Jim Cramer Urged Investors to Buy Silicon Valley Bank Stock One Month Before Regulators Shut it Down (VIDEO)

CNBC’s Jim Cramer urged investors to buy Silicon Valley Bank stock $SIVB last month, saying it was “cheap” and has “room to run” – SVB on Friday was shut down by regulators in the biggest bank failure since the 2008 liquidity crisis.

Silicon Valley Bank reportedly holds $173 billion in deposits.

The Fed interest rate is at 4.57% and $117 billion of Silicon Valley Bank securities are yielding only 1.56-1.66% – this is causing a run on the bank.

California regulators shut down the bank and the FDIC took over.

Enter CNBC’s Jim Cramer…

Last month Cramer urged investors to buy Silicon Valley Bank stock.

A few weeks later the bank was shut down.

WATCH:

This isn’t the first time Cramer led investors off a cliff.

Jim Cramer enthusiastically encouraged investors to keep their money in Bear Stearns shortly before two of its highly leveraged hedge funds collapsed and it needed to be bailed out during the 2008 liquidity crisis.

“Bear Stearns is fine! Do not take your money out!” Cramer shouted on his “Mad Money” show on March 11, 2008. “Bear Stearns is not in trouble!”

Less than a week later Bear was bailed out for $2 per share.

WATCH:

Photo of author
Cristina began writing for The Gateway Pundit in 2016 and she is now the Associate Editor.

You can email Cristina Laila here, and read more of Cristina Laila's articles here.

 

Thanks for sharing!