Cramer's Stop Trading! Banking on Recovery (5/6/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday May 6.

JP Morgan (JPM), Goldman Sachs (GS), Bank of America (BAC), Citigroup (C), American Express (AXP), Wells Fargo (WFC), Capital One Financial (COF), Bank Bradesco (BBD), Regions Financial (RF), Bank of New York Mellon (BK)

Cramer commented on the bullish results from the bank stress test which put JP Morgan, Goldman Sachs, Regions Financial and Bank of New York Mellon in the clear. Banks needing to raise capital were not in as dire a situation as expected; Bank of America needs $34 billion, Wells Fargo, $15 billion and Citigroup, $5 billion. Cramer added Morgan Stanley's and American Express' better-than-expected capital situation bodes well for Capital One Financial. He also observed the pressure to merge is not so great.

The fact that Brazil's largest bank, Bank Bradesco, was left out of the rally is puzzling, and Cramer thinks the bank has upside potential, particularly as the Brazilian economy is growing at a 30% annual rate.

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Comments

[AndrewBaker:]

"Stop trading" is right if you're thinking of buying bank stocks, but if you hold 'em, trade 'em out now whilst you can still get a good price!

May 07 11:26 AM

[twitee:]

Anyone buying stocks based on Cramer's recommendation must be a fool.

Financial stocks may be a good quick trades based on the coercion and corruption created by the FED and the Puppet Geithner, enjoy it while it lasts.

The existing financial system has to be overhauled and they are insolvent. Refer to my previous comments regarding outstanding CDS.

May 07 12:48 PM

[FloridaBoy2:]

"The fact that Brazil's largest bank, Bank Bradesco, was left out of the rally is puzzling, and Cramer thinks the bank has upside potential, particularly as the Brazilian economy is growing at a 30% annual rate. "

He does have subscription service and I doubt he spills all the beans on Mad Money.

The financial system will be overhauled and there will be money to be made just like the S & L 'crisis' 20 years ago.

May 10 11:38 AM