The Meredith Whitney myth might be in line for a downgrade.

The bearish banking analyst has been the toast of Wall Street and Main Street since Oct. 31, 2007, when she predicted Citigroup Inc. would have to raise capital, sell assets or cut its dividend. Ms. Whitney's was a gutsy call that got results. Investors bailed. Citi's chief executive at the time, Charles Prince, resigned two days later. She got death threats.

How...