"It was a quarter of real revenue shortfalls, real revenue weakness, and I think that is a persistent theme that we’re going to see throughout the next several quarters," said Whitney, a former Oppenheimer analyst who now runs her own firm, Meredith Whitney Advisory Group.

Deal volume in the debt and equity markets is down 40 percent, Whitney said.

"Wall Street didn’t make a lot of head count changes and I think what you’re’ seeing now is the revenues don’t support the expense structure."

As a result, banks will have to rely on further cost-cutting and layoffs to maintain earnings, she said.