CNBC’s “Mad Money” host Jim Cramer is facing backlash on social media after footage resurfaced of him recommending viewers invest in Silicon Valley Bank (SVB) in February, shortly before the bank collapsed on Friday. The Federal Deposit Insurance Corporation (FDIC) announced the closure of the 16th largest bank in the United States, which was closely linked to Silicon Valley industries and startups. The collapse marks the worst financial institution failure in the U.S. in almost 15 years.
Who is Jim Cramer? CNBC’s Jim Cramer eviscerated for touting Silicon Valley Bank weeks before disastrous collapse
A viral clip of Cramer praising the bank in a list of “The Biggest Winners of 2023… So Far” circulated after the announcement of SVB’s closure. In the clip from Feb. 8, Cramer encouraged viewers to invest in SVB, saying, “The ninth-best performer here today is SVB financial. Don’t yawn.
This company is a merchant bank with a deposit base that Wall Street has been mistakenly concerned about!” He also suggested that stocks such as SVB still had room to grow, despite a 40% rally at the time.
However, commentators across Twitter criticized Cramer for his poor financial advice, with many highlighting the bank’s subsequent failure as evidence of his error. One financial account tweeted the video, saying, “One month ago, Jim Cramer urged investors to buy Silicon Valley Bank stock $SIVB.
Today, the bank was closed by California regulators, making it the 2nd largest banking failure in US history.” Others took to social media to mock Cramer’s stock market predictions.
This is not the first time Cramer has been criticized for his investment recommendations. In 2008, he famously urged viewers to invest in Bear Stearns just before the bank collapsed, resulting in significant losses for investors.
The recent incident has raised concerns about the impact of financial advice given by television hosts and the responsibility they have to their viewers.
In conclusion, Jim Cramer is facing backlash after recommending viewers invest in Silicon Valley Bank just before its collapse. The incident has raised questions about the accountability of financial experts and the impact of their advice on viewers.