When asked whether or an investor should take a look at Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. Report or JP Morgan (JPM) - Get JPMorgan Chase & Co. 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."
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