Cramer's 'Stop Trading': The Dodd Bill

NEW YORK ( TheStreet) -- The right way to go after the AIGs and Lehman Brothers of the world is by creating a task force to go after those who are falsely exposing their collateral, Jim Cramer said on Monday's Stop Trading! segment on CNBC, commenting on Senate Banking Committee Chairman Christopher Dodd's proposed bill.

During Stop Trading!, Cramer declared that if you try to value American International Group's ( AIG) collateral you will realize it over wrote. "The government can quickly address this by saying what matters is the collateral."

Cramer would like to see a similar task force to the one the previous president set up for Enron.

Dodd said on Monday that he is looking to revamp the U.S. financial rules by placing a consumer protection agency within the Federal Reserve and giving the central bank new powers over non-bank financial firms.

Cramer said he isn't against having insurance for derivatives, but he is decidedly in favor of putting a package together where you'd have to put down more money, "then you wouldn't be able to do this cheap speculation."

Companies would change their mind if they had to put up more cash, he said.

"My views aren't radical and are much more in sync with changing the behavior on Wall Street than what Dodd is doing," Cramer said.

AIG shares are increasing about 5% since Dodd's proposal was made. Cramer said AIG's stock can't be shorted because the government owns so much of it.

"The government is being really smart about AIG ," he said. "I respect what they are doing. They are trading this one well by not trading it."

-- Reported by Jeanine Poggi in New York.

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