all, she says the bill could take another $1.3 trillion in credit out of the banking system.

Whitney thinks European banks are in even worse shape than those in the U.S., and says she wouldn't invest in them "in a million years."

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