Jim Cramer Admits: "I Screwed Up" In Recommending Wachovia Stock Two Weeks Ago Because I Liked The CEO

Jim Cramer apologized Monday on "Mad Money" for recommending that his viewers buy Wachovia stock just two weeks ago, a recommendation he acknowledged was spurred by the appearance of his longtime friend and former boss, Wachovia CEO Bob Steel, on his program.

WATCH: Cramer And Steel Talk About Financial Crises

On September 15, Cramer had Steel on the show and later advised viewers to buy Wachovia stock. Watch:

Monday, Cramer said he "screwed up" because he "wasn't skeptical enough," admitting, "I let my judgment of Steel cloud my thinking about Wachovia." Watch (full comments below):

I let you down, cause I wasn't skeptical enough. I have to presume when it comes to banking right now there is no objective truth, just negative, just terrible things. I let my judgment of Steel cloud my thinking about Wachovia. Is he to blame? Did he take advantage of me? Perhaps yes. But ultimately I must be a firewall for you and this time I let the firewall down.

Here's the bottom line: if we had a plan, Wachovia might've been able to split into a good bank and a bad bank and be saved. Wachovia was overtaken by events. Still, I have no choice: I gotta put my friend Bob Steel on the Wall of Shame. You know what? I should put myself in the annex. I didn't protect you good, I didn't protect you better. I screwed up, I apologize.

Andrew Ross Sorkin referenceed Cramer's recommendation in a New York Times article Tuesday morning headlined, "What Goes Before A Fall? On Wall Street, Reassurance." Here's an excerpt:

It didn't help that Mr. Cramer later told his TV audience to buy Wachovia, calling it one of only a few potential "winners" in the $700 billion bailout being proposed, and said that Mr. Steel's background as the former Treasury under secretary meant he had "a better handle on how this process works than anyone else."

On Mr. Cramer's show Monday night, he spent an entire segment apologizing to his viewers about having Mr. Steel on the program and for his own bullish call on Wachovia's stock. "I screwed up," he said, referring at one point to Mr. Steel as a friend for 25 years. "I believed in the guy. Did he take advantage of me? Perhaps yes."

A spokeswoman for Mr. Steel defended his appearance, saying, "The environment we were operating in dramatically changed" between then and now. She added, "If you look at his comments, he tempered them by saying 'We always do what's right for shareholders.' "In fairness, she's right about that. Mr. Steel said on the same program that, "We're a public company. So we're going to do what's right for shareholders, I can promise you that." And at times, he seemed to show some self-restraint, resisting talking directly about Wachovia, instead spending much of the program talking in generalities about the troubles in the market.

WATCH: Cramer And Steel Talk About Financial Crises

Comments

[sueno]

This guy has been giving bad advice for years-
Its funny watching him now as he worms around with that "shocked" look on his face.
Wasn't he a de-regulator ???

[IDIOTA]

I never trusted Jim Cramer. My spider senses told me that he is a liar. His speech is filled with deception. Cramer's rectitude is never questioned because of his, uh, bubbly personality which foams over and masks his flaws. He's a smart guy, but he's also a loud dissembler.

[NoToGOP08]

What does it say about CNBC that he still has a job?

[ljc]

Isn't this bailout bill being added to something else? If that is true, McCain has to vote no because that would make the bill an EARMARK! If not, he still has to vote no because there is an earmark in the bill for Alaska. It has something to do with the Exxon Valdez settlement saying that whatever money goes to the people cannot be taxed as income.

[ljc]

This is the same fool who recommended Bear Sterns 3 days before it tanked. He doesn't even trade in the market.

[satyriasis]

At least he's admitting to his mistake unlike the criminal war profiteers in congress. (Democrat and Rethuglican alike)

[dejtemper]

He screwed up on Bear Stearns too. He needs to get off the air.

[MadeinAmericaProud]

it is the people who listen to and take action on cramer's comments are the screw ups.

why would this man be on TV saying buy unless he has a hidden agenda?
Do you really think because he loves everybody soooooooooo much he just want to share the good news?????. Now all he can say is woops.

[truthynesslover]

Crack addicts dont give sound financial advice.

[Tom95134]

I don't know why anybody would believe this clown. He's just like Bush, "All hat and no cattle."

[ErnestineBass]

All mouth, no morals.

[PKSSK]

Finally, the guy's big mouth and misguided info he spews comes back to bite him. He is nothing but a corporate tool who favors the rich and misleads those he tries to appeal to, the middle class. Erin Burnett seems to be the only one on CNBC who tries to play the game with integrity, while having to meet the goals of her corporate owners, GE.

[dansup]

exactly.
CNBC is just a shill for GE Capital, which is really gonna take it in the shorts before this all plays out. Quit watching CNBC and their doom and gloom - it is not objective journalism, just wild speculation at best, and it has it's own interests to serve, not yours.

[LeeCalif]

Ge, ah, yes. Hello, Mr.Buffet.

[HallStyle]

F U C K The Bail OUT!

[ratcityreprobate]

How can a loose screw be screwed up?

[ggirl00]

His show is too over the top for me to take him seriously as a financial advisor. He's like a raving lunatic on there ... I actually thought I was on Comedy Central the first time I saw it.

[MadeinAmericaProud]

you are correct, he is a joke. watching him more than once means you way too much time on your hands.

[gcallaghan]

Never buy stock recommended by a raving lunatic - you may not get rich that way, nor will you lose all you own.

[dadw5boys]

PUT YOURSELF IN A CAVE AND CALL ME SOMETIME !