Monday's Financial Winners & Losers

First Republic Bank (FRC Quote) surged 40% after Merrill Lynch (MER Quote) announced it would buy the investment firm for $1.8 billion, or $55 a share. First Republic shares were up $15.36 to $53.66. Merrill Lynch shares were down $1.19, or 1.3%, to $93.34.

Premier Community Bankshares (PREM Quote) also soared after United Bankshares (UBSI Quote) announced a deal to buy the Virginia regional bank for $201 million in a cash and stock deal. Premier stockholders can elect to get either $34 in cash for their shares, or 0.93 of a United share for each Premier share. Premier shares were adding $12.90, or 64%, to $33.10. United shares fell 44 cents, or 1.2%, to $35.83.

Countrywide Financial (CFC Quote) climbed again on speculation that it could be acquired by Bank of America(BAC Quote). The Financial Times reported last week that BofA is in merger talks with the nation's largest mortgage bank. But a Sandler O'Neill analyst cast doubt on the merger talk, saying BofA is more likely looking to outsource some of its mortgage processing work. The mortgage lender's shares rose $1.61, or 3.8%, to $43.61.

Cowen Group (COWN Quote) sank after a Merrill Lynch analyst cut his rating on the investment bank's stock to neutral from buy. The analyst cited a lack of upside potential for the firm. Shares were falling 64 cents, or 3%, to $20.06.

MBIA (MBI Quote) fell despite settling a Securities and Exchange Commission investigation into the Armonk, N.Y., bond insurer's accounting practices. The bond insurer paid $75 million in penalties to settle an investigation into allegations it misused a so-called finite insurance policy to avoid booking a $170 million loss in 1998.