Benzinga - With rumors adrift that more regional banks are grappling with a liquidity crisis, stocks of these banks have taken a big hit in recent sessions.
What Happened: Against this backdrop, Jim Cramer spelled out his intention to help with a fix. Directing a question at the Federal Deposit Insurance Corporation, the CNBC host asked whether the federal agency has a plan for this weekend. “Or do we just call Jamie again,” he said.
For the unversed, First Republic Bank collapsed earlier this week and it was placed under receivership before its assets and deposits were sold to Jamie Dimon-run JPMorgan Chase & Co. (NYSE: JPM). More trouble followed this week after Los Angeles, California-based PacWest Bancorp. (NASDAQ: PACW) confirmed reports that said the bank is exploring strategic options.
On Thursday, First Horizon Corp. (NYSE: FHN) shares came under intense selling pressure after a previously announced takeover deal with TD Bank Group (NYSE: TD) was terminated.
Cramer Slams FDIC: If the FDIC were not clueless and knew nothing, they could “create a short squeeze of a lifetime,” Cramer said.
“But they are playing Ivy League and the short sellers are playing SEC,” the stock picker said.
“Will they step up, or are they pitiful[ly] walk-ons? I will propose a plan on tonight’s @MadMoneyOnCNBC.”
Meanwhile, regional banks were staging a rebound in premarket on Friday after Bloomberg reported that the FDIC may not require smaller banks to contribute toward replenishing its Deposit Insurance Fund.
The Invesco KBW Bank ETF (NASDAQ: KBWB), an exchange-traded fund that offers exposure to regional banks, rose 1.49% to $37.55, according to Benzinga Pro data.
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