I usually don’t pay attention to the equity rodeo… it’s bondland for me… but I caught a headline of Jim Cramer talking about auction rate securities… hmmm… I hadn’t paid attention to him since his fabulous meltdown of last year … (worth another watch…he begged Chairman Bernancke to open the window and it worked…)
Cramer today says… “net interest margin will expand”… sees boost to financials… going forward pegs the Fed funds rate at 1.50 %… he is a “performance guy”… “buy financials on weakness”…
I wonder about this guy… who are his sources? Maybe he has got a pipeline to some folks that want specific information out in the marketplace…
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Why Does the SEC Hate the Banks?
Posted By:Tom Brennan
It’s no coincidence that the declines in Morgan Stanley, JPMorgan Chase, Wachovia
and Bank of America came immediately after the Securities and Exchange Commission eased up on its prohibition against naked short selling some of America’s most important financials. At least that’s how Cramer sees it.
He’s railed against this many, many times before. But Wednesday he just wanted to reiterate how important that enforcement is. After all, it’s the very reason Merrill Lynch MERRILL LYNCH & CO INCMER
26.21 0.61 +2.38% NYSE
Quote | Chart | News | Profile
[MER 26.21 0.61 (+2.38%) ] and Lehman Brothers LEHMAN BROTHERS HLDGS INCLEH
16.04 0.47 +3.02% NYSE
Quote | Chart | News | Profile
[LEH 16.04 0.47 (+3.02%) ] were able to finally find their footing. Without SEC intervention, bear raid upon bear raid would have continued to drive these stocks into oblivion.
Look at just a couple of the banks that weren’t on the SEC’s protection list: Both American International Group AMERICAN INTL GROUP INCAIG
22.66 0.61 +2.77% NYSE
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[AIG 22.66 0.61 (+2.77%) ] and Downey Financial DOWNEY FINL CORPDSL
1.91 0.20 +11.7% NYSE
Quote | Chart | News | Profile
[DSL 1.91 0.20 (+11.7%) ] are struggling right now.
Cramer wants to see a Resolution Mortgage Trust set up to take on the bad loans weighing so heavily on this sector. That way other healthier banks can swoop in and buy the good parts of what’s left of these struggling banks.
But the SEC’s laissez faire approach to market regulation is making any kind of recovery in this sector that much harder to accomplish.
http://www.cnbc.com/id/26182469
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