The idea of a bank stress test is moot now, Cramer said during Thursday’s Stop Trading!, thanks to great news from Wells Fargo. The return of healthy banks should eliminate the need for government rescue, as these stronger firms will swallow up their weaker competitors.
Wells Fargo announced this morning that first-quarter earnings would reach a record $3 billion, or 55 cents a share. CFO Howard Atkins told CNBC the gains were due largely to the bank’s purchase of Wachovia in late 2008. Another good sign: Wells Fargo loaned $100 billion in mortgages this past quarter, and has another $100 billion backlog, both signaling a rebound in housing. The CFO also said the bank is hoping to pay back Troubled Assets Relief Program money as soon as possible.