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

[helen]

Kramer is financially-challenged... Take his advice and bury it... That's the safest thing to do.

[plooger]

Can't wait to see the class action suit against Cramer and CNBC.

[HoosierRadical]

This guy is constantly on t.v. trying to convince everyone that the 700 bailout is "actually" good for main street. People are not stupid. I hope this thing never passes. If we have to go through an depression so be it, our grandparents survived, we can too.

[hypnotoad72]

Speak for yourself.

[MadeinAmericaProud]

What do you mean by "we"? I was forced to put my saving into a 401K. The money I put in I want to get as much as I can back. the bailout is good for everyone, to include the seniors. The less jobs paying into sec sec. will cause the government to cut soc sec.

The republicans party think tanks plan this years ago. These people spent millions of taxpayers money investigating the Clintons for years and millions on the impeachment.
We will never get that money back. The republicans lawyers placed on those special counsels made millions.

American have such an extreme attention span on the most asinine crap. When the elected official lead the people off the cliff, at the bottom of cliff thrown under the bus and the bus pull off and rollover everyone.

The sad part, thousand of people think Sarah Palin has more talent than those other women McCain over looked in his own party for a woman who daughter that has been banging her @@@ off until she got caught. If Obama's daughters were in that situation the polls numbers who 100 to 1. no need for plus or minus.

[bandolier]

He's apologized before for his missed calls. So what. Why are we still subjected to him? I just watched them all gush over him on Morning Joe like he was the oracle of finance. He's a loud mouth goon unit. Enough of him and his kind. Throw them all under the bus.

It's clowns like this that have gotten us where we are now.

[Happylib]

At least he is taking responsibility for his mistake. This action is too rare in this country today. I like him and admire his ability to admit he was wrong. Very human and we should all practice it.

[ccpostman]

Only after someone called him on it.

[KCFreedom]

Who is this little screaming man, and why does he have a TV show?

Worse, who watches that show?

[Mother77]

Answer: People who don't think for themselves.

[filo]

I CAN'T WATCH HIS SHOW BECAUSE MY EARS HURT FROM ALL HIS YELLING !!!

On the other hand I like Suzie because she is talking to the reality of any given situation without any YELLING!!!

[CNBCSucks]

Anybody who watches CNBC with the sound on and full attention for more than 10 minutes at a time ever should have his or head examined. This is what I wrote about Mad Money and Jim Cramer back in July:

http://cnbcsucks.wordpress.com/2008/07/04/mad-money-has-the-content-quality-of-a-chia-pet-commercial/

[scorpio69er]

Kramer is but a TV personality. Anyone who might base their financial decisions on him deserves to get burned. However, at least he acknowledged his mistake and apologized. How vastly different from our slimy government officials! I mean, could you imagine ANY politician saying, "I let you down, cause I wasn't skeptical enough." about any vote they may have cast or policy they supported???

[truthkilz]

If you had any measure of intuitive skill you would have realized in five minutes this guy was not to be believed. His overbearing persona, universe-spanning ego, and nonsensical props make his show a circus, not a serious financial educational exercise. That he has been allowed to carry on for as long as he has indicates how naive people have been about their prospects to get rich via the market. And now an apology? Why not send checks compensating those whose assets took a dive from this recommendation, Cramer?

[Lorifromky]

Play the #1 horse in the 6th at Belmont. Its the same thing as investing your money in the stock market, except horse racing is more regulated.

[ccpostman]

Or listening to Psycho Yeller!

He got rich doing the same thing all the other crooks did. Hedge funds!

http://en.wikipedia.org/wiki/Jim_Cramer

[themodernleader]

You can not be a truth teller and expect to go anywhere connected to Wall Street.

[apoyo]

How can someone who has to shout be credible?

It's a gimmick to cover up what he doesn't know.

[fumerunner]

Yeah, I watch the market somewhat closely---along with Cramer's picks--and juxtapose the two of them. And amazingly, he is wrong over two-thirds of the time. But I never touch anything he talks about---good or bad---since stocks talked about by Cramer react like someone who's bipolar and going through menopause.
--
But the thing that really disturbs me is the absolute bile spouted by people on financial message boards (not the legitimate ones, but the free-for-all YAH00, Raging Bull boards). No matter where you look it's nothing but borderline illegal comments, a lot of anti-Semetic. I understand people's panic and anger over losing money in the market, but if Cramer played a part in your decision-making process then blame can be found in the mirror.
--
I have to hand it to Cramer...I don't know how you he does what he does and not have a heart attack or nervous breakdown. I can't even begin to imagine what levels of security have to be in place for him. Which is sad because no one deserves to be brutally dogged the way he is.
---

[andban]

People like this should not be on television convincing people he knows hat he's talking about. This is not the first time this guy has been wrong

[norkas]

Cramer is full of chit in my opinion. The housing bust was well known to almost every person i know. It did not take someone smart to figure out that no money down loans and 10% down loans would blow the market up.

Phoney apprisals were rampant and every knew the bankers were writting paper that was garbage. Ceos placed pressur eon loan officers to write this papper or loose there jobs.

Cramer new all of this and nver said anything untill it was to late in fact he wanted more loose rectrictions to purchase homes when it was already in the dumps.

Cramer can yell scream go nuts and all of his b.s but Cramer is no Dummie and new all of this chit housing was going to blow up just like almost everyone i spoke to over the last 3 years.

Cramer please tell us that you new this was going to happen but you did not want to upset the applecart.

[Bobleblah1]

How many lies can someone tell before others realize that they dont have your interest at heart?

How many financial sector lies can you tell before people understand that its not about
you "messing up". Its about you lying to help that sector steal people's money?

Wake up people!!!!!!!!!!!!!!!!!!!!!!!!

http://www.infowars.com/