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There's ‘Good News’ in the BofA Drama

Expect more “selling pressure” in Bank of America, Cramer said Tuesday, on top of that driven by news that the New York Federal Reserve Bank and eight large institutional investment firms were demanding the company repurchase loans included in mortgage securities.

As CNBC.com reported, a law firm on Tuesday sent a notice alleging failures by Countrywide Financial, which was bought by Bank of America in 2008, to properly service loans that were a part of certain mortgage-backed securities. Now the group, which includes Pacific Management Co. (Pimco) and BlackRock , wants BofA to buy back $47 billion worth of mortgage bonds.

But there is some “good news,” as Cramer put it, namely that BofA’s share price has held up relatively well since the reports first hit the wires on Tuesday. The stock closed just 4 percent lower despite the news. And that’s in a very unfriendly environment for the banks overall.

Still, the decline is “ugly,” Cramer admittedly, but so is “everything having to do with the banks” right now.

The “Mad Money” host took issue with the analysts covering Goldman Sachs . They had said the company would have problems with its equities, fixed income, investment banking and mergers-and-acquisitions businesses but turned out to be “completely wrong,” Cramer said. He praised the most recent quarter and said the stock “is going much higher.”

Cramer also gave a thumbs-up to Parker Hannifin’s quarter, saying the company is part of three bull markets right now: in aerospace, heating, ventilation and air conditioning and trucking. This stock, too, is “going higher.”

And lastly, Cramer shrugged off talk of weakness is Apple’s iPad sales. He pointed to the potential the Chinese market could bring, as Apple has four stores in the Middle Kingdom. With 34 Chinese different cities each holding 6 million people, he said, “think there’s room for expansion.”

When this story published, Cramer’s charitable trust owned Apple.

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