Former Congressman Calls for Investigation of CNBC's Jim Cramer

Jim Cramer just keeps paying the price for his heresy. Ever since his March 3 remarks calling Obama's policies "greatest wealth destruction I've seen by a president," the CNBC "Mad Money" host has been under attack. First it was the back-and-forth with the White House, then he was skewered by comedian Jon Stewart. Now CNN and a former high-ranking public official have targeted him.

Cramer, who is set to appear on Comedy Central's "Daily Show" on March 12, was featured in a segment of that day's CNN "American Morning" reporting on a video he did for TheStreet.com in 2006, in which he explained how the hedge fund he once managed would manipulate stock prices.

"You know, a lot of times when I was short and I was positioned short, meaning I needed it down, I would create a level of activity beforehand that could drive the futures," Cramer said in the three year-old video. "Similarly, or if I were long, and I would want to make things a little bit rosy, I would go in and take a bunch of stocks and make sure that they're higher and maybe commit five million in capital to it and I could affect it."

CNN reporter Jim Acosta reflected on limited regulation of hedge fund's and how they attracted "wealthy investors." He then turned to former Rep. Tom Davis, R-Va., once chairman of the House Government Reform Committee, who said Cramer's the reason hedge funds should be considered for more regulation.

"I think he's become a poster child for why hedge funds need more regulation and transparency," Davis said. 

When asked if what Cramer said was illegal, Davis admitted that it was not, but "should be. He may well have crossed the line."

Davis suggested the powers that be "ought to be looking at" Cramer's confessed manipulation from 2006.  "I think the tragedy is over the last few years nobody's been looking at this at all."