Monday's Financial Winners & Losers

Bank of New York (BK Quote) soared nearly 10% after announcing a $16.5 billion deal to merge with Pittsburgh's Mellon Financial (MEL Quote) and form a new entity called Bank of New York Mellon. Bank of New York shareholders will receive 0.9434 shares in the new company, while Mellon shareholders will get 1 share in the stock swap. Bank of New York shares were up $3.35 to $38.83. Mellon shares were up $1.85, or 4.6%, to $41.90.

Jefferies Group (JEF Quote) gained after reaching a $9.7 million settlement with securities regulators in a gift-giving scandal. Regulators allege the broker gave more than $2 million in gifts to Fidelity employees in a bid to win trading activity from the mutual fund giant. Shares were up 55 cents, or 1.9%, to $29.41.

Charles Schwab (SCHW Quote) rose after an analyst with Keefe Bruyette & Woods upgraded the stock to outperform from a market perform recommendation. Shares were up 41 cents, or 2.3%, to $18.43.

Goldman Sachs (GS Quote) surged on a double shot of good deal news. The broker is selling its Horizon Wind Energy subsidiary, which could fetch up to $1.5 billion. The investment bank also reportedly sold its majority stake in Korea Express for $319 million. Shares were up $3.35, or 1.7%, to $197.85.

Reckson Associates Realty (RA Quote) plummeted after Mack-Cali Realty (CLI Quote) and Macklowe Properties withdrew from a collaborative bid to acquire the real estate investment trust for $49 a share in cash. Carl Icahn, the other interested party, has made a new offer worth the same amount, but most of that bid would involve stock from his American Real Estate Partners (ACP Quote). Reckson shares were down $2.29, or 4.8%, to $45.80.