GO
Loading...

Cramer: Stress Test Results 'Surprised' Street

The Treasury Department’s “stress tests” showed that many banks were in a much better position than Wall Street had anticipated, reports said on Wednesday. Even companies that did need capital apparently required far less than expected. As a result, financial stocks shot higher.

“I think that the Street is actually very surprised to the positive,” Cramer said during Wednesday’s Stop Trading!.

JPMorgan Chase , Goldman Sachs , American Express , Regions Financial and Bank of New York Mellon needed no new capital, according to test results. However, Bank of America needs $34 billion, Wells Fargo $15 billion and Citigroup possibly $5 billion. These three stocks were up regardless during Wednesday trading.

Cramer pointed to “on the bubble names” like Morgan Stanley and American Express and their better-than-expected capital needs as a sign that Capital One might survive this credit crisis. He also said that the “merge or die” ultimatum facing many banks seems to have faded.

Given the move in these bank stocks, Cramer said he was surprised by the lack of movement in Banco Bradesco . He thinks “the best bank in Brazil” should be doing better considering the country’s growth is in the 30% range.

Cramer's charitable trust owns JPMorgan Chase, Goldman Sachs, Morgan Stanley and Wells Fargo.

Call Cramer: 1-800-743-CBNC

Questions for Cramer? madmoney@cnbc.com

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

Symbol
Price
 
Change
%Change
ALXN
---
BAC
---
BBDC'
---
BK
---
C
---
COF
---
GS
---
JPM MLP ETN
---
MS
---
RF
---
WFC
---

Featured

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Cramer's New Book