OLD Media Moves

More on Cramer spouting off

March 23, 2007

Posted by Chris Roush

USAToday’s Matt Krantz takes a look Friday at “Mad Money” host Jim Cramer talking on a videocast on TheStreet.com about how he manipulated stocks and how business journalists are used by investors.

Jim Cramer speaks(Note that Cramer back away from many of his statements Thursday.)

Krantz wrote, “Cramer didn’t return messages left with CNBC or multiple e-mails asking for comment. Aaron Task, the editor at TheStreet.com who moderated the interview, had no comment. CNBC declined comment as did the SEC and Research In Motion. Apple had no comment.

“There is no indication Cramer is in any legal trouble. But he could be in hot water with peers, having referred to a ‘bozo’ reporter at The Wall Street Journal who covers Research In Motion and saying CNBC markets reporter Bob Pisani could be used to place information.

“‘The way that the market really works is to have that nexus of: Hit the brokerage houses with a series of orders that push it down, then leak it to the press and then get it on CNBC,’ he says.

“Cramer’s revelations should alert regulators that it’s time to take a closer look at hedge funds, says Lynn Turner, former SEC chief accountant now at Glass Lewis.

“‘They will jump on this,’ he says, adding that he doesn’t think Cramer will face legal action.”

Read more here.

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