The idea that Goldman Sachs will be indicted is “100 percent false,” Cramer said Friday.
Goldman is facing a possible Justice Department investigation over its crisis-era mortgage trades. But the “Mad Money” host said he believes the institution will be preserved because the government doesn’t want to make the same mistake it made with Arthur Anderson. When Justice indicted Arthur Anderson, it was going after a couple of people. But thousands of people wound up losing their jobs.
“It’s just a real bad thing to do,” he said.
But just because Cramer doesn’t think Goldman will get indicted, doesn’t mean he wants you to buy its stock. The banks are all under pressure from the government, he said, and therefore he doesn’t want to own any financials right now.
The one stock he does want to right now is Verizon . Cramer said he’s been waiting for this stock to have a couple of down days ever since the AT&T , T-Mobile deal was announced.
“They are the biggest winner,” Cramer said. “They will not have to give up things like AT&T will have to in order to get the deal done. They will be able to increase the price on your bill because of the lack of competition.”
Now that the stock has come down, Cramer said this is a great place to hide. “It doesn’t have the dollar exposure, it is doing quite well and it’s got a 5 percent yield.”
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