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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