From very good bank to Not for shareholders: Jim Cramer's dubious advice for first republic

Von Krypto News Österreich

Jim Cramer, der Moderator von Mad Money auf CNBC, hat mit einer weiteren seiner Prognosen für die Aktien- und Aktienmärkte wieder einmal das Ziel verfehlt. Weniger als zwei Monate, nachdem sie die umkämpfte First Republic Bank als „sehr gute Bank“ bezeichnet hatte, hat sich die TV-Persönlichkeit umgedreht, um den Aktionären des Unternehmens mitzuteilen, dass es nichts für sie gibt, da die US-Behörden sie in Konkurs genommen haben. Eine „sehr gute Bank“ wurde sauer Die First Republic Bank wurde am Montag nach einer Woche voller finanzieller Probleme von der Federal Deposit Insurance Corp. (FDIC) und dem kalifornischen Ministerium für Finanzschutz und …
Jim Cramer, the moderator of Mad Money on CNBC, once again missed the goal with another of his forecasts for the stock and stock markets. Less than two months after she described the competitive First Republic Bank as a "very good bank", the TV personality has turned to tell the company's shareholders that there is no place for them because the US authorities have taken it into bankruptcy. A "very good bank" was angry. The First Republic Bank was made by the Federal Deposit Insurance Corp. on Monday after a week full of financial problems after a week after a week after a week after a week after a week after a week after a week full of financial problems (FDIC) and the California Ministry of Finance Protection and ... (Symbolbild/KNAT)

Jim Cramer, the moderator of Mad Money on CNBC, once again missed the goal with another of his forecasts for the stock and stock markets.

Less than two months after she described the competitive First Republic Bank as a "very good bank", the TV personality has turned to tell the shareholders of the company that there is nothing for them because the US authorities have taken them into bankruptcy.

a "very good bank" was angry

The First Republic Bank was full of financial problems on Monday after a week after a week of the Federal Deposit Insurance Corp. (FDIC) and the California Ministry of Finance Protection and Innovation.

The bank's problems began in March when the Silicon Valley Bank (SVB) recorded significant drains. On March 10, when the US authorities closed the SVB. Cramer tweeted that First Republic was the new focus and praised the bank.

frc is new focus ... very good bank

-Jim Cramer (@jimcramer) 10. March 2023

On the contrary, the financial institution had serious liquidity problems, which forced to reduce its borrowing and to suspend the dividend payments to the shareholders.

In the following week, 11 large US banks had to merging to supply First Republic $ 30 billion in cash in order to contain the impending banking crisis. Unfortunately, the company's problems worsened when the inserters were deducted more than $ 100 billion by the end of the last quarter.

The US authorities entered the weekend to protect the inserts and worked out a purchase contract with the JPMorgan Chase Bank. The First Republic share fell from a level over $ 200 to $ 2.98. At the time of the letter, the share was traded at $ 3.51, a decrease of 71 % compared to the course a week ago.

Inverse Cramer strikes again

While the stocks of First Republic collapsed last week, Cramer published that contradicting his previous attitude towards the future of the bank. Once he praised his colleague David Faber, a financial journalist, for saying that the bank would find it difficult to survive the weekend.

A big praise to my colleagues @davidfaber Republic would find it difficult to survive the weekend when there were massive purchases in the share in the first half hour. What the hell? Other sales outlets said the opposite without real evidence

-Jim Cramer (@jimcramer) . April 2023

A few hours after the FDIC announced the sale of First Republic, Cramer congratulates JPmorgan for their purchase and informed the shareholders of the former that they had nothing more.

It is worth noting that Cramer's controversial attitude towards the future of shares has become the norm, so that investors are now bet on his predictions in a movement with the keyword "Inverse Cramer". The TV personality took similar steps a month before the collapse with SVB. The cryptom market also had its fair share in the controversy of the CNBC moderator.