CNBC’s Jim Cramer on Tuesday questioned some of the Trump administration’s corporate regulatory choices and offered some of his own ideas.
“So far, this administration is endless big stick, small carrot,” he said. “It has stifled the bulls.”
Cramer suggested that the market is “buoyed” by earnings results from six major banks, JPMorgan, Morgan Stanley, Goldman Sachs, Bank of America, Citigroup and Wells Fargo. He said all the financial outfits managed to post solid results even though there have been few IPOs, mergers and acquisitions.
According to Cramer, some on Wall Street believed President Donald Trump would facilitate deregulation and create a boon for the big banks, ushering in a wave of new IPOs and deals. But that hasn’t happened, he said, suggesting the market is too pessimistic to sustain companies looking to go public. He wondered why regulators won’t approve Capital One‘s purchase of Discover Financial, even as the Department of Justice said it wouldn’t block the deal. Cramer also pointed out that the Trump administration hasn’t worked to remove an asset cap on Wells Fargo.
He questioned why the White House hasn’t rolled back restrictions on artificial intelligence chip exports put in place by the Biden administration. According to Cramer, the rules are arbitrary and “needless red tape.” The regulations, enacted in the last days of former President Joe Biden’s term, limit many countries’ access to U.S. chips. According to officials, the rules were intended to protect the U.S.’s AI technology, but Big Tech leaders like Nvidia have pushed back, saying the restrictions stymie economic growth.
“Not one of my ideas costs a fortune. As a matter of fact, they’re all as free-market as it gets,” Cramer said. “I never thought I’d say this to a Republican government, but, hey, why don’t you guys try a little capitalism here?”
The White House did not immediately respond to request for comment.
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