Monday's Financial Winners & Losers

Investors Financial Services (IFIN Quote) skyrocketed more than 27% after the asset-management firm agreed to be bought by State Street (STT Quote) in a stock-based deal worth about $4.5 billion -- a 38% premium to Friday's closing price. State Street was hit hard on the news, recently losing $4.42, or 6.2%, to $67.33. Investors Financial was up $12.90 to $59.85.

Argonaut Group (AGII Quote) gained after the insurer posted fourth-quarter earnings of $31.4 million, or 92 cents a share, up from $25.4 million, or 76 cents a share, a year ago. Analysts polled by Thomson Financial were seeking 69 cents a share. The San Antonio, Texas-based company was rising $1.26, or 3.8%, to $34.88.

Sallie Mae's (SLM Quote) stock was slammed after President Bush proposed a 2007 federal budget that would cut government support for student-lending programs. Shares were plunging $3.86, or 8.3%, to $42.60.

Unitrin (UTR Quote) sank after the Chicago-based insurer had a fourth-quarter profit of only $61.6 million, or 91 cents a share, down from last year's $86.7 million, or $1.26 a share. Revenue, at $763.9 million, was slightly higher than last year. Shares were falling $2.40, or 4.6%, to $50.20.

Morgan Stanley (MS Quote) slipped on word the broker is planning to sell an as-yet-undisclosed amount in Australian bonds. Shares were down 88 cents, or 1.1%, to $83.16.