Cramer's Stop Trading! Senator Blanche Lincoln's 'Killer' Reform (5/17/10)

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Includes: JPM, NAT
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday May 17.

JP Morgan (NYSE:JPM), Nordic American (NYSE:NAT)

Cramer thinks Senator Blanche Lincoln's banking reform could be a "killer" that will give foreign banks located in the U.S. an advantage over domestic banks. The proposed reform would eliminate over-the-counter derivatives and interest-rate swaps, products foreign banks would still offer. A customer could literally take his money out of JP Morgan Chase (JPM) across the street and put it into Deutsche Bank.

“This is the ultimate ‘Bailout of the German bank bill’ because there’s no way you would work with some of these banks if you can’t have interest-rate swaps,” Cramer said. The result: American banks would be left to deal only with CDs and "little mortgages."

On a side note, Cramer reiterated his recommendation of Nordic American Tanker (NAT) for its dividend.

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