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How Cramer Was 'Fooled' By Bank of America

Wednesday, 29 Jun 2011 | 3:15 PM ET

After Bank of America reached a final settlement in which it will pay $8.5 billion in cash to a group of private trusts who say the bank violated its obligations regarding mortgages issued from Countrywide Financial, Cramer on Wednesday said he was "fooled" by the financial institution.

Stop Trading: Cramer Got Fooled by BofA
CNBC's Jim Cramer says he got fooled on the Bank of America settlement, and weighs in on News Corp selling Myspace.

"I thought that they were going to fight these things and that they were not just going to write a check," Cramer said of Bank of America . "Many of the people that [will] get money are from the various rich hedge funds and I thought that they were sophisticated players and should have known what they were doing, but Bank of America paid."

CNBC's Mandy Drury wondered whether the news might help the stock because it removes an unknown, but Cramer dismissed the idea. Cramer said there are "a gazillion unknowns" in the banking sector. He isn't recommending any bank stocks right now, except for a few regional banks that didn't do a lot of mortgages between 2004 and 2008.














—CNBC.com contributed to this report

When this story was published, Cramer's charitable trust owned Bank of America

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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