Cramer's 'Stop Trading!': Motorola

NEW YORK (TheStreet) -- The hedge fund consultant business model is over, said Jim Cramer on Thursday's "Stop Trading!" segment on CNBC.

The model is flawed now in light of the recent insider trading charges, he said. "If I'm the CEO of a major company, I'm going to send a memo saying that no one is allowed to speak ever again to one of these consultants," said Cramer. "This game's over."

As to whether Goldman Sachs(GS Quote), with its trading activity, should be classified as a bank holding company. "What's the ratio? Are they doing 30 to 1? Are they doing 50 to 1?" asked Cramer. "No, they're not. We don't need to take away the designation."

Cramer said that the trading business is "a question of leverage." He called Goldman "the most open firm of all firms" and said "you always knew what they had."

He said the new Motorola(MOT Quote) phone is not a threat to Apple(AAPL Quote) but is to Research In Motion(RIMM Quote). "It's a RIM killer, not an iPhone killer," he said. "Notice how RIM resorts to buying back stock? We don't want buyback; we want growth."

-- Written by Rebecca Corvino in New York.