Enter multiple symbols separated by commas

Massive bank fine bargain for investors: Cramer

(Click for video linked to a searchable transcript of this Mad Money segment)

Cramer thinks one of the largest fines ever levied against a bank could send shares soaring. Huh?

JPMorgan Chase is in talks with government officials to settle federal and state mortgage probes for $11 billion – a massive amount of money and one of the largest fines ever levied against a financial institution.

Cramer couldn't be happier for shareholders!

That's right – the Mad Money host thinks it's good news – in fact very good news.

Here's why.

If the settlement is structured strategically, it could return JPM to normalized earnings. That, Cramer says, is a big deal for shareholders.

Money bags
Lise Gagne | E+ | Getty Images

It means "We could then build an earnings model for the bank. And if we can build a model, we might be able to find out what JP Morgan's worth on an earnings basis. Currently we don't know what this bank can earn."

On top of that, Cramer said a settlement has another very positive effect – it removes the government from the equation, significantly.

Therefore it's reasonable to think, "A deal could free JP Morgan to buy back a ton of stock and boost the dividend tremendously. What could that be worth? How about a ten multiple, adding almost ten points to the stock," Cramer said.

And Cramer believes there are other bullish catalysts for JPMorgan.

Read More from Mad Money with Jim Cramer
Can you Washington-proof a portfolio?
These stocks (almost) buys, says Cramer
Software stock grabs Cramer's attention

"JP Morgan does better in a higher interest rate environment, one where the ten-year treasury goes to 4%,. That would add $4 billion to the bank's bottom line, making the company even more valuable," he said.

On top of all that, Cramer thinks that a settlement would make it all the more likely that CEO Jamie Dimon stays in the corner office. That too adds value.

Sure an $11 billion settlement is enormous, but Cramer said that should not spook shareholders. "If a settlement leads to certainty, that certainly should lead to a higher stock price. Therefore, I'm convinced $11 billion in fines is a real bargain," Cramer said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Cramer's New Book