TheStreet.com TV Recap: No Prince of the Citi

"Then the last thing he said was that hedge funds are the key things," Cramer said. "Hedge funds peaked precisely when he bought them."

Instead of buying Vikram Pandit and John Havens' Old Lane hedge fund, Prince should have bought the money mangers themselves. "You should never buy a hedge fund," he said. "All a hedge fund is is managers, but I don't think Chuck Prince knew that."

Cramer said he knows he's come on strong speaking out against the Citigroup chief executive, but at the same time, when he saw that Old Lane has gone down nearly 6%, he's begun to think what exactly it will take to get Prince fired. "Corporate America is such an unfair place," he said. "Lots of executives stay on. This isn't like the NFL, where you get fired after a couple of losses."

To replace Prince, Cramer suggested the bank consider taking someone from Wells Fargo (WFC). "Anyone from Wells Fargo is the greatest cross-marketer of product ever," he said.

While on the topic of banks, Cramer said he is increasingly warming up to Wachovia (WB) because it is not so big that it can't be acquired by a European or Asian bank. Citigroup and Bank of America (BAC), on the other hand, are too big, he said.

"Wachovia has got the great yield, it's proven to be a very shrewd lender and it's incredibly undervalued," Cramer said. "I think that when the smoke clears on this mortgage product and all the worries, Wachovia's earnings are going to explode. Wachovia is the bank that I would buy as the survivor of this era."

At the time of publication, Cramer was long Citigroup.

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