On the Line: GFI Group CEO Mike Gooch

Monday, 5 Nov 2007 | 4:13 PM ET

It seems like brokerage stocks getting killed everywhere. But then, GFI Group was up eight points on Friday. Apparently these stocks aren’t created equal.

Chairman and CEO Mickey Gooch said that as the middle in the market, GFIC actually benefits from all the volatility.

GFI Group Chmn. & CEO
On the phone, with Mickey Gooch, GFI Group chmn. & CEO

GFIG’s customers are big banks and securities houses that trade hundreds of millions of dollars at a time. And if these guys are worried about their subprime exposure, they can buy GFIC’s credit default protection. The OTC derivatives market is “incredibly deep,” Gooch said, so a lot of debt can be laid off.

“If you really think that people are worried and they need to lay off risk after the disaster that was Merrill Lynch, this is who they go to,” Cramer said. “It’s who you should go to,” too.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.