JPMorgan Could Be a Good Suitor for WaMu

You know what? JPMorgan (JPM - commentary - Cramer's Take) should buy Washington Mutual (WM - commentary - Cramer's Take). It could pay $4 and take writedowns galore upfront and work out bad loans, giving the really sour ones to the FHA.

It must be tempting for Jamie Dimon to wait for the company to go bust as its funding costs soar; then it can buy the good loans from the FDIC and leave them holding the bag.

But if we get a much-talked-about Resolution Mortgage Trust, I can't think of a deposit base I would want more and a group of sour loans easily disposed of. In New York City alone, Dimon would get $30 billion in deposits and take whatever branches he needs to establish dominance.

I like Wachovia (WB - commentary - Cramer's Take), and it will demonstrate the "good bank, bad bank" model; if we get the RMT (already using the acronym), you have a double.

Why?

These will all come together because we see fewer homes being built, more credit availability and a big mortgage refi number after Fannie (FNM - commentary - Cramer's Take) and Freddie (FRE - commentary - Cramer's Take).

Plus, a lot of the hidden guarantees that the Western world is based on are now owned by the U.S. Sovereign Fund, so even something as opaque as the financials of an American financial institution -- courtesy of the SEC -- can be assessed.

Of course, if Cox doesn't change the short-selling rules, then maybe Dimon will wait for the shorts to drive WaMu to $1, and he'll pay $2.

That may be a more likely scenario.

At the time of publication, Cramer was long JPMorgan.

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