Cramer: Trump's Federal Reserve Nominee Is 'Fabulous' News For Bank Investors

President Donald Trump's nominee to serve as the Federal Reserve's vice chair of supervision is great news for bank investors, CNBC's Jim Cramer argued during his daily "Mad Money" show Tuesday. Trump nominated Randal Quarles, a private equity professional and former undersecretary of the Treasury during the George W. Bush administration, to act as the central bank's first-ever vice chair for supervision.

The banking industry has been plagued by strict regulations, which were set in place during the Obama administration which made "riskier banking impossible," Cramer said. Also, dividend growth was impossible without the Fed's blessings, but Quarles is the man that can change the system for the better.

Quarles couldn't have made it clearer that various financial legislation put in place in response to the 2008 recession, especially Dodd-Frank, needs "refinements," Cramer continued. Financial stress tests also need to become more "transparent" with the banks who will "no longer have to guess what the examiners want from them."

"One thing is clear," Cramer emphasized. "Quarles is going to be fabulous for those of you who own bank stocks."

Under Quarles' leadership, banks would be allowed to raise their dividends as they think fit. Coupled with a normal and somewhat predictable series of rate hikes, bank investors could make "fortunes." But perhaps more important, if bank stocks surge higher then this will likely create a "nice pop" in the broader market, Cramer concluded.

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