Cramer's 'Mad Money' Follow-Up: Banks

Jim Cramer recommended a basket of "Bernanke Bank Stocks" on his "Mad Money" show Monday night, which included such names as Citigroup (C Quote) and Bank of America (BAC Quote). All but one of the stocks Cramer was bullish on traded higher Tuesday.

On Tuesday, shares of Citigroup closed higher, up $0.18, or 7.73% to $2.51. Shares of Bank of America closed higher, up $0.09, or 1.46% to $6.27. Shares of U.S. Bancorp (USB Quote) closed higher, up $0.74, or 5.37% to $14.52. Shares of Blackstone Group (BX Quote) closed lower, down $0.09, or 1.49% to $5.97. Shares of Wells Fargo (WFC Quote) closed higher, up $0.96, or 7.01% to $14.66.

According to Cramer, Fed Chairman Ben Bernanke's comments -- in a recent "60 Minutes" interview -- about preserving the American financial system are fueling the bank stocks' rally.

Cramer recommended a basket of what he called "Bernanke Bank Stocks" that he said are now just too cheap to pass up. This basket of stocks, he said, "could be exciting": Citigroup, Bank of America, U.S. Bancorp, Blackstone Group and Wells Fargo.

Cramer said he's also bullish on the "trade-down" trend of consumers opting for private label brands over brand names. For that trend, he said he still likes Family Dollar (FDO Quote), Ralcorp (RAH Quote) and TreeHouse Foods (THS Quote).

On Tuesday, shares of Family Dollar shares of closed higher, up $0.95, or 3.11% to $31.54. Shares of Ralcorp closed higher, up $1.66, or 2.99% to $57.19. Shares of TreeHouse Foods closed higher, up $0.34, or 1.19% to $28.96.