Jim Cramer's Wall Street Confidential, 12/20/07: The CEO Must Go

Recap of Jim Cramer’s comments on Wall Street Confidential, Thursday December 20. Click on a stock ticker for more analysis:

Bear Stearns (BSC), Merrill Lynch (MER), Lehman Brothers (LEH), Morgan Stanley (MS)

Since Cramer considers himself as "an outsider with a TV show," he feels he can afford to be frank about what is going on, and Cramer reports executives at Bear Stearns, Merrill Lynch and Morgan Stanley are telling him their CEOs should go.

"John Mack, the CEO of Morgan Stanley, is presiding over what is the great implosion of that firm," he said. "We know he came in after [Philip] Purcell and he was a much revered guy. Well it turns out his reverence was misplaced. He fired Zoe Cruz, who had been there for a long time." While not everyone liked Cruz, Cramer said she was at least doing a decent job.

On The Street, the rule is that "the boss goes" and this includes Bear Stearns chief Jimmy Cayne, whom Cramer has known a long time, but who shouldn't be running Bear Stearns, Cramer said. He added that although LEH didn't do as badly as expected, CEO Dick Fuld is being paid as if the company is rolling in cash.

"All I'm saying is I've never seen this before, and I have a feeling that we're going to see some changes at these firms that Mack and Cayne don't see coming," Cramer said

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Comments

[jimmy Turano:]

I disagree with the statement that Jim Cramer has
used to make a slight self made feather for his cap
by listening to disgruntled employees which are about a handful, at Morgan Stanley, to deduct and
capitalize on, so that he has publicity. John Mack knows what he is doing, and within 25 days to 30 days I guarantee you this stock takes off big time.
When it does, Cramer will once again have egg on his face. All this signals to me from watching Cramer is that short term the stock pops followed by shorting to make a further profit, if your a cramer follower. Let me be frank, Mid January the financials' take off period.

2007 Dec 21 07:38 AM

[oth:]

Cramer is an idiot with a TV show. Great Idea to bail CEOs after they make a mess of a company - and in these cases the whole country! It's sure going to make them think twice after they pocket their big "Golden Parachutes". "Oh no! what did I do? Cramer just fired me! Bouhou!"

2007 Dec 21 08:11 PM