CIT Tanks Day After Jim Cramer Calls It a Buy

It was just yesterday that Jim Cramer, host of "Mad Money" on CNBC and frequent contributor to the's network of sites, wrote an article titled "Citi and CIT Are Primed for Upside".

The article, which was posted at 1:54 pm EDT, had this to say about both Citi and CIT - "I would buy them both".

Cramer's recommendation, along with a report that John Paulson (who owns CIT debt) was thinking of merging CIT with IndyMac Federal Bank, helped to send the stock over 30% higher in Tuesday's session.

Cramer's recommendation to buy CIT ended up bringing back memories of his infamous Bear Stearns call, as CIT is down over 34% in today's session (just one day after Cramer flashed the buy signal).

The stock ended up tanking in afterhours trading after another report surfaced saying that "CIT is preparing a debt swap offer that could wipe out taxpayers' investment or could file for bankruptcy."

Another case of really, really bad timing for Jim Cramer.

The unfortunate thing is that legions of Cramer followers likely bought this stock on his advice yesterday, only to wake up to a 33% haircut.

Cramer's legendary Bear Stearns call:

Source: CIT Quote Page