Mad Money with Jim Cramer
RSS FEED
FEATURED SLIDESHOW
Who Is The Worst CEO?Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
nominations.
RECENT POSTS
- Don’t Trust Buybacks
- Buying the Right Sell-Off Stocks
- Buy Broken Stocks, Not Broken Companies
- The Biggest Market Myth There Is?
- The Key to a Successful Turnaround
- Lightning Round: Corning, Visa, NYSE Euronext and More
- Cramer’s 3 Stocks to Avoid
- Cramer: Play Defense with B&G Foods
- Cramer: Chico’s Proves Ailing Retailers Can Make a Comeback
- Cramer's Advice for the SEC
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.
CRAMERS SOUNDBOARDAdmit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.
CHECK OUT OUR PHOTOSCheck out Cramer on set, back to school, behind the scenes and more.
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.
Sell These European Bank Stocks
Text Size 
Web Editor, Mad Money
 |
Cramer recognized the hit that Dubai World’s potential $60 billion default put on the markets, but he wanted Mad Money viewers also to note the latest in a long line of banking blunders to come out of Europe. Not only did the Continent’s financial institutions buy toxic US mortgage paper, but they fueled their own residential and commercial mortgage bubbles as well, Cramer said.
Also worth mentioning is the European banks’ use of AIG’s [AIG
Loading...
()
] derivatives division to mask their leverage. So US taxpayers, Cramer said, “are paying for the sins” of these companies.
So who are the culprits? British banks in total have about $5 billion in exposure to Dubai World, Cramer said, making them the largest group of creditors to be affected if DW defaults. Royal Bank of Scotland [RBS
Loading...
()
] holds the most risk, which is why Cramer urged viewers to stay away from the stock.
But they should avoid Lloyds Banking Group [LYG
Loading...
()
], too, the Mad Money host cautioned. HSBC [HBC
Loading...
()
] and Barclays [BCS
Loading...
()
] are “also among the worst,” Cramer said, though not as bad as RBS and Lloyds because they were “a tad more savvy” in their non-Dubai business.
Cramer recommended staying away from all the European banks. But if investors feel compelled to own one, he steered viewers toward the preferred shares rather than the common stock. He specifically mentioned the preferreds of ING [ISP
Loading...
()
] and Aegon, either the AED [AED
Loading...
()
] or the AEH [AEH
Loading...
()
], as “the best bets.”
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes
