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Cramer likes Goldman's upgrade of Bank of America

CNBC's Jim Cramer on Monday praised Goldman Sachs for throwing Bank of America an upgrade, agreeing with its assessment that the financial institution can finally focus on its core businesses after settling a myriad of legal issues.

"Putting this stuff past them allows [CEO] Brian Moynihan to spend all of this time being a banker," Cramer said on "Squawk on the Street."

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"From the people I know who are involved in these settlements, the CEOs, no matter what they do, are sidetracked by the lawyers," he said. "So to actually go and be a banker means Bank of America, I think, is actually going to have a run here."

Goldman Sachs upgraded BofA shares to "buy" from "neutral," saying investors will begin to focus on operational improvements as legal issues recede into the background. (Click here for the latest quote.)

"This is a very good upgrade," Cramer said.

—By CNBC's Drew Sandholm.

DISCLOSURE: When this story was published, Cramer's charitable trust owned Bank of America and Goldman Sachs.