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Apr.07
3:59 PM ET
Tuesday, 7 Apr 2009
Cramer: The Next Generation of “Super-Regional” Banks

On the day after most bank stocks took a beating, on Tuesday’s Stop Trading!, Cramer pointed out a regional bank that has recently become a major player, virtually overnight. And if history repeats itself, Cramer expects that we could see these moves happening again and again.

The bank is First Niagara [FNFG  Loading...      ()   ], which announced Tuesday that it will acquire $4.2 billion in deposits and 57 branches in Pennsylvania from National City Bank, which is owned by PNC Financial Services [PNC  Loading...      ()   ]. With a good balance sheet, First Niagara was in good position to become a “super-regional” bank, and Cramer doesn’t think it’s done. He also sees the possibility for similar moves in other banks like FirstMerit [FMER  Loading...      ()   ] which could potentially be part of a new group of super-regional banks, much like the ones that formed after the S&L crisis in the late 1980’s. 

In other news, Bloomberg reported a new $30.5 billion Australian infrastructure project (the largest infrastructure project in the company’s history) for 3G and wireless connectivity indicates a good future for American companies. Although the Australian company Telestra [TTRAF  Loading...      ()   ] was offered the opportunity to invest in the network, but companies like Cisco stand to profit if they can win orders for internet equipment. Although Cramer thinks Cisco [CSCO  Loading...      ()   ] may not have the best quarter, he wouldn’t write if off yet.

Watch the video to get Cramer’s perspective on Lloyd Blankfein and executive compensation and his full take on the next generation of “super-regional” banks.

Cramer's Charitable Trust owns Cisco

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