WINDERMERE, Fla. ( Stockpickr) -- According to Jim Cramer, Obama's newest attack on banks is a lot of hot air. After talking to Rep. Barney Frank (D., Mass.), the man in charge of banking regulation in the House, Cramer said he is not going to let the president's plan destroy the banking recovery. Even if the plans to ban internal hedge funds and private equity funds at banks were to come to fruition, Frank said he would delay it for a three-to-five-year period.
Cramer mentioned that the fact Frank wasn't aware of the plan until yesterday tells him that it is nothing but a bunch of rhetoric. Cramer thinks investors should take a longer-term view and buy the big banks that are selling off on the news, such as Goldman Sachs Group (GS - Get Report), JPMorgan Chase (JPM), Wells Fargo (WFC), Bank of America (BAC - Get Report) and Citigroup (C).
Cramer cautioned market players that these stocks won't turn the corner quickly. He said nimble traders can buy and sell them, but longer-term investors can start to build positions. Cramer understands that investors are cautious, since we haven't seen a big market selloff in awhile.
Recently, Cramer found opportunity in digital media stocks, bank stocks and stocks that are off Obama's radar. Here are some Cramer highlights from over the past week as aggregated from his "Mad Money" TV show, the "Stop Trading!" segment on CNBC and his RealMoney blog posts. (These blog posts might require a RealMoney subscription.)Cramer's Banking Scalp Trades: Cramer sees opportunity in scalping the bank stocks. In a Jan. 21 blog post, he wrote: "Do you scalp? Do you bet that this is just rhetoric by the president? Typically, I would say yes, it is worth scalping. I don't think there will be legislation that can get through Congress that will be able to stop this kind of investment and the Volcker rule will not happen." The Cramer's Banking Scalp Trades portfolio includes Citigroup (C) and Hudson City Bancorp (HCBK).