Bank loan worries make it easier for Fed to cut interest rates

As news of sour banks loans rattled Wall Street, CNBC's Jim Cramer said the developments will pave the way for the Federal Reserve to lower interest rates — a move that investors across the board have been hoping for.

"Today got real ugly, but at least we finally have something that can make the Federal Reserve itchy to cut interest rates sooner rather than later: bank loans gone bad," he said. "Nothing motivates the Fed to move faster than credit losses, because they're a definitive sign that the economy is going south."

The averages dipped during Thursday's session as fears about the health of regional banks' lending business grew. The Dow Jones Industrial Average shed nearly 0.7%, while the S&P 500 lost 0.6% and the Nasdaq Composite finished down 0.