Jim Cramer was forced to re-evaluate his ranking of the banking business on Wednesday when Bank of America released its shocking quarterly report.
"It smacked of what I can only call 'normalcy,' meaning all of the one-time hits and worries finally seem to be behind them. What's left is a growth machine that is no longer as dependent on the Fed raising interest rates to generate a big earnings boost. For Bank of America, the Chicago Cubs of banking, it's a whole new ballgame," the "Mad Money" host said.
Cramer has mainly had three concerns with Bank of America over the years. It always appeared to him that it was in trouble with all sorts of governmental agencies, leading to colossal legal fees. Second, these lingering regulatory issues meant that it could not return as much capital to shareholders as other banks. And third, without a rate hike, he didn't think there would be real earnings power because the company was too dependent on higher rates for profits.
The most recent quarter addressed all three concerns.