This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Big Banks Deserved Downgrades, Says Cramer

NEW YORK ( TheStreet) -- Lindsey Bell interviews Jim Cramer regarding the downgrades of international banks. A full transcript appears below:

Lindsey Bell:
Citi, Goldman, Morgan Stanley were all downgraded to neutral from buy at UBS. Now these stocks have run 30 to over 50 percent each since the June low. So was this the right call?

Jim Cramer:
Yes. I think that the international banks are challenged on multiple levels and are in the crosshairs of the government.

Lindsey Bell:

Jim Cramer:
I think that, as much as I like Citi, 60 percent of it's business overseas in the emerging markets and they're not coming back as quickly as I thought. Goldman and Morgan Stanley, the profits...the return on investment...just aren't as great as they used to be. The book value is in excess of their stocks and people are attracted to that. We like the regionals. I like Wells Fargo. It's been stalled...33/34...34/35. They own 30 percent of the mortgage market. They could even take more. I like Key because Key's back from the dead. The regionals are linked to housing.

Everyone says, well Jim, you talk about housing forever. Remember we have 1.7 million housing starts. As housing comes back...and we know from the existing home sales that we got yesterday, it's coming back...that just makes the regionals more attractive. I want to levered to housing and autos, not to international. The call's right.

Lindsey Bell:
Shouldn't quantitative easing, though, help these international banks as well?

Jim Cramer:
Yeah but you know, earnings power.

Lindsey Bell:
Is that priced in?

Jim Cramer:
Earnings power is not as there as it used to be and I care about earnings power.

Lindsey Bell:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
C $51.19 -0.37%
WFC $54.50 -0.07%
GS $187.24 0.00%
MS $35.62 0.00%
AAPL $124.24 0.70%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs