Financial Winners & Losers: Bank of America

Bank of America (BAC Quote - Cramer on BAC - Stock Picks) recorded a 44% drop in earnings for the second quarter, but there were many positives to take away -- and that helped push shares of the bank as well as other financial stocks into the green Monday.

The banking giant was able to beat analyst estimates of 53 cents a share, as per Thomson Reuters, by delivering 74 cents a share. Even though the bank had huge write-offs, it also told investors that the Countrywide deal would be accretive in 2008, earlier than the original 2009 timeframe. BofA also declared a 64-cent dividend and booked $20 billion in revenue. The stock shot up as much as 10% in early trading, but had settled back to a gain of 6.9% to trade at $29.40.

The NYSE Financial Sector index stayed in positive territory for most of the session, but ended the day just below the flat line at 6,347.56.

Investors bought up shares of Regions Financial (RF Quote - Cramer on RF - Stock Picks) one day before it reports its earnings results. Many analysts expect the bank will drastically cut its dividend and report a dismal second quarter. But the Birmingham-based bank rose 2.9% to $10.40, perhaps lifted on the thought that maybe banks had turned a corner on the huge losses in the credit markets.

American International Group (AIG Quote - Cramer on AIG - Stock Picks) shot up 5.8% to $26.53 after Bank of America raised its rating from neutral to buy. The analyst suggested that the new CEO will simplify the company and that the market will regain confidence in it as well.

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