Why the Financial Sector Is a 'House of Pain,' Says Jim Cramer

Author:
Publish date:
Video Duration:
0

Jim Cramer wrote about Citibank (C) - Get Report and KeyCorp (KEY) - Get Report and the "case for owning" both companies. 

When asked whether or an investor should take a look at Goldman Sachs (GS) - Get Report or JP Morgan (JPM) - Get Report instead of Citi or Key, Cramer weighed in on the tangible book value's of Goldman and Citi and how the financial sector looks. 

"Citi, because it is below tangible book. Goldman's blow tangible book, but it has the Malaysian problem, which is anywhere between two and five billion. I'm not as concerned, but it's going to go down as we get there and Maxine Waters going to hold some hearings. I don't think she's going to say, 'wow, I really love what you guys did in Malaysia.' I don't think that's in the cards. JP Morgan is expensive versus [Citibank and Goldman Sachs], but it's a fortress balance sheet and a great company," he said. "I fear that this is going to go back to that 1992 to '95 period where you buy these stocks because of yield, and if that's the case, it was just like that 1988 to '89 then these stocks have further to fall. But, if they are allowed to do whatever they want and we get unfettered, less regulation then people want to buy them. But, right now it's a house of pain. Katherine, a house of pain."

Related. Jim Cramer: The Case for Owning Citi and KeyCorp

How Much Money Will I Need to Retire? Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.