Categories: OLD Media Moves

Cramer apologizes for being duped by Wachovia CEO

CNBC “Mad Money” host Jim Cramer apologized on his show Monday night for recommending Wachovia stock and for comments made two weeks ago by company CEO Robert Steel, who said everything was fine with the bank, writes Andrew Ross Sorkin of the New York Times.

Sorkin writes, “It didn’t help that Mr. Cramer later told his TV audience to buy Wachovia, calling it one of only a few potential ‘winners’ in the $700 billion bailout being proposed, and said that Mr. Steel’s background as the former Treasury under secretary meant he had ‘a better handle on how this process works than anyone else.’

“On Mr. Cramer’s show Monday night, he spent an entire segment apologizing to his viewers about having Mr. Steel on the program and for his own bullish call on Wachovia’s stock. ‘I screwed up,’ he said, referring at one point to Mr. Steel as a friend for 25 years. ‘I believed in the guy. Did he take advantage of me? Perhaps yes.’

“A spokeswoman for Mr. Steel defended his appearance, saying, ‘The environment we were operating in dramatically changed’ between then and now. She added, ‘If you look at his comments, he tempered them by saying ‘We always do what’s right for shareholders.” In fairness, she’s right about that. Mr. Steel said on the same program that, ‘We’re a public company. So we’re going to do what’s right for shareholders, I can promise you that.’ And at times, he seemed to show some self-restraint, resisting talking directly about Wachovia, instead spending much of the program talking in generalities about the troubles in the market.”

Read more here.

View Comments

  • Not very surprising that this fellow would have pie all over his face. He tends to blather in hyperboles all over NBC's products. Case in point: On this morning's Today Show, he exclaimed that the $700 billion bailout bill for reckless bankers must be passed or the U.S. economy goes in the comode. There are many, many smart economists and bankers who would have a bone to pick with Mr. Cramer's assessment of the need for U.S. taxpayers to get billed for the bailout package. His program is certainly not a case of business journalism at its finest.

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