Financials on the Rocks

Finova is the real culprit, but the whole sector is suffering.
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Some of the weakness in the financials today can be traced to the slaughtering of

Finova

(FNV) - Get Report

, a lender to medium-sized companies.

When it comes to problem financials, people like to shoot them all and then look to see if they have something in common with the ne'er do well. Every bank lends to midsized customers, so every bank is vulnerable.

We don't know which ones have Finova's problems, but we know that some banks, such as

Chase

(CMB)

, are more leveraged to the Net than midsized borrowers.

But with problems in credit cards already evident and now problems in midsized lending springing up, institutions just can't be too sure of what they own, particularly after the recent run this group has had.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Chase. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.