MAD MONEY FEATURES
PODCASTSWatch the Lightning Round whenever and wherever you want.
OFFICIAL MAD MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
CRAMER'S SOUNDBOARDAdmit it: You’ve always wanted to hit the “They know nothing!” button. Here’s your chance.
CRAMER QUICK PICSCheck out the Mad Money host on set, back to school, behind the scenes and more.
VIDEOSGet all your favorite Cramer clips right here.
SHOP FOR MAD MERCHANDISEBuy Cramer books, bobbleheads and other Mad Money merchandise.
RING TONESPick up the phone! It’s Cramer! New Mad Money sounds for your cell phone.
TEXT MESSAGE ALERTMad Money’s mobile. Get show highlights sent to your phone.
Text Size 
 |
Of course, that means stock offerings will ensue, further devaluing these already-troubled names.
Just in case you're wondering how accurate the list is, take note: Fifth Third Bancorp [FITB
Loading...
()
] was on an earlier version released June 12. Sure enough, this week the bank set in motion a preferred stock offering worth $1 billion and cut its dividend. FITB shares have dropped 23% since the Tuesday announcement.
Goldman listed four key factors that would send these banks scrambling for cash:
-Their credit losses won't peak until 2009
-Raising money is going to get harder (Who wants to pour money into a bank that already raised capital and still went lower?)
-Estimate cuts will hurt these stocks
-The potential for the Fed to raise interest rates is putting the yield curve at risk
So who did Goldman say to avoid? Bank of America [BAC
Loading...
()
], Citigroup [C
Loading...
()
], Comerica [CMA
Loading...
()
], East West Bancorp [EWBC
Loading...
()
], First Horizon [FHN
Loading...
()
], Huntington Bancshares [HBAN
Loading...
()
], Keycorp [KEY
Loading...
()
], Marshall & Ilsley [MI
Loading...
()
], National City [NCC
Loading...
()
] and Popular [BPOP
Loading...
()
].
Cramer added Wachovia [WB
Loading...
()
] and Washington Mutual [WM
Loading...
()
] to the list. Both were on that earlier list of troubled banks that Goldman put out on June 12.
The environment for these banks is much like the savings and loan debacle of the 1990 -- only Cramer thinks it could be worse. For that reason, don't go anywhere near these banks if your goal's to make money rather than lose it.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Del.icio.us
Digg It