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
, 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
phone is not a threat to
but is to
Research In Motion
. "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.
(Editor's note: At the time of publication, Cramer owned Goldman Sachs for his Action Alerts PLUS charitable trust.)