Mad Mail: What About Canadian Banks?

Cramer: When the U.S. government converts their preferred bank stock to common, does that put the remaining "private" preferred shareholders ahead of the government in debt hierarchy? In other words, are the preferred shareholders being helped by this action? --Rick

Cramer says: Treasury Secretary Geithner “hasn’t given us any clarity on the preferreds…we don’t know. This is why Geithner’s disliked.”


Jim: I think you should add an "I Screwed Up" button to your soundboard. Both Obama and Geithner used the term within a few days of each other - Obama in regards to Daschle and Geithner in regards to his taxes. I think the term best fits Obama for having Geithner make an hour long speech about the banking bailout plan without giving or possibly even having any concrete details. --Jeff

Cramer says: “…I appreciate that you want me to carp about these guys. I just want to have solutions and be constructive. And my plan is better than what they have.”


Jim: I know what you think about a lot of the U.S. banks, but there seems to be some great buys north of the border with Bank of Montreal at around a 10% return, and Royal Bank of Canada at around 7.5%. I am wondering what you think of those (or any of the five Canadian big ones) for the banking portion of my portfolio? --Troy

Cramer says: “Forget it, Jake…I don’t want any bank stocks. If you want to own a financial, you can own Visa, you can own Mastercard, or you can own Goldman Sachs. We’re not going to recommend banks here. It’s just too darn hard.”

Cramer's charitable trust owns Goldman Sachs.

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