There are so many worthwhile applicants, i.e., horrible company CEOs, for Cramer’s Hall of Shame the competition’s fiercer than admission to Jim’s alma mater, Harvard. But UBS has outshined the rest. So much so that not just one, but three, of the bank’s executives were inducted during Thursday’s show.
Chairman Marcel Ospel, CEO Marcel Rohner and former CEO Peter Wuffli have presided over billions of dollars in losses and writedowns. What one fund manager described in the Wall Street Journal as “the smartest guys making the smartest trades” ended up making “some of the dumbest,” he said.
Now, Cramer’s gnashing his teeth for recommending UBS after the bank announced losses from an internal hedge fund and dumped Wuffli for Rohner. The Mad Money host thought the worst was over. But just since October, when Cramer made the call, UBS has waved good-bye to $17.7 billion due to subprime and other problems. And now the feds are investigating the company to see if it inflated its mortgage bonds’ prices.
Gentlemen, welcome to the club. Homegamers, don’t go anywhere near this stock.
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