The financial regulation bill that is advancing through Congress won’t hurt the banking industry, and that means bank stocks should rise, says CNBC commentator Jim Cramer.
“I come to praise Washington, not to bury it, a big change for me,” he said on the air. “For once Congress has become the solution, not the problem.”
The banking industry has been under a cloud since Washington bailed out the banks in 2008 and began working on rules for stronger regulation last year.
“The specter of financial regulation has been frightening investors out of these stocks left and right,” Cramer pointed out. These fears only became worse after the Securities and Exchange Commission charged Goldman Sachs with fraud.
But now that Cramer has seen what Congress intends, he says worries about the financial regulation bill are overblown.
While it isn’t perfect, the bill isn’t malignant either, he maintains.
“I think that when we see the final bill, we will say, ‘Hmm, we can live with that. These stocks are just too darned cheap,’” Cramer said.
“At last the big banks, which have really done nothing during this unbelievable able rally, will start to ramp higher.”
That includes JPMorgan Chase, Bank of America, Citigroup and maybe even Goldman Sachs, he says.
As for Goldman, investment legend Warren Buffett has expressed confidence in the bank. “Lloyd Blankfein has done a great job running that firm,” he told Bloomberg.
© 2017 Newsmax Finance. All rights reserved.