Don't Expect a Bank-Buying Spree

Now if only there were more than one Royal Bank of Scotland (RBS).

For years we have waited for savings and loans nationwide to be swept up as part of a gigantic wave of foreign acquisitions. The wave started years ago, in the 1990s, when Royal Bank of Scotland bought a bunch of New England savings and loans. We figured that had to be the precursor to takeoff.

Here we are, a decade later, and it's still Royal Bank of Scotland doing the buying, with its Citizens Financial Group scooping up Charter One (CF - commentary - Cramer's Take), a great outfit, at a nifty premium.

The amazing thing is that Royal Bank has no joiners. Not one of these institutions in Europe, with the exception of an occasional Allied Irish (AIB - commentary - Cramer's Take) buy, has participated. The Scots are the leaders -- with no followers.

So, whenever one of these bids from Royal Scotland occurs, you get a lot of follow-up buying by speculators and then nothing happens.

This time will be no different. Which is why I am still lightening up on financials ahead of the less "measured" Fed, which will make it so these very institutions soon shrink in value. (To see what action I am taking, take a free trial of Action Alerts PLUS.)

Random musings: The one end of the market that has held up consistently this year is the safe-and-growing dividend-yielder segment. I have been following David Peltier's work since he started at TheStreet.com, and his stock-picking for the Save Safe Plan has been remarkable. You should see what he likes if you want a diversified portfolio with some yield that has growth, which, last I looked, is what most people truly want. Click here to find out more.

---

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS by clicking here. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to [e-mail]. Listen to Cramer's RealMoney Radio show on your computer; just click here. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."