Former Congressman Calls for Investigation of CNBC's Jim Cramer
Jim Cramer just keeps paying the price for his heresy. Ever since his March 3 remarks calling Obama’s policies “greatest wealth destruction I’ve seen by a president,” the CNBC “Mad Money” host has been under attack. First it was the back-and-forth with the White House, then he was skewered by comedian Jon Stewart. Now CNN and a former high-ranking public official have targeted him.
Cramer, who is set to appear on Comedy Central’s “Daily Show” on March 12, was featured in a segment of that day’s CNN “American Morning” reporting on a video he did for TheStreet.com in 2006, in which he explained how the hedge fund he once managed would manipulate stock prices.
“You know, a lot of times when I was short and I was positioned short, meaning I needed it down, I would create a level of activity beforehand that could drive the futures,” Cramer said in the three year-old video. “Similarly, or if I were long, and I would want to make things a little bit rosy, I would go in and take a bunch of stocks and make sure that they’re higher and maybe commit five million in capital to it and I could affect it.”
CNN reporter Jim Acosta reflected on limited regulation of hedge fund’s and how they attracted “wealthy investors.” He then turned to former Rep. Tom Davis, R-Va., once chairman of the House Government Reform Committee, who said Cramer’s the reason hedge funds should be considered for more regulation.
“I think he’s become a poster child for why hedge funds need more regulation and transparency,”
When asked if what Cramer said was illegal,
BMI intern Edward Schatz contributed to this article.