This column was originally published on RealMoney on May 22 at 12:51 p.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

This Fremont General ( FMT) news is a one-two punch to the bears and is worth dissecting, especially because of the monster short position in the name -- as much as 54% of the float.

First, it's amazing that Fremont offloaded some of a portfolio -- the commercial part -- that was thought to be one of the worst out there for $1.9 billion to iStar Financial ( SFI), a legit buyer.

But what's even more amazing is that they were able to broom all the bad guys and bring in Gerald J. Ford, one of the great retail bankers out there and the man who turned around Golden State and sold it for nice change to Citigroup ( C - Get Report). He has recreated his team from Golden West and will be able to rock and roll with it.

Fremont had already gotten rid of its home lending business to Ellington Capital Management. Now you have a 22-branch retail bank with among the best management in the industry.

And you have lost a reason to be short Fremont, or frankly, not to cover Novastar ( NFI).

At the time of publication, Cramer was long Citigroup.

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