“Prosecutors Are Poised to Impanel AIG Grand Jury,” The Wall Street Journal reported Friday, along with probes of Bear Stearns, Credit Suisse , Lehman Brothers and UBS . Cramer offered the Justice Department a few tips to ensure success, at least for AIG and Lehman.
Prosecutors should review the transcript of AIG’s all-day analyst meeting in early December 2007. The assertions made that day by Joseph Cassano, head of the financial products division, now look “suspicious,” Cramer said. He thinks that any e-mails about what was going to be said at the meeting should be compared with the truth of the company’s situation at that time. It “should give them a slam-dunk case.”
As for Lehman, the company “repeatedly misstated” its inventory, Cramer said. A look at what the firm was saying in April, May and June about its exposure “would do them in.”
Why is Cramer taking the initiative to advise the DOJ?
“Because these are cases that must be made,” he said, “and the feds lately have a great track record of dropping the ball when they come after people.”
Anyone who doubts Cramer’s claim need only look to the SEC’s botched investigation of convicted Ponzi schemer Bernie Madoff.
“I don’t want Justice to make the same mistakes with AIG or Lehman,” Cramer said.
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