Cramer's Stop Trading! Senator Dodd's Blown Opportunity (3/15/10)

Mar.16.10 | About: American International (AIG)

Stocks discussed Jim Cramer's Stop Trading! TV Segment, Monday March 15.

While many consider Chairman of the Senate Banking Committee, Chris Dodd's financial reform plan comprehensive, Cramer calls it a "blown opportunity." For one thing, Cramer would go after AIG (NYSE:AIG) and similar companies that expose their collateral falsely; an investigative committee could figure out that AIG's collateral is overstated.

While Cramer is not against insurance for derivatives, he would curb cheap speculation by asking companies to put down more money. "My views aren't radical and are much more in sync with changing the behavior on Wall Street than what Dodd is doing," Cramer said.

AIG is up 5% since Dodd's initial proposals, and Cramer says AIG is short-proof because the government owns such a large stake in it; "The government is being really smart about AIG," he said. "I respect what they are doing. They are trading this one well by not trading it."


Jim Cramer was up 31% in 2009. Click here now to trade alongside him.

Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.