CNBC's Jim Cramer eviscerated for touting Silicon Valley Bank weeks before disastrous collapse
Cramer touted SVB in February, saying 'Wall Street has been mistakenly concerned about' it
{{#rendered}} {{/rendered}}CNBC’s "Mad Money" host Jim Cramer is being shredded across social media after footage resurfaced of him urging viewers in February to invest in Silicon Valley Bank (SVB), which collapsed on Friday.
SVB had been the 16th largest bank in the United States and was connected to a number of Silicon Valley industries and startups. The closure of the bank was announced by the Federal Deposit Insurance Corporation (FDIC), making it the worst U.S. financial institution failure in nearly 15 years.
Upon the news of SVB's collapse, a clip went viral of Cramer in February speaking positively about the bank in a list of "The Biggest Winners of 2023… So Far."
{{#rendered}} {{/rendered}}"The ninth-best performer here today is SVB financial. Don’t yawn," he told his viewers on Feb. 8. "This company is a merchant bank with a deposit base that Wall Street has been mistakenly concerned about!"
CNBC's Jim Cramer of "Mad Money" talking about Silicon Valley Bank.
SILICON VALLEY BANK SHUT DOWN BY REGULATORS
He suggested in the same clip that while the stock’s recovery, a 40% rally at the time, from last year may have been lackluster, "It is a good example why these bounce back moves might be far from over. These stocks still have more room to run, especially if you think they were driven down to artificially low levels."
{{#rendered}} {{/rendered}}Commentators across Twitter blasted Cramer for his ill-fated financial advice.
One financial account tweeted the video, commenting, "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."
Jim Cramer visits the New York Stock Exchange opening bell at New York Stock Exchange on August 3, 2016 in New York City. (Photo by Noam Galai/Getty Images)
SILVERGATE CAPITAL WINDING DOWN BUSINESS; WILL VOLUNTARILY LIQUIDATE
{{#rendered}} {{/rendered}}"Jim Cramer was advising people to invest in SIVB just one month ago. It was quite possibly the worst possible investment," commentator David "JoelKatz" Schwartz tweeted.
"Yet another one of Jim Cramer’s hot stock market takes just fell harder than Joe Biden stumbling up the steps of Air Force One," NewsBusters wrote.
After entrepreneur Patrick Bet-David tweeted, "Drop Jim Cramer," tech journalist Doriano "Paisano" Carta joked, "Wait. You can make a killing with Jim Cramer as long as you always do the opposite of whatever he advises to do. You can't find a more sure thing today!"
{{#rendered}} {{/rendered}}In this photo provided by the New York Stock Exchange, traders work on the floor, Tuesday, Feb. 9, 2021. (Courtney Crow/New York Stock Exchange via AP)
Writer Jordan Schachtel shared the clip and a series of quotes, "Jim Cramer last month on Silicon Valley Bank: ‘Fears not justified’ ‘Stock is still cheap’ at $320 ‘Oversold position’ Considered stock price at ‘artificially low levels’ Rugged."
Fox Business' Andrea Vacchiano contributed to this report.