Nothing

April

<p>Jim Cramer, the host of CNBC&#8217;s Mad Money, has once again missed the mark with another one of his predictions for the stock and equity markets.</p>
<p>Less than two months after calling the embattled First Republic Bank a &#8220;very good bank,&#8221; the TV personality has turned around to tell the company&#8217;s shareholders that there is nothing for them as US authorities have taken it into receivership.</p>
<h2 id="a-8220-very-good-bank-8221-turned-sour">A &#8220;Very Good Bank&#8221; Turned Sour</h2>
<p>First Republic Bank was <a href="https://cryptopotato.com/jpmorgan-to-acquire-first-republic-bank-after-californian-financial-regulators-seizure/" data-wpel-link="internal">taken </a>over by the Federal Deposit Insurance Corp. (FDIC) and the California Department of Financial Protection and Innovation on Monday after a week full of financial issues.</p>
<p>The bank&#8217;s troubles started in March when Silicon Valley Bank (SVB) had significant outflows. On March 10, when US authorities shut down SVB. Cramer tweeted that First Republic was the new focus, commending the bank.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">FRC is new focus&#8230; very good bank</p>
<p>— Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1634197816359747585?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank">March 10, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>On the contrary, the financial institution had severe liquidity issues, forcing it to reduce its borrowings and suspend dividend payments to stockholders.</p>
<p>Within the following week, 11 major US banks had to come together to <a href="https://cryptopotato.com/big-banks-help-stabilize-first-republic-with-30-billion-cash-injection/" data-wpel-link="internal">infuse</a> $30 billion in cash into First Republic to curb the impending banking crisis. Unfortunately, the company&#8217;s woes <a href="https://cryptopotato.com/deepening-crisis-at-first-republic-prompts-urgent-rescue-talks-what-does-it-mean-for-bitcoin/" data-wpel-link="internal">worsened</a> as depositors withdrew more than $100 billion by the end of the last quarter.</p>
<p>US authorities stepped in over the weekend to protect depositors and worked out a purchase agreement with JPMorgan Chase Bank. First Republic&#8217;s stock has fallen from levels above $200 to $2.98. When writing, the stock was trading at $3.51, a 71% decline from its price a week ago.</p>
<h2 id="inverse-cramer-strikes-again">Inverse Cramer Strikes Again</h2>
<p>While First Republic&#8217;s shares tumbled last week, Cramer released statements that contradicted his previous stance on the bank&#8217;s future. On one occasion, he praised his colleague David Faber, a financial journalist, for saying that the bank would have a hard time surviving the weekend.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Kudos to my colleague <a href="https://twitter.com/davidfaber?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank">@davidfaber</a> for saying that First Republic would have a hard time surviving the weekend when there was massive buying in the stock in the first half hour of trading. What the heck? Other outlets were saying the opposite with no real evidence</p>
<p>— Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1652118622259621889?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank">April 29, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>A few hours after the FDIC announced the sale of First Republic, Cramer <a href="https://twitter.com/jimcramer/status/1652960254072705024?s=20" data-wpel-link="external" target="_blank">congratulated</a> JPMorgan for their purchase and told the former&#8217;s shareholders that they had nothing left.</p>
<p>It is worth noting that Cramer&#8217;s controversial stance on the future of stocks has become a norm such that investors now bet against his predictions in a movement tagged &#8220;Inverse Cramer.&#8221; The TV personality made <a href="https://cryptopotato.com/jim-cramer-advised-people-to-buy-silicon-valley-bank-stock-a-month-before-its-collapse/" data-wpel-link="internal">similar moves</a> with SVB a month before its collapse. The crypto market has also had its fair share of the CNBC host&#8217;s controversy.</p>
<p>The post <a href="https://cryptopotato.com/from-very-good-bank-to-got-nothing-for-shareholders-jim-cramers-dubious-advice-for-first-republic/" rel="nofollow">From &#8216;Very Good Bank&#8217; to &#8216;Got Nothing for Shareholders:&#8217; Jim Cramer&#8217;s Dubious Advice for First Republic</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.</p>

From ‘Very Good Bank’ to ‘Got Nothing for Shareholders:’ Jim Cramer’s Dubious Advice for First Republic

Table of Contents

CryptoPotato_News

Other articles published on May 2, 2023

DCG Linked Crypto Exchange Luno Loses Top Global Executive

Poloniex Pays $7.6 Million Fine for Alleged Sanctions Violation

Major takedown: 288 dark web vendors arrested, $55M in crypto and cash seized

Samsung bans ChatGPT, will other companies follow suit?

Poloniex Settles With US Authorities, Pays $7.6M Fee To OFAC

3 DOMINANT Altcoins for Crypto’s Next Bull Run

Join our free newsletter for daily crypto updates!