Cramer Joins Elizabeth Warren's Crusade Against Weak Bank Oversight: 'She's Right About Shaming Examiners!'

CNBC "Mad Money" host Jim Cramer agreed with Senator Elizabeth Warren's (D-Mass) criticism of banking regulations.

What Happened: On Monday, Warren tweeted that bank executives "begged for weaker oversight rules" and "reaped what they sowed." 

In response, Cramer said, "she’s right, and she’s right about shaming the examiners!"

Warren also expressed her desire to protect working people from further bank failures by re-implementing strong protections. In a tweet on Friday, she spoke about her goal to bring banking back to its primary function of accepting deposits and lending money, stating, "that is boring." 

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She highlighted her bipartisan bill that seeks regulatory action against erring executives. "Hey, if you load this bank up on risk and the bank explodes, you’re going to lose that fancy bonus, you’re going to lose that big salary, you’re going to lose those stock options," she said.

Warren criticized banking regulators for not doing enough and called on Congress to implement safeguards. "We permitted the regulators to take their eyes off the ball. Banking is a regulated industry for a reason because of its impact on the rest of the economy," she said.

Why It Matters: The risk assumed by banks investing in long-dated Treasuries has resulted in book losses in a rising rate environment, triggering the collapses of Silicon Valley Bank and Signature Bank, with panicked depositors causing bank runs. The Treasury and the Federal Reserve stepped in to backstop the deposits of these banks, averting contagion and bringing calm to the markets.

Read Next: Bill Ackman Says Government Response To SVB Collapse Not Bailout: 'People Who Screwed Up Will Bear The Consequences'

This illustration was generated using artificial intelligence via MidJourney.