Friday, March 13, 2009

Former GOP Rep. wants Cramer 'looked at' for market manipulation

Jon Stewart's blasts at the misleading advice offered over the last year by financial network CNBC have been a comedy staple on The Daily Show for over a week. But not everybody is laughing -- and now one former congressman is suggesting that CNBC's Jim Cramer should be investigated for possible stock market manipulation when he was the manager of a large hedge fund.

"I think he's become a poster child for why hedge funds need more regulation and transparency," former Virginia Representative Tom Davis told CNN on Thursday.Davis's remarks were sparked by a video from 2006, which has now gone viral, in which Mad Money host Cramer explained on his own website how he could influence stock prices a hedge fund manager.

"You take a bunch of stocks and make sure that they're higher," Cramer suggests in the video. "Maybe commit five billion in capital to it. ... No one else in the world would ever admit that, but I don't care."When asked, "Is any of this illegal?" Davis replied, "It wasn't, but it should be."

"He may well have crossed the line," Davis continued. "I think that's something somebody ought to be looking at. I think the tragedy is, over the last few years, nobody's been looking at this at all"

Read on.

1 comment:

airJackie said...

Cramer is just a man trying to make a buck and if using his job to do so be it. Most of these so called analysis are paid anyway to push and agenda for one group or another. Now TV Stations are paid to allow it. GE is losing in the Stock Market and this is one way of getting some quick cash. All people have to do is go on the White House website or Tim Geithner/Peter Orszag's websites for the truth. But Americans don't read much and rather have someone tell them. It's worked for 8 years as everyone believed what Bush said when he told us the US doesn't torture. Oops we do torture.