UBS' Pain Is a Boon for Goldman and JPMorgan

Here it is: The Swiss are giving up the UBS (UBS - commentary - Trade Now) names. Tons of names, part of the endless negative articles about UBS. That's right, UBS is giving up 4,000 account names to the U.S. government. I know, by this point, that the eyes eyes glaze over about the investigations of the clients, about the compromises that have led to a level of scrutiny that the rich hate. And when I read about them, I think one thing: what UBS loses, the Goldmans (GS - commentary - Trade Now) and JPMorgans (JPM - commentary - Trade Now) of the world win.

Why those two? I think they are coming through this period as the places for the rich to keep their money, and the rich are the greatest clients in the world. They trade, they need investment banking help, they keep their assets at the firm, they are stable, reliable customers.

As recently as two years ago, UBS was the envy of every banker in this country. The stable wealth management base of the operation was superb. Most of the big U.S. banks were hoping -- eager -- to buy the whole bank, just to get that customer base.

Now the headlines make rich people scared. They don't want to be involved with some place that seems to have compromised their identities. Scrutiny is awful to these people.

In the meantime, Goldman and JPMorgan have come on strong as the two outfits most independent of the U.S. government.

I would love to have included Merrill Lynch and Morgan Stanley (MS - commentary - Trade Now) as places they are going. But I think the turmoil at the former hasn't helped, and the latter seems to be going, with the Smith Barney deal, more toward the mainstream investor -- a sound strategy, but it won't be a beneficiary of UBS' implosion.

You have to remember that UBS was the envy of all. Now it is a pariah. It may be the more unheralded big turn of events out there.

It should not be overlooked when you value the winners.

At the time of publication, Cramer was long Goldman Sachs and JPMorgan.

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