Jim Cramer on Bank Stocks:  Only Buy Morgan Stanley and Goldman

Jim Cramer weighs in on the bank stocks and which picks he would make.
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Are you looking to buy a bank stock?

With all of the major banks reporting earnings in the last week, we know now how the banks are faring during the pandemic and--for some--it's better than expected, at least thanks to their trading divisions.

In his Real Money column on Monday morning, Jim Cramer had some thoughts on the banks. 

"Are we finally getting some differentiation from the banks stock? Are there some that are better than others? And would you do better owning them than others after they report?" He wrote. "Sadly, the answer is no for the traditional banks, the ones that take in your deposits and lend despite the steadiness of the group's earnings this quarter. And I certainly wouldn't consider buying them over other groups that are reporting. But there is good news, the non-traditional banks are starting to break the pull away from the ETFs that so dominate the sector."

So, Cramer's thoughts? Morgan Stanley can be bough, and Goldman Sachs "may have one last large charge, to clean up the Malaysian scandal, and then it, too, is ready to roll."

Watch the video above for more.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here. 

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