Top Stories
Top Stories

Cramer: Give ‘this CEO’ a break!

Cramer worries that a Wall Street feeding frenzy may take down an otherwise outstanding executive.

"It's a travesty that the government is pursuing Jamie Dimon and JP Morgan relentlessly," Cramer said.

On October 11, the bank revealed that it was holding $23 billion in legal reserves against potential future claims.

"We continuously evaluate our legal reserves, but in this highly charged and unpredictable environment, with escalating demands and penalties from multiple government agencies, we thought it was prudent to significantly strengthen them," CEO Jamie Dimon said in a statement.

The Mad Money host thinks much of the forthcoming litigation is unfair; especially that which involves bad mortgages that were underwritten by Bear Stearns and Washington Mutual, two banks JPMorgan acquired.

"They made those acquisitions at the behest of the U.S. government," Cramer reminded, in an attempt to contain the financial crisis.

If anything, Cramer thinks JPMorgan should be celebrated - had they not made these acquisitions the crisis could have been far worse.

Ulrich Baumgarten | Getty Images

"I remember that Sunday night when Bear was going to go bellyup. We looked like we were going to crash because Bear was a big firm and it came as a surprise to everyone how terribly they were doing. Suddenly out of nowhere JP Morgan surfaced with a bid. Crisis averted." (Read More: JPMorgan agrees to buy Bear Stearns for $2/share - March 2008)

Then, in the case of Washington Mutual, JPMorgan acquired its distressed rival as panicked customers withdrew as much as $16 billion over a period of 9 days; in part due to speculation about the bank's solvency.

"That run on WAMU could have rippled to every bank. But the government came to JP Morgan, which in turn acquired WAMU and quelled fears. Dimon may have stopped runs on banks all over the country," Cramer said.

Read More from Mad Money with Jim Cramer
Chart patterns signal 'buy'
This stock deserves more respect
This theme transcends DC morass

Now make no mistake; Cramer doesn't think any bank is lily white. "No bank has clean hands from this period," he said. JPMorgan included.

However, Cramer also thinks the government is currently making a villain out of an executive who should be viewed as a hero.

"JPMorgan did more to save the republic than any of its peers. Yet I suspect the government will still pursue this bank relentlessly for mortgage related issues due to the acquisition of Bear-Stearns and Washington Mutual. Somehow that doesn't seem just to me."

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Questions, comments, suggestions for the "Mad Money" website?