Hudson City Bancorp is profiting while its competitors are struggling to stay in business. If that’s not reason to buy this bank then Cramer doesn’t know what is.
Speaking alongside Hudson City CEO Ronald Hermance on his regular Tuesday Stop Trading! appearance, Cramer said that Hudson City is, by far, the strongest buy out of any of the financials.
He called Hermance “too humble” after he said that his company’s current success stems from a record backlog in mortgage applications, solid funding and some amount of geographic luck, as the regional bank is located in New Jersey – far away from the various ground zeroes of the mortgage crisis in states in the Midwest and Southwest that suffered from the most speculation.
On the government’s involvement in the housing crisis, Cramer reiterated his call that Fannie Mae and Freddie Mac should “take one for the team” and absorb many of the bad loans that are out there. Hermance said he expects home prices to decline on their own in some areas of the country.
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