NEW YORK (TheStreet) -- Shares of Goldman Sachs (GS) - Get Report and other big banks were higher in mid-morning trading on Wednesday, after former Goldman Sachs banker Steven Mnuchin confirmed that he was chosen to head the Treasury Department for President-elect Donald Trump's administration.
"I think you listen to Mnuchin and you think more business is going to get done, earnings per share go up," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" on Wednesday morning.
Trump had been expected to roll back regulations in the banking sector, and Mnuchin confirmed that this morning in an interview on CNBC's "Squawk Box." Mnuchin said, "We want to strip back parts of Dodd-Frank and that will be the No. 1 priority on the regulatory side."
Mnuchin also said that tax reform and fair trade will help the administration with its most important task -- to boost the economy.
"I think we can absolutely get to sustained 3% to 4% GDP, and that is absolutely critical for the country," Mnuchin said. "We're going to cut corporate taxes, which will bring huge amounts of jobs back to the United States."
A number of analysts downgraded big banks recently because they thought there wouldn't be a lot of growth, Cramer noted. However, if GDP grows and Dodd-Frank strictures on lending are repealed, then we could have loan growth.
"All we've been trying to get is interest margin growth. Imagine loan growth on top of net interest margin growth and then suddenly these companies are trading at eight, nine times earnings," Cramer commented.
Before the election, Goldman was trading below book value, Cramer noted. "The book had been scrubbed clean. It was trading below its cash. Closed its doors. That was crazy. Is this crazy? I don't know."
Goldman Sachs has underperformed all banks but Action Alerts PLUS holding Citigroup (C) - Get Report , but many banks are now seeing "amazing, amazing catchups in performance," Cramer said. "Goldman Sachs is going to do more business than we thought they were going to do, and that really does matter," he claimed.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
TheStreet Ratings team rates Goldman Sachs as a buy with a ratings score of B+. This is driven by a number of strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: GS